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Message
How much money will I need to retire? UPDATE in OP
Posted on 10/21/14 at 2:58 pm
Posted on 10/21/14 at 2:58 pm
I'm meeting with my financial adviser tomorrow. I was thinking around 2 million would be good, I plan on having most things paid off by then. I have a little over 30 years before this happens. I was looking at online calculators and getting to 2 million would not be a problem, but when you factor in inflation, 2 million is nothing. I'm scared now.
UPDATE - met with my financial planner this morning. I'm gonna be putting away 3500 a month and that should get me to about $7 million by the time I retire. Also set up a 529 for the daughter's college (14 years out). He said for my son, just put the money into a savings account since here's only 3.5 yeas out.
Also, as debt gets paid down, I'll put more into retirement (an SEP-IRA). At the same time I'm gonna be putting a little into some Schwab ETFs and setting them up as DRIPs. I'll probably only put a couple hundred a month into them.
I want to thank the money board for all of the knowledge ya'll have and that I've been able to learn. I feel much more financially safe for the future now.
I also have disability insurance and life insurance. If I die my wife will be loaded.
UPDATE - met with my financial planner this morning. I'm gonna be putting away 3500 a month and that should get me to about $7 million by the time I retire. Also set up a 529 for the daughter's college (14 years out). He said for my son, just put the money into a savings account since here's only 3.5 yeas out.
Also, as debt gets paid down, I'll put more into retirement (an SEP-IRA). At the same time I'm gonna be putting a little into some Schwab ETFs and setting them up as DRIPs. I'll probably only put a couple hundred a month into them.
I want to thank the money board for all of the knowledge ya'll have and that I've been able to learn. I feel much more financially safe for the future now.
I also have disability insurance and life insurance. If I die my wife will be loaded.
This post was edited on 10/22/14 at 12:48 pm
7
Posted on 10/21/14 at 3:03 pm to white perch
quote:
How much money will I need to retire?
No way to answer this question. You could retire with a few hundred grand in the philippines.
If you have a house paid off, $2,000,000 in the bank and live a modest lifestyle, I think that is plenty here in the south.
Posted on 10/21/14 at 3:11 pm to white perch
quote:In 30 years? You're right. That's too low. That would be only about 870k in today's money.
I was thinking around 2 million would be good
Posted on 10/21/14 at 3:14 pm to white perch
quote:
How much money will I need to retire?
What do you want to do? where? 2 million 30 years from now probably won't get you much......
Posted on 10/21/14 at 3:17 pm to jpbTiger
What % of my yearly income would I need to put into a retirement account to get about the same level of income in 30 years?
Posted on 10/21/14 at 3:18 pm to jpbTiger
quote:
What do you want to do? where? 2 million 30 years from now probably won't get you much......
Thing is, he'll presumably be contributing inflated dollars in the future as well, which helps him. Hence, this kind of stuff makes my head hurt.
This post was edited on 10/21/14 at 3:19 pm
Posted on 10/21/14 at 3:27 pm to white perch
Easy question to answer, just tell me how long you will live and how much money you need every year
Posted on 10/21/14 at 3:59 pm to white perch
quote:
What % of my yearly income would I need to put into a retirement account to get about the same level of income in 30 years?
That's a tough question. I'd counter with - do you need the same level of income in 30 years?
Motley Fool, money.com, or any number of financial websites can offer you a calculator to figure that out - but, will you need the same income at that point? For example, will your house be paid for, or will you need income for housing? Got kids who need your money for college? Will you live where you live now, or somewhere cheaper (or more expensive?). Bottom line, good you're talking to a professional - talk to more than one.....
Posted on 10/21/14 at 4:03 pm to Teddy Ruxpin
quote:I made a spreadsheet based on the following randomized yearly percentages:
Thing is, he'll presumably be contributing inflated dollars in the future as well, which helps him.
Income increase (0-5%)
Inflation (2-4%)
RoR on Investments (0-15% slowly decreasing to 0-5% by 60)
% of Income Invested (10-14%)
% of Final Income Used Per Year in Retirement (60-75%)
Tax on Retirement Income (20-35%)
I then ran 1000 simulations and found that there was a 92% chance I would end up with over $4 million by 53 if I kept my current allocations and that would last me through 92 years old.
There was also a 9% chance I would hit "critical mass" where my investments would grow exponentially and I would die with millions.
This post was edited on 10/21/14 at 4:05 pm
Posted on 10/21/14 at 5:07 pm to ell_13
can i borrow that spreadsheet?
Posted on 10/21/14 at 7:08 pm to ell_13
Sounds like FireCalc (google it).
A common recommendation is 25x yearly expenses. A number like that is much easier to achieve if you retire debt free to go with it.
A common recommendation is 25x yearly expenses. A number like that is much easier to achieve if you retire debt free to go with it.
Posted on 10/21/14 at 7:43 pm to Venelar
I stole a version a few years ago from online and added my own changes since it was so vanilla.
Texas, email?
Texas, email?
Posted on 10/21/14 at 8:11 pm to white perch
This far out (30 years away) you cannot have an exact number as a hard, fast target.
Unless you are a trained financial professional, you need to pay someone to shepherd and guide you as to your investments. Possibly over time, you can train yourself to do more of this or even all of it but one bad move at the wrong time over the thirty years can overwhelm the entire amount you pay the right fiscal advisor. The retirement roadsides are littered with folks who think they are CFPs.
You can take advantage of some high risk-high return investments right now as you have plenty of time. The further you get down the aging track the less this is true, yada, yada, yada.
Good luck, don't get overwhelmed or worried, save at least 20% of your gross with the right investments and you'll be fine.
Unless you are a trained financial professional, you need to pay someone to shepherd and guide you as to your investments. Possibly over time, you can train yourself to do more of this or even all of it but one bad move at the wrong time over the thirty years can overwhelm the entire amount you pay the right fiscal advisor. The retirement roadsides are littered with folks who think they are CFPs.
You can take advantage of some high risk-high return investments right now as you have plenty of time. The further you get down the aging track the less this is true, yada, yada, yada.
Good luck, don't get overwhelmed or worried, save at least 20% of your gross with the right investments and you'll be fine.
Posted on 10/21/14 at 9:50 pm to ell_13
quote:
I stole a version a few years ago from online and added my own changes since it was so vanilla.
Texas, email?
This post was edited on 9/9/17 at 1:03 pm
Posted on 10/22/14 at 10:27 am to GenesChin
texastiger34 at gmail
Posted on 10/22/14 at 10:32 am to TexasTiger34
Probably won't be until the weekend before I can send it. I'm heading out of town for work this evening and won't have my PC with me.
Posted on 10/22/14 at 10:51 am to ell_13
no rush man, thanks
Posted on 10/22/14 at 11:27 am to ell_13
quote:
Probably won't be until the weekend before I can send it. I'm heading out of town for work this evening and won't have my PC with me.
Can i get in on the email? gsuncaa@gmail.com
Thinkig about making some career changes and this would help me out. AD mil right now
Posted on 10/22/14 at 11:35 am to ell_13
In theory, if you have enough money saved up couldn't you live modestly off the interest and not worry about the money running out?
Posted on 10/22/14 at 12:13 pm to Bmath
Yep. That is what happens for at least the first 10 years or so. Then inflation takes over your growth.
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