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How much do YOU think YOU need to retire? ...and at what age will you (and spouse) retire?

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Replies to: How much do YOU think YOU need to retire? ...and at what age will you (and spouse) retire?

  • VeryHappyVeryHappy 18419 replies324 postsRegistered User Senior Member
    ^^^That was my good news/bad news when my father passed away. We had the funds to pay full fare for college, and too much to get any sort of financial aid at all.
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  • anxiousmomanxiousmom 5794 replies105 postsRegistered User Senior Member
    We are counting on a defined benefit pension - with the understanding that if the city goes bankrupt, we are screwed, and that if there is any inflation we are also screwed (no COL adjustments to pension.) We will also have SS and have a very, very, very modest (did I mention, very modest?) start on a ROTH IRA. Home is 2.5 years away from being paid off, and we have no debt apart from the home. It is all well and good, and when home is done being paid for, we will funnel that money into savings. We earn much smaller amounts than many of you good folks on CC, but we are also fairly frugal, so our splurges are small. Of issue will be how much assistance my MIL and FIL will need as they get on in life. We have not had any frank discussions about this, but I don't believe they have any LTH insurance.....
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  • busdriver11busdriver11 15187 replies28 postsRegistered User Senior Member
    "I am not a FA guru, but I do remember Dad II's D practically went to Stanford for free because of the family EFC. I am just curious to know how someone could be paying nothing for college few years ago and now is going to accumulate 10 mill before retirement. I am not trying to be disrespectful or pick a fight, one would have to save close to 1 mill a year before retirement. Do schools factor in 401K or equity in the house when trying to figure out family's contribution?"

    I believe that some schools do not figure in retirement assets and home equity as far as FA. I have no idea if Stanford does, but I find it likely that there are people eligible for large sums of aid, while they have substantial assets. Those of us who get our income through employment are reamed as far as taxes and FA, but some are able to structure their income to be very low, while their assets are high. Some are now eligible for Medicaid, with no asset test, because their income is low, though assets can be at any level.

    I don't see anything wrong with utilizing the system as it stands. Though I think the tax laws, Medicaid eligibility and FA formulas should be changed, taking the benefits of how the system is, is available for anyone.
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  • DrGoogleDrGoogle 11023 replies24 postsRegistered User Senior Member
    edited May 2014
    I think from what I remember Stanford only counts 2.8 your salary in home equity max.

    Well the way I see it if someone's kid went to Stanford and the parents still have to leave something for the kids then that Stanford degree is not quite helpful or in programming term we call it a "NO - OP" as in No operation because it does nothing. :D
    edited May 2014
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  • rockvillemomrockvillemom 6941 replies183 postsRegistered User Senior Member
    No one has mentioned inheritance as a retirement strategy! I'm kidding. Sort of.
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  • busdriver11busdriver11 15187 replies28 postsRegistered User Senior Member
    "Well the way I see it if someone's kid went to Stanford and the parents still have to leave something for retirement then that Stanford degree is not quite helpful or in programming term we call it a "NO - OP" as in No operation because it does nothing."

    I don't know about that. I guess it's a matter of what person or organization would you prefer to leave it to instead of your kids? I haven't come up with anything better yet, though I wouldn't be surprised if one of my kids ends up being a billionaire some day, because that is possible for those in the tech world with big ideas.
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  • DrGoogleDrGoogle 11023 replies24 postsRegistered User Senior Member
    ^I was kidding of course, as I do always. That is why the smiley face. However, I do have high expectation for my state school kid and my non-state school kid. I expect one to be very successful and donate half of her money(like she is already doing) and the other one to be reasonably successful.
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  • intparentintparent 36291 replies644 postsRegistered User Senior Member
    I think I mentioned it... but am really not counting on it. If my parents spend it all or lose it all, I am making sure I still won't be a burden on my kids. But if I do get a decent sized inheritance, it will make retirement more comfortable AND maybe I can (like Dad II) leave some for my kids, too. I have to say that I am thinking about moving, and I am looking carefully at the tax laws surrounding inheritances in the states I am considering.
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  • busdriver11busdriver11 15187 replies28 postsRegistered User Senior Member
    "I was kidding of course, as I do always. That is why the smiley face. However, I do have high expectation for my state school kid and my non-state school kid. I expect one to be very successful and donate half of her money(like she is already doing) and the other one to be reasonably successful."

    Ah, well some people are pretty insistent about not leaving much to their kids. I don't see that people should sacrifice greatly so the kids can have a huge heap of money, but hey if there's anything left, why not?

    That's great that your kid is donating half of her money, though if she's making the big bucks, she's already "donating" half of her income to taxes, and if she donates the other half, she's living on thin air. Funny how the more income I make, the more I'm thinking of taxes being a charitable (while involuntary) contribution.
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  • teriwttteriwtt 12019 replies513 postsRegistered User Senior Member
    I highly doubt Mr B will ever retire!

    Ha! @bunsenburner - H and I were just talking about this yesterday. His dream retirement is to retire from his current job, then go post-doc somewhere for one of his many professor friends so he can get back to the lab work he misses so much. And he pretty much knows people just about anywhere in the country. So our options are almost unlimited. Both kids live on opposite coasts, and we are relatively close to the middle; anywhere we move to be closer to a kid, puts us farther away from the other. Not a scenario I like.
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  • HImomHImom 34097 replies389 postsRegistered User Senior Member
    No replaced H when he retired. As expected, it has remained vacant and the many folks he trained are trying to fill in as best they can, with him helping as he can. They will be moving all operations to DC he believes, centralizing, until they remember how much is lost again and then maybe re opening in HI
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  • SilpatSilpat 1282 replies20 postsRegistered User Senior Member
    Busdriver11, I was afraid that rental property might be part of your diversification. We owned one rental, years ago, that was trashed by the tenant (a relative, no less.) Dh said never again.

