Trying to figure out expenses in retirement.
When Working, say I earn $X and save $Y. Then, per KlangFool, my expense is X-Y.
e.g. say I earn $145k and save $45k. Then my expense is $100k.
If I want to maintain the same lifestyle in retirement, I will need to spend the same X-Y amount, less taxes. (No need to debate this.) But, because part of that is taxes and other payroll deductions, which will change in retirement (assume 65+ year olds), I will need to make adjustments to "X-Y amount, less taxes" I have now.
To make this simple, assume all the $ I will earn in retirement is pretax ordinary income. (I will make the necessary tax adjustments for other sources of income.)
From my understanding, FICA is gone. Anything else that is gone in retirement? Thanks!
When Working, say I earn $X and save $Y. Then, per KlangFool, my expense is X-Y.
e.g. say I earn $145k and save $45k. Then my expense is $100k.
If I want to maintain the same lifestyle in retirement, I will need to spend the same X-Y amount, less taxes. (No need to debate this.) But, because part of that is taxes and other payroll deductions, which will change in retirement (assume 65+ year olds), I will need to make adjustments to "X-Y amount, less taxes" I have now.
To make this simple, assume all the $ I will earn in retirement is pretax ordinary income. (I will make the necessary tax adjustments for other sources of income.)
From my understanding, FICA is gone. Anything else that is gone in retirement? Thanks!
Statistics: Posted by lilshow — Wed Aug 14, 2024 7:37 am — Replies 0 — Views 63