twa Posted February 1, 2014 Share Posted February 1, 2014 kinda off topic, but how many of ya are worth more dead than alive? (thinking of bumping the old ladys life ins ) Link to comment Share on other sites More sharing options...
Special K Posted February 1, 2014 Share Posted February 1, 2014 To retire at 32 and live the lifestyle I want, at least 20 mil Link to comment Share on other sites More sharing options...
twa Posted February 1, 2014 Share Posted February 1, 2014 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. That is something I wonder about, but I hope travel and such will help. probably will just scale back and take trips to test the waters Link to comment Share on other sites More sharing options...
balki1867 Posted February 1, 2014 Share Posted February 1, 2014 I'll say, $5m with a caveat. Assume I had that in the bank and collected 2% interest on it, but there was a 3% standard-of-living increase every year. On top of that, I'm pulling out $125,000 in 2014 dollars every year to fund my life (so it's $128,750 in 2015, etc). I'm slowly draining the bank account to the degree that I'll be broke in the beginning of 2048, months after by 67th birthday. At the same time: a) I don't need $125,000 a year. I used that number because at some point I'll have bigger expenses like putting my kids through college. But even now, paying pretty large student loan payments, I live of way less than that. My goal would never be to give up working completely, I just can do it on my terms. I can look to independently consult and take off Jun-Jul-Aug every summer and then one month in the winter, and basically work 8 months a year. I don't think the point of financial independence is to give up work completely, but to make it so you're not so dependent on your career. Link to comment Share on other sites More sharing options...
chipwhich Posted February 1, 2014 Share Posted February 1, 2014 I don't think the point of financial independence is to give up work completely, but to make it so you're not so dependent on your career. Ultimately I think the main thing would be to not to quit working, but to work only at things you love to do Link to comment Share on other sites More sharing options...
DaGoonie55 Posted February 1, 2014 Share Posted February 1, 2014 7 million. I'm 34, 3 kids (one w/ momma in WV), and a wifey. I'd pay off all bills (psst Lord Almighty, send some powerball love my way) and move back to the hills of WV. Setup the kids for college / post grad starter fund. Go back to school and get my mechanical and electrical engineering degree and mad scientist it up in the garage. Live off the interest. (Video games aren't the most expensive hobby and my gym will be a one time purchase with minor upkeep) But I'd settle for 100,000...that would change my life forever. Just sayin Link to comment Share on other sites More sharing options...
Bliz Posted February 1, 2014 Share Posted February 1, 2014 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. And what will it be after 40 years of inflation? Do you want to leave anything to your kids, or bounce your first check on the day you die? If you make more than the national average now, would you significantly lower your standard of living in order to stop working? What's te point of being retired if you don't have enough money to travel, eat out, an pursue the hobbies you want to? Link to comment Share on other sites More sharing options...
Skinsfan1311 Posted February 1, 2014 Share Posted February 1, 2014 1 million. 5 million. Those are pretty big numbers. Just out of curiosity, how many of you posting those kinds of numbers, think that you'll achieve them? Link to comment Share on other sites More sharing options...
GoCommiesGo Posted February 1, 2014 Share Posted February 1, 2014 And what will it be after 40 years of inflation?I base almost all of our numbers on using the fire calc. Average market return of 6% with a 4% withdrawal still gives portfolio growth.Do you want to leave anything to your kids, or bounce your first check on the day you die?I think this is a two part question. 1) likely based on my projections we will leave a substantial sum of money for our daughter as well as pay for her college. 2) I sincerely hope she is not depending on an inheritance to not bounce a check. If that's the case we did a bad job as parents preparing her for the future,. If you make more than the national average now, would you significantly lower your standard of living in order to stop working? What's te point of being retired if you don't have enough money to travel, eat out, an pursue the hobbies you want to? My big thing is I think people severely overestimate how much money they really need. We make slightly over six figures and our two biggest expenses are mortgage and day care. That alone combine for over 32% of our gross income and over 45% of our net. When those costs are gone the goal is to not replace them with new costs but increase are savings and reduce expenditures. We will still be able to travel for extended periods and enjoy our life. We will make consumption sacrifices, i.e. I may not get my AMG but I'm willing to let that go if I can cut my working career by 5-7 years. The biggest thing for us was understanding the cost of our lifestyle inflation and the effect that has on our long term goals. I understand our idea may not be the same as other people but I'm comfortable with our plan. Link to comment Share on other sites More sharing options...
