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 01-29-2016, 07:45 AM
 
Location: NC
6,549 posts, read 7,970,518 times
Reputation: 13460

Advertisements

All the articles we read today say this is a myth. Well, okay then. But one question I've always had is whether this 'myth' was refering to each member of a couple, or a couple per se. A lot of retirement rules of thumb are geared to the couple. For example Fidelity says that a couple will on average spend $220,000 on health care after they reach 65. But back to this million dollar meme, would a couple need to have saved TWO million to retire carefree? Not looking to argue the arbitrariness of this number, just wanting to understand what the original intention was.

Last edited by luv4horses; 01-29-2016 at 08:51 AM..
Reply With Quote Quick reply to this message

 
Old 01-29-2016, 07:57 AM
 
852 posts, read 929,745 times
Reputation: 1004
How much you will need depends upon multiple factors such as age when you retire, where you will retire and what you want to do when you retire. If you live in NYC and plan to travel extensively, you will need much more than someone living in a low COLA area with no plans to do anything but relax and work in your garden
Reply With Quote Quick reply to this message
 
Old 01-29-2016, 07:59 AM
 
Location: NC Piedmont
3,911 posts, read 2,877,558 times
Reputation: 6291
It is just a target that is easy to talk about and I think it is for a household. Like you say, it is a myth that there is some magical number. If you own a small home where taxes are low, don't care to travel much or drive expensive cars then you hardly need anything more than a modest income, so if you were a high earner SS may actually cover it. Not for most people, though. Most couples that shoot for a million and get over half way there will be okay but YMMV...
Reply With Quote Quick reply to this message
 
Old 01-29-2016, 08:19 AM
 
210 posts, read 150,801 times
Reputation: 628
Well, using 20 years (age 85) as the length of time, that is $11,000/year or $5,500/year/person. That is doable for a lot of people who don't qualify for financial aid.
Reply With Quote Quick reply to this message
 
Old 01-29-2016, 09:07 AM
 
71,516 posts, read 71,694,121 times
Reputation: 49088
a couple has one draw rate between them usually that they need to meet their lifestyle . so our combined multiple 7 figures are used jointly between both of us to generate one income stream.

in fact our portfolio is one big portfolio of combined assets working as one coherent portfolio .

what you need in retirement is usually a function of what your income was while working . some need a little less , some a little more . bbut it is usually based on both incomes so retirement is no different
Reply With Quote Quick reply to this message
 
Old 01-29-2016, 09:14 AM
 
Location: Seattle/Dahlonega
547 posts, read 388,214 times
Reputation: 1553
couple/household
Reply With Quote Quick reply to this message
 
Old 01-29-2016, 09:30 AM
 
Location: RVA
2,164 posts, read 1,265,616 times
Reputation: 4451
I always assumed houshold. And I always interpreted it as to mean that the income henerated by $1M (approx $40k/yr) plus your SS, would ensure an "adequate retirement", AND have a nest egg for an emergency, inheritance, etc, which I Think is still true today.
Reply With Quote Quick reply to this message
 
Old 01-29-2016, 09:36 AM
 
Location: Atlanta
5,628 posts, read 4,221,968 times
Reputation: 4582
I never really had a $ amount in mind but i don't expect my wife and I (combined) will reach 1Mil. Maybe, if the market goes crazy and if we work longer than expected. I suspect we will be between 1/2 a mil and 3/4. I don't expect to be in dire straights because of that but our health will likely determine that for us.

My current plan is to retire between 60 and 65. My wife is a bit younger (7 years) and has said she will keep working after i retire because she enjoys it so much. I expect to spend the first 10 or so years enjoying retirement and after that, slowing down a bit and taking it easy. I also expected to wait to draw my social security until the later part of that 10 years, if not after it.

To be honest, there is no set game plan yet. Once I hit 60 (another 10 years) i will sit down with a financial adviser and weigh my options.
Reply With Quote Quick reply to this message
 
Old 01-29-2016, 09:39 AM
 
1,039 posts, read 775,045 times
Reputation: 817
Quote:
Originally Posted by luv4horses View Post
All the articles we read today say this is a myth. Well, okay then. But one question I've always had is whether this 'myth' was refering to each member of a couple, or a couple per se. A lot of retirement rules of thumb are geared to the couple. For example Fidelity says that a couple will on average spend $220,000 on health care after they reach 65. But back to this million dollar meme, would a couple need to have saved TWO million to retire carefree? Not looking to argue the arbitrariness of this number, just wanting to understand what the original intention was.
A million per couple is hard if you have a stay at home wife.

But once you hit 50 your can put 24k a year in your 401K and employers can match up to 16k.

If you do all equities and have an employer giving you the 16K match and work till 67 you can most likely get to one million even starting at 50 if you have a strong bull market.
Reply With Quote Quick reply to this message
 
Old 01-29-2016, 09:52 AM
 
71,516 posts, read 71,694,121 times
Reputation: 49088
you can't retirement plan from the top down . the amount you need saved will be both lifestyle driven as well as driven by how you allocate your portfolio .

you may need 2x as much saved using cd's , short term bonds and tips as you would a 50/50 mix .

so first compute your needs in retirement , then look at your pucker factor investing wise and then see how you need to allocate to get a high rate of success of meeting that income level .
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
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - 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 - Top