Yes, another retirement thread - RE: How much you need to retire - Page 2 - TigerDroppings.com

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Jake88
George Mason Fan
Member since Apr 2005
7908 posts

re: Yes, another retirement thread - RE: How much you need to retire


quote:

I'm banking on closer 800% of my current salary per year.


So if someone makes 200k per year now they'll need 1.6 million per year to maintain their lifestyle in retirement?






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NELAtigers
New Orleans Saints Fan
Member since Nov 2010
1278 posts

re: Yes, another retirement thread - RE: How much you need to retire


quote:

A lot of guys who spent their entire lives being lower middle class retired to a life better than most upper middle classers will ever see.


I was playing golf with a financial adviser and he told me he has 6 clients who were worth about 7 million a piece. None of them went to college and started working at the paper mill right out of high school. They started investing at 18 and now in their mid 50's are 7 million.






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Corn Dawg Nation
LSU Fan
Member since Oct 2009
2838 posts

re: Yes, another retirement thread - RE: How much you need to retire


quote:

So if someone makes 200k per year now they'll need 1.6 million per year to maintain their lifestyle in retirement?


I think in the op explained rationale, the 1.6 would suffice for the whole life of your retirement. Not that annually.






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djmicrobe
LSU Fan
Planet Earth
Member since Jan 2007
1287 posts

re: Yes, another retirement thread - RE: How much you need to retire


How do they expect a 45 year old at a savings of 3 to get to a savings of 12 in 20 years (65 year old)? What ROR must you get to increase savings that much in 20 years? A person will have to be saving about 40% of their salary per year for 20 years to get to 12 while paying off almost all debt.





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matthew25
Ole Miss Fan
Member since Jun 2012
3359 posts

re: Yes, another retirement thread - RE: How much you need to retire


My goals since I don't have a pension: 1) save minimum of 15% through company plus my contribution, 2) need to hit $1,500,000, and 3) assume I'll be retired for 30 years.


I've read that less than 10% have pensions. I suspect most shipyard employees have a pension.






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K E V 8 4
LSU Fan
Member since Jul 2010
226 posts

re: Yes, another retirement thread - RE: How much you need to retire


quote:

$3 million is a minimum needed


That is the correct answer, for me at least.






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K E V 8 4
LSU Fan
Member since Jul 2010
226 posts

re: Yes, another retirement thread - RE: How much you need to retire


You are corect. This is easier done if you are making OT-style bucks and living below your means. By my calcs, at a 0% real return, it would take 45% of salary. At an average (real)return of 4%, it would take 30% of your salary. For returns of 7% and 10% (unrealistic in these times), it would take 23% and 16% respectively. Obviously, this is easier to do for someone making 200-300K than for someone making 100K. (Also, remember that company contributions to retirement reduce the savings requirement.)

However, the targets seem reasonable to me and the challenge is to try to make it happen. Personally, I'm sitting above target on savings, but carrying more debt than the guideline (primary residence mortgage only).



This post was edited on 9/14 at 8:40 am


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CajunAlum Tiger Fan
LSU Fan
Broussard
Member since Jan 2008
2417 posts

re: Yes, another retirement thread - RE: How much you need to retire


Don't your income needs go down dramatically in retirement? No Mortgage, No Kids, No College, No more putting money aside for savings? Basically all of your income goes toward lifestyle. (Barring significant illness.)


You can live a pretty good life on $100K in retirement.






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Powerman
LSU Fan
Corpus Christi, TX
Member since Jan 2004
120346 posts

re: Yes, another retirement thread - RE: How much you need to retire


quote:

Don't your income needs go down dramatically in retirement? No Mortgage, No Kids, No College, No more putting money aside for savings? Basically all of your income goes toward lifestyle. (Barring significant illness.)


Health insurance could be a huge cost particularly for a couple

A lot of people take for granted having employer subsidized health insurance

I'm not sure how the new healthcare law will affect this or what could be in store for me by the time I retire






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K E V 8 4
LSU Fan
Member since Jul 2010
226 posts

re: Yes, another retirement thread - RE: How much you need to retire


Bumping this thread for this article which contains a similar "milestone approach" to the table I posted above. (These are basically the same as what I posted until age 45 and then less aggressive from there.) Should be fairly easy for most guys on here:

Milestones
1x — Reach age 35 with one times your annual salary saved.
3x — By 45, accumulate three times your salary.
5x — When you are 55, your savings should have risen to five times your salary.
8x — You are there. It is age 67.

