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Old 01-03-2010, 08:14 AM
 
Location: High Cotton
6,131 posts, read 6,440,860 times
Reputation: 3657

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Quote:
Originally Posted by dave w View Post
the reason i have the 300k is because i was out of the stock market when it crashed earlier this year. I'm sitting in money markets waiting for interest rates to go back up to purchace CD's.I don't trust the market anymore and i don't trust the government.
but my 2800.00 pension is cut in half at age 62 and 1 month,then i have to apply for
SS to make up the difference or postpone SS and make up the diff.I was given a suppliment to get to that age.But im trapped like everybody else i have 2 houses that are worth less now ,saving that doesnt keep up with inflation.no debt though
You say that your $2,800 monthly pension is cut in half when you turn 62. That's a big piece of information you failed to reveal! What is your estimated SS benefit at age 62? How old is your wife, and does she qualify for SS? If so, what is her benefit at age 62?

Dave, you're only giving out tiny bits of random information. To answer your question all this information must be known.

It's clear (to me) that unless you have failed to mention a lot of net assets you and your wife are no where even remotely close to having enough to retire where you two can live [even] a below average (just above poverty level) lifestyle for the rest of your days, which hopefully will be 25 years or more.
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Old 01-03-2010, 10:13 AM
 
Location: Great State of Texas
86,093 posts, read 72,479,637 times
Reputation: 27565
Quote:
Originally Posted by Gandalara View Post
I could live on a $2800 pension quite comfortably, and not even touch the $300K!

If your house is paid off, no consumer debt, frugal life-style ... why not?

Whats the CoL in the area? If it's high - move!
I could too. Even a P/T job until SS kicks in at 62. Then at your full benefits age, pay it all back (no interest is charged) and you can then reapply for the full SS payment.

I'm living now on about $40K (on purpose for pre-retirement testing) and I have a 19 year old still at home and 2 homes (both with very small mortgages). When I do retire one home will be sold and the other paid off with balance put into investments.

I guess it really depends on each person's lifestyles..some can get by just fine on less.

I will agree with the other poster though that suggested you check out the area you live in vs cheaper areas to retire to.
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Old 01-03-2010, 12:26 PM
 
356 posts, read 508,154 times
Reputation: 407
well the way i figure 2800x12=33600 + 300k div by 25 yrs=12000 total 45600 to live on per year assuming invested portion keeps up with inflation,currently i have 2 to three hundred dollars left over each month just using 2800 pension money and i don't feel deprived.Maybe the OP should have read (IYO would the average retired american couple live comfortably on 46k per year inflation adjusted for the next 25 years assuming no mortgages) I think Im answering my own question. I say yes easily.I should'nt have used the no interest scenario in OP.I was assuming current saving interest rates.Well i'll keep assesing the money flow and if there is any left i'll give 10k a month to a nursing home till its gone.or if i run short the state can take care of me.thanks
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Old 01-03-2010, 02:19 PM
 
8,190 posts, read 11,905,691 times
Reputation: 17963
Quote:
Originally Posted by dave w View Post
Maybe the OP should have read (IYO would the average retired american couple live comfortably on 46k per year inflation adjusted for the next 25 years assuming no mortgages)
Yes, that is quite a bit different from:

Quote:
Originally Posted by dave w View Post
59 yrs old ,2800.00 pension ,typical cheap coupon cutter, will drive extra mile for a deal .no debt.normal expenses,will it last till i die,with no intrest made on savings.
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Old 01-03-2010, 02:24 PM
 
Location: High Cotton
6,131 posts, read 6,440,860 times
Reputation: 3657
Dave, you may have to pay income tax on up to 85% of your Social Security benefits depending on your combined income. Also, a large portion of your your income is from Social Security. Do you have a good feeling that our government (which you admittedly don't trust) will not drastically reduce or do away with Social Security benefits? How secure is your pension?

Here is a nice retirement calculator that may come in helpful:
https://retirementplans.vanguard.com...estEggCalc.jsf

You have not addressed how you expect to pay for all the many things that eat away at money without heavily dipping into your $300k - medical insurance, medicines, eye wear, cable television services, telephone, cell phone, entertainment, traveling, clothing, food, gasoline, electricity, natural gas or propane, water/sewage, replacement tires, auto repairs and inspection, automobile insurance, home repairs, home insurance, future replacement of appliances, HVAC equipment, computer, TV, automobile, etc., etc., etc., etc., etc.

