How much will i need to retire in my apartment in nyc?

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tyro
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How much will i need to retire in my apartment in nyc?

Post by tyro » Wed Feb 01, 2017 10:16 pm

Hi Bogleheads!
This is my first post. I just ordered Bogleheads Guide to Retirement and know this is a question that I will be putting lots of time into but I am so curious I want to ask.

Right now we could live comfortably in our current apartment for 4k a month (current dollars) if we had no mortgage (1.6k or so on co-op maintenance.) We are 46 and hopefully will be able to work at least 20 years. So to bring in 4k/month in 2037 how much do we need in principle assuming mortgage was paid?

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Re: How much will i need to retire in my apartment in nyc?

Post by Dottie57 » Wed Feb 01, 2017 10:40 pm

tyro wrote:Hi Bogleheads!
This is my first post. I just ordered Bogleheads Guide to Retirement and know this is a question that I will be putting lots of time into but I am so curious I want to ask.

Right now we could live comfortably in our current apartment for 4k a month (current dollars) if we had no mortgage (1.6k or so on co-op maintenance.) We are 46 and hopefully will be able to work at least 20 years. So to bring in 4k/month in 2037 how much do we need in principle assuming mortgage was paid?



Is this total monthly or just what you spend on housing? Need the full monthly expenses.

tyro
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Re: How much will i need to retire in my apartment in nyc?

Post by tyro » Wed Feb 01, 2017 10:42 pm

1.6k is the total we spend monthly on housing.

tyro
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Re: How much will i need to retire in my apartment in nyc?

Post by tyro » Wed Feb 01, 2017 10:46 pm

Our other expenses really vary month to month but we could be comfortable with and extra 2.4k for living beyond the 1.6k which is the whole maintenance fee including gas. Just curious on a ballpark number if staying in nyc is even ever a shot? Thanks!

young-ish
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Re: How much will i need to retire in my apartment in nyc?

Post by young-ish » Wed Feb 01, 2017 11:05 pm

tyro wrote:we could be comfortable with and extra 2.4k for living beyond the 1.6k which is the whole maintenance fee including gas. Just curious on a ballpark number if staying in nyc is even ever a shot?


A balanced investment portfolio of global stocks & bonds currently yields around 2.5% (annual dividends + interest payments).

If you want to pull $48,000 per year out of your investment portfolio and keep your capital intact then you need to have saved $1.9 million (in today's dollars).

If you are ok with spending down the principal then you will not have to save as much. That part is more complex.

For your level of spending $2 million would be the most that you would have to accumulate.

Nick341981
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Re: How much will i need to retire in my apartment in nyc?

Post by Nick341981 » Wed Feb 01, 2017 11:23 pm

Let's just call it 50k a year times 25 equals 1.25 million. Using the 4% rule this should be enough. Fair warning most bogleheads are extremely conservative and extremely risk adverse. If you're comfortable with a 95% chance of success in your retirement use 1.25 million, if you really want 100% go with 2 million and work the extra years to get there. 95% chance of success and retiring years earlier works for me but to each his own.

jane1
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Re: How much will i need to retire in my apartment in nyc?

Post by jane1 » Thu Feb 02, 2017 12:09 am

As others have pointed out ~$1.25M. And if you will be eligible for Social Security, the required savings drops further.
Don't forget about healthcare in your estimated spend.

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Watty
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Re: How much will i need to retire in my apartment in nyc?

Post by Watty » Thu Feb 02, 2017 1:17 am

tyro wrote:1.6k is the total we spend monthly on housing.


You would need to have that much left after paying taxes and I would assume that you have high state and local taxes there so you might need to have something like $2,500 a month in income, in todays dollars, to have $1,600 left after paying taxes.

12 * $2,500 is $30,000 a year just for the housing costs.

You can play with the safe withdrawal rate percent by it would be around 3 to 4 Percent so you would need about a million dollars or maybe a bit less.

https://www.bogleheads.org/wiki/Safe_withdrawal_rates

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Pajamas
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Re: How much will i need to retire in my apartment in nyc?

