<p>@Colorado_mom, nice state tax rate map. It makes me feel better about what I have been paying.</p>
<p>Look at that California rate, coming in #1 at 13.3%. Yikes.</p>
<p>A lot of people in CA that we know are moving to the next state over like Las Vegas when they retire. Now I can see why, no state income tax.</p>
<p>Health insurance costs are really only a factor until age 65. Medicare is incredibly affordable (compared to over the counter plans). Some of you are making it sound like youâre paying exorbitant rates for life! Iâm just talking about covering the gap between 60 to 65. INCOME not assets determine ACA subsidies. A catastrophic plan that is ACA compliant with little income? is 800/mo. with subsidies. After 65, youâre on Medicare.</p>
<p>But donât forget that only one person not the whole family. My husband is older and when he turns âsexyâ five(as he often jokes around), he gets Medicare but not the rest of the family.</p>
<p>well, my W is a cradle robber. she has me by 2 years.</p>
<p>" A catastrophic plan that is ACA compliant with little income? is 800/mo. with subsidies."</p>
<p>Iâm confused. I thought you said a Cadillac plan was $800 a month. Maybe you meant catastrophic plan, and in that case, thatâs no bargain. It means huge deductibles before many things are covered. As we get older, we get sicker, as though you are fortunate with your teeth, maybe your wife wonât be. Plus, perhaps after 20 years of not getting dental cleanings, you might need a lot of work done eventually.</p>
<p>I just think youâre too hopeful, giterdone. $9200 a year plan could cost a lot more in ten years. Multiply that by five years and thatâs not chump change. But hey, be hopeful all you can. I just wouldnât count on Uncle Sam to take care of anything, heâs practically dead broke right now.</p>
<p>âIf youâre around 50 years old and have a target retirement age of 62. 200k conservatively invested will provide 60k/year of annual income (including 2k/mo in SS), adjusted for inflation, for 22 years! If you can wait 'till 65 years old? you can approximate the same amount starting with about 150k.â</p>
<p>I dont think a 6 percent after tax return and 2 percent inflation are conservative numbers.</p>
<p>DragonmomâŠI think your neighbor knows.</p>
<p>I prefer using numbers that are conservative. </p>
<p>$150,000 spending a yearâŠ$25,000 SS cutting that to $125,000âŠ</p>
<p>3% inflation⊠4 percent after tax returnâŠ30 yearsâŠ</p>
<p>You need a little more than $3 million. A little less than $3.3 million.</p>
<p>If your return is higher or inflation is lower⊠You need less.</p>
<p>I like this calculatorâŠit is simple.</p>
<p><a href=âRetirement Calculator - How much to retire?â>http://www.bankrate.com/calculators/retirement/retirement-calculator.aspx</a></p>
<p>IxnayBob, that is a heck of a property tax.</p>
<p>Wow, I canât imagine $5000 or $15,000 annually in dental expenses. Our medical plan covers part of our dental expenses every year, including crowns, fillings, exams, gum cleaning. Fortunately, none of us have needed anything like implants or root canalsâthey sound painful.</p>
<p>Am glad our property taxes are well under a few thousand a year rather than $38,000 per year. That latter amount is quite high.</p>
<p>Yes, $38k is quite high for property tax. The town has great train service to NYC, a very good school system, and fully a third of the property tax is taken by the county to subsidize Newark NJ. I think it is one of the most corrupt counties in the US (and I lived near New Orleans for a while). But, for now, we pay up and bite our tongues.</p>
<p>For you dental-phobes out there: implants, root canals, gum surgery, etc., have become painless in the past few decades (well, except for their cost). </p>
<p>glitterdone-
I am 4 1/2 yrs older than my DH. Your wife is hardly a cradle robber #-o Next year I get to go refile our county homeowner taxes for an exemption that should reduce our taxes by 70%. Thats helpful since they went up due to a reappraisal of the houses, by 35% this year! We were going to appeal but since I get to file for the reduction next year we decided it wasnt worth the hassle.</p>
<p>Donât forget taxes on the earnings generated by your nest egg.</p>
<p>If you have a $3MM nest egg that is not in a Roth, whatever you are assuming as your return on investment is before tax.</p>
<p>Accepting only a 4% ROI on investments? @-) I know people whoâve FIRED their FP for producing less than 8! And these are VERY successful people. Although they (the FPâs) did get a reprieve in '08 & '09, 8% is very much expected and delivered. If your FP is scaring you down from that? theyâre what we call in the Midwest⊠âsandbaggingâ</p>
<p>To each his/her own on the dental stuff. I donât judge those going every year. But I donât think chiropractorâs are doctors either. 
I have zero mouth problems and it must be a routine/habit develped when youâre young or when necessary. I donât track friends visits, but weâre not unusual in my family. Just good teeth and good oral health with a little luck, I guess. White as can be⊠Iâve had no more than 2 cavities in 50 years. Last time I went was because the W nagged me to death⊠got the x-rays - cleaning, a pat on the back and bill $150 bucks. And 2 hours taken out of my day. To each his own. :-SS </p>
<p>Earlier, I did miss-type (fingers too fast for my brain) and typed âcadillac planâ instead of âcatastrophicâ plan. My bad. But point is the same. I can roll the dice and pay a 10k deductible if I have too? since I havenât reached our family out of pocked limit, ever!</p>
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<p>If the earnings are capital gains, itâs taxed at a lower rate. AND when you sell $80,000 worth of stocks that are appreciated 30%, your earning is only about $20,000. You are paying capital gains tax on $20,000. Isnât the capital gains tax about 0 at that amount?</p>
<p>A well diversified retirement investment portfolio will have income generating securities (generating interest payments, as well as dividends), as well as the capital gains that will be generated by the sale of securities.</p>
<p>Any assumed return figures will include the return on both the dividends and interest income, so the return on the portfolio will not only have capital gain considerations, but will have interest income and dividends annually to be considered. </p>
<p>In a well diversified portfolio, interest and dividends will make up a significant portion of the annual return and the taxes on these will be an important factor that needs to be considered, especially when you are discussing a portfolio of the $3 million size that was previously discussed.</p>
<p>^Very true. I am assuming we were discussing an extremely simplified portfolio for argumentâs sake. How much dividend income does a $1M portfolio generate ideally? Arenât divined income can also be qualified?</p>
<p>^ My retirement portfolio is all in IRAs and 401Ks, so it will all be taxable as regular income.</p>
<p>If youâve managed to pile up sizable assets in Roths and outside of retirement, thatâs great, but for many people taxes will be a significant expense.</p>
<p>
Yes, CA likes to lead in so many things financially destructive.</p>
<p>@iglooo, a portfolio of stocks (total stock market) and bonds (total bond market) that is reasonably balanced will return something like 2%, maybe 2.25%, exclusive of capital gains. </p>