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Started By
Message
re: Retirement Outlook - Will I Ever Retire?
Posted on 1/17/23 at 6:38 pm to TorchtheFlyingTiger
Posted on 1/17/23 at 6:38 pm to TorchtheFlyingTiger
Of course people should and will modify for real world conditions including expected pensions and the like. That lowers the target number.
Bill Bengen (sp?), the father of the 4% rule, calculated that people will adjust the 4% withdrawal method up every year for inflation and his numbers still worked! In the real world peoples spending goes down as they age.
The 5% growth rate I wrote is for illustrative purposes to make the point.
Obviously there are nuances and specifics people should consider for their situation.
But 25x your spend is a great target number.
Bill Bengen (sp?), the father of the 4% rule, calculated that people will adjust the 4% withdrawal method up every year for inflation and his numbers still worked! In the real world peoples spending goes down as they age.
The 5% growth rate I wrote is for illustrative purposes to make the point.
Obviously there are nuances and specifics people should consider for their situation.
But 25x your spend is a great target number.
0
Posted on 1/17/23 at 7:00 pm to MrSpock
quote:
I'm also of the opinion that in the current climate it will be difficult for the middle class to save their way to retirement and would do themselves a huge favor by accumulating income producing assets.
So what’s your strategy?
Posted on 1/17/23 at 7:16 pm to ThrowAway2060
Idk from glossing over your OP, if you don’t retire then none of us will.
Posted on 1/17/23 at 7:39 pm to CorkRockingham
OP is looking good from a retirement/savings standpoint. Personally I’d be trying to up my salary significantly.
Posted on 1/17/23 at 7:46 pm to saderade
Work hard
Save
Don't buy into the victim mentality
Look for opportunities at every turn
While staying loyal
You will win
Save
Don't buy into the victim mentality
Look for opportunities at every turn
While staying loyal
You will win
Posted on 1/17/23 at 8:11 pm to saderade
Thank y’all very much for taking the time to look over my (long) post and commenting. I assumed we were on the right track but it feels good for others to say it too.
Yeah been looking into different ways to up the salary. I’m a licensed civil engineer who really doesn’t like the job/career path I’m in, but being small town MS there’s just not a ton of options. But that’s mainly just my excuse.
Yeah been looking into different ways to up the salary. I’m a licensed civil engineer who really doesn’t like the job/career path I’m in, but being small town MS there’s just not a ton of options. But that’s mainly just my excuse.
Posted on 1/17/23 at 8:25 pm to ThrowAway2060
Yeah baw. I’m a licensed engineer too. Your salary needs to be about double what you are making.
Posted on 1/17/23 at 9:04 pm to el Gaucho
Kamala’s just gonna shoot us when she’s in her 8th term in 2050
ETA: it’s silly to plan for retirement when we live in a banana republic with a fake declining economy run by kleptocratic pedophiles. Just stack paper and trade it for something that actually holds value and don’t look back
——-
I started leaning this way. Stopped cold turkey on my 401. Not waiting a decade to get it out. If the computers that store the info still exist.
Buy tangible assets, property. At least it’s in your hands.
ETA: it’s silly to plan for retirement when we live in a banana republic with a fake declining economy run by kleptocratic pedophiles. Just stack paper and trade it for something that actually holds value and don’t look back
——-
I started leaning this way. Stopped cold turkey on my 401. Not waiting a decade to get it out. If the computers that store the info still exist.
Buy tangible assets, property. At least it’s in your hands.
Posted on 1/18/23 at 2:18 am to I Love Bama
quote:
Healthcare - For 75% of all common diseases as we age, anywhere with decent healthcare is good enough. USA does not have some magic healthcare system in comparison to the rest of the world. Even if it does, you can still keep your insurance and fly home if you get some super rare disease that they only know how to to fix in usa.
Yeah, that’s the easy part… once you know. But going years undetected because you live in a third world country might make it too late. That’s the hesitation
Posted on 1/18/23 at 6:34 am to RoyalWe
quote:
Language barrier and quality of healthcare(?).
You can learn a new language with all your free time and you would be surprised how not good our healthcare is.
Also, if you dont eat like an a-hole and work out, your health will 10X without ever seeing a doctor.
Posted on 1/18/23 at 8:45 am to MrSpock
quote:
I'm also of the opinion that in the current climate it will be difficult for the middle class to save their way to retirement and would do themselves a huge favor by accumulating income producing assets.
