Number at which to stop worrying

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skor99
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Number at which to stop worrying

Post by skor99 » Mon Feb 12, 2018 5:28 pm

This is different from other threads which talk about the number for early retirement. I want to continue working for the foreseeable future, but keep thinking at what level of NW could I relax a bit and not worry too much. Family of four in a MCOL area and single earner. Kids yet to go to college. I used to think $1MM is the magic number but have learnt subsequently that is not true. Even 2 MM seems not enough now, but am conflicted about this. Any thoghts ?

amitb00
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Re: Number at which to stop worrying

Post by amitb00 » Mon Feb 12, 2018 5:32 pm

What is your expense per year and age?

terran
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Re: Number at which to stop worrying

Post by terran » Mon Feb 12, 2018 5:38 pm

Worry about what?

We have 10x spending, which if I stop and think about it reduces a lot of worries as that's a lot of runway to recover from something like a job loss.

But if/when we're at 25x spending I would still be too worried to retire because the 4% "rule" seems a little to uncertain for me.

I'd probably need 50x spending to really not be worried about finances (there's probably still always something to worry about, it just might not be financial), but I don't intend to ever get there.

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Artful Dodger
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Re: Number at which to stop worrying

Post by Artful Dodger » Mon Feb 12, 2018 5:39 pm

It seems to me that you need to know certain variables to know the answer. I would agree $1M probably isn't enough in most cases.

How old are your kids?
What will their education cost?
How old are you?
What will be your monthly / annual spend in retirement?
When are you / spouse electing social security?
If retiring prior to age 65, how will medical be paid?

You'll also need to decide a safe withdrawal rate (3%?, 4%?), and what your AA will be in the short term and long term.

NotWhoYouThink
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Re: Number at which to stop worrying

Post by NotWhoYouThink » Mon Feb 12, 2018 5:40 pm

Stop worrying???? If we stopped worrying traffic on this site would dry up.

SQRT
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Re: Number at which to stop worrying

Post by SQRT » Mon Feb 12, 2018 5:40 pm

Worriers never stop worrying.

skor99
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Re: Number at which to stop worrying

Post by skor99 » Mon Feb 12, 2018 5:42 pm

amitb00 wrote:
Mon Feb 12, 2018 5:32 pm
What is your expense per year and age?
Late 40s ; $72 K per year approximately

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Peter Foley
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Re: Number at which to stop worrying

Post by Peter Foley » Mon Feb 12, 2018 5:51 pm

Lots of unknowns here, a critical one being how you expect to spend your retirement years. If you want to see the world that is more expensive than being happy with extended family (grandchildren) and inexpensive hobbies. Yes grandchildren can be expensive, but usually that is a optional expense.

I will go out on a limb and say about $2M in retirement savings in today's dollars if 50% of those savings are in Roth IRAs and taxable accounts and you plan to retire in your 60's. This is a number at which you can stop worrying, not necessarily the most comfortable or exciting retirement you might be planning for. So, so many people make do on much less.

KlangFool
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Re: Number at which to stop worrying

Post by KlangFool » Mon Feb 12, 2018 5:53 pm

OP,

50 times your current annual expense.

At 72K per year, it is 3.6 million.

KlangFool

furwut
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Re: Number at which to stop worrying

Post by furwut » Mon Feb 12, 2018 5:57 pm

KlangFool wrote:
Mon Feb 12, 2018 5:53 pm
OP,

50 times your current annual expense.

At 72K per year, it is 3.6 million.

