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Old 01-31-2016, 01:13 PM
 
Location: VT; previously MD & NJ
2,206 posts, read 1,350,381 times
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Quote:
Originally Posted by Vision67 View Post
I think the articles that say you need to save $1M are written primarily by financial advisers and firms that stand to benefit by collecting commissions.
And written by people with good incomes who can foresee themselves saving that much or close to it. They run the numbers through various retirement calculators and assume (from their own perspectives) that the savings rate required to get to $1M seems reasonable. They are not writing this stuff for the proverbial 47%.
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Old 01-31-2016, 01:35 PM
 
29,784 posts, read 34,880,403 times
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Quote:
Originally Posted by NoMoreSnowForMe View Post
Mathjak, thank you for admitting to this. So, for anyone trying to live up to Mathjack's advice of how much you need to retire, please note, that no matter how much you acquire, you would never have enough in his world.

My point mainly being that you need to find happiness with what you have. Quit stressing over it. I live on $890/month in a beautiful part of the world, and I'm pretty happy.

In fact, I recently went on a trip and found the mattress to be overly firm, and my dog was very unhappy with the new noises in the motel. We were both much happier when we got home to our little apartment.

It's all relative.

My mother accumulated a million dollars just about the time she got Altzheimer's. The state has liquidated her assets to pay for her care. Once those funds are gone, the state will take care of her in the same facility.

My mother will help fund the system, that would have taken care of her anyway. She spent way too many years worrying about it, and she would have been cared for either way.

Just sayin". Worry about having a million dollars, or enjoy what you have. It's all up to you.
Unfortunately that million spent by the state is the result of someone else's effort. A lot of this depends on our own personal perspective on self reliance and the value of it.
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Old 01-31-2016, 09:45 PM
 
7,936 posts, read 5,048,234 times
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The recent spate of "how much do you need to be comfortable in retirement" contains a latent fallacy: we're not really worrying about how to put food on the table. We're worrying about how to amass, retain, and grow a fortune; and how to leave it for posterity. Honestly, I don't care if my golden-years are spent in a trailer, a mansion, a section-8 apartment or a lunatic asylum. Instead, I care that 50 years from now, at the end of every NPR broadcast, the host will intone, "This program was brought to you by the Ford Foundation, the MacArthur Foundation, the Bill and Melinda Gates Foundation, and the Ohio Peasant Foundation".

"Having a secure retirement" is just an aw-shucks self-effacing euphemism for scoring a crushing victory in the game of life. And it isn't even a victory for our own selves; it’s a victory for our vanity.
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Old 01-31-2016, 09:49 PM
 
Location: State of Transition
78,820 posts, read 70,635,877 times
Reputation: 76794
Quote:
Originally Posted by vicky3vicky View Post
I have NOTHING even remotely close to a million dollars. But I keep reading we need that to do alright in retirement. I would assume that most people who have that much money could afford to have a house paid off. So, APART from possible pensions and social security, [ low average of $2500 a month for a couple] how much money a month would that million dollars add to monthly income? I really and truly can not figure it out. To me, a total monthly income of 4 grand [pensions, social security, million dollars] with a paid off house sounds almost wealthy. Would we NEED a million dollars in savings to give us the extra $1500 a month to bring us to 4 thousand a month?
I don't think even 1 mill is enough. But you need to have enough to generate a monthly income to live off of, whatever that may require. Also, you need extra, to allow for fluctuations in the value of your income-generating assets, i.e. the stock mkt. Further, you need to plan long term, and keep in mind that in old age, you may require a nursing home, assisted living facility or home health care, which could end up being round the clock. Those things are EXTREMELY expensive! 1 Mill will not be enough!
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Old 02-01-2016, 03:14 AM
 
71,700 posts, read 71,801,099 times
Reputation: 49262
Quote:
Originally Posted by ohio_peasant View Post
The recent spate of "how much do you need to be comfortable in retirement" contains a latent fallacy: we're not really worrying about how to put food on the table. We're worrying about how to amass, retain, and grow a fortune; and how to leave it for posterity. Honestly, I don't care if my golden-years are spent in a trailer, a mansion, a section-8 apartment or a lunatic asylum. Instead, I care that 50 years from now, at the end of every NPR broadcast, the host will intone, "This program was brought to you by the Ford Foundation, the MacArthur Foundation, the Bill and Melinda Gates Foundation, and the Ohio Peasant Foundation".

