Retirement in Black

 Hello my Peoples,

I know people are constantly complaining about rising costs, but we are still living in the greatest times and in the greatest country. People are constantly asking me how much money you need to retire comfortably or when should you retire. Let me be clear, retirement strategy for black folks is a little different from other people. Now if you are part of the wealthy black group then I am not talking to you. This conversation is for the middle to upper middle class frugal black folk. Of course the biggest two questions is health insurance coverage and a home mortgage. If you can keep your company’s insurance then you could retire before 65 but if not 65 is a possible target. Life in retirement is definitely easier in retirement with no mortgage, but remember you still have taxes and home insurance to pay. Your million dollar home may be paid off but the taxes and insurance could damper retirement life because you will be living on a fixed income. Buy a good solid car that is cheap on repair cost before you retire and pay it off.

Now, the next question is how much you need? Some say 1 million others say 2 million. It also depends on whether you manage it or have someone else do it and do you buy an annuity. Frugal people manage their own money. Why? Here is a question I always ask my students, “If you have a million dollars earning 5%interest a year and you take out $50,000 a year, how long will your money last?” Those who know the answer submit the answer in Comments. Hey, I have to run…conversation to be continued….

Peace out FFBS