Just find a good financial advisor and pay them for their service. It'll save you money in the long run IMO. Go for one that is fee-only.
When will you be able to retire?
- Thread starter SEIOWA CLONE
- Start date
I've been looking but the ones who advertise for fee based services actually want a continual fee over time and not just on an occasional basis.
Could you tell me more about the value they give over time as opposed to just doing an assessment and doing the follow-on work on your own?
By over time do you mean like yearly? Wouldn't be all bad to have yearly mtgs IMO.
Minor clarifications for the casual observer:
1- The standard deduction for married couples is $30,000, which means that the first $30,000 of combined income from SS benefits, pensions, and withdrawals from traditional retirement accounts is tax free.
2- There is no FICA tax on withdrawals from traditional retirement accounts, nor is there FICA tax on SS income. So that flat tax of 7.5% that you paid your entire working career is a thing of the past in retirement.
3- After that first $30,000, the next $96,950 is taxed at a rate of 10-12%
4- If your SS income, pension income, and withdrawals from traditional accounts total $126,950, then you will owe tax of $2385 + $8772 = $11157 which equals an effective tax rate of 8.8%. Had you earned that same income from a job, you would owe the same $11157 plus $9521 in FICA tax, for a total tax burden of $20678, an effective tax rate of 16.2%
Overall, the blanket statement that withdrawals from traditional retirement accounts are taxed substantially is a bit misleading. They are taxed less than the same amount of job based income.
The x-factor of course is RMDs, which is a whole other topic.
H
I am going to be retiring in a few years. I have a Vanguard advisor that is helping me prepare for that with investing and the navigation of social security, IRA's, Roth conversions and RMD's. I also am going to hire a person to consult with on a yearly basis to oversee what we are doing and to help my wife with all of that stuff, if I should pass in an untimely fashion.
We are less than one nestegg double away from retiring. Hoping to retire in about 5 years at age 58, which happens to coincide with our mortgage being paid off. Market returns of 8% or better, combined with not losing my job, would get us there comfortably.
Returns of 10% would get me there a year early. Our nestegg target is a bit on the conservative side. Shave $500k off of that target and we could be set in a just a couple years. Still not certain just how much income we will need in retirement.
H
Returns of 10% would get me there a year early. Our nestegg target is a bit on the conservative side. Shave $500k off of that target and we could be set in a just a couple years. Still not certain just how much income we will need in retirement.
H
If you're comfortable doing your own investing, I'd suggest meeting with a CPA who specializes in tax planning on an hourly fee basis.
$120 per year gives you a very good idea where you stand. Plus you can analyze different scenarios going forward to stress test and see how things may turn out.
Financial and Retirement Planning Software | Boldin
The #1 retirement planning tool online. Go beyond savings and investments with the best and most comprehensive financial planning software.
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Longer the wife works, better chance I can retire.
My wife is “retiring” at the end of the month. Hoping to relocate in 10 years when my oldest graduates high school and we’re in our late 40s. At that point hoping to be at a place where I’ll still be working for another 5 to 10 years, but have the flexibility where I can work a job I want/is available more than needing to hit a necessary earned income level.
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I like using Bolden. A very good financial analysis tool.$120 per year gives you a very good idea where you stand. Plus you can analyze different scenarios going forward to stress test and see how things may turn out.
Financial and Retirement Planning Software | Boldin
The #1 retirement planning tool online. Go beyond savings and investments with the best and most comprehensive financial planning software.
I have a well organized spreadsheet that I update every year. I’m on planning on working for another 30 years… until I’m 67.
My assumptions (savings rates, returns, draw down rates, and lifespan) are all very conservative.
So I suppose I could retire sooner. Or maybe live more frivolously now. But I’ve told myself I’ll reassess the actual date much more seriously when I’m 45 and just keep accumulating for now.
I don’t know how one could ever anticipate medical expenses….
My assumptions (savings rates, returns, draw down rates, and lifespan) are all very conservative.
So I suppose I could retire sooner. Or maybe live more frivolously now. But I’ve told myself I’ll reassess the actual date much more seriously when I’m 45 and just keep accumulating for now.
I don’t know how one could ever anticipate medical expenses….
Your last part, medical, is why many retire before they want. There are many that say I’m going until 65 for Medicare. Then a medical problem arises and forces them out.
I also use Bolden. My company also provides a free retirement checkup with a financial advisor every few years, which I've been taking advantage of for a decade or so. I have about 30% of my retirement savings in Roth and at this age I'm probably on the conservative side of investing. Over the last few years, I've moved a lot of my investments to TDF's (2030) and even created a 5 year TIPS ladder that starts in 2030.
One advantage I have is that I have some older friends who are retiring now(at 58) so I can watch what struggles they have. After 35 years of saving for retirement, they are struggling with the concept of actually withdrawing. They have plenty of money, but it's always a struggle to make sure you're doing the right thing. It's also challenging when you have no children. I'm handling my mother's finances right now, and I can't imagine what she would do if i wasn't.
One advantage I have is that I have some older friends who are retiring now(at 58) so I can watch what struggles they have. After 35 years of saving for retirement, they are struggling with the concept of actually withdrawing. They have plenty of money, but it's always a struggle to make sure you're doing the right thing. It's also challenging when you have no children. I'm handling my mother's finances right now, and I can't imagine what she would do if i wasn't.
In 12 years at 55, hopefully. As long as there isnt collosal ratfarkery or natural disaster affecting the markets.
Now, that's retire from my current job. I may contract on occasion, or find a lower key job. My wife is a year younger than me, and likely will be a full time professor until her late sixties. Personally, I hope Hy-Vee expands to NE Ohio. That way I can end my working days as I began them.
Now, that's retire from my current job. I may contract on occasion, or find a lower key job. My wife is a year younger than me, and likely will be a full time professor until her late sixties. Personally, I hope Hy-Vee expands to NE Ohio. That way I can end my working days as I began them.
