FINANCIaL
FIELd NOTES
How Much Income Do You Need To Replace In Retirement?
A common rule of thumb is that retirees will spend on average 80% of their pre-retirement income. In practice, however, I have seen the “replacement rate” vary greatly from person to person.
For some, their work keeps them very busy, so the first few years of retirement are filled with long-awaited travel plans that lead them to spend more. For others, the simplicity of life allows them to eat more at home and travel less, which leads to a decrease in spending…
How Much Does Private Healthcare Cost Before Medicare?
Retiring before 65 when Medicare begins can bring significant healthcare costs as early retirees are forced to find private healthcare plans.
When considering premiums and out-of-pocket health care expenses, $1,000/month per person is typically a good estimate, although it varies by the type of plan selected…
Should You Sign Up For Medicare If You Are Still Working?
When retirees turn 65, they typically sign up for Medicare unless they are covered by a federal or state government health care plan. However, if you are still working when you or a spouse turns 65, that becomes a bit trickier…
RMD Age Changing Again? SECURE ACT 2
Legislation that was approved in The House toward the end of March has the Required Minimum Distribution (RMD) age set to change again if fully approved.
The proposed legislation would not change the RMD age for anyone who has begun required distributions, only for those who haven’t yet…
Getting A 91% Charitable Tax Deduction In Virginia – Neighborhood Assistance Program
If you live in Virginia and are searching for charitable organizations to give to, you may want to consider the Neighborhood Assistance Program (NAP).
According to their website, “In return for [your] contributions...individuals may receive tax credits equal to 65 percent of the donation that may be applied against their state income tax liability.” That’s right - a 65% dollar-for-dollar credit on your Virginia taxes!
The Science Behind a Happy Retirement
While most of what I write here is dollar and cents data, there is more to a happy retirement than “Can I afford to?” A second question that every pre-retiree should ask themselves is “What will I do with my time and will it be fulfilling?”
I often encourage clients to take an extended leave of absence from work when they are a year or less away from retirement. I think trying out what you think you’ll do next and seeing how it goes is well worth the cost of losing some leave…