Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
As much information as I try to gather, ...
... I thought someone might be willing to share the specifics of their plans. Anyone planning to make it on $2K/mo of Social Security? Any data on how much the average 50yo, 55yo, 60yo has set aside in savings? Anyone taking out 30 yr mortgages with the plan they will die in 10 - 15 years and not have to pay off the rest? Please share your stories. Thanks.
When I was approaching my retirement, I set my goals on having $1million in my investment portfolio.
Fourteen years before my retirement date, we knew when I would be qualifying for my pension. So we set about focusing on having that amount in our portfolio on that date.
We both took courses on budgeting, and we both volunteered at different organizations as budget counselors, to learn more about gaining control of your spending. My DW did this for eight years, I did it for 10 right up to my retirement.
We both took courses from the IRS on tax filing and tax planning. We were both certified by the IRS, and we volunteered via the IRS 'VITA' program assisting folks to prepare their taxes. My DW did this for six years, while I did it for eight years right up to my retirement.
We gained control of our spending [including paying income taxes], and we invested. We only invested in vehicles that are tax shelters and that provided things for our family that would otherwise have been living expenses.
I retired at 42 years old in 2001.
My DW has an accounting degree, which gave her a good basis, however to actually do this things, she learned much more 'useful skills' from the budget counseling and VITA, then she did from college.
We were both certified by the IRS, and we volunteered via the IRS 'VITA' program assisting folks to prepare their taxes. .... We only invested in vehicles that are tax shelters and that provided things for our family that would otherwise have been living expenses.
Since you advised people on their taxes for years, how does a sole proprietor of a consulting business with very few actual business expenses escape or minimize the self-employment tax? In addition to federal and state income tax it chews up over 15% of every dollar. I already contribute max to a SEP-Plus.
A 'consulting business'. I assume that you travel and attend professional conferences? Most professions require that you are constantly attending further training courses, which are all write-offs. You must have some forms of depreciating equipment. Everything has a depreciation table: vehicles, computers, cellphones.
What kinds of training courses do you complete each year?
How many conferences do you attend?
What kind of equipment do you have?
Worked hard, saved hard. Have a nice vehicle paid for, a mortgage of only $660 a month, and other than the mortgage zero debt, zero.
Have $400,000 invested mostly is treasuries with a pool yield of 7.125% with an income of $28,000. My wife works part time out of the house earning about $16,000 a year. In another 3 years I will collect about $850 a month SS.
We are doing just fine on $44,000 a year and even better in 3 years with SS. No other retirement income, no 401k, nada.
We pretty much do what we want, get what we want and owe half of what our house is worth.
It is as much a lifestyle, and your debt on how much you need to drop out.
How much anyone needs to retire on all depends on where and how they retire. If you are planning to live in a relatively inexpensive location and your idea of a big time is dinner at Denny's and a movie, then it won't take more than people like gregandvicky are living on. However, if you are going to be living in a pricier location, plan to travel, have season tickets to the opera etc. then the $44,000 will not cover that kind of lifestyle.
How much anyone needs to retire on all depends on where and how they retire. If you are planning to live in a relatively inexpensive location and your idea of a big time is dinner at Denny's and a movie, then it won't take more than people like gregandvicky are living on. However, if you are going to be living in a pricier location, plan to travel, have season tickets to the opera etc. then the $44,000 will not cover that kind of lifestyle.
We are budgeted for 120K plus at 62 with investments to cover medical costs at 12 K per year sustainable for life. No mortgage just car payments and other incidentals. No credit cards etc.
We are budgeted for 120K plus at 62 with investments to cover medical costs at 12 K per year sustainable for life. No mortgage just car payments and other incidentals. No credit cards etc.
$10K per month sounds really good to most of us. Did you factor in inflation impact for extrapolated mortality? I did a quick calculation and you will need $177,629/year at 72 years old to equal the $120,000 /year at 62 y.o.
Most of us don't plan well for that $15/cup of coffee (which we probably shouldn't drink anyway at that age).
That amount has an inflation index built in and investments cover medical and overages. The actual amount of pension and ss is more then 120k but that is a simplified amount. Also we elected reduced pensions so each of us is guaranteed the others in the event of death. Plus much of that amount will be invested. We are very fortunate/blessed and appreciative.
I think that most states have retirees doing very well on $44k less per annum.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.