I tend to agree. The obvious is real estate, but that's difficult to scale up. Ideally, once you're at 3 or 4 units it becomes cost effective to pay someone else to manage it for you, but getting to that tip-over is difficult without some up front capital. Rental real estate is both tax advantaged and a hedge against some (but not all) inflationary pressures.
In an inflationary environment, bonds/high yield savings accounts can substitute for income producing assets (and less volatile than equities), but you're typically treading water, at best, against inflation at that point.
The OP should at least consider real estate a sort of "retirement" business - i.e. something to do to grow that aspect in retirement from, say, 63 to 70, in order to maximize returns in that retirement environment. It's work, but it is work that pays back over a longer time and not incompatible with an early retirement lifestyle, particularly once that pivot is made to professional management.
Posted on 1/18/23 at 8:51 am to ThrowAway2060
Buy real estate
Posted on 1/18/23 at 8:56 am to ThrowAway2060
You're 30, go have some fun man.
Posted on 1/18/23 at 10:02 am to JayDeerTay84
quote:
, if you dont eat like an a-hole and work out, your health will 10X without ever seeing a doctor.
Unless you have shitty genes and that doesn't matter
Posted on 1/18/23 at 7:19 pm to Ace Midnight
quote:
I tend to agree. The obvious is real estate, but that's difficult to scale up. Ideally, once you're at 3 or 4 units it becomes cost effective to pay someone else to manage it for you, but getting to that tip-over is difficult without some up front capital. Rental real estate is both tax advantaged and a hedge against some (but not all) inflationary pressures.
What would you say to someone who works too much to manage any themselves? Just start right away with property management?
Posted on 1/18/23 at 9:24 pm to ThrowAway2060
Good god. What a bunch of words.
No is the answer
No is the answer
Posted on 1/19/23 at 1:44 pm to ThrowAway2060
You should retire now while you still can. As the hyper inflationary depression snowballs ahead, like an avalanche, all presumed stabilities will vanish. The future is NOW.
Posted on 1/21/23 at 7:04 am to magoomba
I'm in a similar situation as you, however I'm the teacher and my wife works in the private sector. My pension pays 2.5% per year of service (so 75% of final salary at 30 years). Just keep packing away the money in tax sheltered accounts and don't worry about it. I put as much as I can into my 403b and Roth and my wife does the same on hers.
The fact that you're even saving anything for retirement puts you ahead of many Americans. While we do have pensions, the younger teachers pension is much worse than ours and many aren't doing anything to save for retirement. I also have a lot of friends who work in fields where retirement savings are all on them and they save very little or nothing at all. I'll be 40 this year so most of my friends are around that same age give or take and I'd be up nights in a cold sweat if I had nothing put away for retirement.
Covid made me even more eager to save more. I saw so many older teachers who just wanted to get out during and right after it hit the fan, but couldn't because they had to hang on for a few more years and are miserable. I decided that I never wanted to be in a situation where I had to stay on and be unhappy because I didn't invest enough.
The fact that you're even saving anything for retirement puts you ahead of many Americans. While we do have pensions, the younger teachers pension is much worse than ours and many aren't doing anything to save for retirement. I also have a lot of friends who work in fields where retirement savings are all on them and they save very little or nothing at all. I'll be 40 this year so most of my friends are around that same age give or take and I'd be up nights in a cold sweat if I had nothing put away for retirement.
Covid made me even more eager to save more. I saw so many older teachers who just wanted to get out during and right after it hit the fan, but couldn't because they had to hang on for a few more years and are miserable. I decided that I never wanted to be in a situation where I had to stay on and be unhappy because I didn't invest enough.
This post was edited on 1/21/23 at 7:10 am
Posted on 1/21/23 at 7:16 am to ThrowAway2060
quote:
Will I Ever Retire?
quote:
Anyway, I’m 30
quote:
My wife is also 30, she works for the schools and will have state retirement
The sky isn't falling
I'm 42 and my income has more than doubled since I was 30. And I don't believe I'm anywhere near my peak potential earnings
Work on your career and your income will grow. You're putting away as much as you reasonably can right now IMO
Posted on 1/21/23 at 10:12 am to GeauxTigers123
quote:
So what’s your strategy?
The strategy is to not be middle class.
How?
The Wealth Triangle by Dan Lock is a good framework. There are derivations and adaptations out there by lots of people.
High-Income Skills
A Scalable Business
High returns Investments
My Current Situation:
High Paying Primary Job
STRs. Currently lining up a second.
SO is working on her first long-term rental.
Starting a small business based upon primary job.
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