How much money do you want to retire?

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benign_user
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How much money do you want to retire?

Post by benign_user » Wed Aug 02, 2017 9:20 am

How much money do you want to retire? Please also state your age. Also assume your pensions will be zero.
Last edited by benign_user on Wed Aug 02, 2017 10:53 am, edited 1 time in total.

bloom2708
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Re:How much money do you need to retire?

Post by bloom2708 » Wed Aug 02, 2017 9:30 am

46, $2 million at 55.
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jhfenton
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Re: How much money do you need to retire?

Post by jhfenton » Wed Aug 02, 2017 9:32 am

47. $2-2.5MM at 57-62.

We probably don't quite "need" that much, but that's the goal.

alfaspider
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Re: How much money do you need to retire?

Post by alfaspider » Wed Aug 02, 2017 9:36 am

My number is $4 million in 2017 dollars, $5 million if retiring before 50. I wouldn't say this is how much I "need"- I could do with much less- but how much I would need to continue my lifestyle infidelity with no concessions and minimal risk of running out of money.

I am currently 32.

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jeff1949
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Re: How much money do you need to retire?

Post by jeff1949 » Wed Aug 02, 2017 9:39 am

2 million and I am now 68.

thangngo
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Re: How much money do you need to retire?

Post by thangngo » Wed Aug 02, 2017 9:40 am

benign_user wrote:How much money do you need to retire? Please also state your age.
I'm 30.

I need $1M (in 2017 dollars) to retire.

I want $5M when I'm 60. This is the projection with my current saving rate and 4% real growth (7% nominal)

I'm happy to have anywhere in between.

Ron
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Re: How much money do you need to retire?

Post by Ron » Wed Aug 02, 2017 9:42 am

None at all assuming your retirement income (e.g. SS, pensions, SPIA's, wife/husband/partner still working, etc.) matches your rate of expenditures during the year :mrgreen: ...

- Ron

MrNewEngland
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Re: How much money do you need to retire?

Post by MrNewEngland » Wed Aug 02, 2017 9:46 am

I'm 39 now and my plan is to retire at 55 with $1M. The reason that number is low is bc I will be able to pull a decent pension starting when I am 55.

Jack FFR1846
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Re: How much money do you need to retire?

Post by Jack FFR1846 » Wed Aug 02, 2017 9:49 am

It's more than just a number for me as I'm an older parent. 1 son with 2 years left (I hope) of college and another 2nd year of high school.

$50k/yr current spending, ignoring college.

$3MM "no matter what" number

Age 65 otherwise.

Current investment balance $2.1MM. I am 60.
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William4u
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Re: How much money do you need to retire?

Post by William4u » Wed Aug 02, 2017 9:53 am

I would not say that we "need" it, but we have long thought that $2 million (today's money) in retirement investments plus SS would be comfortable given that we own our home outright and live in a somewhat LCOL area.

goblue100
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Re: How much money do you need to retire?

Post by goblue100 » Wed Aug 02, 2017 9:55 am

25x expenses at 60. Currently 56.
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pencap75
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Re: How much money do you need to retire?

Post by pencap75 » Wed Aug 02, 2017 9:56 am

Currently 42, goal is 3M at 50.

macman_65
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Re: How much money do you need to retire?

Post by macman_65 » Wed Aug 02, 2017 10:00 am

I am 52 / 1.3M

My retire point is 2M or 62 whichever comes first.

GoCubsGo2016
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Re: How much money do you need to retire?

Post by GoCubsGo2016 » Wed Aug 02, 2017 10:00 am

I'm 54, wife 52, $1.7M invested. I'd like $2.5-3M by time I'm 61 (would like to retire from career then). Wife retires a couple years later.

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Meg77
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Re: How much money do you need to retire?

Post by Meg77 » Wed Aug 02, 2017 10:02 am

I'm 33 and husband is 39 and we need $3MM to retire in 5-7 years (plus to have paid off all debts including rental property mortgages). Target is to have $150k a year when we retire (not including social security income which would kick in later and be used for increased healthcare costs as we age). We don't *need* that much of course, but if we are going to retire early from jobs we enjoy more or less, I don't want to have to be watching every dollar or limiting giving or travel. I'd rather work longer and be able to spend more freely.

