Tad Smith

Comments:

• Thanks, Richard. Monthly cash flow is definitely what it is all about... same as when we are working. Throw in accounting for inflation and it can be as simple as that. Considering an annuity for anyone in their 60's is probably worthwhile, especially at today's higher interest rates.

  Post: RDQ says ignore those big scary numbers

  Link to comment from August 22, 2024

• I think money really is a consideration for a married couple (both 30, for example). Perhaps between them, they still owe $200K+ in student loans, and they understand that (today) daycare for two kids can be $3,000+ per month. A starter home in many parts of the country is $400K+, in some parts of the US -- it's $750K+. If they live far away from each of their parents, the local support mostly requires further money out of pocket. If one spouse loses their job, it puts their whole "empire" up for grabs. My parents were just a little older than you are, Richard, so, growing up in the midwest in the 70's with my mother as a teacher and my father as a salesman, it was pretty easy middle-class living for them (and me) with their $350/MO mortgage, 2,200 sq ft house, healthcare paid-for, and always second and third-hand cars. It got much harder for them as I was exiting high school in the early 80's because my father lost his job. He basically never recovered from that. Young people are wise to consider money, and I see plenty of young families near me with 2-3 children... so, it's definitely happening with or without financial planning and consideration. Best to consider it.

  Post: Kristine Wonders: Does Not Having Children Change How You Plan For Retirement?

  Link to comment from August 19, 2024

• When I was about 28, it was apparent to me that I didn't want to have and raise kids. So I didn't. Certainly, there may be some younger people today who delay or forgo having kids (even though they want kids), but I still see plenty of young families near me. With multi-generational households, Medicaid, ObamaCare, (prepandemic level) Child income tax credit, and other community benefits available in most states, I see families that seem very happy -- regardless of what is probably varying income levels. Often people don't have kids because the right partner doesn't come along and they don't want to raise a kid alone, amongst a myriad of other reasons. Myself, I remain content more than 30 years after I realized I didn't want kids. No regrets.

  Post: Kristine Wonders: Does Not Having Children Change How You Plan For Retirement?

  Link to comment from August 17, 2024

• After experiencing 10+ years watching my mother go through early onset FTD (frontaltemporal dementia), I am aware of the costs of ongoing care. Her LTCI policy paid out over $750K until her death in 2011 -- an "old style", no limit policy that a few people here have referred to... At age 60 myself now, I have a cash value life insurance policy with a version of an LTC rider, and I just purchased a retirement annuity with a guaranteed lifetime income benefit of $5,000 per month (to trigger at age 69). The annuity has an LTC rider that doubles the monthly income for up to five years if I'm unable to perform 2 of 6 ADLs. The LTC rider included with my permanent life insurance policy is good, but not of great value until I'm 75+. Current pricing of LTCI policies coupled with their certain rate increases led me to the alternative path that I've chosen. This path leaves me a bit vulnerable in my 60's, but I will still be working so we'll see...

  Post: Long Term Care? Who has it?

  Link to comment from August 17, 2024

• So sorry to hear about this life-turn, Jonathan! Prayers, thoughts, and fingers crossed. As my wife went through a serious cancer situation about seven years ago (and continues to do well), my observation is that the pre-eminent clinics like Johns Hopkins, Mayo, and MD Anderson (amongst others) make a world of difference. For my wife, it was the Mayo Clinic, Phoenix. If you haven't already done so, please consider getting a second opinion and/or diagnosis validation and treatment plan validation from one of these health systems. Frequently, this can be done by phone.

  Post: The C Word

  Link to comment from June 15, 2024

• Excellent. Thank you. As a health insurance broker I want your readers to understand that the subsidies (tax credits) are quite a bit higher now than you indicated due to the American Rescue Plan Act of 2021, and recently reaffirmed through 2025 within the Inflation Reduction Act. Depending on their zip code, a couple in their late 50's or early 60's can now qualify for a tax credit with household modified adjusted gross income as high as $300,000. Sometimes more... This has been a great assist for many of my self employed clients as well as "early" retirees. In Colorado, for example, a couple -- both age 63 -- living in Denver will qualify for a tax credit with MAGI of less than $215,000; whereas if they are living in Vail, the tax credit ceiling will be $315,000. If one member of the married couple is already on Medicare, the tax credit threshold is about half of the above totals. These will vary across the US depending on the cost of health insurance in a given state and a given zip code within regions of each state.

  Post: Juggling for Retirees

  Link to comment from January 21, 2023