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Old 09-07-2019, 05:25 PM
 
9,200 posts, read 5,286,652 times
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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.
I love your plan.
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Old 09-07-2019, 05:30 PM
 
852 posts, read 237,186 times
Reputation: 2220
Quote:
Originally Posted by TheShadow View Post
Well a lot depends on the age of the individuals involved, and what age they are trying to retire. Moving to a low COL is fine if you are trying to retire young enough to learn your way around and make connections.

If I had 5-7 years only to plan, I would immediately downsize my lifestyle and start investing every dollar and figuring out your future budget/ income streams and find a way to make it work. Delay SS to maximize that income. Maybe work a PT job and sock that money away, or if you're in a profession that you could do consulting on the side for extra income to save/invest, that would help a lot. The longer your investments have to compound, the better off you will be. So if you have things you plan on selling anyway, you can sell it now, and invest that money, it will be a lot more when you're ready to retire. According to the rule of 72, if you can invest your money at 10% it will double in 7 years. Obviously not everyone can find a relatively safe investment that returns 10% annually, but you can see how fast the money can accumulate if you get started immediately. Working PT after retiring to supplement is another good way. And lastly, you can just work longer if you are able.

If your income is low enough, you might be able to qualify for subsidized housing, but even a SS check of $2400 could put you over the limit in some places. And I think for many that's not going to be the lifestyle of their retirement dreams.
I think an average SS check is around $1600.
Average. It means a lot of people receive much less..
So emigrating - where you can or where they can take you - could be a viable solution.

Not sure how reliable the data from this website- this is allegedly average net monthly salary by country- after taxes
What people don’t take into account - it is not important how much money you make, but important how much your money can buy!

Moderator cut: link removed, competitor site

Let us compare an average monthly in Mexico-$488 according to the website vs US- $3300
Looks good for the US at first sight.
Then you start realizing: Mexico has a free universal healthcare and much less expensive medications, where in the US- you need to pay on average $488 for a single and $1200 for a family.
Colleges are free in Mexico- but very expensive in the US
Then you go through other expenses line by line and realize that in the US there are a lot of additional expenses due to lifestyle:housing is more expensive, property taxes, homeowners insurance, liability insurance, etc, etc.
In the so called 3D world countries life could be much simpler with a lot less monthly bills.

Even comparing Norway or Denmark to the US- nearly identical monthly net average salary, but so much more expenses in the US vs in Norway or Denmark- free healthcare, free colleges, free child care, good public transportation system, generous pension system for retirees, etc

Last edited by Yac; Today at 02:48 AM..
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Old 09-07-2019, 05:39 PM
 
9,200 posts, read 5,286,652 times
Reputation: 10438
Quote:
Originally Posted by Nik4me View Post
I think an average SS check is around $1600.
Average. It means a lot of people receive much less..
The average was $1353.68 in July 2019. And that is BEFORE any deduction for Medicare.

https://www.ssa.gov/policy/docs/quic...stat_snapshot/
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Old 09-07-2019, 07:29 PM
 
9,742 posts, read 16,058,706 times
Reputation: 16253
We own our house


DH SS is $2800/month
My SS is $1400/month
DH total combined pensions will be about $4000/month one a govt pension, the other a corporate pension


I get a small pension of $225/month


Add savings of, about $300,000


Is that enough?
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Old 09-07-2019, 08:17 PM
 
852 posts, read 237,186 times
Reputation: 2220
Quote:
Originally Posted by Petunia 100 View Post
The average was $1353.68 in July 2019. And that is BEFORE any deduction for Medicare.

https://www.ssa.gov/policy/docs/quic...stat_snapshot/
Wow! Even less, than I thought!
Thank you, for looking it up!
Very humbling- for a lot of people- the SS is the only income!
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Old 09-08-2019, 06:12 AM
 
176 posts, read 76,376 times
Reputation: 676
Default Yup

Quote:
Originally Posted by Petunia 100 View Post
RV life CAN be expensive, it can also be extremely inexpensive. Just like almost every thing else, it depends.
I agree with you. Make sure you out cheaprvliving.com in case you haven't yet. Lots of folks living in lots of different ways. Good luck in what ever works for you.
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Old 09-08-2019, 06:59 AM
 
10,605 posts, read 12,544,724 times
Reputation: 14988
Quote:
Originally Posted by eternalsands View Post
Folks who are thinking about retiring in 5 to 7 years and feel that they would not have enough to sustain them through the rest of life how would you plan ahead.

I am sure there are many who simply had life events or started saving late or did not save enough for any reason and are now figuring out using all the online retirement calculators that they might not have enough.

What is your approach to tackling this momentous life-altering issue?

I know the obvious ones.. move to lower cost of living area... move out of USA.. curtail your spending.

I would welcome it if anyone can share their real-life experiences.
Find a sugar momma or sugar daddy!
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Old 09-08-2019, 07:00 AM
 
10,605 posts, read 12,544,724 times
Reputation: 14988
Quote:
Originally Posted by Nik4me View Post

Let us compare an average monthly in Mexico-$488 according to the website vs US- $3300
Looks good for the US at first sight.
Then you start realizing: Mexico has a free universal healthcare and much less expensive medications, where in the US- you need to pay on average $488 for a single and $1200 for a family.
Colleges are free in Mexico- but very expensive in the US
Then you go through other expenses line by line and realize that in the US there are a lot of additional expenses due to lifestyle:housing is more expensive, property taxes, homeowners insurance, liability insurance, etc, etc.
In the so called 3D world countries life could be much simpler with a lot less monthly bills.
Yeah there are a few drawbacks to Mexico:

1. Lack of services
2. Crime
3. Oh yeah, YOU HAVE TO LIVE THERE!
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Old 09-08-2019, 07:51 AM
 
2,489 posts, read 2,119,346 times
Reputation: 5866
Quote:
Originally Posted by MaryleeII View Post
We own our house


DH SS is $2800/month
My SS is $1400/month
DH total combined pensions will be about $4000/month one a govt pension, the other a corporate pension


I get a small pension of $225/month


Add savings of, about $300,000


Is that enough?
Seek advice from a financial planner.
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Old 09-08-2019, 08:03 AM
 
Location: Grove City, Ohio
10,199 posts, read 12,524,353 times
Reputation: 14222
Quote:
Originally Posted by MaryleeII View Post
We own our house


DH SS is $2800/month
My SS is $1400/month
DH total combined pensions will be about $4000/month one a govt pension, the other a corporate pension


I get a small pension of $225/month


Add savings of, about $300,000

Is that enough?
My wfe's SS is $909.50 before her Medicare part b premium is taken out so he check $774. If I had taken my social security at my FRA my check would have been $2,300 making our family average $1,605 before our Medicare part b was deducted so dwelling on just our social security average of $1,605, $1,470 after the part b deduction, paints a pretty dismal picture.

But the rest of the picture paints a different picture. The reason my wife's social security check is so small is she has a government pension that she gets WEP'd for. If you add her pension amount to her social security her total comes to$1,237 after her part B deduction so the picture isn't as bleak as it might first seem. On top of this I did not draw Social Security until 70 so our average is $2,150 or $4,300 as a couple. Considering that that money is exempt from federal and state taxes it is enough to live on.

With government pensions that are WEP'd I know we are far from being alone so these low averages they put out I don't think we're all that correct.
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