KlangFool
Agree. I recall that Jim Otar in his study of withdrawal rates - Unveiling the Retirement Myth put the never need to worry at 50x and above.

soccerrules
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Re: Number at which to stop worrying

Post by soccerrules » Mon Feb 12, 2018 6:04 pm

skor99 wrote:
Mon Feb 12, 2018 5:28 pm
This is different from other threads which talk about the number for early retirement. I want to continue working for the foreseeable future, but keep thinking at what level of NW could I relax a bit and not worry too much. Family of four in a MCOL area and single earner. Kids yet to go to college. I used to think $1MM is the magic number but have learnt subsequently that is not true. Even 2 MM seems not enough now, but am conflicted about this. Any thoghts ?
I will worry less if I can get to $2M in 8 years and be without a mortgage and kids launched (parents cared for). $5M today I would have minimal worry ....about money.
Last edited by soccerrules on Mon Feb 12, 2018 6:16 pm, edited 3 times in total.
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bottlecap
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Re: Number at which to stop worrying

Post by bottlecap » Mon Feb 12, 2018 6:08 pm

I think we love to pretend that the world should be free of worry. As if we have some right to be exempt from the rigors of existence. We don't.

Not withstanding, $4 million would do it for me. I'll probably never make it there and will still be well off anyway, but that's the level where I wouldn't worry about going broke.

Our situations are very similar, but as to you, I can't say what it will take.

JT

Hogan773
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Re: Number at which to stop worrying

Post by Hogan773 » Mon Feb 12, 2018 6:15 pm

terran wrote:
Mon Feb 12, 2018 5:38 pm
Worry about what?

We have 10x spending, which if I stop and think about it reduces a lot of worries as that's a lot of runway to recover from something like a job loss.

But if/when we're at 25x spending I would still be too worried to retire because the 4% "rule" seems a little to uncertain for me.

I'd probably need 50x spending to really not be worried about finances (there's probably still always something to worry about, it just might not be financial), but I don't intend to ever get there.
Curious on this statement above?

Also back to the discussion, while I agree that "50X spending" should get to a worry free point, one needs to be a little careful about what that spending will actually be. One could calculate exactly that spending is $72K but if one really amasses $4,000,000, one MIGHT also be increasing their spending due to different tastes etc. I know that is not always the case though. Just something to consider, ESPECIALLY for the "I want to work really hard and retire when I am 32 years old" craze that seems to be taking off on blogs, where people convince themselves that because their spending is only $30K per year, they can quit working and retire now that they have built a $750K cushion.

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cfs
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Re: Number at which to stop worrying

Post by cfs » Mon Feb 12, 2018 6:19 pm

SQRT wrote:
Mon Feb 12, 2018 5:40 pm
Worriers never stop worrying.
Ding, ding, ding, we have a winner !!!

Wishing all the worriers a good evening.

Gracias por leer ~cfs~
~ Member of the Active Retired Force, portfolio withdrawal and spending rate 1.7% ~

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HomerJ
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Re: Number at which to stop worrying

Post by HomerJ » Mon Feb 12, 2018 6:22 pm

skor99 wrote:
Mon Feb 12, 2018 5:28 pm
This is different from other threads which talk about the number for early retirement. I want to continue working for the foreseeable future, but keep thinking at what level of NW could I relax a bit and not worry too much. Family of four in a MCOL area and single earner. Kids yet to go to college. I used to think $1MM is the magic number but have learnt subsequently that is not true. Even 2 MM seems not enough now, but am conflicted about this. Any thoghts ?
Depends on your expenses.

I worried less and less as our assets increased, but I think the day I stopped worrying was when we got the house paid off. Our expenses were low enough at that point that I felt pretty comfortable with our situation.

Even if I lost my job, and stock market crashed to 80%, we had enough cash in the bank and enough bonds that we'd be fine for 10+ years.

Not enough to retire, but enough to stop worrying.

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Pajamas
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Re: Number at which to stop worrying

Post by Pajamas » Mon Feb 12, 2018 6:29 pm

The very richest people on the planet are all trying to make even more money. Some people never have enough. :oops:

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Abe
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Re: Number at which to stop worrying

Post by Abe » Mon Feb 12, 2018 6:32 pm

A long time ago I thought that if I had $100k I could quit worrying. When I reached that goal, I discovered that I continued to worry just as much as when I had nothing. So I set out to get a million, but the result was the same. I now have several million dollars and I have finally discovered there is no amount of money that will eliminate worry. It's one of those cruel tricks life plays on us. Now at 74 years old, I try to focus more on the trip, not the destination. The destination will come soon enough.
Slow and steady wins the race.

livesoft
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Re: Number at which to stop worrying

Post by livesoft » Mon Feb 12, 2018 6:34 pm

I think you will not stop worrying until your equities drop about 40% to 50% in value and you look at the number and say, "Hmmm, we are still OK."

