$69,000 not enough?

[flatbutt]

Hmmm, considering all of my retirement savings, 401k, stocks,bonds and projected soc sec if it still exits, I could have a yearly retirement around $69,000. But two advisors have said that's not enough! I'm thinking they're trying to up their commissions in some way. Sure, I'd be happy to take more but really, $69K not enough?I won't have much mortgage left, I live alone and have frugal tastes.

[jwasbury]

how much will be left after you pay Federal and state income taxes, and of course don't forget your property tax bill (I'm sure its huge since you live in NJ)?

[island911]

As I see it, your biggest threat is your 401k money evaporating. (every other boomer will be trying to pull money out of theirs too.) So if the 'experts' are saying 'invest' in more stocks, I wouldn't listen. --yes, some stocks go up, even when the trend is down--

Anyway, having water, food and shelter are the big items to be concerned about.

[widgeon13]

Inflation, that might be enough now but what if gas does go to $10 and bread to whatever?

[flatbutt]

Property tax is high but w/out the mortgage it's a wash. My 401k is very conservative now. I moved most of the funds into low yield low risk investments two years ago. By my estimates I'd need 40K a year after tax to be quite comfortable.

[cbush]

I don't get your financial advisers advice either. The first thing they usually start with is asking how much you want/need to live on in retirement, and then work up how your assets support that. Are they concerned with an over-reliance on Social Security or some other risk? Then the discussion should be about risk mitigation not questioning your assessment of a satisfactory income level.

You are right it doesn't make sense.

[Aurel]

If I were you, I would consider moving out of New Jersey. Then, $69k/yr will be plenty enough.
Just wait for the housing market to recover a bit and sell your house. Or sell now and get a great
deal on a new place and pay cash for it.

[widgeon13]

You never have enough based on the FP advice. They make a living making people feel insecure. You don't have enough to buy a vineyard so obviously, your way short on cash producing assets

[lukeh]

What rate of return was used on your investments to get you to the $69,000?

[widgeon13]

Don't plan on anything greater than a 4% payout per year. Anything more than that and you will probably run short.

[MRM]

Originally Posted by flatbutt

Property tax is high but w/out the mortgage it's a wash. My 401k is very conservative now. I moved most of the funds into low yield low risk investments two years ago. By my estimates I'd need 40K a year after tax to be quite comfortable.

Something to be aware of, if inflation does rear its ugly head soon, the types of investments you describe will be decimated. I am not a money management professional, I don't play one on TV, I haven't stayed at a Holiday Inn for a couple of months, and I was a C+ student with an economics major twenty years ago. But in inflationary times you need a portfolio that will inflate with the rate of inflation. That means stocks. Look long and hard at putting a large portion of your portfolio in an S&P 500 index fund, matched with a DOW and NASDQ ETF (similar to an index fund).

You have a long life ahead of you. You need your money to last as long as you do. Keep enough in some low risk, low return fund to live off of for a year or two, to protect you from big market drops like we had in 08-09. But you really need exposure to stocks in an inflationary environment. Stay domestic.

Edit. I see that your figure includes income from Social Security. In that case, I would think you are a short. You might have that as your initial income, but I don't think your principle will be large enough to last your lifetime.

[red-beard]

Originally Posted by Aurel

If I were you, I would consider moving out of New Jersey. Then, $69k/yr will be plenty enough.
Just wait for the housing market to recover a bit and sell your house. Or sell now and get a great
deal on a new place and pay cash for it.

Texas and Florida have no state income taxes. Texas has "relatively" high property taxes, but the price of the property is low. Austin is a great city that you might enjoy.

Oh, and it doesn't snow. Not in a serious way...

[Aurel]

My In-laws are retired in Mobile, Alabama. Nice place too, they sail all year long.

[EarlyPorsche]

Question: wouldn't keeping a mortgage be a good thing? It allows you to keep cash and deduct interest, right?

[red-beard]

Originally Posted by EarlyPorsche

Question: wouldn't keeping a mortgage be a good thing? It allows you to keep cash and deduct interest, right?

And to PAY interest. The benefit is 1 to 3.

[island911]

Ah... "Assumptions"

You assumers need to understand your normalcy bias, as well as understand the big booming effects of populations.


How's that go?... Past performance is not an indicator of future gains..
carry on..

[red-beard]

Invest in retirement/nursing homes with a key on Dividend payouts...

[RWebb]

frugal tastes - likelihood of change in that?

no dependents (? - you said live alone)

projected length of time your money must last?

health care costs might skyrocket esp. if nothing is done to contain them

taxes are bound to go up; even the mortgage deduction might be hit (tho I suspect that is not real likely)

prospect of future income? - i.e. a surgeon can't work if they have the old-age shakes, but a radiologist or attorney could

what are you living on right now (we don't need your exact figure, but just some relative figure w.r.t. the $70,000/year they are telling you)

[red-beard]

Originally Posted by Shadetree930

So your portfolio recommendation would be bullion, bunkers and bullets, correct?

bullion, bunkers, bullets, babes, beer and bread...

[aigel]

69k when? Next year or in 2042?

The whole FP is a wild guess. There are too many variables that you can just guess on. Maybe educated guesses, but still.

G