<p>I’m with you there oldfort. I took a step-back job and I do worry that it might return to bite me in the next 10 years. I’m willing to work a part-time job after I “retire” because I like to keep busy but that will need to balance what the tax implications might be. I’m under 10 years to retirement…I’m hoping our kids are financially secure in that time so we can shed some of our property tax burden and help increase their assets by turning something over to them so some of “my” plan depends on the kids and that is alittle un-nerving also as I don’t know if they will be as financially viable in their early thirties as my husband and I were. Fingers crossed.</p>
<p>I don’t know if I ever feel like I would have enough to comfortably retire. We almost sold out business last year and it really got me nervous on relying on calculations and stepping out of the work force. The kids college is saved already - youngest starts in fall but we can just use our savings and 529’s. We then put that money towards paying off the house which is 18 months from being paid off. We’ve been saving in a 401k, but once the house is paid off we will put more funds towards savings. </p>
<p>Hubby thinks I’m too conservative but I calculate things not including social security - in case there is ever means testing and we don’t get it, and I don’t want to count on being able to sell our business being it’s in the healthcare field. It’s nerve wracking enough wondering if we’ll survive all the changes let alone contemplating being able to sell. If there is a bright side it has a fire in our belly to assume we’ve got to get it together, pay off the house and get the kids college set so we could survive on a much smaller income.</p>
<p>I’d like to look in LTC insurance.</p>
<p>I am also living in a fairly expensive place. I have no intention of moving out of it when I retire. I love my new apartment. But if I have to, sell of the place would be plenty for me.</p>
<p>We also have no intention of selling our home even though property taxes are hideous. We never went crazy with the “I need 5,000+ square feet mcMansion frenzy” that seemed to strike some of our friends when their kids hit age 10 so our home is more than comfortable now that there are just 2 of us even if it was alittle too cozy when the kids were teens and of course it’s now mortgage-free.</p>
<p>I think I need at least $10 Million to retire.</p>
<p>Since both kids are done with their college, our focus now is on our retirement. It is very very scary.</p>
<p>Both DW and I have a small pension from our previous employers. I have now a 401K without any pension at work. But my 401K is doing very well - company stock is about 10X from the low. Hopefully I will have some time to make up the less than max contribution in the last 6 years.</p>
<p>
</p>
<p>You are kidding, right?</p>
<p>I’m curious as well - you will need $400,000 a year? (at a 4% withdrawal rate)</p>
<p>The whole social security piece is very complicated when you add in a spouse who will be collecting half of the major bread winners piece.</p>
<p>People who have money are able to game the system right now; however that little piece of info has become so well known by us normal folks that the govt is thinking of changing the law because it s costing too much money. Can’t have the commoners know about the loopholes. So the whole collect, suspend , collect at a higher rate will most likely be gone very soon.</p>
<p>Actually, I agree with Dad ll, though it seems unnecessarily high. It’s not that I think expenses will really be that high, I just don’t feel comfortable. There’s a ‘what if’ in every scenario I have played out, how a certain part of principal or pension can be lost.</p>
<p>I absolutely have never read that you need x25 your salary to retire. 8 maybe but 25 never.
So that scares the bejeebers outta me.</p>
<p>The unknown is the healthcare costs. Companies have been known to discontinue retirees health care at the drop of a hat . So you need at least $20,000 a year extra in case that happens until you hit 65.</p>
<p>Some people have taken out life insurance on the spouse who was not the major breadwinner. This allows the major breadwinner to take 100% of pension.</p>
<p>Others buy life insurance instead of a long term health care policy. With the policy $$$ of the deceased going to pay off the earlier health costs.</p>
<p>It’s all a numbers game and it keeps on changing.</p>
<p>
</p>
<p>NO. Never kid about retirement. </p>
<p>If we are only talking have food and shelter, we could retire tomorrow. Many in this country have much less than us when they retired. </p>
<p>But one would have to worry about many thing during their retirement. I am say $10 million could definitely help to have that peace of mind.</p>
<p>We are not there yet. But I am hopeful we will get there.</p>
<p>
And I’m pretty sure that you never read it here, either. What I said, if that’s what you’re referring to, is 25x your annual need (after SS and pensions). That’s very different than salary. </p>
<p>I am most concerned about a catastrophic drop in the buying power of money. If you have 10K a month but suddenly that’s only enough for a pair of shoes, there is a problem. I think in 2008 the world came far too close to real financial disaster.</p>
<p>So I tend to divide my planning into sections, separated by geography and asset class, such that I could conceivably get by only with only say one of four major investment categories (cash, real estate, stocks, etc) even if the others melted to nearly nothing. </p>
<p>My plan, retire at 61, live in my apartment in eastern Europe, work part time for another 5-10 years. Have decent private health care. If it takes a million bucks to last an extra 6 months, I won’t spend it. </p>
<p>By your 80s the need for spending should be way down …</p>
<p>10 million would be nice but 2 million is enough. </p>
<br>
<br>
<p>we looked at that, but the monthly payment on the life insurance premium would have to be very high to have a $2M+ payout, which is probably the minimum needed.</p>
<p>
It is high, but depending on how much of that $10 million is in tax-deferred accounts, taxes might have a big effect. Remember that tax-deferred (401k, IRA, etc.) is not the same as tax-free.</p>
<p>Living in NJ, for example, taking $400k out of a 401k (leaves you 1k, :)) , jk). More seriously, you are unlikely to see much more than $20k/month in actual, spendable money.</p>
<p>Phewwwwww…ixnay. Thanks for pointing out my error. I feel much better now,</p>
<p>
</p>
<p>Want to leave some for kids too. </p>
<p>What happened to the claims of being “dirt poor”, DadII. Pulleze</p>
<p>I am not a FA guru, but I do remember Dad II’s D practically went to Stanford for free because of the family EFC. I am just curious to know how someone could be paying nothing for college few years ago and now is going to accumulate 10 mill before retirement. I am not trying to be disrespectful or pick a fight, one would have to save close to 1 mill a year before retirement. Do schools factor in 401K or equity in the house when trying to figure out family’s contribution?</p>
1 Like