LINK






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OnTheBrink
Alabama Fan
TN
Member since Mar 2012
3552 posts

re: Yes, another retirement thread - RE: How much you need to retire


Well, looking at it that way, it makes me feel better. My wife and I are close to being at our annual salary and are 30. Just running some rough estimates using an average of what we have saved the past 5 years and we are looking good.

quote:

Should be fairly easy for most guys on here


And we are NOT most guys on here.






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LSUAfro
LSU Fan
Baton Rouge
Member since Aug 2005
10247 posts
 Online 

re: Yes, another retirement thread - RE: How much you need to retire


I'm not one of the "over savers" like many on this board are, but those numbers are much too low IMO.





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K E V 8 4
LSU Fan
Member since Jul 2010
226 posts

re: Yes, another retirement thread - RE: How much you need to retire


I agree and, for me, I look to the more aggressive ratios provided in the table from an earlier post





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LSUAfro
LSU Fan
Baton Rouge
Member since Aug 2005
10247 posts
 Online 

re: Yes, another retirement thread - RE: How much you need to retire


Yeah. Especially with the uncertainty of Social Security.





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KG6
LSU Fan
Member since Aug 2009
2205 posts

re: Yes, another retirement thread - RE: How much you need to retire


(no message)


This post was edited on 11/29 at 3:15 pm


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Larry Hollins
LSU Fan
Member since Jul 2009
1545 posts

re: Yes, another retirement thread - RE: How much you need to retire


I know people who are recently retired. the 2 categories of people doing the best are 1)life long employees of fortune 5oo companies that worked there for 30+ years 2)entrepreneurs with profitable business.

as has been stated previously, the life long employees live CONSIDERABLE better than they did during working years. this is a result of a STRONG company pension and two workers in household. add in 401k(which was dippled into periodically) and there you go. these people were not major savors in fact one couple paid for their kid to go to Tulane for 4 years out of savings/401k.

ps. expenses do go down in retirement as long as the children and grandchilden are gone.

the moral in all this is if you start early and you contribute consistently over 30+ years then you will end up in good/great shape. and no, none of these guys were highly compensated people, moderately compensated at best and
only half of them had college degrees.






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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
67716 posts
 Online 

re: Yes, another retirement thread - RE: How much you need to retire


quote:

Don't your income needs go down dramatically in retirement? No Mortgage, No Kids, No College, No more putting money aside for savings? Basically all of your income goes toward lifestyle. (Barring significant illness.)


If I'm not working I'll be spending way more money






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Anfield Road
Mississippi St. Fan
Rocket City
Member since May 2012
899 posts

re: Yes, another retirement thread - RE: How much you need to retire


quote:

Bumping this thread for this article which contains a similar "milestone approach" to the table I posted above. (These are basically the same as what I posted until age 45 and then less aggressive from there.) Should be fairly easy for most guys on here:

Milestones
1x — Reach age 35 with one times your annual salary saved.
3x — By 45, accumulate three times your salary.
5x — When you are 55, your savings should have risen to five times your salary.
8x — You are there. It is age 67.


These figure look a bit low. Is this net worth or money saved in retirement accounts and not including residence. If the former, I would be way ahead. If the latter, I'm not sure since I have yet to buy permanent residency.



This post was edited on 10/5 at 5:59 pm


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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
31963 posts

re: Yes, another retirement thread - RE: How much you need to retire


quote:

1x — Reach age 35 with one times your annual salary saved.


hit this at 28






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UncleLogger
LA-Lafayette Fan
Freetown
Member since Jan 2008
2333 posts

re: Yes, another retirement thread - RE: How much you need to retire


Are all of you accounting for your wives? Do they work? Are we talking combined total retirement savings, or just one?

What the hell are you people saying $3,000,000 going to do with all that money when you retire? That seems like overkill. Assuming you'll own your home and not have any kids leaching off of you, that's a hell of a lot of cash to spend.

Unless of course you plan on leaving a large chunk of change to your pups.






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