people ask me all the time, Doc, when are going to retire?? my answer is always, no, my truck doesn't need to be re- tired.

I guess its what you think your golden yrs should be, if you really like your job and do it not for the money, then why retire??

When I came to this little town 25 yrs ago, everyone asked me why I picked this popcorn stand to do my practice...my answer was that I told them that I was now 33, semi-retired, I would work 4 days a week, 7 hours per day, take off when necessary but work for along time.

Could I retire today, I could but it wouldn't be fun, I really like that cash flow, to me its a no brainer.

So, how much do you need for retirement, well in my eyes whatever you are making today and if you are comfortable, that is what you should make the rest of your life with cost of living adjustment.

Here is another thought, I see people that have stayed in the same home for over 30 yrs and what they paid for mortgage, insurance and taxes those 30 yrs of their mortgage is now the same payment they are paying in the new taxes. So their payment never goes away. Back them 300 a month was a big payment and now 300 a month in taxes. So if we pay 2000 a month for it all now when that place is paid off are we going to be still paying 2000 a month for taxes???

I agree with you about retirement. I don't plan to fully retire. I'd rather work less hours, now, when I'm still young and stupid. A lot of folks think about the bucks they need 30 years from now, but disregard the value of their time NOW. Which is more valuable to you: an hour when you're 35, young and healthy, or an hour when you're 85, drooling and farting uncontrollably?

Regarding the comment above, you still need to remember that $300 in taxes are paid in 2007 dollars. The $300 house payment is in 1975 dollars. Any calculations over time must consider the effect of inflation.

Like motion, I will be perfectly happy with $1MM, preferably in free-and-clear income producing real estate. A quality property will take little time, and the income indexes for inflation.

Taxes and fees are increasing at a rate that cannot be justified by inflation or population gains. Yes, they are something one contemplating retirement should factor in.

I agree with that comment about the "industry" painting a fear picture about the amount of capital needed to retire. Fact is - look at most retired people and how much they have/need to support their lifestyle. I do taxes for a few and $50 grand/yr. seems like plenty. I know a couple that winter in their condo in Hawaii and summer in Canada in a nice, nice house on $50 grand/yr. They are able to buy the things they want and support both homes.

I'm approaching 50 and plan to "retire" this year. By retire, I mean walk away from a mid-6 figure job in my peak earning years.

Life's to short man, I see far too many people constantly chasing capital to get "set up" to retire. Yeah, right. Just another million, than they will go. Sure.

Never happens.

Life passes. People die

First, the disclaimer: I'm not a financial adviser; this is food-for-thought, not advice.

OK - here's what we did: Rather than looking at it from a "how many dollars" perspective, we looked at if from a purchasing power perspective since that's what determines lifestyle. For an assumed inflation rate you can then calculate the number of inflation-adjusted dollars it takes to provide purchasing power over time equivalent to a desired amount.

So, assuming a 3% inflation rate and assuming you want, say, $5000 per month inflation-adjusted purchasing power over time, your income (investment/savings results) need to be:

Year 01: $5000/month
Year 05: $5647/month
Year 10: $6576/month
Year 15: $7658/month
Year 20: $8919/month

From that you can calculate the required number of dollars that need to be invested at an assumed earnings rate.

I do that now @ 45.

My bigger concern is...what happens to the MILLIONS of boomers who have not invested wisely? Will they be dragging us down? Will they be raiding our homes in search of food/shelter? Begging in the streets? Massive welfare expenses?

I better start building that bunker in the desert... :eek:

From each according to their ability, to each according to their need.

:confused: I'm not good at word problems...

He means a bunker isn't going to stop them if they really want to get at ya

Karl Marx quote...The USSR tried...it didn't work.

There is NEVER ENOUGH MONEY....

Depends on the life style you want
I retired at 56
major consideraions
*monthly post tax cash flow
*health/Insurance
*inflation
*debt

Assuming you have the last 2 controlled. $1,000,000 in treasuries, yeilds about $50k/yr, Then you need a growth component that at least matches the expected inflation of ~4% That's ~$40k/yr extra to stay in place. Stocks have averaged ~9% for the last century. So another ~$450k in low cost index funds to compensate for inflation.

Total ~$1.5 million allocated appropriately.

Now for the biggie do you really have health insurance controlled?

I propose Boomer extradition to the nearest Socialist countries. We can start with Canada, and then northern European countries. Any stragglers and whiners from Gen X/Y shall be sent to our southern neighbor, Mexico, via Greyhound bus and Army surplus inflatable rafts.

Next problem, please.

Re: I want to retire at 57. How much money will I need to have saved?
 

I retired at 56 (4 years ago). Based on my experience and what you said I think you will initially need 75-80% of your current income. There are way to many variables to just come up with a minimum set figure I don't care what the calculators tell you. Your mortgage may go away but taxes, insurance, repairs, etc. don't. No more car purchases?? Gonna drive your current cars for 30 more years? Better have good retiree medical coverage. And you still will have income taxes, car insurance, etc. etc.

Not to discourage you but your expenses don't necessarily go down all that much just because your house is paid off and you quit working.

Something everyone needs to keep in mind about retirement saving, there is no guarantee you will be able to work until x age at your job.
I retired at 56 because our company was bought out and realistically had no choice and I know a lot of other people who have "Retired" much earlier than they expected to. The days of working until age 65 "at the office" and then retiring are going away for a lot of people.

depends on how long you live, and how well you want to live

I shoud make 'the's recomendation in a couple of years (am 54 now). Could retire now but have too much fun at my job. Heck, I have friends that hang out there to watch the show.
Jim

1milion-2-3million..lol. 50% or more Americans live paycheck to paycheck let alone 2 mill in bank.
you keep saving because you will end up needing it when Uncle Sam changes the tax laws so you can pay for the 75% who wont have jack schit and need healthcare,food and a place to live

Just realized how old this thread is!

Well cantdrv55....it's now been over 6 years since you started this thread....have you retired yet?....please update your situation with us as I was about to start a similar thread.

Cheers!

Alex

I read in the WSJ a day or two ago that 75% of people within a year or two of "retirement" have less than $27,000 in their own retirement funds. You better like dry dog food, cause you won't be able to afford the canned stuff.

Wow, a blast from the past! An update is definitely in order.

I started the thread in March 2007. A few weeks later, we found out that we were pregnant again. My kids are 17 years apart. The newborn (then) ended up having Down Syndrome so dreams of retirement at 57 has been out the window ever since.

I would not do anything different if I had a chance to do it all over again. Baby Lucas, Down Syndrome and all, gave me what was missing in my life - a purpose.

I'll have a million plus at retirement but that probably won't be enough. So, I'll continue to work as long as I'm able. Luckily, I love what I do!