I don't know that we will actually pull the trigger and quit when our portfolio hits $3MM, but we could. Problem is we won't be debt free by then, so we'd have to draw down much more than a 4% withdrawal rate at first from taxable investments, which makes me uncomfortable and heightens the sequence of returns risk (then once our mortgages are gone 10-15 years later we could dramatically lower our withdrawal rate). Alternately we could pay off debt first before investing more in taxable, but our mortgages are so cheap that doesn't really make sense.
Last edited by Meg77 on Wed Aug 02, 2017 2:39 pm, edited 1 time in total.
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CoAndy
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Re: How much money do you need to retire?

Post by CoAndy » Wed Aug 02, 2017 10:06 am

Currently 46.

Looking to retire when the house is paid off, both pensions secured, $500,000 in 401(k), and $100,000 in a CD. Aiming for age 55.

The Wizard
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Re: How much money do you need to retire?

Post by The Wizard » Wed Aug 02, 2017 10:14 am

I'm 67 and retired.
I focus on income primarily, on assets secondarily.
I "need" around $60,000 taxable income per year to carry on in a simple manner where I presently live.
Fortunately, my actual income is quite more than that, allowing me to be more expansive...
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davegreen10
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Re: How much money do you need to retire?

Post by davegreen10 » Wed Aug 02, 2017 10:28 am

$1.8 million in today's dollars for two people (DW)
No home equity
Will retire when we are 63/55
Will spend down to $1.4m until we take SS at 70/62

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Sally
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Re: How much money do you need to retire?

Post by Sally » Wed Aug 02, 2017 10:34 am

Wow, what I need and what I want during retirement so as "not to worry" differs. My not to worry number was $5.5 mil plus pension. My need was probably much lower.

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Christine_NM
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Re: How much money do you need to retire?

Post by Christine_NM » Wed Aug 02, 2017 10:35 am

For a different perspective, I'm looking backward at how much I spent during the first 13 years of retirement, from 12/2004 till now.

Estimating 40k/yr expenses plus net new house price and annuity purchase and one-time medical expenses, I've spent a little over 1M so far, or 80k/yr. Doing OK, still saving. Small house, no expensive travel or other money pits.

When I was in my 40s retirement was a fuzzy blur. Glad I did not spend my entire life worrying about money for retirement. A small pension is an amazing thing. Too bad they are so rare now.

BTW I did a lot "wrong", took SS at 62, had tax-inefficient portfolio, never maxed 401k. The big things I did right were to use free educational opportunities to increase salary, pay off the mortgage in 15 years and never take cash out of house equity.

Sorry, guys, those days are gone for today's wannabe retirees. Seems like everything that advances a person now first sets you back way too much, so the gain is minimized.
10% cash 45% stock 45% bond. Retired, w/d rate 1.5%

munemaker
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Re: How much money do you need to retire?

Post by munemaker » Wed Aug 02, 2017 10:51 am

benign_user wrote:How much money do you need to retire? Please also state your age.
The amount needed for retirement is meaningless without additional information: retirement age, other sources of income (pension, SS), etc.

benign_user
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Re: How much money do you need to retire?

Post by benign_user » Wed Aug 02, 2017 10:51 am

Christine_NM wrote: Sorry, guys, those days are gone for today's wannabe retirees. Seems like everything that advances a person now first sets you back way too much, so the gain is minimized.
What do you mean by this?

benign_user
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Re: How much money do you need to retire?

Post by benign_user » Wed Aug 02, 2017 10:52 am

munemaker wrote:
benign_user wrote:How much money do you need to retire? Please also state your age.
The amount needed for retirement is meaningless without additional information: retirement age, other sources of income (pension, SS), etc.
I actually meant amount want for retirement. Not need for retirement. Also assuming you get 0 from a pension fund. I've edited the original post.

aristotelian
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Re: How much money do you need to retire?

Post by aristotelian » Wed Aug 02, 2017 11:02 am

I did a recent calculation and came up with $2.25M as a baseline number to have at retirement age (inflation adjusted from $1.4M today's dollars). I am age 42.

