Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Hi, I am Amazed
Old 06-03-2017, 12:46 PM   #1
Recycles dryer sheets
 
Join Date: Dec 2016
Posts: 78
Hi, I am Amazed

Actually, I am Carol, but I'm also amazed at the portfolios you have amassed. I stumbled onto this site and have been doing a lot of reading.

Firecalc and Fidelity say we'll be ok, but compared to all of you we're in trouble.

So, give me your opinions.

65& 62
Budget, including taxes and HI. $60-65K
No pensions. SS: DH @FRA 30K, I get half at my FRA or about $12K if I take it a little earlier at 63 (when he starts his)

No debt, own home and car. Will need new car in year or two

What is minimum we should have?

I should preface that we live our lives, eat out, travel a little, nothing extravagant but we don't feel deprived.

If needed to determine your answer, we have 3/4 of our retirement money in 40/60 tIRA. We will convert to Roths up to 15% limit each year. Some in index fund, rest cash reserves.

Thank you
__________________

Carol1862 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-03-2017, 12:56 PM   #2
Full time employment: Posting here.
 
Join Date: Jan 2013
Posts: 775
$65K - $42K = $23K
Rounding up to $25K and a withdrawal rate of 3.5%, you would need $714,286
Staying at $23K and a withdrawal rate of 3.5%, you would need $657,143
__________________

broadway is offline   Reply With Quote
Old 06-03-2017, 01:05 PM   #3
Full time employment: Posting here.
 
Join Date: Sep 2013
Posts: 720
The retirement calculators you mentioned can give a much better answer than I can, but a quick guesstimate for how much you need would be somewhere in the:

($65K - $42K)/.4 = $575K to ($65K - $42K)/.025 = $920K assuming a range of 2.5% to 4% annual withdrawal rates. This doesn't leave you with any pad for unexpected expenses (assuming you didn't factor that into your $65K/yr). Given that you might want to take whatever figure you come up with and add a few 10's of percent to it, but this - like the choice of withdrawal rate to use in your model - depends on your personal risk tolerance.
stepford is offline   Reply With Quote
Old 06-03-2017, 01:33 PM   #4
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 5,288
If you've run the calculators, I'd go with that answer rather than folks' back of the envelope calculations. YMMV
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 06-03-2017, 01:38 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Mar 2017
Location: New York City
Posts: 2,838
Quote:
Originally Posted by MBAustin View Post
If you've run the calculators, I'd go with that answer rather than folks' back of the envelope calculations. YMMV
hahaha. you need 1 dollar and a winning lottery ticket. Other wise i would do what he said
__________________
Withdrawal Rate currently zero, Pension 137 % of our spending, Wasted 5 years of my prime working extra for a safe withdrawal rate. I can live like a King for a year, or a Prince for the rest of my life. I will stay on topic, I will stay on topic, I will stay on topic
Blue Collar Guy is offline   Reply With Quote
Old 06-03-2017, 07:27 PM   #6
Recycles dryer sheets
 
Join Date: Dec 2016
Posts: 78
Yes, those calculators do give me a good sense of security. However, it certainly seems like we are quite behind the typical poster on this site. I do enjoy reading all the posts. Again, highly impressive group here.
Carol1862 is offline   Reply With Quote
Old 06-03-2017, 07:47 PM   #7
Full time employment: Posting here.
 
Join Date: Jan 2013
Posts: 775
Quote:
Originally Posted by Carol1862 View Post
Yes, those calculators do give me a good sense of security. However, it certainly seems like we are quite behind the typical poster on this site. I do enjoy reading all the posts. Again, highly impressive group here.
Some in the group are younger than you. They need more savings to cover the 10+ years until Medicare.

The calculators tells me I can retire now, but I am very nervous especially about the cost of medical insurance, so I am still looking for work.
broadway is offline   Reply With Quote
Old 06-03-2017, 08:24 PM   #8
Recycles dryer sheets
evilanne's Avatar
 
Join Date: Feb 2017
Location: San Antonio
Posts: 174
Carol1862,

Don't worry about all the others, you are ahead of most of the US population in being debt free. As long as you LBYM, you should be good

How much the average family has saved for retirement at every age
evilanne is offline   Reply With Quote
Old 06-04-2017, 02:44 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,549
At age 65, I think its pretty safe to use the 4% rule or alternatively for every dollar you want to spend above SS you need 25x in retirement savings. I discount stuff in a IRA by 15% to account for taxes, although that's probably too conservative given your moderate income.

So if you can get by on $60K- $42K in SS that is $450K. If the real budget is 65K than $575K. Sure it would be nice to have an extra $100K for things like a nursing home at the end or new car in a couple of years.

