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Old 09-06-2019, 10:53 PM
 
Location: Tennessee
24,270 posts, read 18,093,052 times
Reputation: 28546

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Let's level set the conversation.

Median HHI in my area is mid $30k - low $40, depending on town. That's the median. Where does the median household, much less one below the median, end up in terms of retirement finances?
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Old Yesterday, 01:28 AM
 
3,247 posts, read 2,302,457 times
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I want to retire at 60 even though I will probably only have about 500k in my 401k. My plan is to live cheap I don't want to work till my 70. I have 9 more years left going to sell everything probably live in an RV. I can fix anything so that should keep cost low. I won't have the income I have now but I will be free to do what I want when I want. Rather have freedom over money.
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Old Yesterday, 05:21 AM
 
2,487 posts, read 2,117,262 times
Reputation: 5851
Quote:
Originally Posted by kell490 View Post
I want to retire at 60 even though I will probably only have about 500k in my 401k. My plan is to live cheap I don't want to work till my 70. I have 9 more years left going to sell everything probably live in an RV. I can fix anything so that should keep cost low. I won't have the income I have now but I will be free to do what I want when I want. Rather have freedom over money.
Not everyone is going to have millions in their 401K when they retire and they will do just fine.
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Old Yesterday, 06:08 AM
 
174 posts, read 75,461 times
Reputation: 674
Quote:
Originally Posted by kell490 View Post
I want to retire at 60 even though I will probably only have about 500k in my 401k. My plan is to live cheap I don't want to work till my 70. I have 9 more years left going to sell everything probably live in an RV. I can fix anything so that should keep cost low. I won't have the income I have now but I will be free to do what I want when I want. Rather have freedom over money.
Rv life is expensive, I thought about it at one time. Instead I bought a small (2 acre) place out in the country with a mobile home. It is important to choose the right area so taxes are low. Mine are 295 dollars a year. (Missouri Ozarks) So I have plenty of privacy and lots of room for my dog to run around. It only cost me 25 grand. Yeah I had to fix it up but it was not hard at all. Mobile homes are easy to work on.

For me the best way to a good retirement was a paid off country place. Now I just got to keep healthy and keep growing a huge tax free garden. I already have fruit trees producing and berry bushes doing their thing.

Think back a few generations ago they did not know what retirement was. So do not short change yourself you can find a way to retire even if you are broke. I did and it has worked well for me.
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Old Yesterday, 06:42 AM
 
251 posts, read 91,126 times
Reputation: 1167
Our company had pension representatives come and offer meetings for people in their 50's. I was 52 at the time. I scheduled a meeting, and the representative told me about a tax free saving supplement to the pension. I began to fund that, and have saved over 70k in it. So I will have a defined benefit and the supplement to boost it up. If you have any kind of retirement at work, study up on it and take advantage of what is offered. I see people trying to buy rental houses, start businesses, speculate wildly in the stock market. Often the best plan is what you have offered at work, if you only fund it to the max and take advantage of extra programs. My pension offers IRA's too, and I have them as well. Still, it is scary. And my company had a meeting in 2016. They were leaving the pension (it is multi employer and not tied to a single company). They were starting a new 401k, again with an outside company. All employees would go to the 401k. A long story, but after senior employees protested a formula was put in place that allowed senior employees to stay in the pension plan. I did, but younger employees are now in a 401k. It just goes to show you that things can change, and the sooner you start planning for retirement the better. But you can make progress even in 8 years, as I have done. My retirement won't be great but it will be ok I think.
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Old Yesterday, 07:42 AM
 
Location: Asheville NC
1,656 posts, read 1,347,742 times
Reputation: 4488
Quote:
Originally Posted by Serious Conversation View Post
Let's level set the conversation.

Median HHI in my area is mid $30k - low $40, depending on town. That's the median. Where does the median household, much less one below the median, end up in terms of retirement finances?
I think you know the answer. Most of them will only have social security. How much will depend on when they take it.

That’s what happens when people are not open to moving to better themselves and have given no thought to retirement.