By that I mean, it won't be a number you reach on the way going up, but it will be a number you reach on the way going down.

So when I realized that no matter what the stock market did that we would still be multimillionaires, I stopped worrying. That may sound obnoxious and arrogant, but that's the truth.
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HomerJ
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Re: Number at which to stop worrying

Post by HomerJ » Mon Feb 12, 2018 6:39 pm

KlangFool wrote:
Mon Feb 12, 2018 5:53 pm
OP,

50 times your current annual expense.

At 72K per year, it is 3.6 million.

KlangFool
That's utter safety. You guys can't stop worrying until you are 100% completely safe to maintain your current lifestyle?

I stopped worrying when I realized I could maintain a bare-bones lifestyle if absolutely necessary.

Our DESIRED retirement lifestyle means I have to keep working for 5-10 more years (And still only shooting for 25x expenses)

But, if absolutely necessary, we could sell our main house (even at a huge loss), move to our small lake condo, and live there for $30,000 a year quite comfortably. Winters would be boring. There would be no traveling. Few luxuries (beyond the boat and jetski!). But we'd be warm and fed and dry, and we'd have TV and Internet, and all the books we could read. And summers and fall would still be wonderful.

Social Security would pretty much cover our expenses. That paid off condo, and $600k in bonds and CDs ($300k to bridge us to SS, $300k left over) is enough to keep me from worrying.

Again, not the goal... but my (financial) WORST CASE at this point is not that bad. I shouldn't call a lifestyle that includes a jetski and a lake view bare-bones :)

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Clever_Username
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Re: Number at which to stop worrying

Post by Clever_Username » Mon Feb 12, 2018 7:04 pm

I'm mid-30s, no kids, no spouse, have approx. 5.5x current spending across retirement accounts. Am I worried? Not in the big picture "will I get there" sense. Still working on specifics and so on. I think I'll comfortably hit 25x at some point. Whether or not that I stop worrying then remains to be seen.

Also that current value is 5.5x current spending, which includes mortgage + property tax on a house. I live in HCOL area. Unlikely I will do so in retirement. See user picture, I'll probably be in the greater Phoenix area, much less pricey than Los Angeles. Better weather too. Without doing the math or making specific forecasts, I believe the eventual equity in my home will cover a good bit of a house when I get to that part of life.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_

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David Jay
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Re: Number at which to stop worrying

Post by David Jay » Mon Feb 12, 2018 7:34 pm

KlangFool wrote:
Mon Feb 12, 2018 5:53 pm
OP,

50 times your current annual expense.

At 72K per year, it is 3.6 million.

KlangFool
I prefer a two-stage accounting method:

1. Dollars to SS claiming, I show this amount in actual dollars - I don’t plan for any growth. For the OP, $72K x 22years = ~1.6M. This number drops every year.
2. Expenses above and beyond SS (50X for the OP, 30X for me). As a couple they may have 40K-60K of Social Security. If the OP and spouse receive $50,000 then they only need $1.1M for 50X.

That puts your “50X” number at $3.7M, dropping by $360K every 5 years.

One advantage is that you can see yourselves getting to your goal more rapidly. Every year, Stage 1 expenses are reduced by (in the case of the OP) $72,000.

In my case, I was not at FI at age 59 but I was FI at age 61. Mostly because Stage 1 dropped by $110,000.
Last edited by David Jay on Mon Feb 12, 2018 7:54 pm, edited 2 times in total.
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Lonestarz
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Re: Number at which to stop worrying

Post by Lonestarz » Mon Feb 12, 2018 7:44 pm

Once my savings can conver my basic spending at 3.5% I wouldn’t worry* about short term employment situations. (*Depends on the market)

If the market is down I would be really pushing for a job to invest low. But I think between my min needs and where I would like to officially retire (about 2x that amount) I would be less stressed in general about Work and could make the determination on how much is enough.

