Always good to do what you are comfortable with.
Many things can be thought out and put on back burner for later.
Uncertain times do mean it can pay to be careful.
You are a bit ahead of the game than what we were when we were 50. We did have more time before the kids were born to build up our overall financial picture â our DDs were born the years we turned 38 and 40 - we were married and in our careers at age 22, although I got two graduate business degrees before the kids were born, and our DDs finished college on time and with no debt in 2016 and 2018. DH retired in 2020 and I retired in 2021.
We found our FA in 2013, and over a few years got our risk down and on a good plan that has worked out for us. We still manage DHâs 401k (EMPOWER and overall fees paid for by his former employer), and spin off money from there when holding so much in stocks has our overall portfolio risk be higher than we are comfortable with. This current market volatility is not of high concern because I am pretty confident with the political picture.
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We saw our CFP today, and had a very good visit. I asked about munis. If anyone would like the details, feel free to message me. I think this thread has covered that enoughâŠmy opinion.
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$3 million invested for a couple without considering house, contents, SS etcâŠis our number. Before the recent market volatility was hoping to get to $2 million in three years and then $3 million in eight years. Hopefully that still comes to pass. That would leave me a few years to work longer if I feel I need to, and put off claiming SS until between 67 and 70 depending on health. If we sold the house I think we could retire at $2 million due to a big drop in annual expenses (mortgage, high insurance, high property taxes, repairs/upkeep).
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I love when people put an actual number! Thank you!
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Actual numbers (much higher here of course than the average American retiree) can vary so much. Many factors already mentioned in past - pension(s), SS, predicted expenses etc. In theory, a couple with great pensions and SS and low expenses (house paid off, low COL / property taxes) might need zero. Well maybe zero plus money saved for LTC and heirs.
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Passive income through residential and commercial real estate ownership had been a great way to accumulate wealth, create future retirement income and provide tax efficient estate planning for many. I use the past tense because the biggest bang for the buck was during a low interest rate environment that allowed for you to gain leverage and tax advantages while the actual underlying properties were appreciating.
While not for everyone, if we revert to a lower rate environment it should be considered as an asset class for those in the middle stages of retirement planning and financial planning.
If dove tailed with a diversified securities portfolio it can provide a very nice hedge to the vagaries of financial markets.
I have never approached retirement with a finish line or number in mind. I am lucky that I like my job but at some point when I stop working I hope to have saved enough that our lives wonât change beyond having more time to do other things we enjoy and ensure our kids can continue to take risks to pursue opportunities they are passionate about.
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We really tried to get our son to keep/rent out his house in GA (low-interest VA loan, purchased before the COVID run-up) after he posted to MD. Even at West Point, cadets were advised of the wealth-building potential of buying and renting out real estate in their various post locations. This is, indeed, part of retirement planning for many in the military. Our son did not want the hassle of owning a remote piece of property and preferred to invest the proceeds toward his next house. He does understand finance, so his is not a reckless decision, but I still think he should have kept the house, especially as there is now a possibility that he will be back in GA for a few years working on a PhD. I hope he doesnât regret his decision. 
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I feel that.
Last year, ds1 was talking about how they were looking to move into a better school district (their house was in a good one but lines got redrawn), and they donât even have a kid yet. Lines could shift back, and, obviously, they wouldnât need to make such a move for school reasons for at least five years. They have a 2.? mortgage rate. Why give that up now? But I didnât say a word.
Thankfully, he told us this week that theyâve cooled their jets on that. Truthfully, he is deep into Zillow porn! He has alerts in various cities! lol
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After Trump took office, I asked both our financial advisors if we were well-positioned to withstand the likely tariff-related recession. One looked at the part of the portfolio they had and pointed out that we had basically repositioned it a few months before (Iâm a bit of a worry wart, I guess). The other did a quick and dirty calculation â he said that even if our investments dropped 25% and never recovered, we would still have enough but that we would be leaving a lot less to the kids. I believe he said that our net worth would be the same in real terms that it is today. We talked about a few adjustments but have not made any.
Iâll post on the joy of travels in another thread.
We did get a notification of increases in SS.
I found this analysis of the future of real estate to be provocative. Raises lots of issues I had not thought about. He may be right on direction but less clear about the magnitudes.
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Regarding the thread title question. 99% of variance (r^2 = 0.99) in my historical inflation adjusted NW is explained by a simple equation in the form NW = $a * (time)^b. Deviation during different historical events are below.
