DawgTalkers.net Forums DawgTalk Everything Else... How much money is enough?

How much money would it take for you to feel comfortable retiring?
Since age between posters is a huge variable, for argument sake, let's say your age is 55
Old enough to be reasonable but still young enough to do stuff and travel
(all values are post tax)

If you were living paycheck to paycheck and a long lost uncle dies and leaves you $100k
Would you retire?
I am guessing most wouldn't

What about $500k?
$1million?
$2 million?
$5 million
Higher?

The amount one would consider "enough to retire" has huge variables.

What does it take to make you happy? How much traveling and material items do you feel you need to be happy and content moving forward? Do you feel you need to a new 80k vehicle every four years? Do you need to have a million dollar home and maintain it to be happy or would downsizing and living in a more modest home work for you? Do you need to buy the highest fashion clothing and update your wardrobe frequently? A lot of the time it's looking at how people define want verses need. It also depends on your age. If this question is being asked to a 40 year old, verses a 50 year old or a 50 year old verses a 65 pr 70 year old that would create a huge variable on the amount you might feel you need to retire.

A lot of people can still manage to accumulate wealth after retirement depending on how much they had saved and/or the lifestyle they choose to lead.

First, if some long lost uncle leaves you $100,000 and you think you can retire, forget about it. You are way behind the 8 ball.

No matter what you make when you retire, my rule was I needed an income of 140% of that income without having to ever take more than the minimum distribution out of an IRA account. I went 40% over to account for inflation over he first decade or so.

So, where does income come from:

Social Security

IRA

Other investment accounts.

To me the key is the other account. If you are counting on social security and your minimum distribution at age 70 to meet your total needs, you are going to be pretty tight without having to make some lifestyle cuts.

I have a good idea of what would be comfortable for me.

Interested in what each of you think would be comfortable for you

It depends on where you live, and what you want to do.

I live in Youngstown. Cost of living is pretty low here. Add in the fact that I am single, and have no desire whatsoever for a huge house, new cars every year, or taking extravagent vacations, and I am perfectly comfortable on a lower money stream than others might be. My house and vehicles are paid off. I don't have any super expensive hobbies. I have some savings and investments, but far short of even a quarter million.

I know people who have a lot, but it's never enough. Personally, I have plenty. I guess that is something I learned from my Mom when growing up. We never had as much as many people did, but we somehow always managed. If someone wants to know how much they "need", they need to figure out what they need to live .... and what are the extras they want when they retire.

Between my wife and my social security and our pensions, we won't have to withdraw much from my 403b. Definitely less than the interest it should be accruing. My biggest concern is what healthcare is going to cost us. I'm almost 66 and plan on retiring at 67. I can work per diem for walkin' around frivolous spending money. I really like my job and the people I work with and work for. They're trying to bribe me into staying, and I'm not sure I want to give it up entirely. Also, the interactions and negotiations with intelligent professionals keeps me sharp. I also have been doing some woodworking and selling it. I really enjoy that and don't plan on stopping. I've been working since delivering papers at 10yo. I can't imagine not working. I'll still have plenty of time for photography, camping and kayak fishing.....and spending time with the grandkids. Going to have my second at the end of this month.

If you like what you do and aren't burnt out, I suggest you stick with the job until you are 70. See if the amount of SS maxed out is worth the delay, especially if your current salary will bump the highest average pay calculation.

That is a little like asking a man how large are his wife's breasts...lol

Let's just say no money stress on this end. I have what I want and if I want something else, I go buy it.

Wait let me check.


Well if $13.69 is enough I'm all set.

I retired 7 1/2 months ago. I’m 52, wife is still working for another 15 years, she is 48. I retired from the State of Ohio with 34 years and 4 months, so I get an OPERS retirement. After everything comes out I bring home $5,000/month.

We have a condo with little left to pay off. In 6 months no car payments, no credit card debt, daughter graduates from OSU today, no college to pay anymore.

I will be maxing out a Roth IRA for the next 15 years. Wife is maxing out her 401k at work. We should be okay.

Been looking for a part time job, 15-20 hours a week, haven’t found anything I want to do yet, kinda restricted a little, since it seems like everyone drug tests to the full extent of the law.

I think at 55 years of age, I would feel comfortable retiring if I had $11 million
$10 million plus a stock market buffer
As I am still working, I obviously haven't achieved that.

At 65? To feel comfortable?
Maybe $5 million

At 67?
I don't know
Perhaps $2 million

At 70, I am retiring whether I am comfortable or not
But I think I would probably feel comfortable at $1 million

These are all very subjective and based on my feelings.
Do these goals seem reasonable? Unreasonable? Why?

Those numbers don't seem unrealistic. I guess it depends on what kind of draw down you expect to make on a yearly basis. An unknown factor is this trend to "tax the rich". Who knows how little one can have down the road to be considered rich? Once it starts it can be a slippery slope to the bottom.

Having a $million is a great feeling until you have it and realize it isn't what you thought it meant.

A million, in a decent investment account, even at only 5, 6, or 7% annual return,(not at all unreasonable) can bring in $50,000, $60,000, or $70,000 annually. That is without touching principle. If you have Social Security, or an additional mandatory draw IRA type retirement account, that could add another $4000 - $5000 monthly. (max benefit on SS, taken at 67 - 70). That could double a person's investment account, bringing in over $100k while not touching your base investment.

Maybe it's because I live in an area with lower COL, but I am curious as to what people do with more money than that per year in retirement. Typically people with higher incomes have their homes paid off by retirement age. The average income for a person living in the US is around $65,000. You could draw far more than that without a great deal of pain, esspecially if you live in a state without state income tax and/or property tax. Assuming people fund investments with post tax dollars, the draw would only be partially taxable.

Average income in the US is around $65,000 and median savings at retirement is around $200k. I have a friend who drove himself to stupid levels to save as much as he possibly could, and now has a couple million in investments. We were talking the other day and he said "Man, what the heck will I do with all of this?"He's had some health problems, and while I didn't say it, the most likely answer is that his only son will eventually wind up with most of it.

I don't disagree, at least on paper. The problem is real life numbers don't always equal the paper numbers. IRA withdrawals, at least mine, are taxed at income rates. Brokerage accounts get hit at capital gains rates...which thankfully are lower. Interest is taxed.

I am not saying you aren't better off than many, but it's not like you are living in the lap of luxury.

Another factor is you are trying to hedge against end of life expenses. Everybody doesn't go "here one day, gone the next". Its often a process that takes months to years. That alone can wipe out a family.

Yes, about two thirds of all bankruptcies are due to medical debt. You work your azz off your whole life, then get seriously ill and POOF! it's all gone.