Post by Pajamas » Thu Feb 02, 2017 1:50 am

Don't forget about inflation. $4k now might be the equivalent of $8k in twenty years.

Over the last twenty years, co-op maintenance increases may have outpaced overall inflation depending where you live and might continue to do so in the future.

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Re: How much will i need to retire in my apartment in nyc?

Post by hlfo718 » Thu Feb 02, 2017 8:45 am

If 1,600 is the monthly maint, you will need another few hundred for electric, cable, year end staff tipping, periodic fixing of HVAC system or replacing old ACs. Maint also doesn't cover your handyman stuff like fixing a leak or plumbing issues. Should be conservative and assume $2000 a month. Don't forget annual maint increase .

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Re: How much will i need to retire in my apartment in nyc?

Post by livesoft » Thu Feb 02, 2017 8:54 am

Don't forget that in 15 to 20 years, the co-op will assess everyone at least $500,000 in building renovation costs. Put that in your budget, too.
This signature message sponsored by sscritic: Learn to fish.

tyro
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Re: How much will i need to retire in my apartment in nyc?

Post by tyro » Thu Feb 02, 2017 8:56 am

Pajamas » Thu Feb 02, 2017 1:50 am
Don't forget about inflation. $4k now might be the equivalent of $8k in twenty years.

Over the last twenty years, co-op maintenance increases may have outpaced overall inflation depending where you live and might continue to do so in the future.


Yes 4k now could be 8k then. So I am saying to have 4k in whatever the equivalent in 2037-2067 dollars would be. 4k is how much I would need today. I don't know what that will be then. Thanks

tyro
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Re: How much will i need to retire in my apartment in nyc?

Post by tyro » Thu Feb 02, 2017 9:06 am

young-ish wrote:
tyro wrote:we could be comfortable with and extra 2.4k for living beyond the 1.6k which is the whole maintenance fee including gas. Just curious on a ballpark number if staying in nyc is even ever a shot?


A balanced investment portfolio of global stocks & bonds currently yields around 2.5% (annual dividends + interest payments). Stupid question but if a balanced portfolio yields 2.5% isn't that lower than the annual inflation rate of 3.22%?

If you want to pull $48,000 per year out of your investment portfolio and keep your capital intact then you need to have saved $1.9 million (in today's dollars).

If you are ok with spending down the principal then you will not have to save as much. That part is more complex. Thank you!

For your level of spending $2 million would be the most that you would have to accumulate.



tyro
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Re: How much will i need to retire in my apartment in nyc?

Post by tyro » Thu Feb 02, 2017 9:24 am

hlfo718 wrote:If 1,600 is the monthly maint, you will need another few hundred for electric, cable, year end staff tipping, periodic fixing of HVAC system or replacing old ACs. Maint also doesn't cover your handyman stuff like fixing a leak or plumbing issues. Should be conservative and assume $2000 a month. Don't forget annual maint increase .
Yes, I cut things down to the minimum and we don't have HVAC and haven't even had any handyman stuff but surely will in the future so need to factor all that. Suprisingly, I have found that co-op living has been cheaper than my mother keeping up her house that is worth 1/3 of our apartment. Really good point on the annual maintenance increase since I am in Yorkville in Manhattan and it is becoming much more expensive and wealthier people are moving in so I should assume the maintenance will go up much more than inflation based on people wanting a fancier lobby and higher end in general since it is pretty standard now. We just had a reassessment but not sure what that is based on. I imagine as the property value of the co-op goes up the real-estate taxes go up? Not sure exactly how co-ops work still.

So I guess we need to shoot to save at least 2 million or 100k/year for 20 years. Assuming 46-56 are prime years we should try for 150k x 10 years=1.5m and 50k x 10 years=.5m. Thank you. That really gives me a motivation that it is doable if I get to working more intensely.

bb
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Re: How much will i need to retire in my apartment in nyc?