Agggm
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Re: Number at which to stop worrying

Post by Agggm » Mon Feb 12, 2018 8:16 pm

skor99 wrote:
Mon Feb 12, 2018 5:28 pm
This is different from other threads which talk about the number for early retirement. I want to continue working for the foreseeable future, but keep thinking at what level of NW could I relax a bit and not worry too much. Family of four in a MCOL area and single earner. Kids yet to go to college. I used to think $1MM is the magic number but have learnt subsequently that is not true. Even 2 MM seems not enough now, but am conflicted about this. Any thoghts ?
Number to stop worrying = any number, don't worry man. Be happy.

Number to stop worrying = 100x expenses.

These both feel right to me.

Bacchus01
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Re: Number at which to stop worrying

Post by Bacchus01 » Mon Feb 12, 2018 8:17 pm

I’m not sure if worry is the right word.

But at 44 we have about 25X savings.

But there are two problems. First, 3 kids that we hope go to college over then next 14 years. Secondly, health care costs. Both of those lead me to believe that 25X is not nearly enough.

What would make us not be concerned? $10M. That would do it.

delamer
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Re: Number at which to stop worrying

Post by delamer » Mon Feb 12, 2018 8:34 pm

It wasn’t a number, but a point in time.

We had taken care of all of our major obligations (including paying for college) and knew that our pensions and Social Security would cover all of our needs and many of our wants in retirement.

MrNewEngland
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Re: Number at which to stop worrying

Post by MrNewEngland » Mon Feb 12, 2018 8:45 pm

I don’t think I have it in me to stop worrying. I’m nowhere near the number I realistically need to be at to stop worrying but I’m pretty sure if I hit it I’ll still worry. It’s in my nature.

Compound
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Re: Number at which to stop worrying

Post by Compound » Mon Feb 12, 2018 8:47 pm

Abe wrote:
Mon Feb 12, 2018 6:32 pm
A long time ago I thought that if I had $100k I could quit worrying. When I reached that goal, I discovered that I continued to worry just as much as when I had nothing. So I set out to get a million, but the result was the same. I now have several million dollars and I have finally discovered there is no amount of money that will eliminate worry. It's one of those cruel tricks life plays on us. Now at 74 years old, I try to focus more on the trip, not the destination. The destination will come soon enough.
Loved your post Abe. Thanks for sharing!

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Toons
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Re: Number at which to stop worrying

Post by Toons » Mon Feb 12, 2018 8:53 pm

Does Worrying Solve Anything :D
Save and Invest.Think Positive.
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Olemiss540
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Re: Number at which to stop worrying

Post by Olemiss540 » Mon Feb 12, 2018 9:03 pm

Abe wrote:
Mon Feb 12, 2018 6:32 pm
A long time ago I thought that if I had $100k I could quit worrying. When I reached that goal, I discovered that I continued to worry just as much as when I had nothing. So I set out to get a million, but the result was the same. I now have several million dollars and I have finally discovered there is no amount of money that will eliminate worry. It's one of those cruel tricks life plays on us. Now at 74 years old, I try to focus more on the trip, not the destination. The destination will come soon enough.
This. Worry can become consuming and compulsive if you focus on it long enough. There are many people with nothing that don't worry about tomorrow's meal. Try to focus on happiness and contentment with what you already have as hats as that can be sometimes.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

KlangFool
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Re: Number at which to stop worrying

Post by KlangFool » Mon Feb 12, 2018 9:07 pm

OP,

My number is 1.5 million. It is 25 times my current annual expense. If I use 300K to pay off my mortgage, I will have 1.2 million versus 45K of annual expense about 27 times.

