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Old 08-29-2017, 02:04 PM
 
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Quote:
Originally Posted by Cabound1 View Post
I would agree that most people 55+ with a paid off home, $1 million generating 40k, and SS should be able to retire comfortably. I certainly could, even in a high COL area.

But most people just cannot get a handle on their expenses, IMO. Not only do they not want to control their expenses, they don't even want to track them because it brings on such angst to realize how little control they have...
That statement is a little rigid. Different people have different needs and wants. For one thing, while it might be possible to retire on the amounts you said at age 55, I'm not sure why I'd want to. That is a tight budget allowing no room for error.

My house is not suitable as a last home; there's an additional expense. I have a child who may require costly care for the rest of her life - or she may not. I like to travel both in the U.S. and internationally, and at my age traveling on a shoestring budget does not have much appeal. My wife and I enjoy fine dining. We have friends to visit all over the country.

I am thinking age 73 and $5 million. Most people want to get rich. Why not actually do it? (That's not really rich, of course, but it's on the rich side of comfortable.)
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Old 08-29-2017, 02:10 PM
 
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^^^ Larry, sorry to hear about your child.

I can see where providing support for a child is a wildcard when it comes to retirement planning.
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Old 08-30-2017, 09:16 AM
 
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Quote:
Originally Posted by caco54 View Post
The number reported is "retirement savings". What about other savings, property owned, business ownership, pending inheritance, etc. There are a lot more "monies" around to support people in their old age.
Yep, it's usually clickbait articles that do better with scary headlines. They report low savings but only look at savings accounts, or report retirement savings by only looking at 401ks, etc. then the headline gets repeated in a simpler incorrect summary that just says Americans only have 5k.

Not saying Americans are saving enough, but it isn't as horrible as the doom headlines portray.
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Old 08-30-2017, 09:18 AM
 
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Quote:
Originally Posted by Larry Siegel View Post
I am thinking age 73 and $5 million. Most people want to get rich. Why not actually do it?
Because some of us our value our time and freedom more than being rich at age 73.
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Old 08-30-2017, 10:00 AM
 
55,087 posts, read 57,571,446 times
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got to agree there . i am glad i retired at 61 . i still work 1 day a week but it is by choice and it is something i enjoy doing . same with my wife , she volunteers at the same preschool she worked at and goes in and does story time with the little ones .

many of us want a balance between wealth and being committed to a job
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Old 08-30-2017, 10:32 AM
 
Location: Keosauqua, Iowa
8,126 posts, read 14,085,135 times
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Quote:
Originally Posted by cyberous View Post
Everything I have ever read says we should be retiring with about a million-dollar nest egg. However, every statistic says that Americans are retiring with much much less.

So what’s the truth, how much do you really need and how do people retire on so little?

Just trying to understand the disparity of the two and the possible economic implications this will have as the population ages.
$1 million was the "rule of thumb" when I was in college 20 years ago. Seems like if it was accurate then, the number would be closer to $1.5 million today, but it's still $1 million.

So obviously it's an arbitrary number. Having worker for a major independent brokerage firm, I can tell you from experience that the vast majority of people who are actively saving for retirement are going to finish up with far less than that amount. And that doesn't even represent the majority of the population.

The real answer is, only you can decide how much you need for retirement based on what you want to do when you retire.

I know people who have retired with nothing but a Social Security check and done just fine, and others who have retired with well over a million and ended up outliving their money. One size does not fit all.

Last edited by duster1979; 08-30-2017 at 11:37 AM..
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Old 08-30-2017, 11:02 AM
 
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I seem to know many with Social Security and a little savings and maybe an annuity they bought way back when...

A lot are older and have nothing in equities... only laddered CD in several institutions...

It's been tough getting 1% returns but as my 100 year old neighbor says it lets her sleep well at night... she recently sold he home for 680k... to bolstered her cash a lot... but is now spending $5500 monthly for the retirement home chosen...
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Old 08-30-2017, 11:30 AM
 
Location: Forests of Maine
28,088 posts, read 44,243,188 times
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Quote:
Originally Posted by Ultrarunner View Post
... It's been tough getting 1% returns but as my 100 year old neighbor says it lets her sleep well at night... she recently sold he home for 680k... to bolstered her cash a lot... but is now spending $5500 monthly for the retirement home chosen...
$5,500/month sounds like a lot of cash to spend each month. Is this in a nursing home?

A fresh infusion of $680k would only last another 10 years, but since they are already 100yo I guess it does not matter.

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Old 08-30-2017, 11:37 AM
 
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Quote:
Originally Posted by Submariner View Post
$5,500/month sounds like a lot of cash to spend each month. Is this in a nursing home?

A fresh infusion of $680k would only last another 10 years, but since they are already 100yo I guess it does not matter.

The home is in the SF Bay Area and is more like a hotel with room service and activities...

I went to visit after she was there two weeks and told her I was ready to "Bust" her out if she didn't like it... she said it was like being on vacation... which made me feel better.

A couple of weeks later she was gone... heart attack at the bank no less.

Live to over a 100 and never been in the hospital except for the birth of her only child and lived in her home to age 100... still sharp as could be but needed a walker and then was afraid of living alone and falling in the shower... did have life alert and the neighbors would always make sure the drapes were opened and closed each day...
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Old 08-30-2017, 11:21 PM
 
5,441 posts, read 3,956,063 times
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Quote:
Originally Posted by mathjak107 View Post
got to agree there . i am glad i retired at 61 . i still work 1 day a week but it is by choice and it is something i enjoy doing . same with my wife , she volunteers at the same preschool she worked at and goes in and does story time with the little ones .

many of us want a balance between wealth and being committed to a job
oh, I don't work hard :-) I have a "beach job." I'm a writer, selling research to Wall Street when Ii feel like it and when they need me.
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