Determining Retirement Needs
REM #A718
By Ilyce R. Glink
Summary: A reader is recently divorced and trying to figure out her retirement needs. Ilyce explains how to determine her financial needs and, most importantly, health insurance needs.
Q: I have been disabled with MS and am not working. I was recently divorced
after 13 years. My ex- husband must give me $2,500 per month for life.
I'm 54 years old, have $250,000 in savings, and have no debts. I own my house outright and it is worth about $500,000. My husband is wealthy and I will eventually receive some of his Social Security benefits.
How much do I need, and what do I need to do in order to have a decent retirement?
Thank you.
A: The first thing you need to do is figure out how much you spend each month.
The big issue for you is health insurance. Is your husband going to continue
to provide you with coverage now that you're divorced? How do you plan to pay
your medical bills?
Although it sounds like your house is paid off, you will still have ongoing
expenses, including maintenance and real estate taxes. Those two expenses could
eat up a majority of your monthly maintenance from your husband.
Now, let's talk about income. Since you are disabled with MS, and are not working,
you may be entitled to receive disability payments from social security now.
Later, you can apply to receive your full share of your husband's Social Security
money. Do you have any other pension funds that you're entitled to from your
years of working?
You should sit down with a certified financial planner and map out all of your
expenses, potential sources of income, and figure out how you're going to make
the numbers work.
NOTE: This column is distributed by Real Estate Matters Syndicate, PO Box 366, Glencoe, Illinois, 60022. This column may not be resold, reprinted, resyndicated or redistributed without written permission from the publisher.
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