KlangFool

EnjoyIt
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Re: Number at which to stop worrying

Post by EnjoyIt » Mon Feb 12, 2018 9:10 pm

I stopped worrying about finances when we accumulated enough that if we saved $0 additional dollars compound interest alone would get us there.

That number also means that if we move into a smaller home and cut our expenses we can retire today.
That number also means we can go part time starting today and retire very comfortably sometime in the future.
Plan is to semi-retire beginning of 2019 unless this correction turns into a recession. If that happens I'm pretty sure psychologically I will have a hard time pulling the plug.

heyyou
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Re: Number at which to stop worrying

Post by heyyou » Mon Feb 12, 2018 9:11 pm

We have no retirement income worries since we live in a paid off house near a small town in fly over country. DW is a slightly better tight-wad than I am. My no-COLA pension, near the same size as my SS at age 70, will together be more than we ever grossed when working. Our portfolio can replace the pension income if the pension fails.

Those are inadequate numbers for more affluent folks, but they are more than enough for us. There is some Eastern saying about feeling grateful for whatever you do have, thus you don't need or want more.

JBTX
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Re: Number at which to stop worrying

Post by JBTX » Mon Feb 12, 2018 9:22 pm

KlangFool wrote:
Mon Feb 12, 2018 5:53 pm
OP,

50 times your current annual expense.

At 72K per year, it is 3.6 million.

KlangFool
At 50 times you could put it all in virtually zero risk inflation protected securities and that would last 50 years.

For me the warm and fuzzy would be that my principal would grow with inflation I live off the real return of the portfolio. If it were 2 million and earned 5% nominal with 2% inflation that would be roughly 3% real or $60k per year.

Greentree
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Re: Number at which to stop worrying

Post by Greentree » Mon Feb 12, 2018 10:22 pm

I guess I view this differently than other responders. 50x is the amount to relax and not worry about working at all. But if you are planning on continuing to work and save, I think you can definitely mentally relax at 2mm. Probably can relax at 1.5mm. That doesn't mean you can hang it up, but you can relax. I might be misunderstanding the question.

Greentree
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Re: Number at which to stop worrying

Post by Greentree » Mon Feb 12, 2018 10:23 pm

I guess I view this differently than other responders. 50x is the amount to relax and not worry about working at all. But if you are planning on continuing to work and save, I think you can definitely mentally relax at 2mm. Probably can relax at 1.5mm. That doesn't mean you can hang it up, but you can relax. I might be misunderstanding the question.

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DaftInvestor
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Re: Number at which to stop worrying

Post by DaftInvestor » Mon Feb 12, 2018 10:26 pm

Greentree wrote:
Mon Feb 12, 2018 10:23 pm
I guess I view this differently than other responders. 50x is the amount to relax and not worry about working at all. But if you are planning on continuing to work and save, I think you can definitely mentally relax at 2mm. Probably can relax at 1.5mm. That doesn't mean you can hang it up, but you can relax. I might be misunderstanding the question.
But for many of us if we can't "hang it up" then we can't relax. :)
You likely aren't misunderstanding the question but rather have a different mindset.

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Re: Number at which to stop worrying

Post by KlangFool » Mon Feb 12, 2018 10:31 pm

Folks,

The good thing about being unemployed for 1 year or longer a few times is

A) I learned not to worry. I had to in order to survive.

B) I am prepared for whatever worst case that I can imagine. For example, I am prepared for unemployment and recession lasting 5 years at any time.

C) I have a plan for the worst case. I know my family will survive.

KlangFool

MrNewEngland
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Re: Number at which to stop worrying

Post by MrNewEngland » Mon Feb 12, 2018 10:38 pm

DaftInvestor wrote:
Mon Feb 12, 2018 10:26 pm
Greentree wrote:
Mon Feb 12, 2018 10:23 pm
I guess I view this differently than other responders. 50x is the amount to relax and not worry about working at all. But if you are planning on continuing to work and save, I think you can definitely mentally relax at 2mm. Probably can relax at 1.5mm. That doesn't mean you can hang it up, but you can relax. I might be misunderstanding the question.
But for many of us if we can't "hang it up" then we can't relax. :)
You likely aren't misunderstanding the question but rather have a different mindset.
This.

