The people I know that have "retired" young have all had rental properties and not large cash reserves. I live very cheaply and could, if it were not for the wife, make do with 40k a year comfortably with no debt.
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The people I know that have "retired" young have all had rental properties and not large cash reserves. I live very cheaply and could, if it were not for the wife, make do with 40k a year comfortably with no debt.
^^ good strategy, I got a rental suite in the basement that pays the mortgage and most of the utilities
$14 million. Being at work 60 hours a week is the only thing keeping me from spending a shitload of cash on hookers and blow. I need the investment to perpetuate itself and beat inflation.
My parents and huge extended family are all farmers/ranchers. In the next 15 years myself and my sibs need to figure out what to do with their property, they bought it at $45/acre, now valued around $2200/. They still live there, it does generate a fairly robust income that we all share equally. It will continue to generate income, why I hesitate to completely sell it all off. At present the value is around $11MM. I have thought about putting a low maint house out there middle of nowhere, have threatened a yurt. Little brother says it will get hit by lightening. They have two paid for vacation houses with a third being built with a fourth coming. These are rental properties that my sister manages and they pay for themselves.
My father in law was a corporate man, worked his way up to Director level at Northwest Airlines. Saved his ass off, work was his only hobby-no other hobbies ever. Retires at 62, has been pissed off about not working ever since. Manages his moneys, plans for my kids education, manages his moneys, pissed at his old lady for hitting the sauce early in the afternoon. They could travel free first class anywhere, but don't, too much hassle.
I have a couple of friends from heavy family money, north of $100MM country. One has never had a job, one worked for a while as a geologist. Truthfully their lives suck and I wouldn't want to live like them.
For me, I work 30ish hours a week and do well. I have time to ride my bike during the day, live the life I want and it works. So many people rathole the loot to retire with no real plan of what to do with themselves or live a life until that point. I have friends that squeak they are so tight, think about that egg, that egg, that egg. I guarantee one of them won't live past 60. If I punched out at 55 to doing nothing I'd be a mess, I need structure of something to do-my wife is worse. My parents are the happiest tooling around their property on a quad, chasing a cow, fixing fence, driving a tractor, etc. Compared to many of my friends whose parents did the more "traditional" route they are huge successes-but initially appeared to not be.
Number? There isn't a number for me to just check down.
Right now at 33? $6M. If I don't retire with $2M I will feel like I fucked up.
2 million would be nice. 1 million will be doable. At age 70, i'll just intentionally screw up a BASE jump.
owning a paid-off home in the mountains is key. i will be living very cheaply up here when that retirement or semi-retirement comes.
i think the advice about not having a GF doesn't make sense. the key is to find one of the many out there that don't want to have kids. if you must have a kid, make sure he or she has made their first million by age 20.
I don't get that. What does a weak dollar or the fed have to do with it? No trips to Paris in retirement? Jackson instead of Chamonix?Quote:
Originally Posted by Cono Este
First, the Boomers fucked up by not saving. One third have nothing except social security. The middle third have maybe 30 thou and no pension. The top twenty percent are in six figures, but not seven. One third of 65 year olds + have a mortgage. One third! At 65! But now that rates are at zero, the savers who didn't get caught in the ponzis of housing and stocks aren't getting jack for their money, unless they jump in on Groupon. I swear, if someone could absolutely assure me of 5% for the rest of my life, he can have it all. But he's in jail, isn't he?
you obviously haven't given away half of everything once or twice ?Quote:
Originally Posted by frorider
IME the key is to find a GF who doesn't cost anything and really doesn't need you, what the french guy on last yrs banf-LL-KH-revy-rogers pass trip reffered to as the "Femme Autonomme" it became one of the catch phrase's for the whole trip
I think you mean how much does everyone save?Quote:
Originally Posted by smartyiak
I have put at least 10% of my pay into my 401k since I was 23. About 5 years ago, they stopped offering pensions, and moved to a 50% match on 401k up to 6%.
I was grandfathered into the pension.
So, I have a guaranteed income for the rest of my life, even more if SS $ is still available. Questionable at this point.
My number is $3.25 mil.
$2 million in property, $2 million cash.