Post by bb » Thu Feb 02, 2017 9:34 am

2.5% average inflation, 1.025^20= 1.64
3.0% average inflation, 1.03^20=1.8
3.5% average inflation, 1.035^20=1.99

Take a guess at inflation and there is your multiple of today's
dollars needed in 20 years.

4% withdrawal rate for today's $1.25M ($50k) will need to be $2.25M
in 20 years assuming 3% inflation.

tyro
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Re: How much will i need to retire in my apartment in nyc?

Post by tyro » Thu Feb 02, 2017 9:43 am

bb wrote:2.5% average inflation, 1.025^20= 1.64
3.0% average inflation, 1.03^20=1.8
3.5% average inflation, 1.035^20=1.99

Take a guess at inflation and there is your multiple of today's
dollars needed in 20 years.

4% withdrawal rate for today's $1.25M ($50k) will need to be $2.25M
in 20 years assuming 3% inflation.


Thank you. Actually not sure if we can stay now. If I were willing to draw down the principle and need to plan to live to 100 (grandparents died in late 90's) what would that be? What if I reversed mortgaged the apartment and it is currently worth 1.2m assuming the mortgage was paid off by 66?

rjbraun
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Re: How much will i need to retire in my apartment in nyc?

Post by rjbraun » Thu Feb 02, 2017 10:22 am

I believe part of your maintenance may be deductible. I also live in co-op and the portion of maintenance that reflects the building's real estate taxes is deductible in the event you itemize. I believe that the interest on any underlying building mortgage (not referring to the mortgage you personally hold on your unit) may also be deductible. Not sure I see the interest broken out separately in my case, but as it's small I guess I haven't really focused on this so much.

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Re: How much will i need to retire in my apartment in nyc?

Post by bigred77 » Thu Feb 02, 2017 10:37 am

tyro wrote:
hlfo718 wrote:If 1,600 is the monthly maint, you will need another few hundred for electric, cable, year end staff tipping, periodic fixing of HVAC system or replacing old ACs. Maint also doesn't cover your handyman stuff like fixing a leak or plumbing issues. Should be conservative and assume $2000 a month. Don't forget annual maint increase .
Yes, I cut things down to the minimum and we don't have HVAC and haven't even had any handyman stuff but surely will in the future so need to factor all that. Suprisingly, I have found that co-op living has been cheaper than my mother keeping up her house that is worth 1/3 of our apartment. Really good point on the annual maintenance increase since I am in Yorkville in Manhattan and it is becoming much more expensive and wealthier people are moving in so I should assume the maintenance will go up much more than inflation based on people wanting a fancier lobby and higher end in general since it is pretty standard now. We just had a reassessment but not sure what that is based on. I imagine as the property value of the co-op goes up the real-estate taxes go up? Not sure exactly how co-ops work still.

So I guess we need to shoot to save at least 2 million or 100k/year for 20 years. Assuming 46-56 are prime years we should try for 150k x 10 years=1.5m and 50k x 10 years=.5m. Thank you. That really gives me a motivation that it is doable if I get to working more intensely.


OP,

Relax, if your expenses would be 4k a month (in 2017 dollars) if your mortgage was paid off then congrats, you've already made it. A typical 2 income couple in NYC will receive more than that in SS payments alone once they reach retirement age. Anything in your portfolio will be for luxuries.

If you have the ability to save 100k per year then by all means go ahead. You will be able to live a much more lavish lifestyle in retirement, retire earlier, leave a large inheritance, or give a bunch away to charities.

tyro
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Re: How much will i need to retire in my apartment in nyc?

Post by tyro » Thu Feb 02, 2017 10:48 am

bigred77 wrote:
tyro wrote:
hlfo718 wrote:
OP,

Relax, if your expenses would be 4k a month (in 2017 dollars) if your mortgage was paid off then congrats, you've already made it. A typical 2 income couple in NYC will receive more than that in SS payments alone once they reach retirement age. Anything in your portfolio will be for luxuries.

