[XutvJet]

Originally Posted by TboneS54

Impossible to answer with this government printing money like it does.

Sure, but the reality is most people in this country have next to nothing to retire on, yet, they still retire and make it work. For some though, it's a pretty sad retirement life.

One really needs to be be prepared though and start saving and investing at a young age and live well within your means.

[3.0L]

It isn't just the money you have in the bank or your portfolio. The big picture is net income. Retirement income can come from many sources. My wife are retired and have 6 sources of income.

[XutvJet]

Originally Posted by 3.0L

It isn't just the money you have in the bank or your portfolio. The big picture is net income. Retirement income can come from many sources. My wife are retired and have 6 sources of income.

6 sources? Property rentals/leases, social security, dividends, etc.?

[dradernh]

Don't forget the net present value of whatever you expect from Social Security and a pension when you're running your numbers. For example, if those were large enough, you wouldn't need a dime in the bank before retiring.

[WagonMaverick]

$4m... At age 60 gives you and your spouse enough to live on comfortably to late 80's ..paying decent $4k/mo mortgage (I want a second home), car payments (I want new cars in retirement), plus home expenses and an extra $1,500/month. You can still layer SS payments on top of this. You have to think grandkid expenses plus family vacations, plus I want to do some cool shit in my 60's and not be burdened by "I wish I could" - I just had this call with my financial planner today.

[3.0L]

Originally Posted by XutvJet

6 sources? Property rentals/leases, social security, dividends, etc.?

Originally Posted by dradernh

Don't forget the net present value of whatever you expect from Social Security and a pension when you're running your numbers. For example, if those were large enough, you wouldn't need a dime in the bank before retiring.

For us, it's a combination. CalPers Pension; IRA (mine); IRA (hers); SS (mine); SS (hers); plus small VA benefit. My IRA was rolled over from my TSA that I contributed to at max rate for 20 years. Her IRA was rolled over from 20 years of profit-sharing at her last job. And despite our draws on our IRA's, our portfolio is still growing. In other words, this is sustainable even if we live to be 100 years old.

And of course what I didn't previously mention, the debt factor. We're debt free, so our net income doesn't have to be in the stratosphere.

[M-technik-3]

3M i easily live within my budget and don't expect a windfall to change my way of living that much. I would honestly be back to work in 6-8 months due to boredom

I have a reasonable amount in my TSP and my VA disability plus my USAF retirement and SSI and Roth so I will be ok. I put 10% away a year.

[3.0L]

Originally Posted by M-technik-3

3M i easily live within my budget and don't expect a windfall to change my way of living that much. I would honestly be back to work in 6-8 months due to boredom

Until your body/mind starts to break down. Ask me how I know. Aging is inevitable.

[Entropy89]

$5 million would be ideal assuming I have a house and car already. Put that in a savings account at 3% interest per year (hopefully it stays that high) and you can live on $150,000 in interest…or $12,500/month. Pre tax of course but in this fantasy there is no tax.

[RichF90M5C]

Interesting thread. With no kids, we’re planning on equity releasing with one of the big banks come retirement day, so factoring that in and maintaining a decent lifestyle, I’d say around 2m.

[XutvJet]

It's pretty crazy (and a bit amusing) to read the huge numbers people are throwing around in this thread. $5M+? Really? On average, Americans have around $140K saved for retirement and ~10% of retirees right now have $1M or more in assets/savings. That means the vast majority of 40-60 y/o's in this country aren't even close to $1M in savings/investments/assets. You best be saving a mountain of money right now if you intend on retiring in the next 10-20 years with $5M+

[XutvJet]

Originally Posted by 3.0L

For us, it's a combination. CalPers Pension; IRA (mine); IRA (hers); SS (mine); SS (hers); plus small VA benefit. My IRA was rolled over from my TSA that I contributed to at max rate for 20 years. Her IRA was rolled over from 20 years of profit-sharing at her last job. And despite our draws on our IRA's, our portfolio is still growing. In other words, this is sustainable even if we live to be 100 years old.

And of course what I didn't previously mention, the debt factor. We're debt free, so our net income doesn't have to be in the stratosphere.

