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Old 10-29-2016, 02:34 AM
 
Location: RVA
2,174 posts, read 1,274,025 times
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Yes, I'm afraid Tuborgs 150k comment was quite a bit off. $150k in retirement income, even with no savings is comfortable by most definitions. Live easily on $100k, $25k for taxes, and bank $25k. In 8 years a $220k savings, after tax. There's your hedge and then you can move income up to match inflation.
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Old 10-29-2016, 02:39 AM
 
71,957 posts, read 71,997,171 times
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Quote:
Originally Posted by BeerGeek40 View Post
Yeah, those 180 day work years are rough.


it is actually closer to 7-8 months of work . but even a regular job with weekends off and two weeks vacation ,not counting holidays is close to 120 days off .

Last edited by mathjak107; 10-29-2016 at 03:07 AM..
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Old 10-29-2016, 02:48 AM
 
Location: Washington State
18,697 posts, read 9,653,739 times
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Quote:
Originally Posted by BeerGeek40 View Post
Yeah, those 180 day work years are rough.
LOL, yeah it does seem like few days for those of us that work year-round and always work over 40 hrs/wk. On the other hand, that is a lot of responsibility to guide our youth to their potential....from my own experience, the value of a great teacher is worth tons more than their compensation.
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Old 10-29-2016, 04:20 AM
 
29,837 posts, read 34,924,704 times
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Quote:
Originally Posted by Perryinva View Post
Yes, I'm afraid Tuborgs 150k comment was quite a bit off. $150k in retirement income, even with no savings is comfortable by most definitions. Live easily on $100k, $25k for taxes, and bank $25k. In 8 years a $220k savings, after tax. There's your hedge and then you can move income up to match inflation.
Unless crap happens on the first eight years and as long as inflation resembles the last 8 years. Avoid strokes and all other serious medical injuries that require home care etc. Isn't it better to start retirement out with at least the 225k? Why not be saving through out your working years. A reality check is that if you took the effort to during your working years you could keep your lifestyle closer to that in retirement. In fact what might be best is to start retirement with 150k income the 225k in savings and add the 25k in savings per year on top of that. That will give you a nicer liquid fund for a quality CCRC or assisted living if needed and oh yeah a hedge against real inflation.
Initial comfort may not always equal long term security if you plan out
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Old 10-29-2016, 04:24 AM
 
71,957 posts, read 71,997,171 times
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counting on the cpi inflation to match your own cost of living index will not work out well at all . that is why cola adjusted ss ,annuity's or anything else may not agree with your own life and you will always need additional sources of income to adjust with .
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Old 10-29-2016, 04:29 AM
 
29,837 posts, read 34,924,704 times
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[quote=TuborgP;45987830]Unless crap happens on the first eight years and as long as inflation resembles the last 8 years. Avoid strokes and all other serious medical injuries that require home care etc. Isn't it better to start retirement out with at least the 225k? Why not be saving through out your working years. A reality check is that if you took the effort to during your working years you could keep your lifestyle closer to that in retirement. In fact what might be best is to start retirement with 150k income the 225k in savings and add the 25k in savings per year on top of that. That will give you a nicer liquid fund for a quality CCRC or assisted living if needed and oh yeah a hedge against real inflation.
Initial comfort may not always equal long term security if you plan 10-15 years out and factor in historical and spike inflation during that period especially the early years. That's why I linked the article about inflation and Calif pensions

Some would say a short term panacea can be a trap if unprepared for historical realities and many with pensions have fallen into that trap and not been prepared
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Old 10-29-2016, 04:40 AM
 
29,837 posts, read 34,924,704 times
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Quote:
Originally Posted by Larry Siegel View Post
How many people get $150K in pension income, or can withdraw that much from their 401(k) each year without significantly running it down? "Panacea" it isn't, but it's a nice living.
Larry you know finances and you know the consequences of inflation over time if it exceeds income growth by even 2-3 percent per year. States have capped pension COLAs and in some cases not are not giving them. Also you know how medical care costs in the later years can be cash dependent. You are a planner and look at the unknown required in planning. There are no promotions or raises in retirement. Even with a pension you may still be almost fully dependent on yourself to generate additional future income. Also changes or shortages in Medicare, SS and even Medicaid for nursing care down the road might require more and need to be planned for

http://www.governing.com/columns/pub...hird-rail.html

So you agree with me that it is no panacea which what I wrote and it is evident your grasp of the English language includes word meaning. Obviously when others translated that into living comfortably theirs didn't

http://www.dictionary.com/browse/panacea

Last edited by TuborgP; 10-29-2016 at 04:56 AM..
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Old 10-29-2016, 05:04 AM
 
11,193 posts, read 8,585,083 times
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Quote:
Originally Posted by 2sleepy View Post
That's only true if they have enough left after they cover their expenses to save, but unfortunately there are a lot of people in this Country who work hard and are lucky to have $20 left at the end of the month.
If the person only has $20 left, they still can't take advantage of a retirement plan. So, it's a moot point.
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Old 10-29-2016, 05:18 AM
 
29,837 posts, read 34,924,704 times
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Quote:
Originally Posted by charlygal View Post
If the person only has $20 left, they still can't take advantage of a retirement plan. So, it's a moot point.
Yes for them and not others. Isn't it reasonable to assume tha a COUPLE with a high retirement pension made even more than that during their working years and DID have the ability to invest if they wanted ?
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Old 10-29-2016, 05:26 AM
 
29,837 posts, read 34,924,704 times
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Quote:
Originally Posted by mathjak107 View Post
counting on the cpi inflation to match your own cost of living index will not work out well at all . that is why cola adjusted ss ,annuity's or anything else may not agree with your own life and you will always need additional sources of income to adjust with .

Hmmmm let me guess you are a frequent user of FireCalc and other planners. A simple drill anyone can do is to take their beginning income and start increasing it at 2 percent per year for 15 years doing it one year at a time. Then do it for five percent for 15 years one year at a time. When done subtract the smaller amount from the larger. That difference is inflation erosion. What is comfortable at first can be no Panacea as I noted. Try no COLA and ouch in only 10 years. Compounding can be your friend or enemy
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