Retirement Targets

[CYdTracked]

We retired a few years ago when I had saved less than a half million. I was 63. Since then we have traveled to Italy and some of the states. The lake where we live has almost too much activity. Still expect to run out of time before we run out of money. Have more money saved now than when I gave up the paycheck. Really don't see the wisdom of being the richest person in the cemetery. Advise most of you to take retirement just as soon as you can pencil it. Time is what is limited.

My dad is probably one of the cheapest people I know even at 74 years old. He joked with me the other month when they had to have some foundation repair work done to their home "just spent some of your inheritance." He's the type of guy that will push a tank of gas down to the last drop just to save 5 or 10 cents a gallon at the next gas station just to save what amounts to a dollar or 2 of savings at the pump where the risk of running out of gas to me is not worth saving a buck or 2. Personally I don't care if my parents left me with a penny when they pass as after all they have done for me up to this point with helping pay for part of college and other things they helped me out with growing up that set me up to graduate college debt free and life lessons I learned from them I hope they get to enjoy their retirement after he worked until he was 70. Even in the past year with the markets my dad still tries to find opportunities to shift his investments around with the mindset if he buys in low he will make some money when the market rebounds.

It's a generational gap as I view things differently than he does. I value my time and am willing to pay for things that inconvenience me because I think I still net a gain while my dad will use time to find ways to save every penny he can. Only time will tell who had the right philosophy.

 

[TheHelgo]

Not trying to be boastful at all but my goal is to retire at 55 with around $20mil saved up. I've been investing since I was a teenager and have made some great investments as well as stupid ones along the way but overall I've done pretty well. Buying Apple in 2002 with a 10k inheritance from my grandpa was my best investment to date. I'm currently 35 and have mid seven figures saved up and invest around 100k per year depending on how my business performs. If I can average at least a 7% return per year, I should be able to hit my goal at 55. By the time I die, hopefully it will be a lot more and my kids and future generations will bet set for a long time.

I've never really carried any debt but this summer I took out a 375k mortgage on my house at 3% to invest in the stock market, which is an ill advised move by many people. Still have a big pile of it waiting for another drop if it ever happens. We will see how that plays out, but I feel confident I can make a better return in the long run. Wish I did it many years ago.

jamie pollard would like to speak with you about a donation....

 

[mark46]

I “mostly” retired 3 months ago, at age 60.
I still work a few hours /week in the same industry that I worked in for the last 36 years.
I will earn roughly $20k/ year doing this for the next 3-4 years to help pay for Healthcare until age 65
My wife is 59 & loves her job & She will have IPERS when she retires.
We have zero debt and $2.6 million in various investments.
My “Plan” is to delay taking SS until age 67.
I’m drawing on one IRA acct. over the next 7 years until I take SS.
My tax advisor recommended this strategy.
We received approx. $800k inheritance last year, We let just shy of $200k pass thru to our 2 kids ages 30 & 32.
My Dad shared with me, a few years ago that he was concerned whether any of his Grandkids would ever see any of his money. (He has 10 grandkids). I promised him that 2 of his Grandkids WOULD see some of his money.
When my wife and I shared the news with our kids and that this was from their Grandfather thru us.
They were shocked, & happy, and tears were shed.
I am so thankful that we were in a position to do this.
Also, I’m loving retirement!

 

[DurangoCy]

You are far ahead of most. Average 50 year old has like $90k in their 401k with Fidelity..

I never understood how people can be investing but come age 45-50 or 55 not have enough in it? One word: DIVORCE...

my neighbor was only worker in his home..he’s. 55 and just got divorced..wife stayed home with kids. He had 600k...He now has 300k.

I know a person who bragged about how they had enough to retire for 5 straight years, then started screwing around their spouse in their late 50s. ...The spouse was a deadbeat, but was still a crappy deal, as the cheater wasn't even a little bit discreet about it. The deadbeat spouse divorces them and took way more than 1/2 of everything, which was crazy since they didn't have a job for the 15 years I knew them.

The whoa is mean train has been full steam since that went down, which has been rough to be around.

 

[DurangoCy]

My BIL started investing in Apple from the beginning and that stock alone has paid for two kids college and two weddings and still plenty for retirement. If you're lucky and invest in the right company anything is possible.

Apple paid off my college loans in 2010, unfortunately that would now be my house.

My income has doubled over the last 3 years and I haven't increased my cost of living. I probably need 5-10 more years and the hay is not in the barn yet, but hopefully I'll be able to keep everything on the rails for a bit longer. At this time next year, I'm hoping to start buying rental properties to supplement my income.

 

[ISUConE]

Apple paid off my college loans in 2010, unfortunately that would now be my house.

My income has doubled over the last 3 years and I haven't increased my cost of living. I probably need 5-10 more years and the hay is not in the barn yet, but hopefully I'll be able to keep everything on the rails for a bit longer. At this time next year, I'm hoping to start buying rental properties to supplement my income.

I bought a 70 acre farm with my Apple gains in 2012. Unfortunately, I could buy 4 more farms right now if I wouldn’t have sold.

 

[DurangoCy]

I bought a 70 acre farm with my Apple gains in 2012. Unfortunately, I could buy 4 more farms right now if I wouldn’t have sold.

That's awesome. I know we can't look at it that way, but dang.

