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Well in a few yrs (2019) I'd like to retire and utilize my 401k with the age of 55 rule. With that I tried to validate my plan with a couple (3) retirement planning firms. Not sure where the 70-80% replacement of your current salary comes from but in my case it would never happen. Nor do I believe that I need it but is that really viable? Sorry probably more of a rant than a question.
Currently own two homes
Call it 1 mil in 401k
Selling primary home that will net 500k
150k on second home but other than that debt free
Need about 70,000 per yr in retirement
In the end about 1.6mil but need to deal with the retirement home in San Antonio (150k). 500k in cash.
So two of the three firms say I need more to retire at 54. Doing it anyway . Or yeah Married.
Rant over.
if i take your guess at ss at 2800 per month 13 years after you retire and you retire at 54 that means we will need to plan for 41 years and the first 13 will have no ss .
so using todays dollars and making ss kick in in 2029 here is what firecalc shows .
FIRECalc looked at the 105 possible 41 year periods in the available data, starting with a portfolio of $1,600,000 and spending your specified amounts each year of 70k thereafter.
Here is how your portfolio would have fared in each of the 105 cycles. The lowest and highest portfolio balance at the end of your retirement was $176,376 to $10,965,532, with an average at the end of $2,915,986. (Note: this is looking at all the possible periods; values are in terms of the dollars as of the beginning of the retirement period for each cycle.)
For our purposes, failure means the portfolio was depleted before the end of the 41 years. FIRECalc found that 0 cycles failed, for a success rate of 100.0%.
of course like all calculators you can be dead broke in year 42 and have a 100% rate . any big expenses in anyone year that go over budget can also kill your budget as well as worst sequences and markets than we ever had before so nothing is written in stone.
don't forget that all calculators assume principal can go to zero by the last year .
Last edited by mathjak107; 10-11-2016 at 03:12 AM..
I think most of these "can't do it" people are nuts. San Antonio is a place you can live cheap. You won't want to go crazy obviously, and watch things closely, but you can do it. Especially with a little part time job. With no house payment I'll bet its a stretch to spend $70,000 a year.
I think most of these "can't do it" people are nuts. San Antonio is a place you can live cheap. You won't want to go crazy obviously, and watch things closely, but you can do it. Especially with a little part time job. With no house payment I'll bet its a stretch to spend $70,000 a year.
"Can't do it" is based on the OP's "need" to live on 70K, stating he was going to rely on SS to "help" and suggesting he may need a part time job to at least "subsidize" healthcare.
"Doing it" relies on the belief you'll never need home health care aides at a cost of potentially $15,000 per month or to live in Assisted Living or Memory Care then move on to Skilled.
Not to mention, I didn't see anything about the wife's resources so it seems his assets are supporting two people.
Generally, many people believe the taxpayers will pay for that. In fact, they also "PLAN" for that by "protecting mom's assets" before they need us to pay for them.
As evidenced on the Caregiving Forum.
$2Mil is NOTHING if you and your wife need to move to a facility and still live another decade - or three.
But sure. Until such time, I could easily live just on Social Security alone very comfortably in my personal situation. As a RENTER because even maintaining my condo would require escrowing money for replacing AC, new cars, etc.
At first glance, it seems like you should be ok. I'm in a high COL and I spend less than $50k per year. If I worry about nursing home, I would probably never retire and when I do I'll probably go straight to nursing home. Your health is your most precious thing.
I think most of these "can't do it" people are nuts. San Antonio is a place you can live cheap. You won't want to go crazy obviously, and watch things closely, but you can do it. Especially with a little part time job. With no house payment I'll bet its a stretch to spend $70,000 a year.
There is a lot of fluff in my 70k number. I don't have any bills really other than normal living expenses but still something to be mindful of. Working a little is an option but really a little and could change every yr. Just something to pad the income a little. Never hurts while your skill are still needed for something.
I think most of these "can't do it" people are nuts. San Antonio is a place you can live cheap. You won't want to go crazy obviously, and watch things closely, but you can do it. Especially with a little part time job. With no house payment I'll bet its a stretch to spend $70,000 a year.
I don't know. I live south of there.
Yes housing costs are low, but utilities are high. So are property taxes. And cable and phone service.
Water, electric, gas, cable, phone are about 800 a month for us. We do not have a mortgage or pay property taxes (exempt -VA).
There are so many tempting things to do in the city - festivals, shopping, restaurants - very easy to spend, spend, spend!
There is a lot of fluff in my 70k number. I don't have any bills really other than normal living expenses but still something to be mindful of. Working a little is an option but really a little and could change every yr. Just something to pad the income a little. Never hurts while your skill are still needed for something.
yes, it helps if you know how you are going to spend your free time. I know people that have retired early and then get restless and just shop, shop, shop, to fill their hours. Then they whine cuz they don't have any money.
Maybe take a year to decompress after you retire to make a real plan. Get all those things you wanted to do out of your system and felt like you didn't have the time to tackle. Go on a nice vacation.
I've been retired for ten years and get restless so I recognize this and strike out on a different path.
People always assume they can live on much less in a low COL location. But much of the savings is associated with housing. If you don't have a mortgage, the expenses may be similar. Property tax can be an exception. But I would not think that property taxes on a less expensive home in San Antonio would be more than on a more expensive home in the Chicago area.
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. Or yeah Married.
