44-Year-Old With $900K Net Worth Wants To Keep Active Lifestyle In Retirement - Can He Afford To Keep It Going? Here's What Suze Orman Says

Retirement planning isn't just about reaching a certain savings milestone – it's about ensuring you can maintain the lifestyle you want. For Peter and his wife, both 44 and child-free, that means continuing to enjoy their boat, vacations, and active lifestyle after retiring at 62. But are their current finances enough to keep it going? 

Suze Orman weighed in on their situation, and she gave Peter a surprising wake-up call. 

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A Strong Financial Foundation – But Is It Enough? 

Peter and his wife are in a solid financial position. Their total net worth is about $912,000. Let's break down their finances. 

Financial Assets: 

• Retirement Savings: $668,686
• Emergency Fund: $78,478
• Home Value: $425,000

Debts: 

• Consumer Debt: $10,000
• Mortgage Debt: $250,000

Their monthly take home pay is $11,874, and their monthly expenses total $8,702, leaving them with a surplus of $2,172 to save and invest. 

By many standards, this might seem like a strong position. In fact, Peter gave himself a “B” when asked how he'd grade their financial readiness for retirement. However, Orman had a much harsher evaluation.

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Suze Orman's Surprising Verdict: An “F”

Orman shocked Peter by giving him a failing grade. Why? The main issue is that Peter and his wife want to continue with their current lifestyle throughout their retirement – but Orman said they're projected savings aren't enough to generate the income they'll need to support it. 

Their monthly expenses sit at about $10,000. Orman outlines that even with their mortgage paid off by the time they retire, Peter and his wife will have other expenses that come up, like health insurance and long-term care. She anticipates this will keep their expenses around $10,000 if they want to maintain their current lifestyle. 

Based on conservative investment growth estimates, their after-tax retirement income at 62 would be around $7,320 per month—falling short by approximately $2,700 per month.

That gap is significant, and without adjustments, it could force them to downsize their lifestyle in retirement.

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The Path to an “A”

While Peter's current plan falls short, Orman outlined a clear path to financial security:

• Delay Retirement to 67 – Working five more years allows their investments to grow, reducing the shortfall.
• Get Long-Term Care Insurance – This would protect them from high healthcare costs later in life.
• Invest Mortgage Savings – Once their mortgage is paid off, they should invest the freed-up cash to generate more retirement income.
• Optimize Social Security Benefits – Orman recommends a strategic claiming strategy where Peter's wife, MaryJo, first claims half of his Social Security benefit at age 67, then switches to her full benefit at 70. Peter would start claiming his full benefit at 67. This approach would maximize their total Social Security income.

By following this plan, Orman projects their after-tax income at 67 would be $13,262 per month—comfortably exceeding their $10,000 expense target. At 70, their monthly income could grow to $14,900, ensuring they have more than enough to maintain their active lifestyle.

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