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bd68 says hi!
Old 09-07-2008, 03:18 PM   #1
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bd68 says hi!

Hi all. I stumbled on this site a few months ago and have been enjoying catching up ever since. I am 40 yrs. old and single. To date I think I have been a better saver than investor. I feel I have understood the basics of investing for some time (asset allocation, index funds, dangers of inflation, load vs. no load, dangers of advisors) but I guess as a result of inertia I have not been as effective as I should have been in implementing a reasonable strategy. Still have a decent amount of savings for my age but not what it could be if I had done what I know I should have done.

I have found the discussions on these boards to be very interesting and they have given me much food for thought. There are lot of smart people here and I am pleased to be able to gain insight from everyone on these threads. One thing that I think is really great about this board is how for the most part everyone respects each others version of "the dream". Folks with multi-million net worth's sincerely contribute to threads by people looking to retire on $25,000 a year and vice-versa...very cool.

The one thing that has my head spinning these days is the question of how long to work and what my target net worth and income should be. I am asking myself...why work 20 more years, have a non-cola pension, SS and assets that would likely provide multiple times the income that I will likely need (I live pretty modestly)?...so I can pay for a first class retirement home? (what fun is that). If I continue to work I will pay tons of additional taxes to a government that does not represent me and almost assure that I will be means tested out of SS benefits (I am sure that one way or another in 20 years the higher your income the lower your SS benefits will be).

I know that I am blessed to have been born and live in the U.S., however I am very concerned for its future. It is as if almost no one has a clue of our financial situation. The U.S. is broke (as in bankrupt) and no one wants to make the hard decisions and belt tightening that needs to be done. (I read a quote on this board...but can't find it...so if someone could link to it I would appreciate it...that said something to the effect that a country is in trouble when members of the society realize that they can live off the work and productivity of others instead of working themselves.)

Looking forward to being here on a regular basis.

Regards,
bd68
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Old 09-07-2008, 04:14 PM   #2
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Hi, and welcome to the ER forum!

I found this part of your post to be especially interesting.

Quote:
Originally Posted by bd68 View Post
The one thing that has my head spinning these days is the question of how long to work and what my target net worth and income should be. I am asking myself...why work 20 more years, have a non-cola pension, SS and assets that would likely provide multiple times the income that I will likely need (I live pretty modestly)?...so I can pay for a first class retirement home? (what fun is that).
Determining your target income is a big step, and sometimes not too easy! Some of us find it easier if we attempt to live on the target income, even before retirement, to see if it works for us.

I started by doing that, and then decided that I might spend more time shopping after ER than I do now, since I will have more time on my hands. For me, adding $500/mo extra for shopping seemed reasonable and gave me a target income in today's dollars.

As always, other events have changed my plans but that was how I defined my initial target income. I'm sure other people will add to this thread with other good ideas on various ways to do this.
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Old 09-07-2008, 05:56 PM   #3
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Welcome , When deciding my retirement budget I picked 100% of what I was currently living on plus some padding for travel or remodeling . I also lived frugally so it worked out well .
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Old 09-07-2008, 06:55 PM   #4
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To figure my target retirement income, I am planning to do as Moemg did, except I won't add any padding in my budget because more than 40% of our current, pre-retirement budget is already spent on fun things like travel, dining out and entertainment. I think that's enough. I also figure that my mortgage payment will be replaced by heath insurance premiums and co-pays after retirement.
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