Good morning, I recently retired with a substantial teacher’s pension. My take-home pay (after federal taxes and health insurance) is now more than when I was teaching due to no state taxes on teacher pensions and no retirement contributions being deducted. My wife is in the same position, so retirement income is not going to be a problem. Additionally, our house is paid off, and we have no credit card debt. Our only debt is a car loan. We have long-term disability insurance, long term-care insurance, and life insurance.
Given these circumstances, I am wondering how to calculate the amount we should have in a rainy day fund. Our pensions will cover all of our living expenses (and then some), but I know we should have reserves for such things as a new roof, windows, etc. I have not been able to find any advice on this unique situation since most of the time it is aimed at retirees with portfolios that can fluctuate. I realize no one has a crystal ball, but I am looking for general guidelines. Thank you. See: I’m 66, we have more than $2 million, I just want to golf – can I retire? Dear reader, You’re in a great spot for retirement by having so …