If you have the ability to save 100k per year then by all means go ahead. You will be able to live a much more lavish lifestyle in retirement, retire earlier, leave a large inheritance, or give a bunch away to charities.


Whew, Thank you! We have been living very frugally the last few years to save for downpayment as we got a very late start. I would like to consider putting money in a 529 if we will actually be ok and we need disability and LTC insurance. The social security would be great but I keep hearing about it going bankrupt or some means testing. They probably just want to scare us into saving more.

Nick341981
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Re: How much will i need to retire in my apartment in nyc?

Post by Nick341981 » Thu Feb 02, 2017 11:16 am

As long as your happy staying in the middle quintile of American households inflation is another thing that is highly over rated here. In 2000 the middle quintile was at $58,125 and 16 years later in 2016 it's $56,832.

https://www.advisorperspectives.com/dsh ... erspective

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Re: How much will i need to retire in my apartment in nyc?

Post by Pajamas » Thu Feb 02, 2017 11:52 am

tyro wrote:Really good point on the annual maintenance increase since I am in Yorkville in Manhattan and it is becoming much more expensive and wealthier people are moving in so I should assume the maintenance will go up much more than inflation based on people wanting a fancier lobby and higher end in general since it is pretty standard now. We just had a reassessment but not sure what that is based on. I imagine as the property value of the co-op goes up the real-estate taxes go up? Not sure exactly how co-ops work still.


Yes, it seems that real estate taxes on Manhattan co-ops have been going up every year, insurance costs have been increasing (hurricanes, black mold panic a few years ago), staff labor costs have been increasing plus there have been additional contributions to the union pension fund and the health care costs, and relatively new laws about facade inspections and water tank inspections and fuel upgrades for boilers have increased costs. Many buildings deferred maintenance for years and are now faced with expensive repairs. You should be prepared for special assessments if major work needs to be done on the roof, elevators, facade, boilers, balconies, etc. Even a moderate hallway and lobby renovation can run into the millions in a large building.

There is a definite tendency for people buying a co-op now at high prices to want roof decks, gyms, fancier lobby finishes, and other amenities that long-time owners don't really want to pay for. In Yorkville in particular, the new subway line will probably increase that pressure compared to other neighborhoods.

Nick341981 wrote:As long as your happy staying in the middle quintile of American households inflation is another thing that is highly over rated here. In 2000 the middle quintile was at $58,125 and 16 years later in 2016 it's $56,832.


It's very easy for a co-op owner to calculate actual inflation in expenses associated with living in an apartment as the maintenance fee goes up to cover them. Those costs have roughly doubled during the time period you mentioned vs. official inflation that has not increased nearly as much. Some utilities and interior repairs and renovations are the major costs not covered by maintenance. Staying in the middle quintile for income doesn't work out too well if it is flat or down but your expenses have increased.

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Re: How much will i need to retire in my apartment in nyc?

Post by Nick341981 » Thu Feb 02, 2017 3:18 pm

Pajamas wrote:
tyro wrote:Really good point on the annual maintenance increase since I am in Yorkville in Manhattan and it is becoming much more expensive and wealthier people are moving in so I should assume the maintenance will go up much more than inflation based on people wanting a fancier lobby and higher end in general since it is pretty standard now. We just had a reassessment but not sure what that is based on. I imagine as the property value of the co-op goes up the real-estate taxes go up? Not sure exactly how co-ops work still.


Yes, it seems that real estate taxes on Manhattan co-ops have been going up every year, insurance costs have been increasing (hurricanes, black mold panic a few years ago), staff labor costs have been increasing plus there have been additional contributions to the union pension fund and the health care costs, and relatively new laws about facade inspections and water tank inspections and fuel upgrades for boilers have increased costs. Many buildings deferred maintenance for years and are now faced with expensive repairs. You should be prepared for special assessments if major work needs to be done on the roof, elevators, facade, boilers, balconies, etc. Even a moderate hallway and lobby renovation can run into the millions in a large building.

