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Old 10-08-2018, 11:30 PM
 
25,959 posts, read 28,359,899 times
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Quote:
Originally Posted by Rivertowntalk View Post
The investment advisors say that kind of stuff all the time and the amount climbs each year. It kind of preys on the fear that people have of being broke in old age and it helps pump more money into their own coffers (brokers and advisors). What she said though reinforces that people never feel they have enough--even her. If she has 30 million that may not be enough for her. People keep on working. In reality, most people have low enough 401k balances to ever reach a material amount even with compounding. The brokers peel off a percentage of everyone's balance, so they want higher balances stashed away.
I think the bolded is very true. Another poster on another comment board came to a similar conclusion...that Suze herself probably feels as though she'll never have enough...and she projects that out onto the populace at large.

 
Old 10-09-2018, 04:50 AM
Status: "Excited to move to Vegas!" (set 5 days ago)
 
Location: Beaverton, OR
5,403 posts, read 5,829,922 times
Reputation: 6012
Again these people arenít and canít speak for everyone because everyone has both different standards and different realities. Some people donít mind a lifestyle on $3,500/month and others just wont be able to do what they want on less than $10,000 or $15,000 a month, so it depends what youíre looking for out of retirement and probably how much you enjoy your work too.

In my case, Iíd give zero thought to retirement as I already pursue what I want every day, so Iím effectively retired but never plan to stop working because I love my work. Itís a non-issue as I donít have a regular job. For someone else maybe they hate their job and would far rather make sacrifices to live in a foreign country on $25,000/year - anything - just to quit and never work their lousy job again. So it really depends on perspective I think, her advice is silly.
 
Old 10-09-2018, 06:01 AM
 
6,821 posts, read 7,212,137 times
Reputation: 9729
Quote:
In my case, I’d give zero thought to retirement as I already pursue what I want every day, so I’m effectively retired but never plan to stop working because I love my work.
We get what your saying.
But, IMO, it's an overstatement and just not true that you're "effectively retired."
If you're working for pay, and you in any way, or at any time have to work your schedule around the responsibilities or demands of any entity that pays you for work -- then I don't care how much you enjoy your work -- you're not retired. Not even "effectively retired."
 
Old 10-09-2018, 07:55 AM
 
Location: Portal to the Pacific
5,044 posts, read 5,043,027 times
Reputation: 6206
Quote:
Originally Posted by selhars View Post
We get what your saying.
But, IMO, it's an overstatement and just not true that you're "effectively retired."
If you're working for pay, and you in any way, or at any time have to work your schedule around the responsibilities or demands of any entity that pays you for work -- then I don't care how much you enjoy your work -- you're not retired. Not even "effectively retired."
Yes, financially independent is the right term, not retired. In my view, retirement is when you cease to be productive in an economic sense. This is one reason why I scoff at people in the FIRE community that say they're "retired", but are earning (often a substantial) income through blogs or startups.
 
Old 10-09-2018, 08:00 AM
 
70,857 posts, read 71,210,489 times
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i always looked at retirement as not necessarily not working but not having to work .

many people do the same things as volunteers in retirement others get paid for .

i have a few gigs going on in retirement yet all are things i would do for free i enjoy them so much .

i do teaching 1 day a week for my old company , my wife and i sell our works from our photography which we love , i am back in to my drumming big time and hope to do some studio work .

but i don't consider any of it as working . it is all stuff we love .
 
Old 10-09-2018, 08:26 AM
 
4,536 posts, read 4,710,013 times
Reputation: 3587
Remember she's coming out of retirement to get back into the financial advice game. She's not very useful to people if she said they were good to retire with 2 million and a SWR of 3.5%. Her entire career has been made out of frightening people and talking about catastrophes that could happen to you. I mean she basically contradicted herself like 5x in that interview. At one point she said $80k/yr wouldn't be enough for anyone to retire as they couldn't get by on that much. Then she said about 5 minutes later that the people she has seen that were most ready for retirement were those that had lifetime avg. HH incomes of $50-$60k/yr. So if it's not enough for the first person to live off of, why is it that the people most prepared (i.e. they were saving on that $60k/yr income) are those that made 25-30% less than what they other person plans to live on.
 
Old 10-09-2018, 09:20 AM
 
2,671 posts, read 1,710,377 times
Reputation: 5785
As the old man from pawn stars would say...

5 million?

In American money?
 
Old 10-09-2018, 10:01 AM
 
2,671 posts, read 1,710,377 times
Reputation: 5785
Even at a 3 percent return and no drawdown, $5 million would provide me more money than I make now working and our wages are probably in the top 10 to 15 percentile.

Clickbait is clickbait.
 
Old 10-09-2018, 10:14 AM
 
Location: Raleigh
8,183 posts, read 6,070,656 times
Reputation: 11384
I think some of the concern is/would be not "will I have enough income," but rather, what mudballs can life sling at me that will drastically change my financial fortunes, and how could I recover?

A divorce, a sick/disabled child, a costly long term illness...These are questions/concerns that are likely settled at "Traditional retirement age," meaning the kids are grown, you know your wife of 38 years is unlikely to leave you, you have medicare, and maybe LTCI to cover that.
 
Old 10-09-2018, 10:33 AM
 
Location: USA
936 posts, read 364,208 times
Reputation: 2449
Quote:
Originally Posted by JONOV View Post
I think some of the concern is/would be not "will I have enough income," but rather, what mudballs can life sling at me that will drastically change my financial fortunes, and how could I recover?

A divorce, a sick/disabled child, a costly long term illness...These are questions/concerns that are likely settled at "Traditional retirement age," meaning the kids are grown, you know your wife of 38 years is unlikely to leave you, you have medicare, and maybe LTCI to cover that.
Correct. I suspect that the followers of Money Mustache and FIRE are quite young and while they're sacrificing today for retirement tomorrow, they'll still chance significant, life-changing events that may challenge their savings reserves and insurance policies.

What's the worst thing that can happen should this occur? They simply go back to work which, depending on the economy, their skills, etc, may or may not occur as quickly as they'd like. Some may even end up of public assistance as a result. They'll figure it out, $5M not withstanding.

I'm old(er) and am quite happy with the way my 30+ career has worked out. To Jonov's point, we've incurred a couple of mudballs in our past and whittled them down to spitballs that are no longer a concern.
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