I am 48, single, no kids. I am a health care professional. I feel that I'm generally a very good saver and a not so good budgeter - hence the credit card debt payoff I worked through in 2020.I don't know how many years I've been reading the Finance Buff, but every year around this time I start checking for their projections of next year's retirement contribution limits.
In 2026 I expect to be able to contribute:
$24,500 to my TSP
$7,500 to my IRA
$3,400 to my FSA
That is an increase of $1,600. That seems like a lot to my FSA, but I've been using every cent of my FSA with no rollover for a few years now. I don't even expect my income to go up by that much as our raise is projected at 1%, if we're lucky enough to get that. Also, I'm sure my health & dental insurance will increase.
I'm glad that I stopped electing for the maximum life insurance as that premium starts increasing at 45. All my parents need is enough to bury me if something were to happen & my basic benefit is many times over that. I have no dependents. They can sell my house. My mom actually prefers my car to hers. My mom gets upset at the idea that I have them as my primary beneficiaries. No parents want to lose a child, but it's just practical & right that they be my beneficiaries before naming my sisters.
October 2nd, 2025 at 08:53 pm 1759438425
I have a small whole life policy I bought when I went to college in ‘the big city’ which my family and friends thought was fraught with danger! It was enough to bury me - finding funds for that would have been a hardship for my family and for $75 a year, I bought enough coverage to bury me. Over the years, the dividend offset the premium until I was paying nothing! I’ve let it accrue for 50 years! I don’t want much of a funeral, so it might be enough - but I have more than sufficient assets to have a huge shindig if my family wants to. I agree with you that large life insurance is not a good use of funds for older single people. For younger people who might marry and/or have children I think locking in low rates for high payout when you are young is sound because it is too easy to become uninsurable. 20 year term is good although I am in the minority who also like whole life.
Because most of my assets are in a retirement account, my estate lawyer recommended not including my elderly father in the trust that will distribute my assets. It was somehow related to the RMD calculation being based on his age. I depend on others to use funds he might need although he seems well prepared.
I recently decided to bypass my brother and leave assets directly to my nephews. I think that my assets added to my brother and sister in law’s might trigger estate taxes if they were passed on to the boys together, and my nephews have reached the age where the money will help them, not mess up their lives. That was a very hard decision but after much thought, I decided it was the best way to go. If I am wrong, I will never know!
I do wonder about my ‘things.’ I have some items from my grandparents and mother that, although owning them gives me pleasure, it is also a responsibility. It is hard to think that my nephews will want them and I don’t want to burden them with the history of other’s lives. I’ve thrown away a lot of my personal memorabilia and I periodically gift them with things that have meaning that I think they will like. But I always say ‘you can keep this, give it away, or throw it out’ before I tell them the story that goes with it. I sort of hope that I get great nieces to gift some stuff like jewelry but mostly I say ‘they’re just things’ and hope I believe me.
October 2nd, 2025 at 09:13 pm 1759439616
October 3rd, 2025 at 12:12 am 1759450342
October 8th, 2025 at 02:59 pm 1759935571
As far as your FSA, you seem to know what you are doing so it's really not too much if you use it all. I think you are correct that prices are going to continue to rise.