What's the number?

[ass-to-mouth]

[smartyiak]

I think you mean how much does everyone save?.

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.

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.

[BmillsSkier]

I changed it higher.

Interest earned on the investment of interest earned on the nut.

Assuming a 5% return we get $20 Million - $1Million - $50k. I can live off of $50k for food and travel, if all expenses (Mortgage, College, etc.) have been paid off as posited, especially since it will increase every year.

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.

The 4% compounded monthly on a nest egg of $20 mil gets you over $800k by the end of the year.

[zion zig zag]

2 million

[wooley12]

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.

[warthog]

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.

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.

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.

[smartyiak]

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.

True...but that wasn't the original question.

[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.

[Cono Este]

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?

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?

The house in whistler is that much more?

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.

[AdironRider]

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.

[iceman]

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)

[Benny Profane]

I think it's around 12-15 grand a year these days. Sucks.

[AdironRider]

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.

[iceman]

I think it's around 12-15 grand a year these days. Sucks.

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.

[Brock Landers]

50 mill? not sure i would walk away from anything but id be way comfortable

[Phill]

Jesus christ guys.

TGR = the 1%

[Yanos]

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.

Ouch, that's sobering. I didn't realize the insurance costs for self providers...

[iceman]

Jesus christ guys.

TGR = the 1%

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.

[Benny Profane]

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.

Harsh way to look at it. The Canadians have a better idea.

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.

[jack shit]

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)

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)

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.

[AdironRider]

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.

[Benny Profane]

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.

That's why old people aren't retiring until at least 65 these days, even if they have some money.

[Phill]

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.

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.

[Benny Profane]

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.

[iceman]

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.

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.