There is a definite tendency for people buying a co-op now at high prices to want roof decks, gyms, fancier lobby finishes, and other amenities that long-time owners don't really want to pay for. In Yorkville in particular, the new subway line will probably increase that pressure compared to other neighborhoods.

Nick341981 wrote:As long as your happy staying in the middle quintile of American households inflation is another thing that is highly over rated here. In 2000 the middle quintile was at $58,125 and 16 years later in 2016 it's $56,832.


It's very easy for a co-op owner to calculate actual inflation in expenses associated with living in an apartment as the maintenance fee goes up to cover them. Those costs have roughly doubled during the time period you mentioned vs. official inflation that has not increased nearly as much. Some utilities and interior repairs and renovations are the major costs not covered by maintenance. Staying in the middle quintile for income doesn't work out too well if it is flat or down but your expenses have increased.


True, but it still doesn't change the fact that for the past 16 years inflation has been pretty much meaningless for 50%. That middle quintile is still living pretty good just like they were in 2000. Most people's cost of living should drop dramatically in retirement, if it doesn't you goofed up somewhere and you're doing it wrong. If this guys landlord jacks his rent up that much he will need to evaluate if it's really worth living there or if he should move to a lower cost of living area. Out of the last 16 years inflation has ranked near the bottom of concerns for most retirees and having the right portfolio mix of stocks and bonds has mattered way more. If you're brining home more money than 50% of the country and have been doing it consistently for 16 years without having to adjust your take home upward you're doing pretty good. In fact if you were raising your withdraw by 3% over the past 16 years you might be taking out too much and should be worried about taking too much out and running out. Inflation is over rated

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Re: How much will i need to retire in my apartment in nyc?

Post by HomerJ » Thu Feb 02, 2017 3:55 pm

bigred77 wrote:Relax, if your expenses would be 4k a month (in 2017 dollars) if your mortgage was paid off then congrats, you've already made it. A typical 2 income couple in NYC will receive more than that in SS payments alone once they reach retirement age. Anything in your portfolio will be for luxuries.


This. Social Security will cover almost all of it. And it's inflation-adjusted.

Of course, it's a good idea to save a nice chunk for unexpected expenses, medical for instance, or an assessment on your property, and trips you might want to take.

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Re: How much will i need to retire in my apartment in nyc?

Post by Pajamas » Thu Feb 02, 2017 4:30 pm

Nick341981 wrote:True, but it still doesn't change the fact that for the past 16 years inflation has been pretty much meaningless for 50%. That middle quintile is still living pretty good just like they were in 2000. Most people's cost of living should drop dramatically in retirement, if it doesn't you goofed up somewhere and you're doing it wrong. If this guys landlord jacks his rent up that much he will need to evaluate if it's really worth living there or if he should move to a lower cost of living area.


She isn't renting, it's a co-op. She specifically is planning for living in the same place twenty years from now, that's what her post is about.

The very real actual expense of maintenance fees has increased significantly, far beyond inflation, so the theoretical assumption that inflation has been irrelevant to someone who stayed in the middle quintile because they make roughly the same as they did sixteen years ago is wrong.

Not everyone's living expenses decrease in retirement. Expenses can go up because of having to bear the full cost of health coverage, having more free time to travel or indulge in hobbies, eating out more, getting season tickets to the opera, moving to a more expensive area, etc. Increased cost of living in retirement certainly does not mean that someone "goofed up somewhere" or is "doing it wrong" but could mean the opposite, that they are enjoying a successful life while no longer working.
Last edited by Pajamas on Thu Feb 02, 2017 5:54 pm, edited 1 time in total.

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Re: How much will i need to retire in my apartment in nyc?

