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Message
re: How much money do people need to retire?
Posted on 2/28/24 at 10:45 am to TigerintheNO
Posted on 2/28/24 at 10:45 am to TigerintheNO
quote:
Retired at 56, was told he bought his house at age 39, with a 15 year mortgage. Paid it off 2 years ago and now has a pension.
This really is the key.
Buy a house and pay that sucker off before you get close to retire. Payments on a 15 year suck but it starts to feel really good a few years in when you can see the finish line. Try not to have any other large debts either (seem to be a lot of older folks with student loans either for themselves or their kids).
If all you have is taxes, insurance and expenses related to your four walls (food, utilities, etc) you don’t need much cash coming in the door at all.
1
Posted on 2/28/24 at 11:06 am to Dadren
quote:
Retired at 56, was told he bought his house at age 39, with a 15 year mortgage. Paid it off 2 years ago and now has a pension.
Looking at a guys portfolio now. 61 years old, SS eligible this year turning 62. Pension is ~$110K before social security (Retired from two different jobs). Two houses fully paid off worth North of 625K in value. $625K in liquid cash. Zero debt.
He drives a 2010 Terrian with over 200K miles.
Posted on 2/28/24 at 12:27 pm to fareplay
Two million with no debt should generate 120k or so a year pre-tax if you buy an annuity. If you can add to that, say, a small apartment building where you rent out the apartments for a grand or two a month (say four stories, four apartments) that's another nice thing.
That would be enough for most people I would think. But you do you.
That would be enough for most people I would think. But you do you.
Posted on 2/28/24 at 12:32 pm to DCtiger1
quote:
There are ways to plan for mitigation against being wiped out by your health care costs, but this board doesn’t want to hear that
Please share
My wife and i don’t have kids, are considered high earning, and have recently decided we will probably move out of the country to retire. A large reason being you can access quality healthcare in other places that won’t affect your lifestyle in retirement.
Posted on 2/28/24 at 1:56 pm to cas4t
Two things:
1) Med supp plans for both you and your spouse once you turn 65. The most comprehensive plans limit out of pocket expenses for even the most extended hospital or skilled nursing stays, and also provide 50k in care for international travel. These are not Med advantage plans, In Fl they are around 200/month.
2) Long-term care or Life insurance with a Flexible care benefit rider. for example, you can purchase a Universal life policy with a FCB rider, and if you need care due to a disability, a terminal illness etc the policy will pay 2% of the face amount monthly until exhausted. For example, if you had a 500k policy, you could receive 10k/month for your care. Long term care plans are great too, but they are use it or lose it whereas Life policies will build cash value and still pay a death benefit.
1) Med supp plans for both you and your spouse once you turn 65. The most comprehensive plans limit out of pocket expenses for even the most extended hospital or skilled nursing stays, and also provide 50k in care for international travel. These are not Med advantage plans, In Fl they are around 200/month.
2) Long-term care or Life insurance with a Flexible care benefit rider. for example, you can purchase a Universal life policy with a FCB rider, and if you need care due to a disability, a terminal illness etc the policy will pay 2% of the face amount monthly until exhausted. For example, if you had a 500k policy, you could receive 10k/month for your care. Long term care plans are great too, but they are use it or lose it whereas Life policies will build cash value and still pay a death benefit.
Posted on 2/28/24 at 2:13 pm to Dadren
quote:
Unless you’re spending every penny of that $250K per year, you don’t need that much to maintain your lifestyle in retirement.
I didn’t say what you think I said. You think I said that to live like I was living making $250k in my working years, I need $3.5-4 million. What I actually said was: if you safely want to take out $250,000/year (in today’s money), starting at age 60, you need $3.5-4 million in today’s money in your investment accounts when you turn 60.
This post was edited on 2/28/24 at 2:17 pm
Posted on 2/28/24 at 2:25 pm to DCtiger1
quote:
You inherited money because he died 9 years into retirement. Your whole premise is off. What would’ve happened if he lived to 80?
My Mom lived until she was 84. I suspect had he lived as long as she did, the results would have been the same. They didnt do much when he was alive, and after he passed she did even less. But she still had plenty pocket money, she ate better than she had all her life after my Dad passed.
YMMV I just saw it done, so I know it can be done if one is realistic about what one requires once one retires.
This post was edited on 2/28/24 at 2:26 pm
Posted on 2/28/24 at 2:26 pm to cas4t
quote:
A large reason being you can access quality healthcare in other places that won’t affect your lifestyle in retirement.
Greatly depends where and how far from home to the definitive care facility. I've lived in Costa Rica, in Mexico, etc and as a provider I'll say quality of medical care was spotty at best. As stated distance is important, 1-2hour to a facility when one is having a STEMI or CVA will likely result in a bad outcome.
Posted on 2/28/24 at 2:28 pm to DCtiger1
You can also protect assets by putting them in a living trust.
Posted on 2/28/24 at 2:37 pm to Smoke7024
If we are still getting our benefits, we could live on $150,000 easy.
Posted on 2/28/24 at 3:26 pm to Eurocat
quote:
Two million with no debt should generate 120k or so a year pre-tax if you buy an annuity. If you can add to that, say, a small apartment building where you rent out the apartments for a grand or two a month (say four stories, four apartments) that's another nice thing.
No thanks to real estate. You are better off leaving the money in the market.
Posted on 2/28/24 at 3:29 pm to fareplay
ZERO DEBT
Posted on 2/28/24 at 4:10 pm to El Segundo Guy
No he is an illiterate
Posted on 2/28/24 at 5:15 pm to DCtiger1
Both of those strategies seem reasonable although premiums for universal life policies are quite expensive.
Posted on 2/28/24 at 5:18 pm to Dragula
quote:
Greatly depends where and how far from home to the definitive care facility. I've lived in Costa Rica, in Mexico, etc and as a provider I'll say quality of medical care was spotty at best. As stated distance is important, 1-2hour to a facility when one is having a STEMI or CVA will likely result in a bad outcome.
Panama, Costa Rica and Portugal on our short list. We are probably 15 years away from this possibility, at minimum, so that could change if other countries provide incentives for retirees.
Panama doesn’t technically have universal healthcare, but they do have a public option that is reasonable as well as a private pay option that is very doable.
Posted on 2/28/24 at 5:21 pm to Napoleon
quote:
Depends where you retire to. You can live off of less than $1k a month in some countries. No way I stay in the US, I plan to retire at 55 to Mexico. 13 more years and I'm done with work. Assuming my market holdings don't crash. Lol
Mexico was also on our list due to the obviously COL factor.
I just worry that things are only going to get worse there. And the idea of buying a home gives me pause. I’ve just read some horror stories.
Posted on 2/28/24 at 5:37 pm to fareplay
the way things are going today retirement is nothing but a dream
Posted on 2/28/24 at 6:07 pm to Mid Iowa Tiger
quote:
Ok I’m in the industry and
Doooooouuuuuuuuuche
Posted on 2/28/24 at 6:15 pm to jizzle6609
quote:
Looking at a guys portfolio now……….. $625K in liquid cash.
This might be more of a question for the Money Talk board but, assuming ur a financial advisor or the like- where do you have that guy’s $625k iin cash parked ? obviously you can make 4 or 5 % right now in a savings acct, though that can change in the next couple years.. or in an annuity or similar ? Just curious cause you said liquid, but i guess that could include CDs (?)
Posted on 2/28/24 at 7:26 pm to cas4t
Portugal is ideal, but the government is facing a housing crisis and is looking at passing laws against non citizens owning property.
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