No. of Recommendations: 3
Watty56 writes,

If I understand it right, his monthly expenses are currently $2,300 including $700 for health insurance. When he turns 65 he should be eligible for Medicare so his monthly expenses will be down to $1,600 and at 66 he will get $1,150 per month so that only leaves $450 per month to be covered by his retirement funds while his expenses remain the same. That is only $5,400 per year or less than 1% of his current nest egg which even if invested very conservatively it would probably never be drawn down.


The Part B Medicare premium costs $110.50 per month for 2010. And don't most retirees buy some kind of supplemental Medicare insurance to cover the 20% that Medicare doesn't pay? I don't see how his $700/month health insurance cost completely disappears at age 65.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.