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If you stop working in your 40s, you won't have anything close to the 35 years in the Social Security system. Your check would be pathetically small if you took it at age 62. I suspect you're neglecting health insurance and health care costs like dental, vision, and deductibles for medical. $20K at age 62 will be largely eaten up by health care.
I understand that.
That's exactly why retiring early is so difficult. You don't have SS to help you.
I actually do have some $ saved but it would go in a heartbeat if I had to house myself.
I will have some $ saved at retirement age (again, if I even make it that far), but I'm not worried about accounting for every penny that might have to be spent because 1) I don't have kids who will be burdened with that 2) I'm not worried about my credit being ruined at age 69.
A million in investments, plus paid off house, plus SS should do it in most locales. Any more than that and I would probably just help out the kids / grand kids a bit more.
But I am single, any new partner will need to carry their load!
It's the old saying from the 60's updated to retirees now in their 60's: *ss, cash or grass - no one rides for free.
Here in Brazil, 1 dollar is aproximately 4 reals (our currency).
A monthly wage of 5,000 reals (1,250 dollars) is good enough to have a comfortable lifestyle (very comfortable in the cheaper cities).
A conservative investment has a rentability of at least 5% in a year, while the inflation is estimated to be 3.9%, so i'd use only 1.1% of the rentability and wouldn't lose any money for the inflation.
I would need to have 5.5 million reals (1.375 million dollars) in my account. With a real rentability of 1.1% i would have 60,500 reals in a year, a little more than 5,000 reals (1,250 dollars) by month. That's enough to have a very good life in a calm small city.
The main capital would remain with the same power because i would disccount the inflation from the rentability.
Tudo bem Eduardo!
Are you confident that inflation will remain low? With the current issues there, I'm not sure I'd make that bet.
Are you confident that inflation will remain low? With the current issues there, I'm not sure I'd make that bet.
The projected inflation is 3.89% this year and 4.11% in 2019. I'm also not sure the inflation will keep this low (for our standards), but the safe investments are related to the inflation.
For example, there's a popular investment that pays 100% of the interest rate, actually in 6.5% by year. After the income tax of 22.5% over the rentability, the real gain is 5.03% by year. Keeping the money invested for more than 2 years makes the income tax drop to 15%, that's a rentability of 5.52% by year.
Now the good news. When the inflation goes up, the interest rate goes up too. For example, in 2015 when the inflation reached more than 10% in a year, the interest rate was 14%. The investors always have a guarantee that the rentability will be above the inflation.
As a starting point -- 95 minus your current age times your current year's Expenses.....then multiply that number by 1.2 to account for inflation. That should provide you with a good SWAG. You can fine tune the resultant figure by subtracting a nominal amount for Social Security in your years after age 66 or so.
That's as good a Wild Guess as any.
Last edited by FiveLoaves; 12-06-2018 at 08:13 AM..
It's hard to guess for someone I think. But if someone already planned how he/she will pass the retired and what will be the cost for living in future then it's possible to guess. For me, it will goes about 50k I guess.
I guess I misunderstand the concept of "poll". I thought it was to elicit the opinion of the respondent in his own circumstances. Which means "your age" is specified, and "the job you expect from your rope". Which may be different for other people. Hence, a poll.
I've seen that on the c-d there is no question that can't be questioned and analyzed to death.
So for me, I'm retiring at 59 and will make 1 million in various vehicles work. If it doesn't work, it doesn't work. I stopped stressing about what could happen 20-30 years from now. I've made my plan and now I'm leaping.
391 days to go!!!
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