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Old 08-02-2017, 03:53 AM
 
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Quote:
Originally Posted by Rakin View Post
Can't you file for Survivors SS benefits at 60? Not 62.
yes , survivor is 60 but you take a nasty pay cut at 60 . you would get your spouse fra amount x.71%
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Old 08-02-2017, 03:55 AM
 
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Quote:
Originally Posted by Cabound1 View Post
My 2 cents...

I retired at 42.

A couple years prior to retiring, it became obvious to me that for early retirees, there were 2 phases to retirement planning (pre "SS and Medicare " and post " SS and Medicare). I needed to plan for both phases individually. It also made sense, after a few calculations, that if I could control my present day expenses to match my present SS and Medicare numbers, retirement planning would be reduced to planning for only the interim period...between then and when I anticipated taking SS.

I immediately reduced my expenses to less than my anticipated SS payments. This meant paying off the mortgage and all other debts. I realize not everyone can do this, but I could, and did.

You following? If so...

This simplified the planning tremendously. Why? Because it changed an indeterminate amount of time to a definitive amount of time to plan for. I only had to plan from my current age until the day I took SS and Medicare.

For me, that was about 25 years. I set a number that I figured I needed as a nest egg to support my current expenses for 25 years.

I'm 13 years into retirement now and the "nest egg" is currently 125% of the original. And that was after a very unfortunate "sequence risk " of the 2008 financial mess. So I'm in better shape than I was when I retired. Doesn't mean I'm home free, but in way better shape than I anticipated.

My feeling is it's all about controlling expenses. I am naturally good at that. It's also about risk tolerance. Never been a scaredy cat......you need to assume some risk.... fixed income these days will never get you there....
when it comes to sequence risk in 2008 it really was not as bad as everyone thinks because the recvovery was v-shaped and fast . the 2008 retiree is no different 9 years in than any other average group was
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Old 08-02-2017, 03:57 AM
 
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Quote:
Originally Posted by eliza61nyc View Post
My ss plan is this. Since I'm a widow, I'm going to turn on my late husband ss at 62 and let mine grow until I'm 70. I think I should get 1800/month from him but Ive got to double check.
at 62 you would get x.81% of what his fra amount was . regardless of when he filed if you take early survivor benefits it is based on his full with a reduction if you are inder fra . you would get x.71 at 60 or x.81 at 62 .
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Old 08-02-2017, 05:15 AM
 
Location: Philadelphia/South Jersey area
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Quote:
Originally Posted by PartIrish View Post
One important thing I left out is inflation over time, which will dependably reduce the buying power of your savings, unless your investments grow faster than the rate of inflation. I ran your numbers through Firecalc.com, and using the $750K number as well as your pension and (projected) social security, you come out at about a 75% success rate, assuming a 30-year retirement. Think your retirement will be shorter or longer? You can adjust for that in the calculator. I believe firecalc accounts for inflation in the annual withdrawals you will need to make from your investments.

If you bump up a to higher social security amount (you mentioned waiting until 70 to collect on your own ss), your success rate rises, perhaps to 85% or more.

Does your expenditure figure of $6,000 include taxes? Is it possible you could live on less? Might you have part-time income in retirement? Those variables will all have a significant impact on your "number."
I need to message you about firecalc. I ran my numbers through and got a 90% success rate for 33 years. Yes my 6K includes taxes, it also includes 800 bucks a month that I am currently putting in a 401K and a vanguard after tax account so it's really an inflated amount with a lot of padding.

I tried to think of every thing I spend.
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Old 08-02-2017, 05:21 AM
 
Location: Philadelphia/South Jersey area
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Quote:
Originally Posted by American Expat View Post
Your shortfall will be:
- 4K/mo after tax $6K/mo for 4yrs till SS so that's $288K
- shortfall after 62 will be $6k- 3.8/K after tax which would be about $4K/mo from 58 till say 88 so that's ($48 * 30)= $1.44M
So minimum would be $1.44M + .288M) = $1.728M

I figured that you can earn about what inflation will be on average.


If it were me, I would seriously consider moving to a lower cost place and stay healthy and enjoy life rather than staying in an expensive area like NYC. That amount would be much lower in a less expensive area.
I'm down the road a bit in Philly. One, I have children and soon grand kids, not willing to leave them just yet. My youngest graduates from college this year. Two, I actually love the east coast. I'm a city girl. I would be absolutely miserable in a small town. I love being centrally located to what I call the center of the universe. NYC, DC just a short hop away, fabulous beaches nearby and major airports that make vacationing easy and many times a lot cheaper. not willing to give that up just yet. the major negative is the horrible winters.

My ultimate goal is to be a snowbird. Hang out in Philly from April to december, fly south Jan-April

that would be my dream. I do plan to sell my current house, it's a 4 story townhome. lol hard on the knees
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Old 08-02-2017, 06:08 AM
 
Location: NC
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It is not the first year of retirement you need to plan for, but the last year. How long do you "intend" to live? Based on even a 2% cost of living increase, you probably need twice today's income as a minimum 30 yrs from now. And that assumes housing etc will not continue to be an even larger percentage of your income as buildable land etc. becomes more scarce.
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Old 08-02-2017, 06:20 AM
 
Location: Western Asia
3,187 posts, read 1,449,831 times
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Quote:
Originally Posted by eliza61nyc View Post
I'm down the road a bit in Philly. One, I have children and soon grand kids, not willing to leave them just yet. My youngest graduates from college this year. Two, I actually love the east coast. I'm a city girl. I would be absolutely miserable in a small town. I love being centrally located to what I call the center of the universe. NYC, DC just a short hop away, fabulous beaches nearby and major airports that make vacationing easy and many times a lot cheaper. not willing to give that up just yet. the major negative is the horrible winters.

My ultimate goal is to be a snowbird. Hang out in Philly from April to december, fly south Jan-April

that would be my dream. I do plan to sell my current house, it's a 4 story townhome. lol hard on the knees
Those are limiting factors in your decision. I retire in 5 weeks (hit 60) and with grandkids in Seattle, we decided to stay in state but bought a new house (1 story) in a much less costly area than Seattle. We do plan to Snowbird to Zona in the winter.
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Old 08-02-2017, 06:55 AM
 
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I read a lot of posts that say you need millions to retire. For many including me that will not be the case. All you can do is save as much as you can and plan ahead. Of course things come up in life that can change everything.
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Old 08-02-2017, 07:13 AM
 
Location: Philadelphia/South Jersey area
2,886 posts, read 1,412,752 times
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Quote:
Originally Posted by jasperhobbs View Post
I read a lot of posts that say you need millions to retire. For many including me that will not be the case. All you can do is save as much as you can and plan ahead. Of course things come up in life that can change everything.
Absolutely and truth be told, I'm ahead of the game in the simple fact that I'm even considering retiring before 60. I am fully aware that, that fact alone makes me very very blessed.


I'm a firm believer that in this case more information is good. the more suggestions and information I get from others the better.
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Old 08-02-2017, 08:56 AM
 
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With all the new information (SS Plan, no spouse, child almost out of college, downsize house-no mortgage), I think in the $1MM-$1.1MM range would be sufficient.
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