 

[cygrads]

I think saving for retirement and creating a large nest egg has been pretty well covered in this thread. The other side of this is expenses/spending. Some have covered this in this thread but I thought I'd add a little to it. My wife and I haven't made a ton of money in our lives but we have always lived well within our means. We could have a much nicer home and we have always bought used cars but we have taken a decent vacation every year and a couple other long weekend getaways. We retired a year ago at 60 & 55 mostly because my wife's employer's retiree healthcare was very reasonable (which allowed us to retire a few years early). Everything is paid off and we are maintaining our standard of living which is comfortable. If you don't make a lot of money don't think you have to have a huge pile of cash to retire - live within your means and pay everything off and save/invest and you're well on your way.

 

[yowza]

We retired a few years ago when I had saved less than a half million. I was 63. Since then we have traveled to Italy and some of the states. The lake where we live has almost too much activity. Still expect to run out of time before we run out of money. Have more money saved now than when I gave up the paycheck. Really don't see the wisdom of being the richest person in the cemetery. Advise most of you to take retirement just as soon as you can pencil it. Time is what is limited.

That's the truth, we are all gonna die. Some people are hoarders and too conservative with their funds for sure, but someone or something benefits from it in the end I guess if not them.

 

[yowza]

I bought a 70 acre farm with my Apple gains in 2012. Unfortunately, I could buy 4 more farms right now if I wouldn’t have sold.

I wouldn't linger on the what-ifs. You did great on that one.

 

[madguy30]

I “mostly” retired 3 months ago, at age 60.
I still work a few hours /week in the same industry that I worked in for the last 36 years

This is kind of what I'd like to do in a perfect scenario. Retire but still stay busy enough and keep the mind and body working.

 

[clonedude]

Every single person I’ve met that is late in their life have regretted that they didn’t do more when they were younger and more able to do so.

No sense in waiting to retire until you’re too old to do anything IMO.

If I can’t swing a golf club when I retire, I might as well just keep on working as far as I’m concerned.

 

[yowza]

I had to work on my wife over several years to make it tangible for her. It wasn't until SHE had some job strife that she understood what my plan was and that gaining financial independence was uber important.. She leaves all the details to me but we discuss often our plan assumptions and what our future looks like on paper.

I always get the "well how do so and so do it, they have x, y & z, they must make a ton of money". I say maybe they do, maybe they don't. I know the national stats on debt the average person carries, so maybe they are not one of those who borrow or have little savings, but the stats would say they likely are.

 

[DeereClone]

The way the world is right now, I'll bet some people are glad that their SS isn't dependent on the stock market.

Over the long haul I would gladly keep the 15% in my pocket for investing and insurance vs the poor returns of SS.

15% of an average income of $60,000 over a career would be $750/mo. $750/mo invested at 8% over 40 years would be $2,618,255 at retirement. $2,618,255/40 years of retirement = $65,000 per year...that's assuming a 40 year retirement and no additional returns on the $2.6M from your retirement date to your death date. I think there is some room to buy insurance and other SS benefits out of that.

 

[Stormin]

Over the long haul I would gladly keep the 15% in my pocket for investing and insurance vs the poor returns of SS.

15% of an average income of $60,000 over a career would be $750/mo. $750/mo invested at 8% over 40 years would be $2,618,255 at retirement. $2,618,255/40 years of retirement = $65,000 per year...that's assuming a 40 year retirement and no additional returns on the $2.6M from your retirement date to your death date. I think there is some room to buy insurance and other SS benefits out of that.

SS tax is not 15%.

 

[DeereClone]

SS tax is not 15%.

I was including the medicare portion as well.

 

[qwerty]

Expanding on the which age to take SS debate. With inflation at 3% and only a 4% return on investments the 62 vs 67 breakeven is age 90. With a more realistic 2.8% inflation and 6% return the breakeven age is over 100. These factor in the cost of using your money instead of SS money and the opportunity cost of spending down that money. It also assumes you quit earning when you retire and rely solely on SS and retirement funds. My actual plan is semi-retire at 62, earn up to max allowed by SS without penalty in part time work and minimize my investment draw down. I doubt if I make it to my 90s, let alone 100+ to justify the delay in SS.

 

[SEIOWA CLONE]

People need to stop looking at SS as an investment tool, and remember its stated purpose, which was old age insurance. When I hear people talking about how much better off they would be if they could access that money and invest it, they are forgetting that SS also goes to children that have lost a parent, to those that are disabled, and other causes. Sometimes its not always about YOU.

Reading through these pages, people forget that the people posting on here, are NOT a snapshot of the average American. Most here are college educated, with higher earning potential and take-home pay much greater than the average person.

Young people today do a much better job of investing for retirement than those 60 and over it. Some of those people retired on pensions, therefore did not have to worry about retirement savings, others believed it when the govenment told them they would be taken care of in old age, and many are still working to get by.

 

[Stormin]

I was including the medicare portion as well.

Why would you include Medicare Tax?

 

[yowza]

People need to stop looking at SS as an investment tool, and remember its stated purpose, which was old age insurance. When I hear people talking about how much better off they would be if they could access that money and invest it, they are forgetting that SS also goes to children that have lost a parent, to those that are disabled, and other causes. Sometimes its not always about YOU.

Reading through these pages, people forget that the people posting on here, are NOT a snapshot of the average American. Most here are college educated, with higher earning potential and take-home pay much greater than the average person.

Young people today do a much better job of investing for retirement than those 60 and over it. Some of those people retired on pensions, therefore did not have to worry about retirement savings, others believed it when the govenment told them they would be taken care of in old age, and many are still working to get by.

Dang, we are bad people for even thinking it.