"Having a secure retirement" is just an aw-shucks self-effacing euphemism for scoring a crushing victory in the game of life. And it isn't even a victory for our own selves; it’s a victory for our vanity.
the answer is retirement is no different then our working years . we all earned different incomes , had different wants , needs and goals .

we all made whatever we had work and good or bad it is what it is .

this stuff reminds me of my buddy . we used to tease him when he got married because we used to tell him he had the easiest job in the world , he married a virgin . she didn't know if he was good or bad .

well most of us live life within a certain income range and to us it's all we need because we never experienced anything more on a continual basis . .

but as you have more dollars to enjoy your benchmark gets raised and what you want out of your retirement dollars increases .

if any one of us was handed a million bucks and told go spend it , there are very few that wouldn't find a way to spend that money AND ENJOY EVERY MINUTE OF IT . we all have wish lists and dreams we would like to fulfill but can't . you would be looking forward to the next million they may give you .

well the more you have the more you can allocate to that list so for many of us there is still to much list left at the end of the money .
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Old 02-01-2016, 05:23 AM
 
Location: RVA
2,172 posts, read 1,268,333 times
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+1. While I don't think it was intended in the actual advice, the old "you need a milion", is catchy and easy to discuss, and that is what makes it valuable. It opens peoples eyes to the requirements of retirement funding, and investigation in to "what is enough", which, as Matt points out is totally different for everyone, so how could a single magic number be right for everyone.

It gets discussed with "Is that the income from a million?", "what if you have a pension?" And "is that net worth or invested securities?", all in the same breath. Those that already have a million, typically are not lottery winners, they did what they had to for a reason, so the advice is moot, those with low incomes and $50k saved, deride it as a fantasy OR do what it takes to improve their position for their own good and learn that the latest iphone is not important.

It's the discussion that is really valuable even if the number is based in only minor truth. Only one person in my family, and one in my wifes, has 1M, invested, and they have way in excess of that. Very successful in business, and finance. You would never know it talking to them, or meeting them. You would, if you visited their home(s). My engineer friends that have over a million invested you would never know, even if you visited their homes. We all have decent pensions, the difference is they will leave at 60, and I won't. Typically, they were more frugal than I, and married once, and stayed married to a working spouse, and yes, had some luck, as well. None inherited or stand to inherit anything. None of them aimed for a million or more, it came on it's own due to their lifestyle and career choices. No one says, "well, got my million saved, so now I can retire!"

It's a process with a catchy goal. Anyone remember that show from the '60s "The Millionaire"? There is a remake of it, or something like it, now too. I LOVED that show, the dreams it evoked, the circumstances that it presented, and of course, as a kid, a million or a billion all seemed the same incomprehensible amount. It was unique and very effective entertainment at the time. The Millionaire was so wise to me. Wonder if that is available in reruns??
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Old 02-01-2016, 08:47 AM
 
635 posts, read 405,350 times
Reputation: 3608
Quote:
Originally Posted by ohio_peasant View Post
The recent spate of "how much do you need to be comfortable in retirement" contains a latent fallacy: we're not really worrying about how to put food on the table. We're worrying about how to amass, retain, and grow a fortune; and how to leave it for posterity. Honestly, I don't care if my golden-years are spent in a trailer, a mansion, a section-8 apartment or a lunatic asylum. Instead, I care that 50 years from now, at the end of every NPR broadcast, the host will intone, "This program was brought to you by the Ford Foundation, the MacArthur Foundation, the Bill and Melinda Gates Foundation, and the Ohio Peasant Foundation".

"Having a secure retirement" is just an aw-shucks self-effacing euphemism for scoring a crushing victory in the game of life. And it isn't even a victory for our own selves; itís a victory for our vanity.

