I'm pretty sure that is the case...I would agree with annuitizing if there is no other way to cover their income need once they both claim SS. I am not clear if that's the case.
$4K/mo x 12mo = $48K/yr expenses >> $9.6K her SS + $24K his SS = $33.6K/yr income (no pension).Monthly expenses about $4000; annual expenses $50-60,000
My Social Security $9600 annually, Husband's Social Security will be $24000 annually.
Husband has not tapped SS yet, so they have a shortfall on the order of $3,200/mo which needs to be addressed soon and that means tapping the portfolio. The concerns is that the $4K/mo expenses doesn't seem like it will significantly drop if the CC is paid off (that would be good to verify), so tapping the $143K portfolio (and/or the $28K TIAA annuity) is not a long-term solution; it's good for maybe 5-10 years to fill the shortfall ($15K shortfall out of $143K portfolio is 10% withdrawal rate which isn't sustainable). Might have to sell the house and move to a lower cost-of-living area.
Statistics: Posted by bonesly — Sat Mar 30, 2024 11:15 pm — Replies 38 — Views 4023