OK, I got it. You're classifying investments dividends, SS, and such as sources of income. And like you've alluded to, play your cards right and continue to live within your means and your portfolio will continue to grow even while you're pulling from it in retirement. My 76 y/o mother has been living off my deceased father's pension (reduced a bit upon his death) and SS for 10 years now. Those two sources basically pay for most monthly expenses thus she's having to take out money from her IRAs and push it to a brokerage investment accounts. It's a good problem to have. Funny thing is though she constantly worries about not having enough money.

And I totally agree, a debt free life is liberating.

[flybigjet]

Originally Posted by XutvJet

It's pretty crazy (and a bit amusing) to read the huge numbers people are throwing around in this thread. $5M+? Really? On average, Americans have around $140K saved for retirement and ~10% of retirees right now have $1M or more in assets/savings. That means the vast majority of 40-60 y/o's in this country aren't even close to $1M in savings/investments/assets. You best be saving a mountain of money right now if you intend on retiring in the next 10-20 years with $5M+

And *that* is why I started saving money in my mid-20's and continue to invest and max out my 401K's.

Which puts me on track and well within striking distance of your "huge numbers" (i.e. $5M+) when I retire in eight years.

Of course, not going massively in debt, living on a budget, not buying things I can't afford, staying in the same house for ~25 years and not having sprogs helps as well.

But a "massive number" retirement is COMPLETELY doable if you're a little bit frugal, disciplined and START SAVING EARLY.

I'm pretty much a financial idiot. If I can do it, pretty much ANYONE can!

(Although for the record? If I'd stayed single, I'd easily have double the savings that I do now-- wives are EXPENSIVE-- even if you keep the same one!)

R.

[hubbahubba]

I voted 3M. Gotta have enough for greens fees a couple times a week, and a decent sailboat to stay and sail in when visiting my son and future grandkids every summer in Seattle. Can't do the boat with 1M, and expect to have much left...

[dradernh]

We retired with less than $1M - me at 45 and her three years later at 50. A pension to start with, and later two IRAs and two monthly SS payments, filled-out our income statement. None of those payments have been especially large, and our annual income, in 2022 dollars, is around one-third of what we were earning in the mid-90s in mid-90s dollars. The transition wasn't difficult because during our working years we were living on one-third of what we earned - the rest went one-third for taxes and one-third for savings.

We didn't have children. Along with being high-earners, that had a lot to do with our having the opportunity to retire very early and enjoy a comfortable retirement.

[UncleWede]

I remember middle 20s going to a retirement seminar that my employer hosted. Trainer was surprised to see me and my friend in there.

We did some calculations, and the number I came up with then for retirement was $4m.

So, I'm still working . . . but there are 18 of us at work that plan to win Powerball tonight

[Bc2005]

You need to do all the math and consider all the variables. It’s extremely difficult to simplify the need to a single number because it gets complicated fast depending on your individual situation .

For example, if you have $500k on a mortgage and plan to retire and make house payments from an non-IRA account then you just withdraw money and make payments. But if you plan to use your non-Roth IRA funds you will need to pay federal, state and local income tax first, so you may need to withdraw $600k to net $500k after taxes. I find it very painful to withdraw IRA funds because I pay the taxes each time I withdraw.

Also consider that when you have a high retirement income you will pay more for the mandatory Medicare premium. I had the option of staying on an employer health plan after retirement, but when I hit 65 my cost went up because i now must pay Medicare for me and my spouse, and each one of us is a high income earner.
And when you push your income up one year (sell rental property, withdraw IRA, etc,) that also pushes you to a higher Medicare premium the next time it’s recalculated. For example, the premium for those making over $170k a year is $545/month, so a couple pays $1090/ month, and it is mandatory. And most folks then buy supplemental insurance on top of that. It all adds up.��

[SW111]