I thought that I would never admit to something like this, especially to myself. When I am recognized as "THE Vicky" [ only recognized within my own culture] I shut down, I lose my words, I want to sink into the ground. I hate it.


knowing this about me, a friend of mine said to me, " Don't worry Vicky. when you die, people are going to want to write all about you, have memorials and plaques put up for you. I know how you are and I promise I won't let that happen." And my reply. "Thank you for being so thoughtful and caring, but please don't do that. I want my effing plaques."
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Old 02-01-2016, 09:01 AM
 
1,039 posts, read 776,724 times
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The million invested in stocks in the 401K is usually part of a three legged stool. One million stocks, one Million Bonds/CDs, one Million Real estate. Usually not exact as folks usually have some cash mixed in.

For instance you cant live that cheap in retirement. For instance I had a bad month in January with dental. I had two teeth pulled, need implants and a crown and my wife had a tooth crack needs a root canal and a cap. When retired folks dont have dental normally.

I also had a plumbing issue I could not fix myself just come up. My property tax, car insurance and homeowners insurance went up.

I am still working so I can deal, but if retired this would all hit me.

And I have no mortgage, debt and own cars outright.

With low interest rates, low stock returns predicted coming up I would say if you are planning to live to your 90s you need at least one million in the 401K with a pension. I would say two or five million without.

The pension is BS as not inflation adjusted. Go ask anyone who retire on a fat pension in the early 70s right before 15% inflation took hold in the last 70s and 80s what it was worth.

My own Mom retired from a fortune 500 company on a good pension of $160 a month. By the time she died in 2003 that was cookie jar money as it was SS and withdrawls from her 401K that kept her going.
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Old 02-01-2016, 09:04 AM
 
Location: Idaho
1,455 posts, read 1,156,701 times
Reputation: 5500
Quote:
Originally Posted by ohio_peasant View Post
The recent spate of "how much do you need to be comfortable in retirement" contains a latent fallacy: we're not really worrying about how to put food on the table. We're worrying about how to amass, retain, and grow a fortune; and how to leave it for posterity.
....
"Having a secure retirement" is just an aw-shucks self-effacing euphemism for scoring a crushing victory in the game of life. And it isn't even a victory for our own selves; itís a victory for our vanity.
I don't share your sentiment and don't know many who do. Count yourself very blessed in only having to be concerned about your vanity and 'LEGACY' and not about basic life necessity in your old age.
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Old 02-01-2016, 12:23 PM
 
13,941 posts, read 7,422,661 times
Reputation: 25440
Quote:
Originally Posted by DelightfulNYC View Post
The million invested in stocks in the 401K is usually part of a three legged stool. One million stocks, one Million Bonds/CDs, one Million Real estate. Usually not exact as folks usually have some cash mixed in.

For instance you cant live that cheap in retirement. For instance I had a bad month in January with dental. I had two teeth pulled, need implants and a crown and my wife had a tooth crack needs a root canal and a cap. When retired folks dont have dental normally.

I also had a plumbing issue I could not fix myself just come up. My property tax, car insurance and homeowners insurance went up.

I am still working so I can deal, but if retired this would all hit me.

And I have no mortgage, debt and own cars outright.

With low interest rates, low stock returns predicted coming up I would say if you are planning to live to your 90s you need at least one million in the 401K with a pension. I would say two or five million without.

The pension is BS as not inflation adjusted. Go ask anyone who retire on a fat pension in the early 70s right before 15% inflation took hold in the last 70s and 80s what it was worth.

My own Mom retired from a fortune 500 company on a good pension of $160 a month. By the time she died in 2003 that was cookie jar money as it was SS and withdrawls from her 401K that kept her going.
There is another approach:

Defer collecting Social Security until age 70. That money is inflation-protected. Own low cost of ownership housing outright. Live modestly but comfortably off of your Social Security check. Anything you've salted away for your retirement is your emergency fund cash cushion. Your mandatory IRA/401(k) distributions are bonus money.

Too many people look at that "free" Social Security money at age 62 and start collecting. If you can't work, then sure, take the check because you'll starve otherwise.
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