Planning for Retirement

[jimbogumbo]

I am looking at Belize. Taxed only in US. Have about $300,000 in equity in current home in good market. $1.5 in retirement accounts. Just have to persuade someone, and I'm out.

[spork]

What advice do people have about Trump-proofing my retirement savings? My TIAA account is currently 93% in equities (index funds). The remainder is in a TIAA annuity that guarantees a minimum 3% annual return. I have $100K in a Roth IRA that is 100% equities. I max out my contributions to both every year. I'm 58, and I have a chronic illness that probably makes retirement before 65 and Medicare a bad idea.

I see Trump and his lackeys trying to institute the equivalent of Brexit over the next four years. The billionaire tech bros and plutocrats in Congress don't care about inflation, health care, or Social Security. Their and their children's futures are already secured.

Where did England's immigrant physicians and nurses move to?

Retire to Spain and go on their national health plan for cheap.

I'm more interested in protecting my retirement savings while Trump runs the federal government like it's a season of GOP Celebrity Apprentice. I won't be able to retire in seven years if my equity investments plummet in value over the next four years.

I am looking at Belize. Taxed only in US. Have about $300,000 in equity in current home in good market. $1.5 in retirement accounts. Just have to persuade someone, and I'm out.

When you say "Taxed only in US," do you mean that you plan on residing part of the year in the U.S. in a state where your retirement income is taxed? My understanding (which might be incorrect) is that Belize does not tax retirement income for U.S. citizens (assuming they are officially classified as "Qualified Retired Persons").

I have been to Belize twice and have had Belizean students. Everyone I've met there has been very nice, and the lifestyle seems pleasant. In my opinion, the threat of hurricane-related flooding in low-lying areas is the only downside.

I currently have ~ $1 million in retirement savings (TIAA, Roth, and a bit in CDs) and $500,000 in equity in a house that is significantly larger than we need. The market value of the house has increased at twice the rate of inflation since we bought it in 2009. We'll probably be able to sell it at a good price regardless of inflation, mortgage rates, etc. -- houses in this neighborhood go under contract within a few days of being listed.

The only thing that prevents me from retiring tomorrow is the need for health insurance. But even in a magical world of a public health insurance system in the USA, I'd still want preserve the value of my retirement savings.

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when will you qualify for health insurance through your job? 

Have you checked how much social security you would get at 62, (early retirement), 65, early, but at Medicare age, 67, full retirement or 70? 

Are your retirement funds(TIAA and IRA) roth? (Or will you pay taxes on the money you withdraw?

these are some things to consider. 

IF you are depending on Medicare for health care, remember that it is really not going to cover you living outside the US.

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Uh, did you read what I wrote? Such as: I have health insurance already, through my job. I have TIAA and Roth accounts. I know what the Social Security payouts are at various ages.

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I have read your posts.... about 58, 700 K in Taxable retirement accounts, 100K in Roth, 500 K in equity.  Had planned to retire at 70, but now thinking work is not how you want to spend your life.

your recent reply states, "such as: I have health insurance already, through my job".   I had asked (perhaps poorly), when you qualify for health insurance in retirement?   (Technically, your employer will pay- or at least contribute- for health insurance as long as you work!)  At what age (or how much longer) is it until your employer contributes to your health care when you stop working/ retire?   

You should be close enough in wealth and certainly old enough to ask TIAA for a financial plan by one of their 'wealth management advisors'. 

Have you accumulated enough wealth to continue your current standard of living( at 58) for you and Your Bride to comfortably live for the next 35 years?  With 700K in an account that will require taxes to be paid upon withdrawal and 600K in equity and a Roth account (neither of which are taxable), Have you Saved Enough?   

The wealth advisor will help answer that question - giving you options to estimate how much longer you NEED to work.

A bit input in that will be IF/When you will get insurance in retirement from your employer (if you will).   IF not, then leaving work before 65- when medicare kicks in - will be expensive, further reducing your retirement 'free cash flow'.

I suggest that one way to decide the answer 'do I have enough to retire' is to work a budget on what you think you need to spend in retirement each year.   If you have dont that then you know if you have enough or not at the moment, and if not, can plan to save more or set a time line.  As I said, TIAA has people that can help, and your wealth probably qualifies you to get a ('higher worth client') specialist to help develop a plan.

(AND they can, at the same time, help advise you to reallocate your portfolio so you wont have to worry about the presidential transition issues you mentioned).

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[...]

At what age (or how much longer) is it until your employer contributes to your health care when you stop working/ retire?

Not sure what you're asking. I'm eligible for Medicare at 65. My employer will not continue to provide health insurance benefits after my retirement.

You should be close enough in wealth and certainly old enough to ask TIAA for a financial plan by one of their 'wealth management advisors'.

I am, but I've never found such meetings informative. The "advisors" simply refer to calculators on TIAA's website and make generic recommendations like "Here's a life-cycle fund that may be of interest." The last one I talked to said that I should diversify into index funds composed entirely of foreign-owned corporations because some of the world's biggest companies are not American . . .

I would like to begin receiving Social Security at age 70 to maximize payments. Here's an opinion piece on the same subject by New York Times columnist Peter Coy: https://www.nytimes.com/2024/11/15/opinion/social-security-age-claim.html?unlocked_article_code=1.aU4.Ajhr.yQPJ5qoiWLqq&smid=url-share.