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re: Yes, another retirement thread - RE: How much you need to retire
Posted on 9/13/12 at 8:00 pm to TheHiddenFlask
Posted on 9/13/12 at 8:00 pm to TheHiddenFlask
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?
Posted on 9/13/12 at 9:09 pm to TheHiddenFlask
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.
Posted on 9/13/12 at 11:06 pm to Jake88
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.
Posted on 9/13/12 at 11:08 pm to K E V 8 4
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.
Posted on 9/14/12 at 12:16 am to djmicrobe
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.
I've read that less than 10% have pensions. I suspect most shipyard employees have a pension.
Posted on 9/14/12 at 8:02 am to LSURussian
quote:
$3 million is a minimum needed
That is the correct answer, for me at least.
Posted on 9/14/12 at 8:31 am to djmicrobe
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).
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 9/14/12 at 8:40 am
Posted on 9/14/12 at 2:45 pm to K E V 8 4
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.
You can live a pretty good life on $100K in retirement.
Posted on 9/14/12 at 3:12 pm to CajunAlum Tiger Fan
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
Posted on 10/5/12 at 8:19 am to Powerman
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
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
Posted on 10/5/12 at 8:27 am to K E V 8 4
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.
And we are NOT most guys on here.
quote:
Should be fairly easy for most guys on here
And we are NOT most guys on here.
Posted on 10/5/12 at 9:08 am to K E V 8 4
I'm not one of the "over savers" like many on this board are, but those numbers are much too low IMO.
Posted on 10/5/12 at 9:11 am to LSUAfro
I agree and, for me, I look to the more aggressive ratios provided in the table from an earlier post
Posted on 10/5/12 at 9:13 am to K E V 8 4
Yeah. Especially with the uncertainty of Social Security.
Posted on 10/5/12 at 9:48 am to Powerman
(no message)
This post was edited on 11/29/12 at 3:15 pm
Posted on 10/5/12 at 10:35 am to KG6
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.
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.
Posted on 10/5/12 at 10:45 am to CajunAlum Tiger Fan
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
Posted on 10/5/12 at 5:57 pm to K E V 8 4
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 10/5/12 at 5:59 pm
Posted on 10/5/12 at 6:59 pm to Anfield Road
quote:
1x — Reach age 35 with one times your annual salary saved.
hit this at 28
Posted on 10/5/12 at 10:43 pm to Powerman
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.
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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