Looks like your parents are doing better than most in your area and they probably are content with what they have. You are not going to be able to do anything to change them. It seems like you are also becoming content with what you have, making much more than median for the area. You are young enough to get out so you aren’t stuck with a poor retirement. But you also know that.

By the way, there is no way your mother bought Louis Vuitton purses for $400.00. Hers are knock offs. LV starts at about $ 1,300.00. And high end purses don’t come in cellophane- they have dust covers, and are usually wrapped in tissue, then put in the store’s fanciest shopping bag.
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Old Yesterday, 10:53 AM
 
Location: equator
3,791 posts, read 1,661,694 times
Reputation: 9447
Quote:
Originally Posted by Serious Conversation View Post
Let's level set the conversation.

Median HHI in my area is mid $30k - low $40, depending on town. That's the median. Where does the median household, much less one below the median, end up in terms of retirement finances?
Eh, that was us. But here we are retired. We made it work.

Despite the harsh criticism in the post above, LOL. We have now "Bettered ourselves!"
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Old Yesterday, 11:28 AM
 
Location: Asheville NC
1,656 posts, read 1,347,742 times
Reputation: 4488
Quote:
Originally Posted by Sand&Salt View Post
Eh, that was us. But here we are retired. We made it work.

Despite the harsh criticism in the post above, LOL. We have now "Bettered ourselves!"
Not exactly harsh criticism-just facts that have been explained to Serious over and over. He always chimes in with tales of his small town Tennessee woes.

The OP was asking for examples to help plan for retirement in 5 to 7 ears for someone not otherwise prepared. We have no idea of the OP’s personal situation except that he lives in New Jersey- making setting the level at Serious’s small town median income off topic.

Most people will have at least social security and how much depends on when they start it. Looks like you moved to better yourselves —that was an example that the OP put in his first post.
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Old Yesterday, 02:24 PM
 
Location: Metropolis IL
1,627 posts, read 1,920,343 times
Reputation: 2430
Quote:
Originally Posted by parentologist View Post
"living DECENTLY" - that's the point. People who didn't save anything for retirement were living above their means. To some people, living decently means a room indoors with access to a shared bathroom, maybe kitchen privileges. To some people, living decently means a 4 bedroom house, two new cars, a few expensive vacations a year, new clothing on a frequent basis, etc.

Let's say you are going to receive a thousand a month in social security. Let's say you have saved a hundred thousand in an IRA. You invest the IRA in something paying 5% a year - that's 5K/yr, or about $450/month. Plus, you are not gonna live forever, so let's say you can withdraw some of the principle, too. So you take out an additional 4K/yr. So now you've got about 19K/yr in income. You get a part time job that pays you a thousand a month. So now you've got about 30K/yr in income. In many parts of the country, you can have a one bedroom apt, a paid off used car, and even eat out occasionally on that, maybe take the occasional road trip or cheap vacation on that. It's not how I want to live in retirement, but it's living.
How about $36k a year, a market rate 2 bedroom apt in a good neighborhood, and a new leased car every 3 years? Oh, and a partial season ticket to a MLB team. I eat good too.
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Old Yesterday, 05:23 PM
 
9,193 posts, read 5,283,359 times
Reputation: 10413
Quote:
Originally Posted by ClubMike View Post
Rv life is expensive, I thought about it at one time. Instead I bought a small (2 acre) place out in the country with a mobile home. It is important to choose the right area so taxes are low. Mine are 295 dollars a year. (Missouri Ozarks) So I have plenty of privacy and lots of room for my dog to run around. It only cost me 25 grand. Yeah I had to fix it up but it was not hard at all. Mobile homes are easy to work on.

For me the best way to a good retirement was a paid off country place. Now I just got to keep healthy and keep growing a huge tax free garden. I already have fruit trees producing and berry bushes doing their thing.

Think back a few generations ago they did not know what retirement was. So do not short change yourself you can find a way to retire even if you are broke. I did and it has worked well for me.
RV life CAN be expensive, it can also be extremely inexpensive. Just like almost every thing else, it depends.
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