Bubble Screen Posted February 1, 2014 Share Posted February 1, 2014 To retire at 32 and live the lifestyle I want, at least 20 mil And Kosher Ham wonders why you're single. Heh. Link to comment Share on other sites More sharing options...
zoony Posted February 1, 2014 Share Posted February 1, 2014 1 million. 5 million. Those are pretty big numbers. Just out of curiosity, how many of you posting those kinds of numbers, think that you'll achieve them? I'm very confident I will get to $3 million even with the most conservative of inputs. But that is at age 65. There is a decent chance I can have much more by then too. That's not counting my pension and my wife's state retirement or social security The $5 million would be for me to quit working now Link to comment Share on other sites More sharing options...
PokerPacker Posted February 1, 2014 Share Posted February 1, 2014 1 million. 5 million. Those are pretty big numbers. Just out of curiosity, how many of you posting those kinds of numbers, think that you'll achieve them? I'd certainly like to hit mine, but it's much too soon to place any projections on the kind of money I'll be able to squirrel away. Link to comment Share on other sites More sharing options...
Zguy28 Posted February 1, 2014 Share Posted February 1, 2014 Don't forget to account for the redistribution of a portion of your wealth as well. May want to tack some extra on. Link to comment Share on other sites More sharing options...
twa Posted February 1, 2014 Share Posted February 1, 2014 Just out of curiosity, how many of you posting those kinds of numbers, think that you'll achieve them? one is in reach if I could quit giving it away, more than that will depend on others or focusing on it. I don't like myself much when I'm focused. Link to comment Share on other sites More sharing options...
Zguy28 Posted February 1, 2014 Share Posted February 1, 2014 I'm very confident I will get to $3 million even with the most conservative of inputs. But that is at age 65. There is a decent chance I can have much more by then too. That's not counting my pension and my wife's state retirement or social security The $5 million would be for me to quit working now I tell the young kids (early 20's) at my work, start putting away at least $1000 a year now in savings or retirement account. The difference in compound interest compared to starting in your 30's or 40's is tremendous. Link to comment Share on other sites More sharing options...
Darth Tater Posted February 1, 2014 Share Posted February 1, 2014 About 10 Million in liquid assets. Link to comment Share on other sites More sharing options...
Forehead Posted February 1, 2014 Share Posted February 1, 2014 As far as how much I expect to have when I retire, who knows. I put away 10% per year, and I have a basic Excel sheet setup that calculates approximately how much money I'll have at various average rates of interest (6% - 12%) over the rest of my expected working career, which I project to end about 27-28 years from now. I update the chart if I get promotions, etc. to calculate what the new 10% contribution looks like. If the market averages a 6% return from now till about 2040, I'd have about 1.4 million (today's dollars). If it averages 12% (the highest I've calculated) it would be about 5 million. No idea what that equates to after 27 years of inflation, my chart isn't that intricate. I change cells to green as I hit targets, and I keep a bold line to show how many years I've worked. My goal is to stay ahead of the 12% line the whole way down, which is probably impossible since the market won't always return something like the 25% is managed this year, but it's nice to dream. *Edit, that was supposed to be a reply to Skinsfan1311, but I can't get the quote feature to work properly. Link to comment Share on other sites More sharing options...
zoony Posted February 1, 2014 Share Posted February 1, 2014 I tell the young kids (early 20's) at my work, start putting away at least $1000 a year now in savings or retirement account. The difference in compound interest compared to starting in your 30's or 40's is tremendous. Exactly. I started when I was 23 wish I had started earlier Link to comment Share on other sites More sharing options...
