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Old 02-09-2016, 05:25 PM
 
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I think the following are practical goals before a person can retire. It is a rather simplified plan and may not work for everyone. Just my views. I welcome others views and goals


1) Be debt free.
2) Own home
3) At least $100,000 in the bank.
4) Have as much as possible in 401K, Roth IRA and regular IRA.
5) Have retirement plans to fill void of having more free time.
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Old 02-09-2016, 05:35 PM
 
Location: Florida
4,359 posts, read 3,696,311 times
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Quote:
Originally Posted by jasperhobbs View Post
I think the following are practical goals before a person can retire. It is a rather simplified plan and may not work for everyone. Just my views. I welcome others views and goals


1) Be debt free.
2) Own home
3) At least $100,000 in the bank.
4) Have as much as possible in 401K, Roth IRA and regular IRA.
5) Have retirement plans to fill void of having more free time.
I think you probably have part of this in your number 4 but I would add have source(s) of income to meet your retirement needs.

The idea of a lot of cash in the bank is good, especially with the way the stock market is.
Have a source of health insurance.
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Old 02-09-2016, 05:42 PM
 
2,443 posts, read 2,070,283 times
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Quote:
Originally Posted by rjm1cc View Post
I think you probably have part of this in your number 4 but I would add have source(s) of income to meet your retirement needs.

The idea of a lot of cash in the bank is good, especially with the way the stock market is.
Have a source of health insurance.


I think most have similar source of incomes in retirement. Social security, withdrawals from retirement accounts and I forgot to mention pensions.
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Old 02-09-2016, 06:07 PM
 
13,880 posts, read 7,391,112 times
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Quote:
Originally Posted by jasperhobbs View Post
I think most have similar source of incomes in retirement. Social security, withdrawals from retirement accounts and I forgot to mention pensions.
Pensions? What are those?
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Old 02-09-2016, 06:37 PM
 
Location: Miraflores
782 posts, read 893,007 times
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6. Move everything overseas.
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Old 02-09-2016, 07:24 PM
 
Location: Los Angeles area
14,018 posts, read 17,732,288 times
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Quote:
Originally Posted by jasperhobbs View Post
I think the following are practical goals before a person can retire. It is a rather simplified plan and may not work for everyone. Just my views. I welcome others views and goals


1) Be debt free.
2) Own home
3) At least $100,000 in the bank.
4) Have as much as possible in 401K, Roth IRA and regular IRA.
5) Have retirement plans to fill void of having more free time.
#2 is not necessary if one has enough in #3 and #4. Owning a home is not the be-all and end-all of retirement, and there is nothing per se wrong with renting. I do own my home free and clear and I'm glad I do, so I am not arguing that renting is preferable, just that there is nothing necessarily wrong with it. And yes, I know all about rents increasing with inflation and changes in housing markets, but that's covered by my "if" clause in my first sentence.

You need to add a #6, as already mentioned: 6) If not yet 65, have your ducks in a row with health insurance coverage.

Failing to consider #5 trips a lot of people up, as evidenced by posts in this Retirement Forum over the years. Other people have existing interests in addition to activities and goals in mind to the extent that no formal plan is necessary and that success in the area of #5 is simply a given (more or less automatic), while still others profess to be completely satisfied with total aimlessness and total lack of structure. I don't understand the latter, but we are all different in what floats our boat.

All in all, a very reasonable list.
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Old 02-09-2016, 08:43 PM
 
Location: Florida -
8,763 posts, read 10,837,755 times
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Quote:
Originally Posted by jasperhobbs View Post
I think most have similar source of incomes in retirement. Social security, withdrawals from retirement accounts and I forgot to mention pensions.
'Regular income' is a top priority. This can be comprised of SS and retirement account withdrawals, but, then "Have as much as possible in IRA's" needs to be modified to "having enough to match one's projected retirement budget, based on a nominal withdrawal rate and limited market growth."
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Old 02-09-2016, 11:51 PM
 
6,239 posts, read 4,725,740 times
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INO it is not important to be debt free. In fact after retiring, I bought a new home with a 30 yr mortgage and I also bought a car with a 5 yr loan. IMO owning a home is not important. In fact when I retired I sold my house but still had a mortgage.


The important criterion is having enough income and investments to fund your anticipated expenses and lifestyle. Like many, SS covers a nice chunk of my expenses and the 4% rule covers the remainder. In addition I keep a cushion of over a year in cash so that I can avoid pulling from investments when the returns are poor or the market drops like it has recently.
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Old 02-10-2016, 03:39 AM
 
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As others said debt free and ownng a home are not that important. Investing elsewhere instead to offset the costs are important.

The 100k part in the bank is going to depend on what your needs are for spending and how many years in withdrawals you want to hold.

We hold two years withdrawals and an emergency fund in cash and that is multiple 7 figures for us but only 10% of the total portfolio
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Old 02-10-2016, 04:21 AM
 
Location: Colorado Springs
4,833 posts, read 4,949,965 times
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Quote:
Originally Posted by jasperhobbs View Post
I think the following are practical goals before a person can retire. It is a rather simplified plan and may not work for everyone. Just my views. I welcome others views and goals


1) Be debt free.
2) Own home
3) At least $100,000 in the bank.
4) Have as much as possible in 401K, Roth IRA and regular IRA.
5) Have retirement plans to fill void of having more free time.
To that list you need to add secure, affordable medical insurance.

For most people, that means Medicare. So retiring prior to age 65 becomes a challenge for most folks.
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