No, I meant "make" but I think we're saying the same thing. I asked b/c of the amount people said they would need to retire if everything was free and clear. Seeing how I don't make $100K/yr and I owe bills (and am not starving), I can't imagine I'd need >$100K/yr to live if I had no debt.Quote:
Originally Posted by warthog
Therefore, I don't need to make $250K, $200K, or even $100K off of interest to live comfortably...since I currently don't make that much.
While I don't disagree with your nest egg number for personal reasons, I'm curious as to what you mean by "20 Million - 1 Million - 50k". What kind of financial calculation is that? You just did 5% of 20 mil, and then 5% of 1 mil. You completely forgot the cardinal rule of investing - compound interest. I think you'll be much happier that you are either going to A) earn a LOT more than you calculated on a $20MM nest egg or B) feel relieved that you can set your nest egg number much lower to earn $50k a year.Quote:
Originally Posted by Tippster
The 4% compounded monthly on a nest egg of $20 mil gets you over $800k by the end of the year.
2 million
Top 10 reasons why you need a big number:
10- Your 39' Grady White fishing boat gets 10 gallons per mile
9- You're always needing new skis to match your current outfit
8- You are one vehicle short of having one for each day of the week
7- You need to support your girlfriend on another continent so your wife won't find out
6- Your best friend just bought a bigger boat than yours
5- A helicopter is the only way you will ski the back country
4- The Club keeps billing you with those pesky assessments
3- You can only be truly happy with season passes to 6 different resorts
2- Although you have a big, ocean going boat, you don't have the skills and require a crew to sail it
And the #1 reason you may need a big number..........
1- Your wife found out about your girlfriend and just took 1/2 of everything you had.
Well, in my experience, make and save are mutually exclusive. I know a lot of guys that make a whole lot more than me, and will likely not have a pot to piss in at retirement. They'll have a boat, truck, jet ski, toys, etc. to piss in though.Quote:
Originally Posted by smartyiak
True...but that wasn't the original question.Quote:
Originally Posted by warthog
Semantics- this is TGR.
Oh, and Wooley- GW doesn't make a 39- they make the 360 which is 39 ft overall. It is beautiful, but that number is more like 1.4 mi per gallon. If you are lucky.
The house in whistler is that much more?Quote:
Originally Posted by Benny Profane
Also, factor in divorce before you quit your high paying gig. It aint easy to get back when your out. Trust me on that one.
You guys need a lot.
Im young, so my number is going to end up closer to 2-3 million cash, but if I were turning 50 today heres what Id need.
1 Million Cash/Investments
1 Million Real Estate (preferably 3, 3-unit rental properties).
In my neck of the woods thats 10k a month minus expenses cash flowing from the rentals then a bonus from whatever the interest on the interest of a million is.
I dont spend much money so Ive got the cash for medical/unforseen expenses, the rentas pay my way otherwise.
I mean, I guess you kinda have to start at the other end to figure this out, right? Like, how much will it cost you just to exist, and then how much more do you need to live like you want to?
Even if you own your place free and clear there's gonna be taxes and maintenance and utilities. And even if you own your car, you're gonna have to put gas in it and maintain it and eventually replace it. And you need to eat and clothe yourself. And you need health insurance.
How much does health insurance cost for a single person (or a couple) if it comes straight out of pocket instead of through a company? My insurance comes from my wife's company, what would it cost to replace that good plan if we had to do it on our own? I literally have no idea. (obviously I could research it and find out, I'm hoping somebody just knows though)
I think it's around 12-15 grand a year these days. Sucks.
I know my coverage plus the wifes runs at about 1000 a month (company covers most) with a 500 deductible. I imagine a retiree is at least twice that.
Blue Cross Blue Shield.
You did mention no liabilities outside of the little shit like gas, but with a house paid off and no more student loans or car payments you realyl dont need much.
It costs about 3% of the overall value of a house in maintenance/ taxes. Figure about 50/50 between maint and taxes, assuming a house that isnt a total dump, and were not talking about marble floors either in an average tax base.
What else between maintaining a house, some transportation expense, food, utilities and health care does a retiree need besides play money. I know with those expenses Im at about 1500-1750 a month. Add a couple hundo to a grand for pay my own health care till medicare, and you dont need that much money in the bank to at least make a go of it without SS or a 401k distribution.
