Do you seriously think you can afford to retire? (funds, million, account)
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You obviously know nothing about the topic, OP.
Do you know what corporate and/or government pensions look like?
Most people get their pensions from 401ks, including government and corporate.
Those Enron people who lost their pensions; the state workers who invested poorly.
If you had valid assumptions, this wouldn't be such a ludicrous thread.
I can not even figure out what this is supposed to mean
I got lucky in the stock market in 2021 and turned 150K into 450K in nine months. That put me back on track to retire at 58 with 1.25M plus about 250K in real estate equity (2 rentals - rent here in LA, too expensive to own). I have about 950K (not including real estate) now so it's still going to take some aggressive investing to make another 300K in two years. I'm single, so no dependents. And I believe it's total nonsense that financial advisors say you need 80% of your income in retirement. LOL - I live off of 25% of my income now! They should be stating 80% of your current expenses, not income.
How much cash do others target as their retirement goal? At 56, I see time more important than money. I've seen too many people die before they reached they felt safe to retire or that worked themselves so hard to reach their goal that by the time they retired, they died within a year or two. I want some good time even if I'm poor.
I did just that, but at age 49! Been retired now for 15 years and still loving it, but we're not poor by any means, 50% of my U.S. government pensions all goes into savings after our monthly expenses! Then again, we live overseas in the Philippines where the cost of living is still affordable, not like when we used to live in Northern California 15 years ago! Truly makes a big difference on our finances!
If you sit down and do the math, it is quite scary. To retire at age 60-65, you'll need $1-1.5 million of assets. Lets say someone retires at 65 and has $1,000,000 and dies at 88, that means they'll have $43k a year to live off. It should be enough for the basics but one is hardly living lavishly.
The baby boom generation after WWII got lucky in terms of jobs, opportunites and real estate but this coming generation will not have as much going for them. Plus a lot of baby boomers probably got hit with the markets and real estate meltdowns. Some people can surely save the money to retire on but most cannot as the cost of everything in life has gone up. Consider this, you would need to tuck away $1500 / month at 3.5% interest to have a $1 million in 30 years. Many people are now retiring in places like Panama and Thailand because the cost of living is so much lower and they gear services toward english speakers.
My question how do you guys plan on funding retirement? Pensions, savings/investment, selling your home, etc? Do you think you are on track or do you never think about it? Are you worried or is it just me?
Having been retired five years all of the above plus anything else you can come up with. It is so much a matter of opportunity, timing circumstance and having an end game in mind based on a calculator in hand. Some have pensions, some don't, some have investments others don't. Some have SS others don't. Some have paid for houses others don't. It is a matter as you say of crunching the numbers and figuring out a path. My concern in all of this are the retired folks who are in a panic in that the chained CPI might be adopted. That is such a marginal impact on the amount of the COLA that folks that close to the edge will probably go over it sooner or later and that is a tragedy if they elected to retire on their own. At this point in life I know folks all over the place and some are where they are by choice and others by events beyond their control as S--- does sometimes happen. As far as owning vs renting or having a mortgage or not it is all part of your equation and if it works as you planned it then it is good.
where I'm going , I can live on $300 a month comfortably , and with $500/month like a king
( h#ll , for 100$/mt I can even hire someone part time to cook and clean for me )
where I'm going , I can live on $300 a month comfortably , and with $500/month like a king
( h#ll , for 100$/mt I can even hire someone part time to cook and clean for me )
Yes you can as long you live like the locals do, live in a shack and eat instant noodles, fish heads and rice as your daily subsistence! It's not living, it's just surviving!
Which is why renting sucks and renters never get ahead financially.
I've been a lifelong renter (and was also a liberal arts major). I don't make a lot, but I make more than a burger flipper. My net worth was 240K as of year end 2012. No significant gifts or inheritance involved.
I've been a lifelong renter (and was also a liberal arts major). I don't make a lot, but I make more than a burger flipper. My net worth was 240K as of year end 2012. No significant gifts or inheritance involved.
How long did it take to save up that 240K? Hope you invest it wisely or continue to add to it for your future retirement, one has to quit working eventually!
We had a home in Northern California, but it wasn't paid for when I retired at age 49! We didn't have squat in the bank after getting rid of everything we owned before relocating, but I did have an initial small pension to live on overseas! 15 yrs later at age 64 with my other pensions kicked in and still living overseas, we have a home paid for, no debts and have savings in the bank and we're still enjoying our retirement!
16 years. I am 42. I have never made more than 52K per year and make less than that now. I live in the high cost San Francisco Bay Area. I have had to make sacrifices, but I haven't lived like a monk. It can be done. Due to the bad stock market over the last 15 years, and bad investing choices, I can say that compounding returns have not helped me as much as they should have.
Quote:
Originally Posted by Art2ro
Hope you invest it wisely or continue to add to it for your future retirement, one has to quit working eventually!
I think the best thing to do is find a good balanced fund (Balanced funds invest in a mix of stocks & bonds) and stick with it forever. If I had done that from the beginning, I'd probably have at least 50K more than I do now. I don't have a good balanced fund in my 401K, but my plan does allow me to rebalance automatically every quarter. Once I started doing that, my returns got better.
I have
45% Parnassus Equity Income (PRBLX)
25% Templeton Global Bond (TGBAX)
10% Oppenheimer Developing Markets (ODVYX)
10% ING Clarion REIT (IVRIX)
10% Janus Perkins Small Cap Value (JSCVX)
I also have some money in a regular & in a Roth IRA. My regular IRA is also invested in Parnassus Equity Income. My Roth is invested in Dodge & Cox Global Stock (DODWX).
I am lucky to have access to the cheap share class versions of several of the above listed funds. I understand there are a lot of crappy, high fee 401ks out there. Fortunately, I have a good plan with good funds and reasonable/low fees.
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