    We recently took another look at property in FL and were dismayed by the taxes. (I don't even want to think about the cost of HO insurance.) Dh mentioned that for what we'd save on property taxes by remaining here, even if we don't downsize, we could rent a very nice vacation home for 6 to 8 weeks every year and not have to worry about hurricane evacuations.

    On the plus side, D1 has decided that it might be nice to have us retire near her after all. She's even offered to let us live with her for however long it takes to build our retirement house. I think she was shaken by her dad's recent health scare and suddenly realized we won't be around forever. It was sweet, but we assured her that we won't need to move in with her. I hope to start construction on the next house before we leave this one, to make the move easier. The question is when, since dh changes his mind about retirement frequently.
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  • busdriver11busdriver11 15187 replies28 postsRegistered User Senior Member
    Nice daughter, @silpat! I think my kids would laugh if I suggested that. As far as the rentals, it was worth it because we bought four properties when the market crashed, short sales and a foreclosure. They went way up in price and are a good positive cash flow, mostly had great renters. I would not buy rentals at today's prices, no way. For us, it was good timing, though I really don't like dealing with any of it. Blah. But they're too profitable to get rid of, and they do make me feel better about diversification.
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  • VladenschlutteVladenschlutte 4292 replies37 postsRegistered User Senior Member
    edited May 2014
    Before the kids went off to college our financial planner told us we were going to be "OK" projecting to age 95...

    How realistic is living to 95 really? I know there are people who do live that long but isn't it just some tiny fraction? Like 1 in every 5,000 people or something?
    I'm OK with this strategy but implied in the strategy is the goal is keep the principle intact ... essentially the SWR is pulling the expected gains/dividends from the account without touching the principle. If I have something like $1.5M in assets for retirement I will not be denying Mom2ToGo and I expenditures to maintain all of the principle. To me planning for something like a drawdown from $1.5M to $0.5M at age 90 seems reasonable to me.

    Inflation will eat this up though. First year you need 40K and you have 1M saved netting you 4%. Fine. Next year you need 41.2K and you have 1M saved netting you 4%, you gotta draw 1.2K from that 1M. And each year that amount you have to draw increases.

    My parents retired in 2011 at age 44 and 46 with about 1.5-1.6M in total assets (house, cars, all cash, all financial assets). But they have no pensions or anything like that. Though it's likely that I'll probably live longer than they will, so I'd want more at a slightly later retirement age. It's hard for me to say anything yet though.

    The thing that strikes me most here in these discussions, no one (other than momofthreeboys) seemed to try to make an estimate of how long they'll live in retirement and base it off that. If you don't know how long you're gonna live how are you ever gonna figure out how much you need? Someone retired for 10 years doesn't need anywhere near as much as someone retired for 40 years.
    edited May 2014
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  • GertrudeMcFuzzGertrudeMcFuzz 1382 replies23 postsRegistered User Senior Member
    @Vladenschlutte‌ - I've thought about this & done different plans based on living to different ages. But I think it comes down to - you don't know how long you will live. Sure you can make a prediction based on actuarial tables etc. but you as an individual are not likely to hit the mean. And who wants to spend retirement hoping that they die before they run out of money?
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  • dragonmomdragonmom 5871 replies154 postsRegistered User Senior Member
    We have run several calculators and most take predicted age into consideration. I usually plug in 95 for myself and DH. My parents are in their early 80s and healthy. DHs mother is late 80s and healthy although his father died in his 60s. I expect SS will become means tested so we don't count on getting what the calculators predict there. My pension (such as it is) will just about eliminate spousal SS if I work until full retirement.
    Health care is our biggest concern with retirement before 65. ACA coverage in our area is more expensive and worse coverage than current plan.....and what happens if ACA is overturned and you become uninsurable due to health issues? (Not being political, just adding that concern.).
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  • VladenschlutteVladenschlutte 4292 replies37 postsRegistered User Senior Member
    I've thought about this & done different plans based on living to different ages. But I think it comes down to - you don't know how long you will live. Sure you can make a prediction based on actuarial tables etc. but you as an individual are not likely to hit the mean. And who wants to spend retirement hoping that they die before they run out of money?

    You're not going to have an exact number, but should have a general idea. You're not going to be sitting at 60 years old expecting to live another 5 and infact live another 25. Some people are gonna live past 85, others are gonna die by 65.

    If you're going with the idea that you have no idea how long you're gonna need to have enough that you can live off of interest minus inflation minus some additional risk premium. In short, you're gonna be like Dad II, trying to amass 10M.
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  • intparentintparent 36291 replies644 postsRegistered User Senior Member
    ^ And to do that, you can work yourself to death. Then you won't need it anyway...
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  • GertrudeMcFuzzGertrudeMcFuzz 1382 replies23 postsRegistered User Senior Member
    Hmmm, my husbands's great grandmother lived to 103. His grandma hit 96. My grandmother is currently 95 & in reasonably good health. It happens. I'm certainly going to plan on enough to make it that far.
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  • IxnayBobIxnayBob 4372 replies42 postsRegistered User Senior Member
    @Vladenschlutte‌ - I've thought about this & done different plans based on living to different ages. But I think it comes down to - you don't know how long you will live. Sure you can make a prediction based on actuarial tables etc. but you as an individual are not likely to hit the mean. And who wants to spend retirement hoping that they die before they run out of money?
    Which leads to the old joke: "I've got enough saved to retire right now, just as long as I die before noon tomorrow."
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