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Re: Number at which to stop worrying

Post by gotester2000 » Mon Feb 12, 2018 11:42 pm

For Boglehead -1% SWR
Non Boglehead - 4% SWR

terran
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Re: Number at which to stop worrying

Post by terran » Tue Feb 13, 2018 12:41 am

Hogan773 wrote:
Mon Feb 12, 2018 6:15 pm
terran wrote:
Mon Feb 12, 2018 5:38 pm
Worry about what?

We have 10x spending, which if I stop and think about it reduces a lot of worries as that's a lot of runway to recover from something like a job loss.

But if/when we're at 25x spending I would still be too worried to retire because the 4% "rule" seems a little to uncertain for me.

I'd probably need 50x spending to really not be worried about finances (there's probably still always something to worry about, it just might not be financial), but I don't intend to ever get there.
Curious on this statement above?

Also back to the discussion, while I agree that "50X spending" should get to a worry free point, one needs to be a little careful about what that spending will actually be. One could calculate exactly that spending is $72K but if one really amasses $4,000,000, one MIGHT also be increasing their spending due to different tastes etc. I know that is not always the case though. Just something to consider, ESPECIALLY for the "I want to work really hard and retire when I am 32 years old" craze that seems to be taking off on blogs, where people convince themselves that because their spending is only $30K per year, they can quit working and retire now that they have built a $750K cushion.
We do spend just about that 30k and are quite happy with it, so I suppose if things go to plan we will actually save somewhat more than 50x current spending, but I expect we'll spend rather more than that at the time we stop working (what with paying for health insurance and upping the travel spending), so I suppose I should have said I don't intend to ever have 50x what I'm spending at the time I have it. To me that would mean we've worked too long and/or we aren't spending enough.

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HomerJ
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Re: Number at which to stop worrying

Post by HomerJ » Tue Feb 13, 2018 2:06 am

KlangFool wrote:
Mon Feb 12, 2018 10:31 pm
Folks,

The good thing about being unemployed for 1 year or longer a few times is

A) I learned not to worry. I had to in order to survive.

B) I am prepared for whatever worst case that I can imagine. For example, I am prepared for unemployment and recession lasting 5 years at any time.

C) I have a plan for the worst case. I know my family will survive.

KlangFool
I really like this post. I was surprised you first answered 50x expenses - $4 million.

DarthSage
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Re: Number at which to stop worrying

Post by DarthSage » Tue Feb 13, 2018 6:48 am

I realized some time back that I have money anxiety that won't ever go away. If I hit the Gigantic Lottery tomorrow (tricky feat, given that I don't buy tickets), I would STILL have money anxiety.

That said, part of me knows that we're just fine--2-comma club, DH has a 6-figure career that he loves (no interest in retiring early, already has a retirement side hustle worked out), we don't have expensive tastes.

I think a "number at which to stop worrying" is one of those moving goalposts. When you're broke and starting out, you think having 6 figures will make it stop. Then it's 7 figures. Then 8. We can all come up with scenarios where even a huge nest egg won't be enough--the market swan-dives as your child gets into Harvard Law and you discover that you have a rare form of cancer.

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Re: Number at which to stop worrying

Post by KarenC » Tue Feb 13, 2018 7:03 am

heyyou wrote:
Mon Feb 12, 2018 9:11 pm
There is some Eastern saying about feeling grateful for whatever you do have, thus you don't need or want more.
“It's not having what you want / It's wanting what you've got“ — Sheryl Crow, “Soak Up the Sun”
"How much you know is less important than how clearly you understand where the borders of your ignorance begin." — Jason Zweig

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Cycle
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Re: Number at which to stop worrying

Post by Cycle » Tue Feb 13, 2018 7:15 am

When you know your rigid recurring expenses, your luxury expenses, your savings rate, and you have a thorough savings plan you can stop worrying. You'll know your time to reach 3.5 or 3 or 2.5% SAWR. I'd only be worried if I didn't have a plan.

