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 Yesterday, 04:12 AM
 
78,908 posts, read 33,560,179 times
Reputation: 15808

Advertisements

In 25 years based upon what is known today, the wife's and my income will be $103,000. Will that buy what it does today? Not very likely but if we can't make it on that there is more of a problem than our planning.
Reply With Quote Quick reply to this message

 
Old Yesterday, 05:29 AM
 
3,358 posts, read 649,632 times
Reputation: 2352
Quote:
Originally Posted by Nightengale212 View Post
I agree there is no one size fits all magic number, but I will tell you as someone who has been mortgage free since 1998 my former mortgage payment was a drop in the bucket compared to what all my other home ownership expenses are now 20+ years later. For example, in 1998 my property taxes were $208/month and now they are $550/month. My electric and gas heat are paid on a monthly budget plan where I pay the same amount every month throughout the year. Two adults live in my 2200 square foot pretty energy efficient home that does not have central AC. We have no excessive energy use, heat never goes above 68 in the winter, we do 3 loads of laundry once a week, all our appliances and lightning are energy efficient, and despite that we pay $183/month for electric and $185/for gas. In 1998 those two costs combined were less than $185/month.

All that being said, paying off a mortgage certainly does help the bottom line initially, but as the years progress that bottom line becomes shorter and shorter because inflation chews away at it year by year. So projecting retirement expenses is very important, but that projection needs to factor in inflation over a possible 25+ year retirement because if it isn't, when year 13 rolls around one's retirement income may likely not be sufficient to cover one's COL.
That is a valid point about inflation eating into one's purchasing power over the years, and this is what I plan to do to keep up with that: Of my basic expenses of $4,100, I will have a $2,500 inflation-protected "annuity" via SS, leaving me with $1,600 to cover. I plan to take $200,000 and buy an inflation-adjusted annuity that will pay out around $800. That means that $3,300 - or about 80% of my monthly expenses - will rise with inflation. That protects me to a great extent.

(And that still leaves about $500,000 for investment purposes, which would yield - conservatively speaking - 5% a year, or an additional $25,000 annually - or $2,000 more a month.)

It's a very tough balancing act: how aggressively should one save for retirement, curtailing expensive vacations for example, to ensure one has an adequate next egg vs how much is "over-saving" and depriving oneself of nice extras during the prime working years only to end up with significantly more than one needs? There's no way to answer (unless you know for certain what year you'll die and what your investments will earn vs inflation), so I say be prudent, but within reason.
Reply With Quote Quick reply to this message
 
Old Yesterday, 05:57 AM
 
29,775 posts, read 34,863,854 times
Reputation: 11705
Folks remember the article is about research/information from a investment house. It is designed to get people to decide to invest and to do so with them. It is targeting people with sufficient income to become and or increase their investments. That as noted means everyone isn’t being targeted.
Reply With Quote Quick reply to this message
 
Old Yesterday, 06:07 AM
 
Location: Ypsilanti, MI
2,439 posts, read 3,663,507 times
Reputation: 4795
Quote:
Originally Posted by nicet4 View Post
My wife worked at a public library in Ohio for 10 years and 2 days to get her pension.

The pension isn't much at all... just $282.65/month but that is after they take out for the dental insurance on both of us which is a really good policy as far as dental goes. Free cleaning twice a year and I just had a new crown and small cavity filled and the my portion was less than $700 which is a real good deal. I am not sure but I think our dental runs maybe $40/month for each of us and that comes out of her pension.

But the big deal isn't the money it's her medical. She gets reimbursed for everything, her Plan G, Plan D and even her Medicare Part B coverage PLUS they give her $2,500 per year in a medical savings account and that is a big deal! She needs eyeglasses and her medical savings account reimburses along with any prescriptions costs etc.

We are so very fortunate... she hasn't had any money out of pocket medical expense in four years where she didn't get all her money back! The reimbursement is worth more than the cash she gets every month.

When she took the pension she took a lower amount so there is a survivor benefit for me should something happen to her. I don't want it, I think of not having her and I start to cry.


Very similar here. My wife just hit 60 this spring which is one of the retirement criteria which will allow her (us) to continue receiving her excellent Health Insurance coverage in retirement at the lowest subscriber co-pay. The two eligibility criteria for the lowest co-pay are: retire at age 60 or later with at least 10 years of service, or retire with 30 years or more of service. She has now qualified by meeting the first criteria.

Her pension is pretty lame for 25 years of service, also Public Sector. But her post-retirement insurance coverage is better than what we are eligible for with my 38+ years of service at GM.