Darth Tater Posted February 1, 2014 Share Posted February 1, 2014 * editing because I misunderstood the question. It still depends on your way of living. You could be really frugal and make $1 million last if you invest right. Get rid of your smartphone, only cook at home, get rid of cable, stop doing expensive activities, and you can live off that no problem. The answer to your question for me would be $1.5 million if I don't have to work. Buy a nice house somewhere not in a major city for like $350,000 and invest wisely. Live properly without being tempted by lavish things. Would never have to work again. I consider living frugally and making sure I invest right working. If I am truly no longer working, I should only have to check my investment portfolio every quarter of less. I have enough liquid assets that I don't worry about investing right but only investing in a good enough manner. Never really need to worry that the guys I hire to manage my portfolio are skimming or not competent. Can hire someone to do my yard work and house work. Never have to chose not to do something because I don't have the money to do it. Link to comment Share on other sites More sharing options...
Corcaigh Posted February 1, 2014 Share Posted February 1, 2014 I dunno when I want to give up work. I may have enough money, or close to it. But power, you never get tired of that. Link to comment Share on other sites More sharing options...
zoony Posted February 1, 2014 Share Posted February 1, 2014 I dunno when I want to give up work. I may have enough money, or close to it. But power, you never get tired of that. I wouldn't know what that's like. Even when I had 100 employees I felt like they were a cast iron yoke. Nowadays I answer directly to customers and have no power whatsoever Link to comment Share on other sites More sharing options...
No_Pressure Posted February 1, 2014 Share Posted February 1, 2014 That is something I wonder about, but I hope travel and such will help. probably will just scale back and take trips to test the waters Yeah, my grandfather retired at 53 since he was at the right time in the early-mid 1970s where the government was trying to get some employees right at a certain line bought out so they could replace them with new people with fewer benefits and a crappier pension. He could never get used to not working, and his hard working personality came through in a bunch of odd ways such as how he kept up his yard, daily rounds at a number of stores bartering for lower prices on things he didn't even have much intention of buying...he worked hard on his investments and died a multi-millionaire, but he hated retired life as much as he hated working life. When I was in college, I worked at a local grocery store. There was a guy who ran the helping hands service (parcel pickup...guys in the parking lot) but he only worked 3 months on, 3 months off. Half the time he was on the east coast with his wife's family, the other half he was on the west coast where he grew up. Turns out after I got to know him better, he had been a major executive with Sam Adams when they were still coming up in the beer world, and had retired around 60 with millions of dollars. He couldn't handle not having something to occupy his time, so he got a job pushing around shopping carts because he loved people and having that daily interaction. I think I'd probably run into the same problem. I'll be the 90 year old guy working at some store for minimum wage just so I have something to do. Link to comment Share on other sites More sharing options...
Special K Posted February 2, 2014 Share Posted February 2, 2014 And Kosher Ham wonders why you're single. Heh. Cute. In reality, I have no clue. I haven't thought about when I'd ever stop working and there are still way too many variables in my life (eg potential future spouse debt, paying for future children, etc.) to determine how much I'd need to cover everything. I figured 20 mil would cover all that and many worst case scenarios all compounded together...but hey, maybe I overshot my estimate Link to comment Share on other sites More sharing options...
twa Posted February 2, 2014 Share Posted February 2, 2014 I think I'd probably run into the same problem. I'll be the 90 year old guy working at some store for minimum wage just so I have something to do. I'm thinking playing at inventing might be fun to occupy me if I get bored,not much of a people person. and a excuse to get away Link to comment Share on other sites More sharing options...
Skinsfan1311 Posted February 2, 2014 Share Posted February 2, 2014 Exactly. I started when I was 23 wish I had started earlier Same here...I started when I was 22. It's heartening to read some of these posts and seeing that younger people have the sense to know that they need to start saving early. Link to comment Share on other sites More sharing options...
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