Post by 2b2 » Thu Feb 02, 2017 5:11 pm

In my building, real estate taxes and the interest on the underlying building mortgage account for roughly 50% of the monthly maintenance. Manhattan real estate tax has risen by about 50% over the last 5 years and is expected (by our building's management) to increase by another 50% over the next five years.

You would be wise to factor in a forecast estimate of those taxes when you do your affordability projection.

2b2

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Re: How much will i need to retire in my apartment in nyc?

Post by rjbraun » Thu Feb 02, 2017 5:20 pm

HomerJ wrote:
bigred77 wrote:Relax, if your expenses would be 4k a month (in 2017 dollars) if your mortgage was paid off then congrats, you've already made it. A typical 2 income couple in NYC will receive more than that in SS payments alone once they reach retirement age. Anything in your portfolio will be for luxuries.


This. Social Security will cover almost all of it. And it's inflation-adjusted.

Of course, it's a good idea to save a nice chunk for unexpected expenses, medical for instance, or an assessment on your property, and trips you might want to take.

I'm not aware that OP has specified that they will receive Social Security. I hope that they will, though I just want to note that it's not "automatic". My understanding is that there are jobs that do not involve Social Security benefits, and based on another post by OP today, it seems that she would be wise to confirm this aspect, especially if it will be a key component of their retirement planning

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Re: How much will i need to retire in my apartment in nyc?

Post by tyro » Thu Feb 02, 2017 5:40 pm

rjbraun wrote:
HomerJ wrote:
bigred77 wrote:Relax, if your expenses would be 4k a month (in 2017 dollars) if your mortgage was paid off then congrats, you've already made it. A typical 2 income couple in NYC will receive more than that in SS payments alone once they reach retirement age. Anything in your portfolio will be for luxuries.


This. Social Security will cover almost all of it. And it's inflation-adjusted.

Of course, it's a good idea to save a nice chunk for unexpected expenses, medical for instance, or an assessment on your property, and trips you might want to take.

I'm not aware that OP has specified that they will receive Social Security. I hope that they will, though I just want to note that it's not "automatic". My understanding is that there are jobs that do not involve Social Security benefits, and based on another post by OP today, it seems that she would be wise to confirm this aspect, especially if it will be a key component of their retirement planning

Yes we will receive social security. I began filing tax returns at age 13 in 1983 believe it or not from my first "real" W2 jobs at the sandwich store and the grocery store. I was so out of the retirement planning loop I never paid attention to that SS pamphlet they send you with how much you will get but the last decade has been around 150-200k and dh's SS is good as he made some great money in the past but blew it. Like a 400k for about 4 years and 800k for 2 or 3 years ears. Unfortunately he blew most of that money. :(

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Re: How much will i need to retire in my apartment in nyc?

Post by rjbraun » Thu Feb 02, 2017 5:44 pm

tyro wrote:Yes we will receive social security.

Good for you. That certainly helps to improve your financial picture 8-)

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Re: How much will i need to retire in my apartment in nyc?

Post by bowest » Thu Feb 02, 2017 5:46 pm

1.6k/month seems like a lot for a NYC co-op maintenance (ex mortgage) unless you're in a high-end doorman building. Are you sure it's not a condo or 'condo-op'?

Is there a tax abatement? You could be in for nasty surprise in 20 years.

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Re: How much will i need to retire in my apartment in nyc?

Post by bigred77 » Thu Feb 02, 2017 5:49 pm

tyro wrote:
rjbraun wrote:
HomerJ wrote:
bigred77 wrote:Relax, if your expenses would be 4k a month (in 2017 dollars) if your mortgage was paid off then congrats, you've already made it. A typical 2 income couple in NYC will receive more than that in SS payments alone once they reach retirement age. Anything in your portfolio will be for luxuries.


This. Social Security will cover almost all of it. And it's inflation-adjusted.

Of course, it's a good idea to save a nice chunk for unexpected expenses, medical for instance, or an assessment on your property, and trips you might want to take.

