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Old 07-30-2019, 07:13 AM
 
665 posts, read 350,430 times
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Quote:
Originally Posted by mathjak107 View Post
you do realize 80% of retirees won't even have 1 million and do fine . throwing numbers out that you think are right for you makes little sense when you throw them out for others . no one can say what is right for someone else .
Perhaps not in the posters opinion for their scenario. There is retirement and getting by, then there is a comfortable retirement with money left over for an above average retirement. We happen to have a lot more, but not all do. Is that not what we all are aiming and have worked for? Agreed all numbers are subjective, but I agree with the poster as that would leave (in our case and most likely the poster's) a decent amount for fun and not just subsistence. Some are happy with just being able to retire, others want to have some fun when they retire. I am in that camp. You see too many people around where we live just getting by, that is not retirement, that is existence.
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Old 07-30-2019, 07:48 AM
 
Location: Washington State
19,028 posts, read 9,809,203 times
Reputation: 16201
Quote:
Originally Posted by mathjak107 View Post
you do realize 80% of retirees won't even have 1 million and do fine . throwing numbers out that you think are right for you makes little sense when you throw them out for others . no one can say what is right for someone else .
Yeah I realize most people would have less and can live on less but I gave my opinion. I am one of 6 kids and at least 4 and possibly 5 of us will meet or exceed that....and we all started with zilch.
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Old 07-30-2019, 08:03 AM
mlb
 
Location: North Monterey County
3,275 posts, read 2,901,419 times
Reputation: 5028
Well before the recession hit my spouse’s income began to flounder- he being in commission sales with no benefits. We were in our late 40’s and saving for retirement. I was more steadily employed but not the high wage earner.

We made the decision then to save 25-35% of my income - double of what I was originally saving...because we were unsure he could sustain a job...he couldn’t once the recession hit..and we knew we needed to save at least as much as what I was saving from my income in my 401k. We saved as if he had my same income....and it hurt and was tough. We did this despite losing 40% in the crash. It was pretty scary times.

But this is what ultimately saved us. Yes, I have a pension and a reduced SS benefit because it was in government...but having the safety net of the portfolio was key. We do not have life insurance. We did get an inheritance but could not figure that into our original equation because you can NEVER assume it will come your way...

I am glad we saw the writing on the wall before too late.
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Old 07-30-2019, 08:48 AM
 
Location: R.I.
1,028 posts, read 627,494 times
Reputation: 4436
Quote:
Originally Posted by mathjak107 View Post
.

so if i hypothetically need 100k a year as a couple and ss was 40k and pension 20k i need to fill a 40k shortfall .

25 x 40k equals 1 million dollars . so i need to have 1 million dollars and checking the safe withdrawal rate chart i see i need about a min of 40% equities .

there is only a 10% chance i would end 30 years later with less than that 1 million .

I think I can understand the rationale behind all the info you relayed. My take away from your post and all similar is the planning for retirement income for both discretionary and non-discretionary expenses can be very different for a married couple compared to a single person or person like myself who will be widowed for many years at retirement.

And I can definitely see by your last sentence the need to preserve that level of assets for a surviving spouse and as well as possibly the desire to leave an inheritance to your children. But since I have neither, those two factors are not part of my retirement planning. And just with those two differences makes your retirement income needs uniquely different from mine and everyone else for that matter.

Thanks for providing clarity to my post.
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Old 07-30-2019, 10:19 AM
 
Location: Washington State
19,028 posts, read 9,809,203 times
Reputation: 16201
Quote:
Originally Posted by mlb View Post
Well before the recession hit my spouse’s income began to flounder- he being in commission sales with no benefits. We were in our late 40’s and saving for retirement. I was more steadily employed but not the high wage earner.

We made the decision then to save 25-35% of my income - double of what I was originally saving...because we were unsure he could sustain a job...he couldn’t once the recession hit..and we knew we needed to save at least as much as what I was saving from my income in my 401k. We saved as if he had my same income....and it hurt and was tough. We did this despite losing 40% in the crash. It was pretty scary times.

But this is what ultimately saved us. Yes, I have a pension and a reduced SS benefit because it was in government...but having the safety net of the portfolio was key. We do not have life insurance. We did get an inheritance but could not figure that into our original equation because you can NEVER assume it will come your way...