We have not decided on early retirement but would also need an extra $100K or so per year prior to SS. My wife also wants to move to a higher cost of living city, so we would need to set aside enough for a residence there. If we retired 10 years early and needed $500K to upgrade our location, that might bring us to closer to $4M.

chipperd
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Re: How much money do you need to retire?

Post by chipperd » Wed Aug 02, 2017 11:06 am

Age 50, wife 47, Just met with financial planner friend (who is brutally honest) and to meet our expectations, we need and will have 750k by age 58. Wife's hazard duty pension already being collected (and no I'm not the hazard :D ).

Ron Ronnerson
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Re: How much money do you need to retire?

Post by Ron Ronnerson » Wed Aug 02, 2017 11:08 am

I'm 42 with plans to retire around 60. Need $0. Want $1.5 M. Pension and social security should cover our necessary expenses.

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Hyperborea
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Re: How much money do you need to retire?

Post by Hyperborea » Wed Aug 02, 2017 11:09 am

benign_user wrote:
munemaker wrote:
benign_user wrote:How much money do you need to retire? Please also state your age.
The amount needed for retirement is meaningless without additional information: retirement age, other sources of income (pension, SS), etc.
I actually meant amount want for retirement. Not need for retirement. Also assuming you get 0 from a pension fund. I've edited the original post.
You're still conflating (at least) three items that can wildly vary the amount somebody will say they need. You've got desired annual retirement "income" and what percentage they think you can withdraw from a portfolio. That percentage withdrawal rate holds factors of it's own - their portfolio composition, their mental model of safety, and guestimates of life expectancy. The third item is the need for any large single time expenditures - buying a property, paying for kid's education/wedding/etc.

You can have multiple people all wanting $40K per year in retirement but stating that they need anywhere from $650K to $4 million (there was a recent thread where somebody was talking about 1% withdrawal rates).

So, the number is really meaningless.

The Wizard
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Re: How much money do you need to retire?

Post by The Wizard » Wed Aug 02, 2017 11:11 am

benign_user wrote:...Also assume your pensions will be zero.
That's not how I think.
While I have no pension, per se, I have significant lifetime annuity income.
And soon, I will start SS income (another type of pension) of something over $3000 per month.

Now while my original accumulation just prior to retirement was around $2M, my remaining accumulation at this point is close to not being needed for normal expenses...
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Christine_NM
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Re: How much money do you need to retire?

Post by Christine_NM » Wed Aug 02, 2017 11:12 am

benign_user wrote:
Christine_NM wrote: Sorry, guys, those days are gone for today's wannabe retirees. Seems like everything that advances a person now first sets you back way too much, so the gain is minimized.
What do you mean by this?
Mainly I was thinking of educational opportunities and the rise of student debt. Also, the loss of employer pensions to help fund retirement. Professional education is the basis of work and saving for retirement.

The poll question could be rephrased as "How much education do you need to retire?". Low-skilled (or underappreciated skilled) workers are rarely fully employed and will never fully retire until disabled.
Last edited by Christine_NM on Wed Aug 02, 2017 11:15 am, edited 1 time in total.
10% cash 45% stock 45% bond. Retired, w/d rate 1.5%

Iliketoridemybike
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Re: How much money do you need to retire?

Post by Iliketoridemybike » Wed Aug 02, 2017 11:14 am

Firecalc says I need $2.7 million. I have more than that now. 54 targeting retirement at 58.

TheHouse7
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Re: How much money do you need to retire?

Post by TheHouse7 » Wed Aug 02, 2017 11:15 am

thangngo wrote:
benign_user wrote:How much money do you need to retire? Please also state your age.
I'm 30.

I need $1M (in 2017 dollars) to retire.

I want $5M when I'm 60. This is the projection with my current saving rate and 4% real growth (7% nominal)

I'm happy to have anywhere in between.
Same 1.1 mil
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Frank Grimes
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Re: How much money do you need to retire?

Post by Frank Grimes » Wed Aug 02, 2017 11:16 am

I'm 33, spouse 31. Would like to retire about 25 years from now. Have not run any real calculations but given reasonable estimates for real returns, I think we could use 5 million bucks per the charts in The Bogleheads Guide to Investing.

