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Old 07-31-2019, 02:06 PM
 
Location: Murrica
3,261 posts, read 1,855,802 times
Reputation: 2328

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Quote:
Originally Posted by jaminhealth View Post
Depends on one's NEEDS and WANTS.
....and desires.

I'm always amazed by how frugally people can live if they set their minds to it.

I need food. I want good food. But I desire dining out on really good food.
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Old 07-31-2019, 02:07 PM
 
Location: Illinois
32 posts, read 7,877 times
Reputation: 28
When they come up with these figures are they saying that is what is needed per person or per household?
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Old 07-31-2019, 03:30 PM
 
Location: Washington State
19,022 posts, read 9,809,203 times
Reputation: 16198
Quote:
Originally Posted by markg91359 View Post
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.
Maybe but that's what I did so it's realistic for some. You have to have a good income and live well below what you could live on that income. Before this, we were behind on our retirement planning and jetted to early retirement.
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Old 07-31-2019, 04:03 PM
mlb
 
Location: North Monterey County
3,275 posts, read 2,900,310 times
Reputation: 5028
Regardless, living below our income taught us we did not need much to fulfill our needs. And when you do that for such a long period of time you really cannot go back to spending without thought.

It was hard, but what would have been harder would be not being able to retire.
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Old 07-31-2019, 07:17 PM
 
Location: Florida
4,432 posts, read 3,773,982 times
Reputation: 4250
Quote:
Originally Posted by Nightengale212 View Post
Is that formula based on a married couple's income factoring in two Social Security checks, pensions, etc. ? I ask this because I never or rarely see how these formulas play out when one spouse passes. For example in the scenario you gave if the deceased spouse contributed of that $25,000 which I am assuming is Social Security 74% which is $18,750 and the surviving spouse contributed 25% which = $6,250, the latter can move to the $18,750 benefit but in the process losse their $6,250 benefit. Say the deceased spouse died in year 5 of retirement and the surviving spouse in year 7 with inflation will need that $50,000/year in income, he/she will have to offset set that by $31,250 instead of the $25,000 offset as a couple. With that account depleted by $175,000 by year 7 leaving $450,000 of the $625,000, with drawing $31,250 annually those funds will run out in year 14 instead of 20. Unless there is a life insurance policy or other assets to make up for that $31,250 x 6 years = $187,500 or more loss if the surviving spouse lives longer than expected, the last years of their life may be very financially difficult.

Just today my SO was talking on the phone with his cousin from NC. Her mother is still living at 94, she has been a widow for 40 years, smoked most of her adult life until she had a few health problems in her early 80s that forced her to quit. Nobody ever imagined "smokey" auntie's nickname would live that long and independently in her own home. Her funds are getting tight now and each of her 5 children are going to contribute $100/month to help her out. She I guess you could say is lucky as she has kids to help her out financially but many others will not be so fortunate.
If you have a significant other living with you then the budget and ss etc money would include both. In short the formula is based on your budget and your budget is based on the household income expenses.
Do some searches on SWR 4%. This is only a rough estimate and as you get closer to retirement you need to refine.
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Old 07-31-2019, 07:23 PM
 
Location: Florida
4,432 posts, read 3,773,982 times
Reputation: 4250
Quote:
Originally Posted by Dreamingisfree View Post
When they come up with these figures are they saying that is what is needed per person or per household?
As a general answer you would be doing your planning per household and have to also consider that at some point their maybe one less in the house hold.

Remember in a household for two and a 50,000 expense budget the household expenses may only dip to 40,000 when one person is gone, not 25,000.
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Old 08-01-2019, 03:29 AM
 
72,685 posts, read 72,534,115 times
Reputation: 50227
Quote:
Originally Posted by rjm1cc View Post
If you have a significant other living with you then the budget and ss etc money would include both. In short the formula is based on your budget and your budget is based on the household income expenses.
Do some searches on SWR 4%. This is only a rough estimate and as you get closer to retirement you need to refine.
a 4% swr is the amount the portfolio can add to the party safely ...whether it is even close to what you need with all the other income is another story . maybe it is when added up , maybe it isn't .

a swr is strictly working with the portfolio no matter what your expenses are.
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Old 08-01-2019, 07:45 AM
 
Location: annandale, va & slidell, la
7,558 posts, read 3,110,843 times
Reputation: 6369
Quote:
Originally Posted by GeoffD View Post
Thatís nonsense. $2 million household net worth including home equity at age 65 is 90th percentile. 90% of retirees donít live in single wides in Macon.
Let me put it this way. I wouldn't want to live the lifestyle you think lies ahead.
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Old 08-01-2019, 08:15 AM
 
Location: Illinois
32 posts, read 7,877 times
Reputation: 28
Quote:
Originally Posted by rjm1cc View Post
As a general answer you would be doing your planning per household and have to also consider that at some point their maybe one less in the house hold.

Remember in a household for two and a 50,000 expense budget the household expenses may only dip to 40,000 when one person is gone, not 25,000.
Thanks. A lot of the articles that come up with their estimated figures never really specify if their estimates are per person or household.


When it comes to figuring pensions, some sites I've seen recommend multiplying your annual pension amount by 25 to give an "estimated" overall worth of the pension and including that in your retirement planning. Are there other ways you should calculate that?
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Old 08-01-2019, 08:19 AM
 
72,685 posts, read 72,534,115 times
Reputation: 50227
it really does not matter if it is an accurate article ... the fact 1 million generates about 40k day one with about 40% equities is irrelevant to how many people will live off it .

a good article is about the capability of different amounts invested different ways and what they can bring to the party when added to your other income.

what your bills are and whether one or two people is a very different question then what you need saved to generate x-amount safely off of whatever amount you have .
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