Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-27-2015, 05:57 AM
 
Location: P.C.F
1,973 posts, read 2,264,188 times
Reputation: 1626

Advertisements

The difference between 62 early out and 66 full retirement is actually very little difference. I am retired and have a LOT of retired friends to confirm this. The actual math shows it takes "ABOUT" 22 years to break even .. ANOTHER HUGE ISSUE is the OP doesnt own a home.. so they will rent for the rest of their lives... " Most Often " renting is tossing money in the toilet.. Do The math.. Next issue ... People get on these boards and try to BS everyone about the passive income ( interest they are making) but at retirement age with low tolerance for loss ( because you will need income until you die and have No Way To Ever Make More Money if you lose any) the best you will do is 6 -maybe 8% and 8% is pushing it. ALWAYS when figuring for retirement , figure Income low and Cost HIGH !! It will take you $500,000.00 to earn $30,000.00 a year in passive income. Chances are good that 5% savings over a lifetime means you will sit in a rabbit hutch apt. on the computer lying to anyone who will read you post's. I live/retired to SWF ( we sold our much larger home and paid cash for this one) and most (99%) of the retirees I know now own their own homes..taxes insurance and up-keep is far less than the cost of an Apt. and when you or if you need to move to Assisted Living you have a few hundred thousand dollars from your home to get started with anyway. Most of us have passive income somewhere between $50K and $150K a year.. I have a friend trying to do this on $1350 a month and a PT job. Its not going well. He is always broke, he can never go anywhere or do anything, thats fun.. he is pinching every penny just to survive.

Quote:
Originally Posted by Escort Rider View Post
More details would be helpful in trying to answer your question. How much does your neighbor earn? If he is earning big bucks and is saving/investing, say, 40% of his salary (only possible for high earners under normal circumstances), then he may be correct about being on track to retire at 45.

For you and your husband, putting aside 5% of your earnings is NOT enough to finance an early retirement. You don't mention is there is employer matching, but if there isn't, 5% is not really enough for "normal" retirement at age 60 or 65. Will there be Social Security? Some people can live on Social Security alone if they live very frugally, but taking SS early (at 62) makes that all the more difficult, well nigh impossible. Delaying SS until age 66 or 67, referred to as "full retirement age", results in a substantially larger monthly SS benefit.

Admittedly I am painting with a broad brush here, but given the paucity of information in your original post, that's about all I can do.
Reply With Quote Quick reply to this message

 
Old 05-27-2015, 06:07 AM
 
Location: P.C.F
1,973 posts, read 2,264,188 times
Reputation: 1626
My BS meter went off the scale with this post.. I AM RETIRED!! .... We Sold our home and move to Retirement Paradise.. THOUSANDS of us living in Nice Pool Homes On The Water with Boats and Motorcycles and Often Motor Homes Nice cars and even a few Air Planes and NONE of us continue to work. Warren Buffett still works too whats that got to do with YOU? Thats an addiction..
Quote:
Originally Posted by key2success View Post
Its easy to retire once you have your house and car paid for in full. Nobody reallys retire they just retire from the 9-5 rat race. Everyone loves making money. Even Donald trump is a billionaire and still work seven though he can retire now
Reply With Quote Quick reply to this message
 
Old 05-27-2015, 06:10 AM
 
Location: TN/NC
34,938 posts, read 31,079,407 times
Reputation: 47319
Agreed with mysticaltiger on the main points.

Also, if you're looking to retire by age 50-55, I think it's going to be a tough slog if you're not on track by 30, probably before. Most people retire at 65 or so. Careers sometimes don't get on track to where someone is making decent money until five to ten years into the career. If a prospective regular age retiree saves diligently from 35 and plans a retirement at 65, someone looking to retiree at 50 or 55 would need to have been saving from 20 (!) or 25. At 20-25, many people are in college and just getting their first (often low-paying) jobs.

It really requires a maximization of those early career years, a good income during those years, and the goal of a very early retirement then.
Reply With Quote Quick reply to this message
 
Old 05-27-2015, 06:18 AM
 
Location: P.C.F
1,973 posts, read 2,264,188 times
Reputation: 1626
Maybe not most but a lot!! Its a Life style choice..Its goes along with someone who makes sacrafices to get somewhere and do something.. If you cannot see that the bowl of ice cream every night is killling you you are NOT Likely to see the need to live way under your means.. etc etc etc
Quote:
Originally Posted by Jkgourmet View Post
Please, provide proof of that statement. I think it's baloney.

Last edited by Macgregorsailor51; 05-27-2015 at 06:49 AM..
Reply With Quote Quick reply to this message
 
Old 05-27-2015, 07:38 AM
 
Location: Los Angeles area
14,017 posts, read 20,869,471 times
Reputation: 32530
Quote:
Originally Posted by Macgregorsailor51 View Post
The difference between 62 early out and 66 full retirement is actually very little difference. I am retired and have a LOT of retired friends to confirm this..............
O.K., rather than argue what constitutes "very little difference" versus a "substantial difference", let's put some numbers to it. At age 62, one gets only 75% of the benefit one would get at age 66. That is, if the benefit at age 66 is $1000, at 62 it's only $750. The break-even age is typically in the late 70's. If that mean "very little difference" to you, then so be it.