We discovered that if my wife does not select some level of survivor benefit for me on her small pension, that I will be excluded from continuing the Health Insurance plan if she pre-deceases me. Maybe your wife knew this, or was coached on this, when she selected a pension survivor benefit for you.
Reply With Quote Quick reply to this message
 
Old Yesterday, 06:30 AM
 
Location: Blue Ridge Mntns., NC
10,829 posts, read 15,132,033 times
Reputation: 9657
Quote:
Originally Posted by Returning2USA View Post
Of course it depends on the lifestyle, age today, whether the house is paid off and other factors but this article (which I assume most of us have read before puts a number as a ballpark figure).

Can equity in a house and a 401K get today's workers to $1.7M with the 4% withdrawal rule?

The average invested into the 401K annually is $8K. Not enough, IMO.




https://www.cnbc.com/2019/07/05/how-...to-retire.html

LOL ! I just choked on my Cheerios.
Reply With Quote Quick reply to this message
 
Old Yesterday, 07:34 AM
 
Location: Outside US
1,197 posts, read 474,312 times
Reputation: 1551
Quote:
Originally Posted by QuilterChick View Post
LOL ! I just choked on my Cheerios.
Please be explicit.
Reply With Quote Quick reply to this message
 
Old Yesterday, 08:45 AM
 
13,894 posts, read 7,400,560 times
Reputation: 25379
Personally, the net worth number is fairly meaningless to me.



What I care about is: "GeoffD can spend a COLA-protected $X per year and not run out of money". I then adjust my lifestyle to live within that constraint. If I stop working now at 61, the number is quite different than if I have another 4 or 5 years of high tech income. Either way, I'll be comfortable. It's merely a matter of how much I need to chop out of my lifestyle.
Reply With Quote Quick reply to this message
 
Old Yesterday, 09:17 AM
 
Location: Grove City, Ohio
10,133 posts, read 12,383,606 times
Reputation: 13961
Quote:
Originally Posted by Rachel976 View Post
It's a very tough balancing act: how aggressively should one save for retirement, curtailing expensive vacations for example, to ensure one has an adequate next egg vs how much is "over-saving" and depriving oneself of nice extras during the prime working years only to end up with significantly more than one needs? There's no way to answer (unless you know for certain what year you'll die and what your investments will earn vs inflation), so I say be prudent, but within reason.
Never wealthy I did better than average as far as income goes but I put my money into an airplane and those that know will agree with me when I say airplanes make boats look cheap.

PA28-200r

I know I spent over six figures on that bird but it was life, I was doing what I wanted to do and I would do it exactly the same way again. Wife and I would take off just to have dinner 200 miles away and once we flew to New Orleans (1,600 miles round trip) for a mid afternoon snack. The Cajun shrimp was really good! I know, 12 hours in an airplane was a little ridiculous but I would still do it again.

I no longer fly... got to expensive with retirement looming.

There is more to life than retirement... of course we need to prepare but you need to live too.
Reply With Quote Quick reply to this message
 
Old Yesterday, 11:40 AM
 
Location: R.I.
977 posts, read 605,084 times
Reputation: 4232
Quote:
Originally Posted by nicet4 View Post
Never wealthy I did better than average as far as income goes but I put my money into an airplane and those that know will agree with me when I say airplanes make boats look cheap.

PA28-200r

I know I spent over six figures on that bird but it was life, I was doing what I wanted to do and I would do it exactly the same way again. Wife and I would take off just to have dinner 200 miles away and once we flew to New Orleans (1,600 miles round trip) for a mid afternoon snack. The Cajun shrimp was really good! I know, 12 hours in an airplane was a little ridiculous but I would still do it again.

I no longer fly... got to expensive with retirement looming.

There is more to life than retirement... of course we need to prepare but you need to live too.
Are you kidding me that you would buy "that bird" again. Do you realize that the 6 figures you paid for "that bird" could have covered the premiums for LTC insurance for your wife?? But I guess flying off for Cajun shrimp was more important because "there is more to life than retirement."
Reply With Quote Quick reply to this message
 
Old Yesterday, 11:45 AM
 
3,290 posts, read 850,592 times
Reputation: 3789
Quote:
Originally Posted by pknopp View Post
In 25 years based upon what is known today, the wife's and my income will be $103,000. Will that buy what it does today? Not very likely but if we can't make it on that there is more of a problem than our planning.
Move to rural SE US about an hour outside a major metro. Live cheaply and in peace, with access to great medical care.
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

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