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Re: Number at which to stop worrying

Post by birdog » Tue Feb 13, 2018 7:22 am

Olemiss540 wrote:
Mon Feb 12, 2018 9:03 pm
Abe wrote:
Mon Feb 12, 2018 6:32 pm
A long time ago I thought that if I had $100k I could quit worrying. When I reached that goal, I discovered that I continued to worry just as much as when I had nothing. So I set out to get a million, but the result was the same. I now have several million dollars and I have finally discovered there is no amount of money that will eliminate worry. It's one of those cruel tricks life plays on us. Now at 74 years old, I try to focus more on the trip, not the destination. The destination will come soon enough.
This. Worry can become consuming and compulsive if you focus on it long enough. There are many people with nothing that don't worry about tomorrow's meal. Try to focus on happiness and contentment with what you already have as hats as that can be sometimes.
Both of these plus I’d like to add to not have the dollar amount be the final goal. That will tend to lead to a short-lived victory that ends up feeling mostly empty. Instead, make the goal the benefits that that dollar amount can bring you. The financial security, ability to leave a job you hate and either not work or do something you love regardless of the salary, ability to cut back and work less at your current job and spend more time doing what you love, traveling, no longer missing kids’ games and other events, etc. I think when money is viewed as a means to an end and not as the end itself that it is viewed more appropriately.

Grt2bOutdoors
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Re: Number at which to stop worrying

Post by Grt2bOutdoors » Tue Feb 13, 2018 7:38 am

There was a time where having 10x ones expenses was enough...enough to bridge the gap to new career, experiences and quite possibly into retirement. What many of these posts are talking about are aspirational goals, nothing wrong with having such a goal but not realistic for the great majority of folks. All of that said, if you manage to accumulate 10-25x savings above and beyond social security and/or pensions you will be better off than most. In the end, one makes due with the resources in hand. Stop worrying, life is short.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

ColoradoRick
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Re: Number at which to stop worrying

Post by ColoradoRick » Tue Feb 13, 2018 9:36 am

KlangFool wrote:
Mon Feb 12, 2018 9:07 pm
OP,

My number is 1.5 million. It is 25 times my current annual expense. If I use 300K to pay off my mortgage, I will have 1.2 million versus 45K of annual expense about 27 times.

KlangFool
+1 except no mortgage. After spending my adolescent years worrying about EVERYTHING, I came upon a great quote. "I have had a great many sorrows in my life, a few of which actually happened." I informally cataloged my worries and came to conclusion that 90% never happened 5% I couldn't change anything and the other 5% I would learn from. After 25x annual, 10 years in cash I worry very little. Never helped much. Different from being prudent.

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Clever_Username
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Re: Number at which to stop worrying

Post by Clever_Username » Tue Feb 13, 2018 10:32 am

EnjoyIt wrote:
Mon Feb 12, 2018 9:10 pm
I stopped worrying about finances when we accumulated enough that if we saved $0 additional dollars compound interest alone would get us there.

That number also means that if we move into a smaller home and cut our expenses we can retire today.
That number also means we can go part time starting today and retire very comfortably sometime in the future.
Plan is to semi-retire beginning of 2019 unless this correction turns into a recession. If that happens I'm pretty sure psychologically I will have a hard time pulling the plug.
I really like this phrasing and the ideas it represents.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_

mak1277
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Re: Number at which to stop worrying

Post by mak1277 » Tue Feb 13, 2018 10:36 am

It's interesting...I "worry" about money more now than I did when I had debt, negative NW and less than $2k to my name. I wasn't even the slightest bit worried back then. Ah, youth.

Chuck
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Re: Number at which to stop worrying

Post by Chuck » Tue Feb 13, 2018 10:36 am

Pajamas wrote:
Mon Feb 12, 2018 6:29 pm
The very richest people on the planet are all trying to make even more money.
And thank goodness, because I have lots of really cool stuff as a result!

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