I'll tighten up this estimate as we get closer. For now, save save save!

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Re: How much money do you need to retire?

Post by Cyclesafe » Wed Aug 02, 2017 11:20 am

alfaspider wrote:My number is $4 million in 2017 dollars, $5 million if retiring before 50. I wouldn't say this is how much I "need"- I could do with much less- but how much I would need to continue my lifestyle infidelity with no concessions and minimal risk of running out of money.

I am currently 32.
Alfaspider, a lifestyle of infidelity will cost you way more than $4-5M. Just say'in.

Ron Ronnerson
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Re: How much money do you need to retire?

Post by Ron Ronnerson » Wed Aug 02, 2017 11:21 am

Sorry, I posted a few minutes ago without seeing that you had recently updated your original post. I'm expecting a pension that should be close to six figures in 2017 dollars. If I were to assume I'd get $0 from that instead, I'd probably want around $2.5M in my accounts. However, while pensions could be reduced, a complete elimination seems incredibly unlikely and I'm not planning things based on such a scenario. Most people I work with (as a teacher) save little to nothing outside their pension contributions. If pensions were totally eliminated, we might see some really dark days.

open_circuit
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Re: How much money do you need to retire?

Post by open_circuit » Wed Aug 02, 2017 11:25 am

If I had 4M today, I would probably call it quits and FIRE. I can see this number decreasing as I grow older and shed the obligations of raising my children, paying my mortgage, and saving for future college expenses for the kids. I'm in my early 30s.

For normal full retirement age, who knows. I'm still young and the future is uncertain.

NoGambleNoFuture
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Re: How much money do you need to retire?

Post by NoGambleNoFuture » Wed Aug 02, 2017 11:26 am

Cyclesafe wrote:
alfaspider wrote:My number is $4 million in 2017 dollars, $5 million if retiring before 50. I wouldn't say this is how much I "need"- I could do with much less- but how much I would need to continue my lifestyle infidelity with no concessions and minimal risk of running out of money.

I am currently 32.
Alfaspider, a lifestyle of infidelity will cost you way more than $4-5M. Just say'in.
:oops: :oops: :oops: HAHAH

32. Want to retire in about 20-25 years max. Ideally somewhere north of 4.5m.

carolinaman
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Re: How much money do you need to retire?

Post by carolinaman » Wed Aug 02, 2017 11:29 am

Retire at age 66, would need $1.4M for annual spend after subtracting SS.

bliksem55
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Re: How much money do you need to retire?

Post by bliksem55 » Wed Aug 02, 2017 11:31 am

DW [55] already retired at the end of the 2017 school year. Me planning to do so end of 2018 [age 56] with at least $3MM. My counter on my phone says 518 days till retirement!

dave_k
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Re: How much money do you need to retire?

Post by dave_k » Wed Aug 02, 2017 11:35 am

45 now, targeting 2.5M investable assets to retire in early 50s.

No pension, but I'm assuming 75% of projected SS benefits, planning to delay until 70. Should allow for 125K/y pre tax at first. Can "downsize" from a waterfront home and/or sell the secondary home if necessary, so that acts as a safety net along with SS.

Numbers are in today's dollars, will adjust with inflation.

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celia
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Re: How much money do you need to retire?

Post by celia » Wed Aug 02, 2017 11:37 am

We're retired late 60s.

I realized about 15 years ago that once the house was paid off, kids here on their own, and retirement accounts were funded, we could live on about 1/3 our original income. So it is not a matter of having a lot of money, but rather having decreased expenses that makes it possible to retire.
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warowits
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Re: How much money do you need to retire?

Post by warowits » Wed Aug 02, 2017 11:39 am

$1,481,206 at age 60. (adjusted for inflation) Assumes paid for house and no debts, with the kids out of college and on their own.
That anticipates SS will be around at 75% of what it is now and I can take it at 67-70.
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bigred77
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Re: How much money do you need to retire?

