How far will $1 Million go in retirement in your state?
- Thread starter gfh77665
- Start date
My mortgage is zero. Been that way for years. And the house value has skyrocketed.
And I don't think many people have $1M or more savings...
I've seen it reported that 1 in 6 have at least $1M.
I suspect this is more accurate:
https://www.fuchsfinancial.com/retire-with-1-million/
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And I bet most of them live in Silicon Valley or at least California.
4WD
$50 site donor 2025
A. Medicare Part A covers inpatient hospital bills minus a $1,676 deductable this is your standard free insurance at age 65
B. Optional Medicare Part B will pick up all other bills, outpatient hospitals, tests, doctor bills etc ...That has a $257 deductible and pays 80% of everything, You have to pay 20% of everything with no limit at all in place.
Cost for this optional plan is $185 a month for individuals with a modified income of less than $106,000 a year. Premuims are higher for higher incomes.
SO the above is pretty much what you get out of the box unless at age 65 UNLESS YOU tell Medicare you do not want Part B, then they will not take $185 a month from you. With the above you are responsible for 20% of all outpatient and doctor and testing bills. That can really add up, there is no out of pocket maximum.
C. The above does not include prescription drug coverage except for some treatments administered in hospital (some chemo etc in hospital) so you do have to purchase Part D if you want drug coverage. Most plans under $70 a month, some even free or just a few dollars. You REALLY need Part D drug coverage. (keep in mind, if you do not select drug coverage and do so later on, you will for the rest of your life pay a higher penalty premium)
Im on a 6 month regimen of a drug used to treat prostate cancer, it is prostate cancer specific. My Part D is paying $3,300+ a month for one $100+ pill a day. 6 month cost to my Part D insurer is $18,000 to $19,000
My cost looks like it is going to come in less than $2000 or possible I could hit the $2000 max out of pocket for it.
Im only entering my 3rd month, will know more. All I know is my insurer this month paid $3,314.83 for a month supply of pills taken once a day and I am taking them for 6 months. I paid $90 for the month.
All these insurance plans have to follow what medicare dictates. The drug I am taking is a new one and only in the last couple years, if that long Medicare approved it for just prostate cancer.
At a min you need all the above and still you would be responsible for 20% of all out of hospital health care with no maximum limit
D. Then comes supplemental medigap plans, Most popular are Part G and N. Will cost you at the outset an additional $100 to $150 a month. The plans pay for everything Medicare Part A and Part B do not pay. SO you pretty much never have a significant bill. The costs for these plans do go up as you get older but it's a good deal.
E. Last but not least is the all encompassing Medicare Advantage Plans. Which in most cases covers all the above and then even include extras. These plans must still cover everything Medicare dictates. The cost in many cases is no more than the $185 Part B coverage. Meaning you do not pay extra, most include drugs. .
HOWEVER you do have co-pays for everything yet the plans do have out of pocket limits which have been rising. One has to be careful, they can vary wildly but Medicare dictates how much these private plans can set the maximum. The maximums are starting to get high however you have to be REALLY sick to hit the ceiling for many. Out of pocket max depending where you live and the plan can be as low as $3,500 or as high as $10,000
Also these plans do require in many cases you stay in their networks. Some people make a big deal out of that, yet company health care before retiring works much the same way. It can be unsettling though. Health Networks have been battling with these plans. Most times works out.
Finally, research, research, research at http://medicare.gov and sure, talk to one of those services that advertise advice to learn more.
DO not take anyones word for anything, including me and my posts or anyone else until you confirm on the Medicare Site or with a licensed Medicare advisor.
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There are some circumstances where reaching the maximum out-of-pocket, doesn't actually mean you've reached your maximum out-of-pocket... Certain cancer drugs for example, you'll still be paying copays, regardless of long ago reaching your maximum out-of-pocket for the year. At least under Humana's Medicare Advantage plan.
They are NOT Human(a)tarian in my experience. I dealt with those vultures on my parents behalf.
They are NOT Human(a)tarian in my experience. I dealt with those vultures on my parents behalf.
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I don't think it implied most people have 1M. They just used a easy round number for illustration. If someone has 500K, they can reduce the posted time 1M lasts by half. Its just easy to understand the realtive differences within the 50 states.
2 million is good because you can lose a million and still have a million
It won't equal 1/2 the time because the $500K has much less than half the earning power starting out, calculating compound interest. You will gobble up the principal much faster.
No, half would have exactly "half" the earning power. But "earning power" is not the issue anyway. The amount of time it will last for retirement state-to-state is the point of the graph.
I don't see the point of averaging the whole state. You will find most states cost of living overlap and the individual cities between multiple states correlate instead.
NYC, LA, Seattle, San Francisco etc are more alike than San Francisco, Napa, Eureka, Truckee for example.
NYC, LA, Seattle, San Francisco etc are more alike than San Francisco, Napa, Eureka, Truckee for example.
I like your arithmetic. When your account drops by (a lot) and it doesn't matter, that's a good thing.
A whole lot better than wishing you had a 10 spot...
OK-anybody who bought in the last 5-10 years in many parts of the country has substantial equity. It's not a noose if you can sell your house and pay off the loan-and then have money left over. Of course-you still need a place to live.
Its almost a certainty that living in OK, AL, or KY is significantly more economical than living in CA, MA, or NY.
If someone can't see that by simply taking a glance at the chart, either they are not trying, or they are so biased they don't want to see it.
Feel free to disregard it if you like.
Some examples: My mom is 68 and has less than a million in retirement savings. She’s got a mortgage of less than $100k owed on a $350k house.
She’s been retired for 5 years, collects my dad’s social security as a survivor benefit until she turns 70, then she’ll draw on hers. She spends almost nothing and doesn’t travel much. She doesn’t have a pension, just some investments and a 401k but I’m positive they are less than a million. She’s content reading a book or browsing around stores but not really buying. Her car is 10 years old and doesn’t have a ton of mileage and she’s not a car person so she’s content with it. She’s owned 3 vehicles in the last 37 years.
My in-laws are early/mid 70s and have multiple homes, expensive vehicles, and like the finer things including charter air travel. They probably spend about a million a year and own their homes and cars outright and have no other debt.
All that to say it all depends on your lifestyle and how much you have to spend.
She’s been retired for 5 years, collects my dad’s social security as a survivor benefit until she turns 70, then she’ll draw on hers. She spends almost nothing and doesn’t travel much. She doesn’t have a pension, just some investments and a 401k but I’m positive they are less than a million. She’s content reading a book or browsing around stores but not really buying. Her car is 10 years old and doesn’t have a ton of mileage and she’s not a car person so she’s content with it. She’s owned 3 vehicles in the last 37 years.
My in-laws are early/mid 70s and have multiple homes, expensive vehicles, and like the finer things including charter air travel. They probably spend about a million a year and own their homes and cars outright and have no other debt.
All that to say it all depends on your lifestyle and how much you have to spend.
Here is a table showing the annual inflation adjusted income and time period that one million dollars will deliver with various Returns on Investment (ROI) and various inflation rates.
