The Good Brigade | Digitalvision | Getty ImagesPresident Donald Trump last week took exception to a proposal backed by one of his economic advisors to let Americans tap their 401(k) savings for home downpayments — an idea that many financial advisors also oppose."I'm not a huge fan. Other people like it," Trump told reporters on Thursday aboard Air Force One en route to Washington from Davos, Switzerland, where he had attended the World Economic Forum's annual meeting. Kevin Hassett, director of the Nationa ...

Core Insights - Financial expert Suze Orman provided a critical analysis of retirement readiness for a couple with nearly $1 million in net worth, revealing significant financial mismanagement that could jeopardize their retirement plans [1][2][3]. Financial Situation Analysis - The couple, Kathy and her husband, had a net worth of $970,833, including $675,000 in retirement accounts, which initially suggested they were prepared for early retirement [2]. - Their monthly expenses of $5,534 exceeded their take-home income of $5,239 by $295, indicating they were already living beyond their means while still employed [3]. Retirement Income Projections - Upon retirement at age 62, the husband would generate approximately $2,000 in after-tax income from retirement accounts, combined with the wife's $1,600 monthly income, totaling $3,600 [4]. - This income would leave a monthly shortfall of $2,000 against their expenses, highlighting a critical gap in their financial planning [4]. Expert Verdict - Orman assigned a failing grade to the couple's retirement plan, stating "The F stands for forget about it," indicating that their current financial strategy was unsustainable [5]. Essential Steps for Financial Security - **Eliminate All Housing Debt**: Orman emphasized that paying off their mortgage, which had 28 years remaining, should be the couple's top priority before retirement [6]. - **Establish Proper Legal Protection**: The couple needed essential estate planning documents, including a will, a trust, and adequate insurance coverage [7]. - **Secure Long-Term Care Insurance**: Orman highlighted the importance of long-term care insurance to protect against potentially devastating costs that could deplete retirement savings [8]. - **Maintain Adequate Life Insurance**: The couple was deemed underinsured, which posed another risk to their financial stability [9].

Core Insights - Retirees are advised to aim for approximately $1 million in retirement savings, supplemented by Social Security, to ensure financial stability during retirement years [1] State Analysis - New Jersey: $1 million in retirement savings can last about 24.2 years, influenced by high property taxes and living costs [4] - Washington: Savings are expected to last around 21.9 years, with high housing prices and elevated costs for food and utilities [5] - Massachusetts: Retirement funds may only last about 19.4 years due to expensive housing, high property taxes, and costly utilities [6]