Already hit my number and have been retired for a year and half. Actually retired a little early. Had some health issues (cancer) and figured why wait? 3 of my grandparents and both my parents died of cancer. Cancer is gone and I have been enjoying traveling, and the slower pace of life. Don’t mind traffic and lines, I usually have nowhere else to be.
Went to France for 3 weeks, visited some family, went to two different BMW driving events, Laguna Seca and M Performance Center at Thermal. The former my wife and I hung out in Monterey, and the latter with my brother in Palm Springs. I’ve reconnected with friends for lunches and the dogs get walked more often and longer. Turned off the alarm clock and enjoy a leisurely coffee and breakfast. I’m spending more time baking and getting good at sourdough bread, croissants and other French pastries that I learned in Paris. My neighbors love the fresh bread and pastries. I want to take up the guitar and I’ll have plenty of time to practice. I can go to the gym and Costco in the middle of the day when it’s less crowded. I can go to my grand nieces and nephews concerts and sports events that I used to miss because I was working. Scheduling Dr. and other appointments is much easier because I have flexibility. I also have plenty of time to read and reply to threads here. . Life is good.

[dreamingat30fps]

Originally Posted by Onesie

LOL I was going to make the same comment but decided to just be amused here…

10m is 250k a year for 40 years without any interest or dividend. 6 people said that’s what it’d take them to retire lol

Yes, but it's also about $2k/mo for 45 years earning 8%. Compounding interest is a powerful thing. That being said there are also people making a crazy amount of money.

In my case I said $10M to FORCE me to retire. Like if someone wrote me a check, but I HAD to retire right now then it would have to be a $10M check because I don't want to retire right now.

However if I did want to retire I know I could easily do so on $1M or less. Believe me I think about that all the time. Being self employed for the past like 6 years I don't think I could go back to a regular job. So I'm always planning for if/when the shit hits the fan.

[The J-Man]

I have some disappointing news for 1/3rd if you….$1 million ain’t enough! Unless you’re retiring at 75.

[M5Rick]

2 - 3 mil and you're off retiring at 55. Sell up and get smaller place out of town for easier maintenance with smaller yard/garden and a hot tub instead of a pool.

[zx10guy]

I recently met with my financial advisor to catch up on things.

I initially wanted to retire in 3 years, but that got flushed down the toilet with the divorce. Not so much from the financial asset aspect but from the child support I'll have to pay for the next 10 years. I asked my attorney about retiring early and was a bit surprised with her surprise. She asked why I would retire early. I said because I've been through enough stress in my life and was thinking of being able to just enjoy life without the stress of work. My question to her was around child support being modified if I were to retire early. She consulted with other colleagues where they came up with the opinion that the court wouldn't look kindly on retiring early. It would probably be viewed as intentional self impoverishment and I would be stuck at paying what I'm paying now working in full capacity. I say this for others that may be in my situation.

The other thing I had to come to terms with on retiring early. A friend and I were discussing this a couple of months ago. He looked at me and asked what I would do with all my free time. I looked at him and thought....I don't know. I could just do whatever I want but then how long will that last before I end up just sitting around doing nothing. As I get older, I firmly believe those that stay engaged with something that exercises their mind and body tend to be those that stay healthy and physically mobile well into their old ages. Those that just sit around doing nothing tend to waste away. The trick with having money to retire is that it puts you into a category where you have F' you money. It allows you to pick and do things you normally don't have the option to. So you work at a place and things are not working out. You can say F' it and just quit. Then take your time to find the next best gig to work for. Wanting to work is very different than needing to work.

One of the posters mentioned cancer. I've also been affected by this. So health is that variable that no one can plan for. You can only do what you can to try to lower your risk of having a major illness. With that said, my financial planning has bee severely altered due to my cancer history. From having to think about health care costs in retirement to not being able to buy life insurance. I didn't have life insurance at the time I had cancer because I was single, somewhat young, and didn't do any risks/habits that would contribute to cancer. Now I can't get any reasonable coverage without paying an arm and a leg for it.

With my retirement planning, I've been pivoting to also consider taxes at retirement. Most of my retirement assets are in a IRA/401k type account. I've been contributing to a non qualified account to have the ability to pick and choose where my monthly income streams are coming from.

I've also subscribed to the ideology of not paying off my houses but to pour that money into stock investments. The idea is to leverage compounding and time in the market. But with that said, as I get closer to retirement, I will start to pivot and begin to accelerate my payments to hopefully get myself to the point of having both mortgages paid off.

But to the topic of this thread, I'm still trying to figure out where that number is for me to feel comfortable to retire.