So if it's 15 and you're getting 4%, you need $375K just to cover that. More really, since you don't want to use all the interest on that 375 so you can handle inflation. Say $500K? damn.Quote:
Originally Posted by Benny Profane
50 mill? not sure i would walk away from anything but id be way comfortable
Jesus christ guys.
TGR = the 1%
Ouch, that's sobering. I didn't realize the insurance costs for self providers...Quote:
Originally Posted by iceman
You just realized that? Not all of TGR by any means but look up the demographics on skiers some day. This place skews a little less wealthy/younger than skiers on the whole but not as much as it used to and not all that drastically. On the flip side it means that most of the people here have some education and some worldliness and therefor the place is not overrun with total dumbasses and most people can write a sentence. Trade-offs.Quote:
Originally Posted by Phill
Harsh way to look at it. The Canadians have a better idea.Quote:
Originally Posted by iceman
I have a retiree plan that is in limbo since I'm working, but, that just jumped to about 3500 for next year. And it jumped from 1100 to 2000 last year. There's going to be a lot of old sick white people dying in emergency rooms soon. Blacks and Spanish are all too familiar with that one.
1st class health insurance out of pocket for my wife and I is a little over $15,000 per year. I know this because we are taking this year off to ski the winter and travel the summer and I am writing the check.edit to add that that figure is based on us maintaining the coverage we had through my wife's employer and utilizing COBRA. (your figure may vary)Quote:
Originally Posted by iceman
edit again to add that her benefit dept told us that pre Obamacare, the figure was under $12,000. so I'm not sure how all that is supposed to save me money and if anyone can explain how I can, please do as $15,000 is a shitpot of money for two very healthy folks to pay.
So these out of pocket costs assume no medicare/medicaid naturally, which will lower the out of pocket one needs to pay once you qualify. So that 500k number will drop once one reaches the eligible ages necessary, but until then better have a cushion.
Quote:
Originally Posted by AdironRider
That's why old people aren't retiring until at least 65 these days, even if they have some money.
Of course I'm not just realizing it. Still, it's a little eye opening when it's all together in one thread, complete with actual numbers.Quote:
Originally Posted by iceman
Yeah, well, I wasn't born with no silver spoon up my butt. Worked and saved, and the ex didn't hire a good lawyer.
Makes you feel a little dirty, eh? You can work with that, a little guilt adds a little spice. A lot just sucks though. If you're feeling a lot of guilt I'm sure there's a Peace Corps forum out there somewhere.Quote:
Originally Posted by Phill
You ain't no Senator's son, no?Quote:
Originally Posted by Benny Profane
Ya they are arent they bunch of JONG deuche geaupers. And im with advres on I hating Christmas. I have work to do so I'm not fucked for retirement and all my whole family wants to know is if I can go to yukyuks on new years (no?) and the "tree hanging party". Quit fuckiing cutting down trees gramma. Its not good for the environment.Quote:
Originally Posted by Phill
Ah, I love my family.
Edit to remove fbombs.
You can find health insurance much cheaper. Yes, you'll have a higher deductible.Quote:
Originally Posted by Benny Profane
The cost of health care has been one of the things that's held me back from planning early retirement.
But as I've researched there are reasonably priced alternatives. A buddy a bit older than me who quit three years ago pays $145 per month.
Check out this guys take on healthcare cost for early retirement
Once one reaches that age they also make no money and get unhealthier. My father is paying $2000/week in cash for cancer treatments before prescriptions and on top of insurance. He is 66. Well over $100K a year going out with nothing coming in. Let that sink in real good when you think you have enough money saved.Quote:
Originally Posted by AdironRider
And if you think it can't happen to you I think you are being very cavalier about your future.
yeah we looked into all that but, if you want to maintain your health and have coverage for medical tests, and of course if you get blindsided by medical catastrophe, we decided to budget it and do it.Quote:
Originally Posted by Verde
Physicals, bloodwork, echo cardiograms, stress tests, breast exams, colonoscopies, endoscopies can and do pop up all the time. I would rather whip out by Blue Cross card, pay my small copay and be on my happy little way. i have friends going through chemo right now. That shit can bankrupt you.
I don't know if affordable 1st class medical coverage is a pipedream but I wish someone would would try.