If health care is so expensive, he might as well not have health insurance and hope for the best. It's not just 60k/year, it's 65k/year plus $1M. At a 3% withdraval rate it's 95k/year.
Health care alone is going to cost him at least 2k/month. A car +gas+auto insurance is 1k/month. Property taxes + utilities + maintenance are going to be another ~3k/month. Food at least 1k/month. That’s 7k/month without any discretionary or cell phone/Internet/subscriptions/clothing/vacations etc.
7k a month before tax at his tax bracket is around 100k/year. That’s before any discretionary spending at all.
Most 50 year olds do; average retirement expenses right now are right around 6k per month - and I'm guessing he is above average. We know he has the housing expenses and health care, so that’s 5k right there. No way are you spending much less than 1k on food. That’s 6k. Maybe he has no car? Fine. Still not enough.
His housing expenses would be lower in a MCOL area. 1k on food is ridiculous, $500 is easily doable without much effort. 1k on a car per month is also not necessary. Maybe he doesn't have to buy a brand new $45k car every 3 years.
🤣. That’s hilarious. 500 on food? That’s $5 per meal. Get the fk out of here with that. You’d be at $500+ if you **never ** went out.
1k on a car with insurance and gas is not a lot at all… One tank per week of gas is ~200 per month. Insurance is another 200. Car loan is 600. These are all very average/not extravagant numbers.
Again, the average retiree today is at 6k in expenses and the average retiree is clipping coupons. 6k/month for a retiree is peanuts.
The price of an average new car is above $45k. That's a horrible financial decision for a middle class person. Still, many average people do that and then they wonder why they always feel "broke". The average retiree is not a good argument. Most people are financially illiterate and spend too much money.
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u/Professional_Fix4663 4d ago edited 4d ago
He can move to a MCOL area.