- 2000s Housing Boom â Peak at 23% above
- 2007-09 Global Financial Crisis â Trough at 14% below
- 2010s Mostly Uneventful â Continually within +/- 5%
- 2020 COVID Crash â 8% below
- Post-COVID Boom â 14% above
- 2022 Inflation + Decline â 4% below
- 2023-25 US Stock Increase â 5% above
- 2025 Tariff Concerns â 2% above (so far)
Note the general pattern over I have experienced while working/investing is when something positive beyond expectations happens, something negative beyond expectations cancels it out, when measured in terms of my assets. I eventually return back to the trend line. For example, the 2000s housing boom fuels subprime mortgage crisis, or the COVID crash fuels post-COVID boom.
As such none of above has had much impact on retirement plans when zoomed out like this, and I feel the same about the recent decline. I am down ~1% for the calendar year so far, which is not enough to drop below equation expectation. I also have not made any significant changes to my portfolio or assets, which has a good mix of components that are up for the year (particularly international).
My retirement plans are the same now as they were last year, which is I may or may not retire this year. Whether I choose to do so depends on whether I continue to find work rewarding, whether work continues to have a flexible schedule that allows me sufficient time/schedule to pursue other interest, and whether I develop new passions that are incompatible with work commitment.
I do not consider finances as notable risk in my retirement timing. My expenses are quite low compared to my assets. If retirement timing was primarily determined by finances rather than personal motivations, Iâd be generally looking for expected annual retirement expenses to be no more than 3-4% of assets. There is a lot of variation in that number depending on things like expected years of retirement, possible changes in future spending or major life changes, possible future inheritance or future income streams, types of assets (I am intentionally not excluding real estate including primary home, but I do recognize they are different), tax impact, risk tolerance and tolerance to offset risk (reducing spending or adding income stream), etc.
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Hereâs our lower budget retirement strategy. We donât have a lot of money, but we have steady pensions, which will NOT increase as there are no cost-of-living adjustments. I have already taken my SS, DH will start his at age 70. We are aiming for resiliency in the face of climate change, political upheaval, our ever-increasing ages, and declining value of our pensions.
Our strategy was to build a brand-new, just under 1000sq foot home. (Lower energy use, hopefully no large maintenance issues in the next 20 years, hvac system and appliances all new). Put solar on the house, thus paying for most future energy costs upfront, and added a battery backup and car charger. Traded our 2018 gas car in for a used 2024 all-electric vehicle so we can charge from our solar and vehicle wonât need replacing for at least 10 years, (DH and I share one vehicle), and bought used, comfortable semi-recumbent bikes and put panniers and electric motors on them. (During good weather months, we can use the bike paths to run errands, grocery shop, etc).
Our next investment is building a raised bed garden (food production) and rainwater collection system for the garden, and put in a supplemental heat source (wood stove) in the basement for if power goes out for a long time during the winter months.
We have strong community, even though we have only been in this NE town for 1.5 years. DD, her spouse and the grandkids, are in their own new house right next door to us, and DS and family only 12 minutes away. Lots of family love there!!! We have a friends group of neighbors that meet weekly for coffee, walks, and run an active WhatsApp chat group. We also joined the local gym, book clubs, and are finding our place in the community.
We have spent a LOT of money making this move, basically turning over all the built-up equity in the house we sold in Texas, plus much of our liquid savings into our shared propertyâŠ. But our future and ongoing expenses should be fairly low, and as inflation eats at our pensions, that is important. Plus, we are living in a beautiful place, near cows, farms, and best of all, family!
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I canât ride a bike, but other that that it sounds ideal!
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I was going to retire early a couple of years ago but it was not for me.
Day 1: Went to Costco on a weekday and was very excited there were no lines.
Day 2: Went to Trader Joeâs - same excitement
Day 3: Started getting bored. Watched 2014 Dodge Ball World Championships between the US and Canada on Youtube - 52 million views!
Day 4: Texted acquaintenance. Went back to work following month.
Ill have a better retirement plan the next go around.
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this sounds like a lovely life.
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@anxiousmom, youâve covered a lot of very important bases that many donât consider, and your new life sounds perfect to me. I especially envy your ability to be close to your kids. Youâve really made it. Kudos to you. 
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I am afraid this would be me.
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And all the above is why I did some long term leave positions after I retired from my full time job. I missed the work, and the kids, and the people. It was really a perfect solution because I could say yes or no, and sort of pick and choose my work hours and days. It helped that the compensation was very good.
I still had the flexibility to do the things I wanted to do. DH was still working so it wasnât like we were planning any long trips together.
I guess I sort of eased into retirement. And it worked for me.
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This is our retirement strategy. Weâre moving close to our kids, whether they like it or not.
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We have been trying to figure out a way to do this with two kids who live 2500 miles apart!
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