Listener Questions: From 401ks to Social Security Benefits for Divorcees, Ep #123

<p>The listener questions have been rolling in so I decided it was time to do another listener Q&A edition of the Retirement Made Easy podcast! In this episode, I cover everything from investing your 401k to health insurance, and capital gains tax to social security spousal benefits for divorcees. Don’t miss this informative episode—I just might answer questions that have been circling in your mind!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[3:55] Listener Question #1: Why should I invest my 401k?</li> <li>[9:45] Listener Question #2: How does the match on a 401k work?</li> <li>[11:40] Listener Question #3: What are the options for health insurance?</li> <li>[14:49] Listener Question #4: How does capital gains tax work?</li> <li>[19:25] Listener Question #5: How does the spousal benefit work for divorcees?</li> </ul> <h2>Why should I invest my 401k?</h2> <p>If you have $1 million in your 401k and follow the 4% rule (withdrawing 4% every year) the money will last approximately 25 years with no growth. One particular listener asked why he should invest the money if it will last him 25 years. My first thought? What happens if you live more than 25 years? </p> <p>In <a href= "https://retirementmadeeasypodcast.com/retirement-story/" target= "_blank" rel="noopener">episode #6</a> of the Retirement Made Easy podcast, I share that the average age of the American retiree is 62 years old. The average woman lives 30 more years once they retire. If you don't invest that $1 million, you’ll be out of money for the last five years of your retirement!</p> <p>Secondly, every year, everything you buy will cost more. Inflation averages 3% per year. As your expenses rise and you’re only withdrawing 4%, you’ll have to continue to cut your budget—or take out more money. The goal of a successful retirement is to live out your days comfortably. I don’t think you can if you’re not investing your $1 million. </p> <h2>What are the options for health insurance if you retire early?</h2> <p>Health in