Sorry, I don't quite know where to start on this thing. I'm 67 and considering retirement some time in the next few years. Not really looking for advice, mostly looking for where to get the numbers (aside from the stuff from work about my pension and all, which I could ask HR about) and where to find out what the rules are/how things work, so I don't mess up and leave us with a much lower standard of living.And it's partly about whether/when my partner and I could get away (financially) with getting married.
Difficult to answer but here goes. Based on what I have found. Get from HR like you said, all the info on your accounts, the rules and options. Account Type - Taxable at what rate? - Rules for withdrawal and/or Exchanging.Pension rules and Dependents and Beneficiaries. Because you mentioned marriage, If you marry before or after retirement does it make a difference in who is covered or can receive funds. In general if you marry while working then spousal inheritance rules could be different than if after.The IRS has all the publications on rules for taxation. Social Sec Admin has rules on benefits. Again Married or not makes a difference.I recommend to get IRS account for each person. Also SSA.gov account for each.Medicare which you may or may not have.The Fool boards and services offer some good advice.I also like Kiplinger Personal Finance as a reference. Online I often use www.investopedia.com to get answers to particular questions. If you like doing your research and doing things on your own go for it.If you hate the details and just want the answers get a fee based advisor and let them guide you.I retired last year so have gotten a lot of good answers in the last 2 years. Still learning more though with every tax return. Message boards like these give mostly good advice. Sometimes they can fall short though. These are things that I use , you may find others that are more useful to you.Best of luck.
Most of the basic information you need can come from records mostly in your checkbook.What are your current living expenses and how do you expect them to change?Don't forget that you will no longer be making contributions to retirement plans or IRA/Roth IRA (unless you plan to work a part time job etc for earned income).Healthcare costs are one of the most difficult. Will your employer help? Medicare and Medicare Supplement or Medicare Advantage. You can get basic info and estimate future costs. But of course your health experience has to be considered. Also your life expectancy. These days many of us expect to see 90 or more. So you need a long term view.You can probably get pension and Social Security info easily. If you have an IRA or 401K, many decide to defer Social Security until later and work down the IRA or 401K balance to reduce or eliminate RMDs at age 72. In return waiting gets you a better check from Social Security later. Personally I think this is controversial. But sit down with a calculator and see what works for you.Once you have all your income and all your expenses down on paper, are your costs covered? Do you have income from other sources like investments, rental income, etc?If you have investments and your income is a bit short, TMF usually will allow you to spend 4% of your investments per year toward those living expenses.If the numbers don't work you can look into other ways to address the difference. Working part time, downsizing or moving somewhere less expensive are common ways.Personally I would focus on covering your basic living expenses. Of course you will want to travel, take up hobbies like golf, and enjoy some of the better things. Your vehicle may need an update in a few years. In a good year all these things become possible. You want to cover your basic survival expenses in a bad year.In your case, marriage suggests some significant adjustments. Best you can do is estimate them as best your can.These are the basics. Rule your Retirement is TMF's premium board that addresses these issues. But a sharp pencil and a good calculator can get most of what you need.
"And it's partly about whether/when my partner and I could get away (financially) with getting married. "*************************************************************************************Getting married is the easy part.Staying married through the later ages 60s, 70s, 80s, 90s and possibly beyond is trickier.When one partner needs additional care - when one partner might not remember all thethings you might expect - when one partner needs assistance.from my perspective, married life is great - even with the the issues and concerns that come withthe life. But be prepared - the finances are not the major part of a marriage.The caring and friendship - the talking and sometimes shouting - the feelings are the critical thing.Howie52Not the answer you might want.
Both my bank & my mutual fund company will calculate Minimum Required (IRA) Withdraw on a simple phone call.You can have it taken from one fund (account) or proportional from all holdings.Just let them know.
The question about marriage was about how to find out how it might affect income (& I guess taxes). A few years ago I was hearing stuff about older people living together without getting married because of something about social security (?), but this was before I met my partner & I wasn't really paying attention.
This is a question impossible to answer with any accuracy due to the limited info you've given and the very large number of moving variables. I'm not trying to be evasive, but having done this stuff for a living many years ago, I can say the decision making here are complex. But here's some of the more important starting points.Health care: If you deferred the Part B premium due to coverage by your group health plan, you'll have to include this and other coverage as a new household expense. Otherwise, as you're over 65 you don't have to fuss with obamacare coverage. This has made the decision making much easierHousehold income requirement.Begin by taking your total household income from work. That's the gross total, or box 5 of your last year's W2 form, assuming all/almost all household income comes from the one employer.From this subtract the following (use annual figures or estimates):- contributions to your retirement plan at work and to your IRA if applicable- contributions to an HSA, FSA or employer health plan, if applicable- FICA tax withheld- Federal and state Income Tax withholdings- Any other allotments you might have that you will no longer be paying (dues, charitables, etc)- The reduction in auto insurance premiums if you commute by car- Cost of dry cleanings or work clothes- Professional fees or dues you no longer plan on continuingThen add to this amount expenses you'll have because you are retired- Medicare part B premium if this has been deferred due to coverage by employer plan- A Medicare part D and Medigap policies premiums....or....Medicare Advantage plan premium if they have been deferred while covered by your employer plan- Healthclub, golf or other recreational memberships you plan on- Monthly loan costs for RV or Boat- Hobby expenses- Travel- Season tickets to whateverDivide this number by 12 and multiply by 1.10 (increase by 10%). This will be your monthly income needCompare this to your expected income from Social Security and your pension. If these are not sufficient and you have retirement plan savings, then figure out what % of that you'll need to withdraw each year to meet household income need. If this exceeds 6-8%, you'll likely have a retirement funding problem, unless you do other things like downsize your home or shed other income consuming assets.If you do not have Fed/State tax withheld from SS or Pension, you'll have to pay quarterly estimated tax payments. Depending on your Fed and State tax brackets, this will usually come out to be somewhere between 10% and 20% for most retired households.Are you handy in Excel? It'll help if you are :-)BruceM
My guess is that one or both of the people were drawing SS on a previous spouse's SS records. If they marry they will both be forced into drawing on their own records again. That could result in a substantial reduction in income.
Yes my red haired great aunt married a wealthy man and when he passed she got his SS and I think a pension so her next beau she married “in the eyes of God” but not in the eyes of the US Government.... because money.When that beau became senile she didn’t have to pay for his care either...I guess they divorced in the eyes of God? I was young I didn’t get every detail. Definitely best she didn’t marry though.
Definitely estate issues marrying again too.
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