Your key is going to be protecting the $300k.
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Old 01-03-2010, 06:44 PM
 
617 posts, read 1,300,715 times
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I am living on a 2600 a month pension with a 300 dollar a month mortgage payment, I am only 54 I also have medical bennies that are very good through the pension for both of us. SS not for 6 years on my wifes side and 8 for me. Part Time job brings in an additional 2000 a month. It is easy.
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Old 01-03-2010, 07:32 PM
 
1,749 posts, read 3,986,124 times
Reputation: 4620
Dave w brings up a good point of discussion about the fate of future generations. As we can see the folks retiring today are mostly a hybrid of remaining pension beneficiaries with 401Ks. Most here have a scathingly negative outlook on our friend dave's ability to outlast his money.

This poses the question then, what is the social landscape going to look like in 30 years when pretty much ALL retiring workers are of the kind that never had a pension benefit and only had the benefit of 401K for retirement since day one at work? Mind you, the average balance on these accounts is a measly 50K, which frankly makes our friend Dave a statistical outlier in terms of 401K balances as a 55+ individual....

I ask again, if our friend dave, with a 1/2 a pension and 4 times the mean balance of 401K holders can't outlast his money, what's the outcome for the millions of people with no pension and 50-100K in a 401K???? We got a big problem folks. Where are all these people gonna go? Die quiet deaths? Heck no. Somebody is going to have to pony up the difference for millions of people working full-time till they're too sick to stand. I really don't see this as a matter of 'that's your problem joe' anymore, we're all about to get a bill for this generational short fall. Mr Dave already alluded in jest to his plan B if the money runs dry, "let the state take care of me". Jest aside, this is coming from a guy with a pension and above average 401K balance. Remove the pension and 50% off that 401K, that's dave's equivalent 30 years from now. Anybody else not alarmed by this? Thoughts?
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Old 01-03-2010, 07:44 PM
 
617 posts, read 1,300,715 times
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Quote:
Originally Posted by hindsight2020 View Post
Dave w brings up a good point of discussion about the fate of future generations. As we can see the folks retiring today are mostly a hybrid of remaining pension beneficiaries with 401Ks. Most here have a scathingly negative outlook on our friend dave's ability to outlast his money.

This poses the question then, what is the social landscape going to look like in 30 years when pretty much ALL retiring workers are of the kind that never had a pension benefit and only had the benefit of 401K for retirement since day one at work? Mind you, the average balance on these accounts is a measly 50K, which frankly makes our friend Dave a statistical outlier in terms of 401K balances as a 55+ individual....

I ask again, if our friend dave, with a 1/2 a pension and 4 times the mean balance of 401K holders can't outlast his money, what's the outcome for the millions of people with no pension and 50-100K in a 401K???? We got a big problem folks. Where are all these people gonna go? Die quiet deaths? Heck no. Somebody is going to have to pony up the difference for millions of people working full-time till they're too sick to stand. I really don't see this as a matter of 'that's your problem joe' anymore, we're all about to get a bill for this generational short fall. Mr Dave already alluded in jest to his plan B if the money runs dry, "let the state take care of me". Jest aside, this is coming from a guy with a pension and above average 401K balance. Remove the pension and 50% off that 401K, that's dave's equivalent 30 years from now. Anybody else not alarmed by this? Thoughts?

The 401K was a perk for CEOs . Then they figured out how to sell it as the way for someone to have their own hands on their retirement money and poof away went the defined bennie package. Hopefully someone will have the b@lls to address the true weak parts of 401ks like the president but he won't. Americans have been swindled and are too stupid to get angry.
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Old 01-04-2010, 02:52 AM
 
71,507 posts, read 71,674,131 times
Reputation: 49084
Quote:
Originally Posted by dave w View Post
well the way i figure 2800x12=33600 + 300k div by 25 yrs=12000 total 45600 to live on per year assuming invested portion keeps up with inflation,currently i have 2 to three hundred dollars left over each month just using 2800 pension money and i don't feel deprived.Maybe the OP should have read (IYO would the average retired american couple live comfortably on 46k per year inflation adjusted for the next 25 years assuming no mortgages) I think Im answering my own question. I say yes easily.I should'nt have used the no interest scenario in OP.I was assuming current saving interest rates.Well i'll keep assesing the money flow and if there is any left i'll give 10k a month to a nursing home till its gone.or if i run short the state can take care of me.thanks
if all he wants is cd's and the bank the invested portion is only a guaranteed loss after taxes and inflation and thats at any rate. there is no way to have your savings keep up with inflation and take on no risk.
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Old 01-04-2010, 02:47 PM
 
4,571 posts, read 7,055,913 times
Reputation: 4217
Really, 59 is quite young to be retiring unless you have some serious physical limitations and why collect SS @ 62? I'd say keep working until you absolutely can't anymore. These days early retirement is a pipe dream unless you have a government pension (high) with medical benefits.
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