- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Retirement Income Goals for planning purposes.
Posted on 1/15/24 at 7:53 am to Champagne
Posted on 1/15/24 at 7:53 am to Champagne
quote:
Retirement planning is stressful!
Respectfully, it’s not. There’s this boomer mentality of going from working 45 hours a week to 0. As I already said, this is dumb and there’s no reason to do this outside of being hard headed and ignorant.
Put a $10k a month budget on paper with your current expenses.
You won’t have retirement contributions, so that’s 15-20% saved.
You don’t need to buy new cars as often. Less driving most likely. Most people eat out less, because they have more time. Or maybe eat out more because you want and can afford it.
If you have a paid off house, paid off cars, no dependents to cash flow, and no retirement contributions then $120k a year is a LOT of money.
1
Posted on 1/15/24 at 8:59 am to baldona
Said another way…$330/day of spending. Outside of basic recurring expenses, that covers a lot of discretionary spending.
Posted on 1/15/24 at 10:25 am to Double Oh
quote:
If your house is paid off i would think you could get by with living on 5K a month? Yes? No?
Of course!
I think I'm more worried about 10 to 15 years from now and how what looks good NOW might look in the future. Sure, many income sources for retirees are Inflation-adjusted but those adjustments might not be enough to keep up with inflation.
So, there's confidence in The Plan for now and maybe the next few years, but, how good is The Plan for 15 years from now?
To me, it seems (and I am a Newb on retirement planning), many of us don't plan enough for a long-term Nursing Home residency. To be fair, it seems impossible to plan well for that. They are VERY expensive and, who knows what they will cost 15 year or more from now?
I'm doing OK now. I think I'd better spend like I'm kind of poor and save that money. Too many "Unknowns" for the future.
I have visited residents in nursing homes, and, it's better to be in a good one!
Posted on 1/15/24 at 10:25 am to lynxcat
Probably the biggest thing that eats at almost retirees is the damn marketing, all these tv channels that focus on older people do nothing but Medicaid supplements, pharmaceutical, walk in bath, etc. commercials that do nothing but worry people.
People are also scared of not being able to afford things. That’s just life, either save more now or spend less later. There’s no other way.
People are also scared of not being able to afford things. That’s just life, either save more now or spend less later. There’s no other way.
Posted on 1/15/24 at 10:29 am to UpstairsComputer
quote:
Now I think the problem is you. Use real rate of return. Sheesh, are we writing this plan for you?
No, we are just sharing ideas in this thread. I'm not expecting anybody to do serious number-crunching and financial planning based on the very incomplete financial info I've shared in this thread.
I'm just gathering thoughts and ideas because I think I can be a metaphorical "sponge" that will lift my own level of being Informed from Zero to Somewhat Informed.
So far, I'm very happy with the ideas already shared.
Posted on 1/15/24 at 10:33 am to baldona
quote:
That’s just life, either save more now or spend less later. There’s no other way.
What you say seems close to Dave Ramsey's financial philosophy, and that's a good thing.
Isn't Dave Ramsey's Plan the most astute, though, for most people? Just spend less or spend moderately and SAVE. That's the best plan for Retirement Planning and Retirement LIVING, it seems to me.
I go back to the "Dad and Mom Need to Go Live in the Nursing Home" contingency -- that contingency is LURKING out there, you never know the exact year it might become reality and, if it becomes reality, you'll need MORE money for that contingency that you'd ever expect, so, spend less and save more NOW.
This is "Financial Planning for Dummies" - spend less, save more. Maybe that's the best plan for me and for many others.
This post was edited on 1/15/24 at 10:34 am
Posted on 1/15/24 at 10:34 am to UpstairsComputer
quote:
Now I think the problem is you. Use real rate of return. Sheesh, are we writing this plan for you?
I understand where you're coming from but no, I'm not asking anybody to write a plan for me.
This post was edited on 1/15/24 at 5:08 pm
Posted on 1/15/24 at 10:35 am to TorchtheFlyingTiger
quote:
So for simplification you'd like everyone to ignore housing and debt. But we were supposed to just guess you wanted us to factor in long term nursing home care?
OK, that's a fair point to mention.
Posted on 1/16/24 at 11:03 am to Champagne
quote:
Champagne
Start itemizing your expenses, which it sounds like you already have, and create two expense categories, essential and discretionary. If you are 10 to 15 years out, for now, figure on aging in place and that the home is paid off. Next, adjust the budget including the discretionary expenses for inflation. Academics have been using 3% but some are using 4 %. If you really want to get in the weeds you can use different inflation adjustments for healthcare, food, and housing, ect... but I would keep it simple. Reexamine your budget every year or at least every other year until you get closer to retirement.
Next question is will you have the assets to fund your number?
Posted on 1/16/24 at 11:52 am to Champagne
quote:
Isn't Dave Ramsey's Plan the most astute, though, for most people? Just spend less or spend moderately and SAVE. That's the best plan for Retirement Planning and Retirement LIVING, it seems to me.
I've read a lot of Ramsey's stuff but that's not where I'm coming from.
I don't believe there's a reason to panic about not saving enough. The best plan IMO is to save a certain % of your income, write it down on paper and do it, and move on with life.
Life happens, shite happens, luck happens. You can only plan so much.
If you save ALL of your money for retirement, you aren't enjoying life while you are younger more fully. So there's always a give and a take. You can only do so much.
Posted on 1/16/24 at 3:23 pm to Champagne
quote:
$10,000 per month after taxes is the "base line". Retirement date, assume is today. Place of Retirement assume is Louisiana.
Is the retiree single, married, etc? What are the plans for health insurance? If using ACA and single you would need to stay below "x" income or you may find yourself paying full price for insurance premiums. I early retired years ago and still not close to 65, money hasn't been an issue with 6-figure expenses. All depends on net worth, accessible after tax funds, and know how to maximize income while minimizing taxes. People need to accumulate significant after tax investments and build tax loss carry forwards to help reduce tax costs in retirement, seriously helps bridging to full retirement age, delaying SSI, etc. Roth > 401k's, would be stacking them pre-retirement, especially if you have access to Roth 401k at work. I haven't lived in LA in a very long time and would not retire there.
Page 3 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News