Retired

[cobracide]

Certainly a valid point, but the odds are against me making it to that age.

I think having an annual budget in retirement of $85k-$100k [+/-$10k as needed] is probably about the right number... Where my calcs are getting complicated comes from the retirement starting age (55), then adjusting for SS income commencing at 62y/o and how these factors affect longevity of any nest egg...

Is a starting figure of 1, 2 or more million the correct amount to carry into maybe mid-80's age? What kind of investment return needs to be achieved to make the whole thing sustainable?

I've heard many in retirement say it's not as expensive to live as you may think, but I'd hate to find out that's not the case for me.

If you can't or are not confident you can figure out your target, I suggest a financial advisor.

 

[13BlackGT]

Now in my free time I get to milk a cow. My wife thought we needed one. But guess who milks her.


Sent from my iPhone using Tapatalk

 

[PhoenixM3]

Now in my free time I get to milk a cow. My wife thought we needed one. But guess who milks her.


Sent from my iPhone using Tapatalk

Something about why buy the cow when you get the milk for free......

 

[72MachOne99GT]

Now in my free time I get to milk a cow. My wife thought we needed one. But guess who milks her.


Sent from my iPhone using Tapatalk

(Archer voice) Phrasing!?

Is it a cow for eating later, or only milk?

I love cows for eating.

 

[cobracide]

 

[Adower]

Congrats 13BlackGT, enjoy every day of your retirement years.

Side question, when it comes to everyone's retirement planning... What's a consensus opinion as far as a good "nest egg" amount? I know this is a HIGHLY subjective number based on many factors, but without having a pension to rely upon, does everyone believe 1, 2, 5?? million is an amount to have working for ya with investments?

Let's assume a retirement age of 55. Opinions??

I think that all depends on where you live and what type of lifestyle you want. Based on a 401K calculator at a 10% return my wife and I should have ~8M upon retirement at 62.

Thankfully we are both govt workers and will also have a combined pension of ~150K so I am hoping we dont have to touch the 401k until the RMD's. At this point they keep raising the RMD so if we retire at 62 and can manage our expenses our 401k will still compound for another 10 years barring any emergencies.

One big thing I think you need to consider is health expenses. I read somewhere after retirement from age 62-80 the average cost of health expenses is in the neighborhood of 300K for a couple.

 

[13BlackGT]

(Archer voice) Phrasing!?

Is it a cow for eating later, or only milk?

I love cows for eating.

We are feeding two bottle calves with her milk and have enough for us too. They are the eating variety


Sent from my iPhone using Tapatalk

 

[Deceptive]

Congratulations


Sent from my iPhone using svtperformance.com

 

[dads01dream]

I think that all depends on where you live and what type of lifestyle you want. Based on a 401K calculator at a 10% return my wife and I should have ~8M upon retirement at 62.

Thankfully we are both govt workers and will also have a combined pension of ~150K so I am hoping we dont have to touch the 401k until the RMD's. At this point they keep raising the RMD so if we retire at 62 and can manage our expenses our 401k will still compound for another 10 years barring any emergencies.

One big thing I think you need to consider is health expenses. I read somewhere after retirement from age 62-80 the average cost of health expenses is in the neighborhood of 300K for a couple.

Adower, I've always "lowballed" investment return rates between 6-8% as a buffer to the stupidity we see going on today [actually on avg. been running ~36% on retirement investments and ~14% on trading account, 15 yr averages]. You appear to be in fantastic shape for the future. My target nest egg at retirement is quite a bit lower than yours and I won't have a pension... Spinning off ~$120k yearly should provide a good retirement to me based on my calcs for cost of living.

We have met with a CFP and will have a follow-up meeting to discuss options in a couple weeks, hope to hear good news. There are so many moving parts to consider, but the allure of retirement at an earlier age is tough to fight. SS will certainly help preserve the egg once we turn 62.

I read of 13BlackGT's retirement & others activities and would really like to make the leap... Just a tough decision to make when you've been an income earner for nearly 40 years! Andower thanks for sharing your insights!

 

[Adower]

Adower, I've always "lowballed" investment return rates between 6-8% as a buffer to the stupidity we see going on today [actually on avg. been running ~36% on retirement investments and ~14% on trading account, 15 yr averages]. You appear to be in fantastic shape for the future. My target nest egg at retirement is quite a bit lower than yours and I won't have a pension... Spinning off ~$120k yearly should provide a good retirement to me based on my calcs for cost of living.

We have met with a CFP and will have a follow-up meeting to discuss options in a couple weeks, hope to hear good news. There are so many moving parts to consider, but the allure of retirement at an earlier age is tough to fight. SS will certainly help preserve the egg once we turn 62.

I read of 13BlackGT's retirement & others activities and would really like to make the leap... Just a tough decision to make when you've been an income earner for nearly 40 years! Andower thanks for sharing your insights!

No problem. I just used the 10% based on historical returns for the S&P500, but I think its a good idea that you "lowballed" as a "worst case" scenario. Thankfully, my wife makes really good money and we're both pretty non materialistic. So we've been able to really hit our investing hard (we live in CA and know we will need a good amount of investments due to being in a high COLA).

The only reason I am waiting for 62 is for the pension. Otherwise, I would reduce expenses however I could and retire at 55! I dont know many retired persons but every single one Ive talked to all said the same thing, "I wish I did it earlier".


I hope everything goes well for you and the CFP can assist you.

 

[Adower]

Certainly a valid point, but the odds are against me making it to that age.

I think having an annual budget in retirement of $85k-$100k [+/-$10k as needed] is probably about the right number... Where my calcs are getting complicated comes from the retirement starting age (55), then adjusting for SS income commencing at 62y/o and how these factors affect longevity of any nest egg...

Is a starting figure of 1, 2 or more million the correct amount to carry into maybe mid-80's age? What kind of investment return needs to be achieved to make the whole thing sustainable?

I've heard many in retirement say it's not as expensive to live as you may think, but I'd hate to find out that's not the case for me.

My wife's grandma lived to 101 and the last few years she had 24 hour in-home care. I believe it was ~15K a month for those services. You never know if you'll live that long & will need those services, but if you do, its not cheap.

 

[dads01dream]

My wife's grandma lived to 101 and the last few years she had 24 hour in-home care. I believe it was ~15K a month for those services. You never know if you'll live that long & will need those services, but if you do, its not cheap.

All great points Adower. We moved out of Connecticut over 10 years ago to Georgia, the COL here is much more favorable. For instance, when you turn 65 they no longer assess the school tax on real estate property... That's an ~80% reduction! To be perfectly honest, should I happen to require a high degree of care in my later years, just put me in a state run facility and let Medicaid pay the bill should I run out of funds. It truly sucks to get old and no amount of planning can cover everything.

I can totally relate to people saying they wish they retired earlier, I say that all the time about waiting so long to have kids (I was 30). I'd really like to enjoy retirement while my health's still with me and we can enjoy many more travel experiences together. Decisions will be made within the next month or so!