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How much $ do you need


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You two are like a kick to the nuts.  This thread is supposed to be interesting and FUN.  Injecting healthcare into this thread is like inviting all your friends to a comedy club so you can tell them you're getting divorced.  

 

Let it go.

 

TSF, in all seriousness the most expensive part of your retirement will be health care.

If you want to just talk buying a hut on the hawaiian shoreline and smoking some blunts....

 

But if you want to know what it costs to say **** it to work, your only real concern is the health care.

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I've always had a dream of getting enough to buy a place on the cheap on the beach overseas somewhere. Wherever the current girlfriend/wife is from (was Brazil, now Ethiopia). I've had **** for pretty much all of my life so I've learned how to be happy with little. I really, really don't/wouldn't need much. House and then essentials. I'd be good. Not sure what the exact figure would be.

Real interesting question. I look forward to seeing everyone's answers so thanks for the thread.

Based on the presumed hotness of your GF/wives I'd have to say you've got more than enough going for you already. Adding money to it would be too much for one person.
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TSF, in all seriousness the most expensive part of your retirement will be health care.

If you want to just talk buying a hut on the hawaiian shoreline and smoking some blunts....

 

But if you want to know what it costs to say **** it to work, your only real concern is the health care.

Include it in your own analysis but let's not turn this into an obamacare thread please.

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Include it in your own analysis but let's not turn this into an obamacare thread please.

 

I won't ;)

 

I will be honest, part of my real world analysis has been sending my wife to work for state government for 5 years to get us on the free wagon.  :wub:

 

The problem I have with the bonds you suggested earlier vs any other investment is I still gotta worry about the company/(s) I buy the bond from going belly up.

I need a guarantee of never losing principal.

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One million with a 4% SWR gives 40k a year. All debts paid off, we can live on that. If you get really bored and want to see People doing the FIRE thing check out mr money mustache or if you want to get real extreme, extreme early retirement.

Our family plan is to be financially independent by 55 at the latest 50 at the earliest, and then make the choice to stop working or to continue. The most important thing is to have the option.

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One million with a 4% SWR gives 40k a year. All debts paid off, we can live on that. If you get really bored and want to see People doing the FIRE thing check out mr money mustache or if you want to get real extreme, extreme early retirement.

Our family plan is to be financially independent by 55 at the latest 50 at the earliest, and then make the choice to stop working or to continue. The most important thing is to have the option.

 

40K a year might be a little light for your target.  You may want to modify that slightly.  You don't like for free in america even if your bills are paid.  So you have to pay your property tax bill on your home.  Which in the MD/DC/VA area can be steep.  You need to pay for auto insurance, homeowners insurance, health insurance,  Assuming in your lifetime you will have to buy a vehicle or 3, plus inflation...40K might be light.  Of course I have no idea what type of home you factor into the equation or if you intend to have electric or running water :)

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We've looked at it and track all of our spending withYNAB. My biggest concern like you is medical but our ace in the hole is my wife is a teacher so we have that in the back pocket.

We really broke down our spending last year, we save 20% of our gross and 20% of our net goes to daycare. I think people overstate how much they need for retirement and never reach the end goal. If you number is 4 million with a SWR of 4% that's 160,000 a year forever (4 % based on the trinity study).

That's three times the national average, and likely unrealistic.

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I wouldn't look as the 1 million vs 4 million and take 160,000 to live forever.  I would look at is 1) I never want to run out 2) I want to take less out than the interest I earn 3) I need a padding for unexpected costs.

 

My escrow payment on my home is $600 a month.  So I would have to sell that.  30 years ago I would have never figured in costs of cell phone or cable bills.  Of course I would like to be able to afford to vacation, buy a car occasionally, maybe eat out.

 

Like I said I have no idea what your property tax bills are, I already assume for me I will have to move :)

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Maybe my 5% is way off... another reason I'm sort of asking/something debated with my bro.

For a while now, investment advisors have been suggesting 4% is a good safe withdrawl amount. 5% is high, even for that. There are also some caveats:

1. That's a number that works for 30 years (based on a number of studies such as the Trinity study, which found that 4% worked over pretty much any 30 year historical time period). If you want to retire early, 30 years probably isn't your target, and people are living longer these days.

2. Many investment advisors are starting to back off that number anyway, and say 3% to be truly safe.

I don't think I'd rely on 5% in any case.

 

 

Eh, if you make a point of saving 10% of everything you make, spread around, you'll be surprised how much you'll wind up with in 30 years.  Being a millionaire isn't out of the realm of possibility.

Especially with inflation. ;)

My personal goal is to retire at 57, when I will be eligible for full pensions, and I'd like to have over $1,000,000 in 2010 money at that time.

Thus far, I'm on track, I think.

So that's my number.

To retire right now, it'd probably be closer to 5 million. Maybe. I haven't actually run the numbers.

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The number will always change. When my dad was young his goal was to have a million for investments, etc.

 

Then when he had his first 1,000,000 in the bank/invested (i.e. not including his assets, he had a million to "play" with) he felt his number should really be 5. When he made 5 he felt his number should be 10. Now that he is over 10 he feels he needs to get to 20 to feel comfortable. When he gets to 20 (and knowing him I'm sure he will- and sooner than expected), I'm sure he'll feel he needs to make it to 40 or something like that.

 

I mean, it is easy to say that money will never change a person, and in my dad's case he's the same old down to earth lovable guy who does the right thing, helps people out, and has a dumb/raunchy sense of humor. The main thing it changes is how you view your own money. A number looks so big when you're chasing it, but when you realize that not only is it attainable, but if you got to point X, then point Y which you thought was impossible is actually a possibility, you start to de-value the great thing you've already accomplished. Suddenly 1 million is chump change when it used to mean a lot, then 5 million is.

 

I suppose some people would become satisfied eventually, but to be honest, I've never met someone who made it to their money mark (usually between 1-5 million for most people I know) and said "hey, you know what? This is enough. I'm going to invest in dividends- making sure to put them on an alternating cycle, pay my bills and leisure expenses with those, and just call it a working life". People talk like that's their dream. Retire at XX low age. When they realize there is more that they can accumulate, suddenly plans change. Besides, in my experience the people who are willing to work their asses off for the purpose of being able to retire comfortably at 50, 55, 60, whatever, are the ones who have such a hardworking nature that if they ever actually did retire and try to enjoy their money they would find it impossible and insufferable.

 

My personal goal is nonexistent. I'm at the stage in my life where my wife and I are working at saving enough so we can afford our own house. After the house the goal will be to pay it down, then the goal will be to send our kids to college, and that will probably bring around what exactly I think I need to retire, or how much is enough. Oddly, I live with the knowledge that by the time I'm ready to retire I'll probably have an enormous sum of money which I inherited from my dad. The caveat of course is that inheritance is given when a family member dies, and I'd like to think of my parents as immortal. Inheriting a large sum of money in my case is going to be eternally depressing.

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