Would you retire or would the thought of having to live off the income scare you into continuing to work? I would guess you could maybe get 3 percent with a moderate portfolio but that is 60,000 a year and assumes no dividend cuts or missed interest payments on bonds. Seems like a scary proposition. The thread in the longe got me thinking about retirement and it seems like a scary and happy event.
Thats not enough for the wife to stop working. Insurance and healthcare costs will only increase as we get older. I could see her retiring completely if we had our dream home bought and paid for and we had about 4 million.
Thanos was the hero
Pretty scary. I was thinking the same thing. I was visiting my dad last week in Naples and he was telling me how many people in his neighborhood were selling because their retirement income dropped. These are people in their mid 70s. I think retirement may be an illusion for a lot of people given what I'm seeing.Originally Posted by boneil
I would instaRetire. Would be easy on 2 million.
Don't now what kind of life style you guys lead but I retired with a whole lot less and am not eating dog food
If I had 2 mill I would never show up at work again.
Lets say you are 55. At 3% on 2 million it is $60,000.00 a year. Take out takes (lets say 20% with dividends and interest) that leaves you $48,000.00 a year. Then take out health insurance (lets say $15,000 a year since you are not in a group plan) and you are down to $33,000.00 a year. No raises, 401 k Matches etc. And that doesn't even take into account real estate taxes, property insurance and the dreaded unknown expenses. At the end of the day you could live but it would be tight assuming you owned your house free and clear. It seems like a lot of money but it could be gone in the blink of an eye. It just seems crazy.
Hi guys. Just found this section of the forum. :)
Me and the wife figured it up one time and it would take $4m to retire comfortably. That would allow us to live within our means and travel, pay for 4 kids occasional hiccups within reason, and cover medical/dental/homeowner expenses. At 2 million I'd just be happier about it being the halfway point.
I don't even like to think about having an annual return on the principal. 4 mil for 50 yrs gives me 80k a year. Of course that number can lower the longer we wait to retire.
Thanos was the hero
Me and the wife could retire on 2M after we are on medicare and both drawing our SS but not before then. When we retire we want to be able to afford to do things and not sit at home staring at the walls.
My wife and I are very fortunate. We are both retired military, she did 20 years and I 30. Our monthly income is quite nice. Our medical/prescriptions are pretty much taken care of via Tricare. I went to work as a civil servant one week after I retired from the military. My wife takes care of our home.
We are very fortunate.
I'm gone!(I'm close to retiring with a lot less
)
2001 ChampioN 206 Yamaha 225
I've heard the 4 million dollar number repeatedly but do not believe it. 1 to 2 million is imho a better number if you are not severely in debt
Rest in Peace Buddy Poche - Bayou Bullet.
I will miss you my dear friend.
Interest alone on another 2-3million USD would pay for travel and children expenses. I don't see your logic in saying less is more, but I might be missing something?
The 4 million number was one we came up with ourselves. We sat down and put "pencil to paper". I haven't heard it anywhere else. We have zero debt aside from the house. At 1 - 2 million with only 4% inflation (conservative) we'd have to stay home and tell the kids sorry, we can't afford a hotel right now. Maybe next year if things go well. Oh, and any inheritance you were thinking about? We're probably going to eat that up too.
$2 Million (invested in balanced portfolio) lets you withdraw $80,000 before taxes every single year and probably STILL end up with more than you started with after 10-20 years. And that's considering inflation.
No one can tell you what you can and can't retire on. It depends on your personal spending rate.
The money goes fast at 12k/month in a nursing home
Good calculator here: https://www3.troweprice.com/ric/ricweb/public/ric.do
Not yes....HELL YES!! I'm rolling up to 66 in a few months. I'll start drawing SS and continue working as long as I stay sane. With what my wife and I have in various 401k's and her state retirement, 2 large would put us on easy street. Plus I'm already in an annuity that guarantees 5%. Show me the money!!
I remember having this same conversation about 30 years ago about retiring with a million dollars. As much as that sounded at the time when we all really thought about how long that mil would have to last, we all agreed that it wouldn't be enough. Would be now though.
Don't worry Ma'am....
I'm only here for the Bass.
If only my dad knew just how great his roughly 10k a month pension check is
Retired with less than half of that at 52, 10 years ago. Key is not owing anyone. If you own everything you have you can live on very little. Key is too live well die poor.
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