I'm not aware that OP has specified that they will receive Social Security. I hope that they will, though I just want to note that it's not "automatic". My understanding is that there are jobs that do not involve Social Security benefits, and based on another post by OP today, it seems that she would be wise to confirm this aspect, especially if it will be a key component of their retirement planning

Yes we will receive social security. I began filing tax returns at age 13 in 1983 believe it or not from my first "real" W2 jobs at the sandwich store and the grocery store. I was so out of the retirement planning loop I never paid attention to that SS pamphlet they send you with how much you will get but the last decade has been around 150-200k and dh's SS is good as he made some great money in the past but blew it. Like a 400k for about 4 years and 800k for 2 or 3 years ears. Unfortunately he blew most of that money. :(


OP,

Just one last comment. I would really sit down and try to track what your expenses are because I think you may be vastly underestimating them. It's going to be a huge shock to your system to go from a household making over $1M in multiple good income years to one that spends 4k a month. I think you need to get a handle on what's really coming in and what's really going out in your financial life.

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Re: How much will i need to retire in my apartment in nyc?

Post by tyro » Thu Feb 02, 2017 7:29 pm

bigred77 wrote:
OP,

Just one last comment. I would really sit down and try to track what your expenses are because I think you may be vastly underestimating them. It's going to be a huge shock to your system to go from a household making over $1M in multiple good income years to one that spends 4k a month. I think you need to get a handle on what's really coming in and what's really going out in your financial life.


Agree that we need to track expenses. "We" never had a good year but dh had some good years before we were married and blew most of it and put some in a pre-marital trust with some risky RE mortgages. I only mentioned it because he is eligible for Social Security. Since we have been married he had some years making zero and high years of 200k. We had to pay a nanny 40k until this Aug so that is an extra 40k/yr we get to save. We lived in a Studio and dc slept in the kitchen until 2 years ago and we drive a 20 yr old Pathfinder. I also have been busy paying off enormous educational debt.

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Re: How much will i need to retire in my apartment in nyc?

Post by tyro » Thu Feb 02, 2017 7:32 pm

bowest wrote:1.6k/month seems like a lot for a NYC co-op maintenance (ex mortgage) unless you're in a high-end doorman building. Are you sure it's not a condo or 'condo-op'?

Is there a tax abatement? You could be in for nasty surprise in 20 years.


This is not a lot at all for a 2bdr/2 bath on the UES in a good school zone. It is not fancy at all and when I was looking to buy this was really on the low end for maintenance. I am sure it is a co-op and we are in the middle of a tax abatement but I believe that has been an additional $500/month.

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Re: How much will i need to retire in my apartment in nyc?

Post by markbco » Thu Feb 02, 2017 9:01 pm

Don't forget the impact of taxes (federal, state, and city) on the investment income.

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joe8d
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Location: Buffalo,NY

Re: How much will i need to retire in my apartment in nyc?

Post by joe8d » Thu Feb 02, 2017 9:19 pm

NYC'ers are suppose to retire to Florida.
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bb
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Re: How much will i need to retire in my apartment in nyc?

Post by bb » Sat Feb 04, 2017 9:00 am

If I were willing to draw down the principle and need to plan to live to 100 (grandparents died in late 90's) what would that be?


4% withdrawal adjusted for inflation (real) does assume you are drawing
down the principal.

tyro
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Re: How much will i need to retire in my apartment in nyc?

Post by tyro » Sat Feb 11, 2017 3:29 pm

bb wrote:
If I were willing to draw down the principle and need to plan to live to 100 (grandparents died in late 90's) what would that be?


4% withdrawal adjusted for inflation (real) does assume you are drawing
down the principal.

Oh. Thanks. I thought the 4% rule was a conservative estimate of your capital gains if invested in a well-balanced portfolio. Like if I have 1m in then I can take out 40k on average while maintaining the principal. With obvious fluctuations.

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