I am glad we saw the writing on the wall before too late.
We did similar and saved well over half of my take home income the last 10 years (I retired a few months back). My primary comment would be to save more than you think you'll need.
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Old 07-30-2019, 10:54 AM
 
72,704 posts, read 72,559,630 times
Reputation: 50244
Quote:
Originally Posted by Nightengale212 View Post
I think I can understand the rationale behind all the info you relayed. My take away from your post and all similar is the planning for retirement income for both discretionary and non-discretionary expenses can be very different for a married couple compared to a single person or person like myself who will be widowed for many years at retirement.

And I can definitely see by your last sentence the need to preserve that level of assets for a surviving spouse and as well as possibly the desire to leave an inheritance to your children. But since I have neither, those two factors are not part of my retirement planning. And just with those two differences makes your retirement income needs uniquely different from mine and everyone else for that matter.

Thanks for providing clarity to my post.
this is why i say just using the words live below your means can be quite meaningless .. you need a healthy ratio making up that spending .... the spending has to be based on what can be cut back on if need be and what can't .

you can live below your means but if one in a couple has to go on you need not only the means but the assets or insurance to cover the loss of means or the ability to cut back enough so the means re-aligns .

this may mean that spending below your means has a healthy saving component to it . how much is never something discussed and it should be. it should not be left to ones whim . the same way calculating draws in retirement were established with guidelines , spending does too
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Old 07-30-2019, 12:22 PM
 
3 posts, read 548 times
Reputation: 10
All
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Old 07-30-2019, 12:25 PM
 
Location: RVA
2,184 posts, read 1,286,940 times
Reputation: 4531
Agree. If your circumstances allow you to save more and still live a life that pleases you, you will not regret it. But planning with an objective is the main thing. Saving till it hurts always becomes burdensome. Having an objective helps to crystallize the reason.

Many years ago, my plan consisted primarily of making as much as I could in a company that had a great pension and I randomly chose 8% savings and got a company match of 3% in the 401k. There was no great research done, basically I probably read something in Money magazine and I had some nebulous idea that when I reached 65, I wouldn’t have to worry. It wasn’t much of a plan, and at 25-30 years of age, that was about as much mental wherewithal as I could muster for retirement. Fast forward some career setbacks and a divorce, debt, housing issues and it was hard to hold even that course for a few years.

But when I turned about 40, with Y2K and computer trading as easy as surfing the net, and retirement a more real objective, my career and income back on track, I took the time to analyze where I was (not good) and I made an objective based on a average returns to save a million by age 65, because at that time I wasn’t working for the company with a pension anymore, and figured portfolio and SS would be it, with a tiny pension.

Luckily I went back with the same company and stayed another 18 years and my pension grew consistently. I didn’t change my objective of a million by 65, as I was used to that plan and objective by then. I lived below my means, but not frugally, really. By age 61, I had been both lucky and consistent with salary increases, promotions, investments, real estate and an early retirement package offer along with this long bull market and far surpassed where I thought I would be at this time.

Along the way, the objective changed from a simple million dollar mark, to a more sophisticated plan where my net COLA income for retirement would be equal to what I was making while working. So I ended up retiring 3 1/2 years sooner than my original plan, with no financial worries.

So for my cohorts, a $10k/mo income, with no debt, is a VERY comfortable retirement estimate, IMHO. $8k/mo is pretty comfortable in mid Atlantic areas. Personally, I think less than 20% of retirees have a million dollar portfolio. Probably closer to 10%.
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Old 07-30-2019, 12:29 PM
 
3 posts, read 548 times
Reputation: 10
ALL of this depends upon where you live, HOW you live (play golf, travel a lot, etc), do you have a pension(s)?, etc,etc .


I have been both lucky and good - we will have about 3 million when we retire. We will also have pensions from the Feds and Eli Lilly. My house has been paid for for several years. I live in a relativity low cost city (Indianapolis).


I always planed and invested so that I would have a higher income than while I worked. But I have also been lucky as (we're both pharmacists) as we made good money. But I also made sure we saved as close to the max in our 401K's as possible.


But my parents only had about 42,000 a year and were fine.

Last edited by dhdwnezi; 07-30-2019 at 12:32 PM.. Reason: correct spelling
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Old 07-31-2019, 10:19 AM
 
9,293 posts, read 9,361,015 times
Reputation: 29206
Quote:
Originally Posted by Tall Traveler View Post
We did similar and saved well over half of my take home income the last 10 years (I retired a few months back). My primary comment would be to save more than you think you'll need.
I just think that is unrealistic for most people--saving half your take home pay for ten years.

And this is coming from someone who will have a good retirement.
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