Financial expert Suze Oman conducted a reality test, which many Americans need to hear during the recent episode of her performance. When a 53 -year -old caller named Kathy asked if her husband could retire at the age of 62, Oman’s analysis revealed a shocking truth that applies to many retirees.
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Kathy and her 58 -year -old looked financially safe on paper. With nearly $ 1 million The net value of USD (more precisely $ 970,833), including $ 675,000 in pension accounts, proved ready for early pension. Kathy even gave himself a “b-” mark when asked if they could afford a man retired at the age of 62.
But the deep dive into their finances revealed the devastating reality.
Learn more: Avoid this pension -saving mistakes costing Americans up to $ 300,000
Despite their large assets, the couple lived more than their possibilities. Their monthly $ 5,534 expenditure exceeded $ 5,239 from home revenue $ 295 a month. They have already released more than they earned while both of them were still working.
When Oman calculated the expected pension income, the numbers became alarming. At the age of 62, the man will earn about $ 2,000 a month after their retirement accounts. Together with his wife’s $ 1,600 monthly income, they would only have $ 3,600 to cover the monthly costs of $ 5,534.
This leaves a stunning monthly shortage of $ 2000.
Oman did not lie in words by submitting a couple’s pension plan with a failed mark. “F means to forget it,” she said. “It won’t happen.”
However, she also submitted a financial security plan.
According to Oman, retirement is not safe until you performed the following critical tasks:
The biggest mistake of the couple was the mortgage pension. 28 years left for a home loan, Oman emphasized that payment of the mortgage should be their “priority number one” before retirement.
The couple was missing the basic planning documents of the property. Oman emphasized they needed:
Oman emphasized the devastating costs of long -term care, based on his personal experience with his mother. In addition to insurance, these costs can destroy savings for retirement.
The couple was “insured” to create another vulnerability in their financial plan.