Post by bigred77 » Wed Aug 02, 2017 11:57 am

I'm 32 now (as is my wife). I want $5M in 2017 dollars at age 55 to retire (plus a paid of property and some additional funds set aside for the kids). I would use a 4% withdrawal rate. That, to me, funds a pretty extravagant lifestyle (might as well dream big right?)

To get there I need to avoid job loss, follow my savings plan, and get a 6% real return from my portfolio to hit that goal.

Otherwise I need to be able make the jump into the management ranks so I can save more, which is definitely my career goal, but of course no guarantees. Hopefully I'll get the chance to re-evaluate my plans if it happens.

Ruger
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Re: How much money do you need to retire?

Post by Ruger » Wed Aug 02, 2017 12:12 pm

I retired a year and a half ago, currently 63 y.o.
Single, live inexpensively, I need $30,000 a year for all expenses, my income from SS widow's benefits and rental income is slightly above that so I haven't had to touch any investments.
Investments total $1.75 million and I own close to another $1 million in real estate (primary home and two rental properties).

Planning not to touch any investments until I reach the age of RMD; I have a large emergency fund set aside to cover any unforeseen expenses.

I would like to have had more investments before retiring and I thought about working until age 66, but when I calculated out the difference it will make in social security, and the percentage it would add to my investment portfolio, it wasn't worth it.
Last edited by Ruger on Wed Aug 02, 2017 12:22 pm, edited 1 time in total.

Ruger
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Re: How much money do you need to retire?

Post by Ruger » Wed Aug 02, 2017 12:14 pm

carolinaman wrote:Retire at age 66, would need $1.4M for annual spend after subtracting SS.
You're spending $1.4M annually? :mrgreen:
Last edited by Ruger on Wed Aug 02, 2017 12:46 pm, edited 1 time in total.

hulburt1
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Re: How much money do you need to retire?

Post by hulburt1 » Wed Aug 02, 2017 12:21 pm

At 60 I thought 1m. I'm 64 and have 2.2m. Have not worked for 10 years but have increased my retirement by 1.3m. I'm happy.

hulburt1
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Re: How much money do you need to retire?

Post by hulburt1 » Wed Aug 02, 2017 12:23 pm

Spending $60000 yearly.

Dottie57
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Re: How much money do you need to retire?

Post by Dottie57 » Wed Aug 02, 2017 12:29 pm

60.
Portfolio needs to generate
Basic needs between. 60 and 65 are 50k.
After 65 about 42k (medicare will be less money)
At 70, 40k. ( SS today says it will b 40k)

As of today I have 1285k.

Not retired because of worry about ACA and healthcare in general.

alfaspider
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Re: How much money do you need to retire?

Post by alfaspider » Wed Aug 02, 2017 12:34 pm

NoGambleNoFuture wrote:
Cyclesafe wrote:
alfaspider wrote:My number is $4 million in 2017 dollars, $5 million if retiring before 50. I wouldn't say this is how much I "need"- I could do with much less- but how much I would need to continue my lifestyle infidelity with no concessions and minimal risk of running out of money.

I am currently 32.
Alfaspider, a lifestyle of infidelity will cost you way more than $4-5M. Just say'in.
:oops: :oops: :oops: HAHAH

32. Want to retire in about 20-25 years max. Ideally somewhere north of 4.5m.
That's a rather unfortunate typo :oops:

Of course I met indefinitely :happy

tsewell10
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Re: How much money do you need to retire?

Post by tsewell10 » Wed Aug 02, 2017 12:45 pm

My goal is to retire at 55 (I'm 33 now) or at least have the option to retire depending on how I feel at the time. We are shooting for 2.5 million by that age. We chose that age because it is the year our newborn will be graduating from college should he decide to attend. The biggest obstacle will probably be healthcare costs between 55 and 65 but a lot can change between now and then.

ThrustVectoring
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Re: How much money do you need to retire?

Post by ThrustVectoring » Wed Aug 02, 2017 1:20 pm

29. $1.5M (30x expenses). I might wuss out and go up to 35x expenses. If I'm still enjoying my work, I'll keep working and throw my entire paycheck at charity. Likely through donating appreciated stock from my taxable account to collect the free step-up in cost basis.

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