Quite apart from Social Security issues, there is a lot of difference between continuing to work until age 66 and stopping work at age 62, namely the amount one would earn during those four years. That, combined with the greater SS benefit amount at full retirement age, could be the difference between scraping by and being comfortable for many people. Remember, the context of this thread is early retirement for someone who is only putting aside 5% of earnings.

Your many retired friends do not constitute the basis for any general statements. All you mean, whether you realize it or not, is that you, like most people, tend to have friends whose financial situations are similar to your own. A couple of miles away in a different neighborhood, the average situation may be quite different.
Reply With Quote Quick reply to this message
 
Old 05-27-2015, 08:10 AM
 
48,505 posts, read 96,675,147 times
Reputation: 18304
It really depends on what one did or was able to do pre-retirement as always. To others its just a bird in hand thing. The context was is it possible to retire at young age and of course the answer is; if you can afford to. Not even a SS question; really at young age.
Reply With Quote Quick reply to this message
 
Old 05-27-2015, 10:37 AM
 
Location: Denver CO
24,204 posts, read 19,122,698 times
Reputation: 38266
Quote:
Originally Posted by Escort Rider View Post
O.K., rather than argue what constitutes "very little difference" versus a "substantial difference", let's put some numbers to it. At age 62, one gets only 75% of the benefit one would get at age 66. That is, if the benefit at age 66 is $1000, at 62 it's only $750. The break-even age is typically in the late 70's. If that mean "very little difference" to you, then so be it.

Quite apart from Social Security issues, there is a lot of difference between continuing to work until age 66 and stopping work at age 62, namely the amount one would earn during those four years. That, combined with the greater SS benefit amount at full retirement age, could be the difference between scraping by and being comfortable for many people. Remember, the context of this thread is early retirement for someone who is only putting aside 5% of earnings.

Your many retired friends do not constitute the basis for any general statements. All you mean, whether you realize it or not, is that you, like most people, tend to have friends whose financial situations are similar to your own. A couple of miles away in a different neighborhood, the average situation may be quite different.
Isn't there is also a much greater expense for health insurance? (since I believe you don't qualify for medicare at 62, regardless of being retired.)
Reply With Quote Quick reply to this message
 
Old 05-27-2015, 11:24 AM
 
Location: NC Piedmont
4,023 posts, read 3,789,108 times
Reputation: 6550
Comparing 63 to 67 for myself. If course my heirs will get more money if I keep working or I will retire with more money to spend, but I will have enough to be able to stop working and the odds are better that I will be in a condition to enjoy retirement. Those are likely to be my best 4 years of retirement. The increase in ss payments is not worth it to me.
Reply With Quote Quick reply to this message
 
Old 05-27-2015, 11:26 AM
 
9,837 posts, read 4,619,707 times
Reputation: 7292
[quote=texdav;39765179]
Quote:
Originally Posted by evilcart View Post
Until healthcare is fixed and made available at a reasonable fee , the majority of people will NOT being able to retire very early no matter how much they save.

All it takes is one curable cancer or heart attack to wipe out years of savings and derail long term plans.[/quot
Whether retired/ insured or working/ insured such a illness can mean either you have the financial ability to cover or you don't. Its like any other emergency funding at any age. Either you have it covered or your have insurance that does. Even Medicare age people often face the same if not financially prepared. No matter what health treatments will never be fix; its just now you or government pays for it; in end it has to be paid for with consequences in other areas. Certainly Greek people are learning that nothing is really free now.
Nonsense you picked Greece because you wish to conflate healthcare with a failing state.. Why not pick Canada that is a MUCH MORE comparable country... OH hang on you cant use Canada because then your entire point fails as CA has proved that a state backed healthcare system WORKS.
Reply With Quote Quick reply to this message
 
Old 05-27-2015, 11:31 AM
 
Location: New Mexico
121 posts, read 119,054 times
Reputation: 318
Default Possible

I retired in my early 40s. I was from a regular-joe middle class family. I had a degree, but always had quite low-paying jobs yet was always able to save money. There are so many variables for everybody. Basically I led a pretty frugal life, but never was uncomfortable nor did without anything. Frugal doesn't mean austerity. As much as is possible, eliminate the debt. If home and vehicle are paid for, one nearly has it made. Have a balance of wants vs. needs: Very little is actually needed, and that includes the type and size of the home. Society creates the whole illusion of lifestyles and goods to give the impression they can't be lived without. That path is easy to fall into
Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement

All times are GMT -6. The time now is 03:49 AM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top