$250,000

[TampaJim]

If they are retiring at 57 with no income or pension until 60 there going to burn through a lot of that cash unless the market improves. It’s possible but so many variables it won’t be relaxing every day but hopefully most days.

$4,000 per month was the stated burn rate. Do the math, it's actually WAY below norms.
I've calculated for a wash between inflation and investment growth. A flat spend basically.

My wife passed away several years ago, she was waiting, without due cause at all.
We had the cash, we had no debt, we both had pensions and SS, plus our investments.
While I'd never suggest being wreckless, there are always risks ... death being one.

Managed to get lucky, or she was really bad, and found a new partner a few years ago.
We're both comfortable. We retired her 1.25 years ago, once the lockdowns subsidied.
If we want/need to work again, we're both extremely employable, solid qualifications.

Again, living life is the answer. Work is a means, nothing more, that's why they pay you.

[NitroZ7]

Remember, SS is indexed, property will appreciate, etc. Worst case scenario, a frosty mountain.
Once you nod off, it's over. The slave pit isn't suitable for my type. I'm an escapee, catch me.

For what it's worth, indexed spending, inflation & ROI breaking even ... estate at 95, $4.28M.
Plus the value of the condo added to the estate. Live longer SS doesn't stop, it's still there.

I have seen those calculations and projections before and they are just that..projections. I had a financial advisor run a Monte Carlo scenario on a best case and worst case scenario and one projection says 27 million and another says I run out of money in my 80's. I'm going to plan on a worst case scenario..we don't know where any of this is going. if the market is dead money for a decade then alot of people are going to get hurt..and that is pretty much my base case for retirement planning. I always give a high income requirement and worst case scenario because I want 100% chance of success because at some point there is no going back.

[TampaJim]

I have seen those calculations and projections before and they are just that..projections. I had a financial advisor run a Monte Carlo scenario on a best case and worst case scenario and one projection says 27 million and another says I run out of money in my 80's. I'm going to plan on a worst case scenario..we don't know where any of this is going. if the market is dead money for a decade then alot of people are going to get hurt..and that is pretty much my base case for retirement planning. I always give a high income requirement and worst case scenario because I want 100% chance of success because at some point there is no going back.

He didn't run the worst case scenario. I'm positive, I've experienced it.
No one should feel sorry for me, we made our own decisions for sure.
However, there's a very fine line between danger and safety. Study it.

[NitroZ7]

He didn't run the worst case scenario. I'm positive, I've experienced it.
No one should feel sorry for me, we made our own decisions for sure.
However, there's a very fine line between danger and safety. Study it.

Depends on what you are planning for. From the moment of conception we are all terminally ill. We are merely links in a chain and our happiness is subordinate to our duty to the next generation. I'm not worried about my life and my happiness I am worried about the next generation. This is my view of life and retirement. I'm not saying that this is correct as it is a personal decision but that is how I plan. This is why the numbers only make sense in terms of what you want to accomplish.

[Bassin08]

Let's say someone is 57, $200k in cash, $200k in stocks/bonds, $500k in 401k.
Comfortable 2/2 home, two year old RAV4 hybrid, no debt on the house or vehicle.
Pension starting at 60, $30,000/year, indexed for inflation. Retirement healthcare.
They spend $4,000/month on expenses and an "allowance" for disposable funds.
Furthermore, they earned enough during their career to achieve the max with SS.
Can they retire comfortably, safely and without concerns? They want to play golf.
The condo on the course is terribly tempting, day by day. It's their life's desire.

Are we talking custom fit Pings, or a used set of Dunlap’s? Chiropractor and PT will be a unplanned expense too. You’ll be fine with those numbers if you stay away from the Country Club crowd.

[TampaJim]

Are we talking custom fit Pings, or a used set of Dunlap’s? Chiropractor and PT will be a unplanned expense too. You’ll be fine with those numbers if you stay away from the Country Club crowd.

They were Callaway blades, sold years ago. My back ripped apart.
However, it was a metaphor. Retirement can be anything fun.

[Bassin08]

They were Callaway blades, sold years ago. My back ripped apart.
However, it was a metaphor. Retirement can be anything fun.

Very true and golf can make it painful.

[fishon396]

My wife is 57 just retired last year no income for a while I have social security and a couple small pensions not nearly enough. Had a few Monte Carlo done and things long good on paper. Things we have found out so far budget was off by a thousand dollars a month, healthcare really is high, spent lots of money on gas and food. In the beginning my wife was saying free and easy almost every other day I think that was her newly retired saying. Well 7 months later she is working a contract job part time to pick up some income. Cash on the side is a must and the ability to work if needed is a help and flipping the switch for saving to withdrawals of money is a challenge.

[Bassin273Stratos]

If they are retiring at 57 with no income or pension until 60 there going to burn through a lot of that cash unless the market improves. It’s possible but so many variables it won’t be relaxing every day but hopefully most days.

This is our life. Pulled the work plug last February at 57 1/2 wife was 53. No pension, no healthcare. We relocated and downsized to a smaller house in Florida. Took out a small mortgage ($475 month 2.5% interest) on the new home as we hadn’t sold our VA house. No rush to lay it off with such low interest. We have purchased healthcare through the market place and controlling income for the healthcare subsidy. The plan is to live off the cash we have from the sale of our house for the next 3 1/2 years. Monthly budget is $5500 In the mean time we will convert 401k /trad Ira to ROTH up to income limits / tax thresholds to maximize the healthcare subsidy. Still determining when to take SS. If the market doesn’t recover we could go always back to work.

[fishon396]

We also think the Roth is a good idea gives you a few more options down the road we are also trying to out my wife’s SS early or late. Early thinking was late but starting to think early now if this makes any sense. With both SS checks we would only be out of pocket maybe 20 grand instead of 45. My thinking is that’s 25 thousand we will not have to take out of 401k money which should double 3-4 times in the market over 30-40 years. Right now I would say we’re dog paddling AKA keeping our heads above water for 2-3 years of retirement

[sdbrison]

.... healthcare really is high, ....

^^^This. Without a pension or government retirement to fall back on for health care it's tough to figure what $ is enough.

[TampaJim]

^^^This. Without a pension or government retirement to fall back on for health care it's tough to figure what $ is enough.

Hate to say it ... there's not a number. We spent roughly (CPA values) $652k on my deceased wife's care over 10 years.
And that's with insurance. For awhile, it was paying for a capped out policy to "enjoy" processing and negotiated rates.
Go read the implants thread, $30-50k per mouth. And that's just to get the ponies out the gate and running. It's crazy!!

IMO, if you see possibilities, you see it working. If you see impossibilities, you see it not working. It's just that simple.
Obviously, most people need to save up, eliminate debt, have passive income other than SS, keep a budget and more.
Of course, there are the deep pocketed folks with $300M and a set of royalties from Rock and Roll fame. Sure isn't me.