This group does tend to be more conservative like using a 3.5% withdrawal rate because most of us plan to or have retired in the 45-60 range and those extra years matter. But odds are both of you won't live until 95 so you probably don't need the money for a full 30 years.

Finally, Evilanne is right, with no debt and paid off home, unless you are currently bringing home $120K a year, spending all of it and living in high cost place you are probably ok just on social security benefits of $42,000/year.
clifp is offline   Reply With Quote
Old 06-04-2017, 03:46 AM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 21,984
Quote:
Originally Posted by Carol1862 View Post
Yes, those calculators do give me a good sense of security. However, it certainly seems like we are quite behind the typical poster on this site. I do enjoy reading all the posts. Again, highly impressive group here.
Remember that a lot of posters here on the site are trying to retire earlier, well before they draw SS or have Medicare, so that makes a big difference.

I would also be comfortable with higher withdrawal rates at 65.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 06-04-2017, 06:10 AM   #11
Thinks s/he gets paid by the post
 
Join Date: Jan 2017
Posts: 1,070
Quote:
Originally Posted by Carol1862 View Post
...it certainly seems like we are quite behind the typical poster on this site. I do enjoy reading all the posts. Again, highly impressive group here.
I was struck by the same feeling. I largely avoid the threads about the finer details on how best to invest one's vast wealth, and stick with the dryer-sheet-recycling crowd.

The big picture is there's no right or wrong. Only what works for you.

Like you, my first goal was to get debt-free. Then it was a simple question of whether I'd rather live the next xx years getting up and going to w*rk every day, in the hopes of retiring in luxury, or retiring on a shoestring while I still had the health to enjoy those years.

One year in, I don't regret my decision yet. I try not to feel TOO inadequate when I read some of the posts here. I just recall people I've known who chose the other path, and died never having had a chance to enjoy the fine homes and yachts they w*rked so hard for.

But I will agree that we have many very smart people here who have managed to achieve some impressive successes in life. It's hard not to learn something here every day.
CaptTom is offline   Reply With Quote
Old 06-04-2017, 08:33 AM   #12
Recycles dryer sheets
 
Join Date: Jun 2017
Posts: 283
Everyone here talks about dryer sheet recycling.. we did buy some wool balls at Home Goods that supposedly do the same thing for a one time purchase of $13.

That being said, I don't like a lot of consumables because you pay money and pollute the earth to (in the case of dryer sheets) add fragrance to your clothes that probably isn't good for you.

Back to the topic - 4% would be fine at your age range but I think the best defence is to be cognizant of a market downturn and reduce spending where you can during.

I would seriously evaluate if it is better to take your retirement (FRA) early vs spend down your savings! If you are taking a 6% discount for life, maybe better to use savings for that year. You might be able to beat the return but not everyone enjoys working the markets and might prefer a defined benefit plan they dont have to worry about.
pj.mask is offline   Reply With Quote
Old 06-04-2017, 08:40 AM   #13
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
Quote:
Originally Posted by Carol1862 View Post
Yes, those calculators do give me a good sense of security. However, it certainly seems like we are quite behind the typical poster on this site. I do enjoy reading all the posts. Again, highly impressive group here.
Never really thought that way but yes it is a"self selected" group who are really into FI and ER. This implies some reasonable portfolio sizes? Don't despair this is very far off the norm.
Danmar is offline   Reply With Quote
Old 06-04-2017, 08:53 AM   #14
Full time employment: Posting here.
UnrealizedPotential's Avatar
 
Join Date: May 2014
Posts: 881
Take me for instance, I am not too far from 500k, and it's not that much compared to most on here. But this is a good group and if you ask questions you will get answers. When I look back in 2014 I only had maybe 150k. But I sold my condo and saved like crazy at the same time and the numbers are getting bigger. A poster a few years ago said that 500k may not be when compounding takes over, but it gives it a serious tailwind. That is what keeps me motivated.
__________________
Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things. Charlie Munger
UnrealizedPotential is offline   Reply With Quote
Old 06-04-2017, 12:41 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 6,797
Send a message via Skype™ to kcowan
As a self-selected group, I think we are overly concerned about planning. I update the plan once a year. Never run FIRECALC anymore.
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 06-04-2017, 02:05 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 21,672
Quote:
Originally Posted by Carol1862 View Post
.....What is minimum we should have? ...
Run your numbers through Firecalc, but I'm thinking around $550,000. After you have your situation input, check out the Investigate tab and the starting portfolio for a given success rate.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 06-05-2017, 08:54 AM   #17
Recycles dryer sheets
 
Join Date: Feb 2017
Posts: 75
Here's an idea. Maybe a couple new forums would be useful ... leanFIRE and fatFIRE, that would cater to the two ends of the ER spectrum. That would give a sense of community for those of relatively limited financial means.
steadystate is offline   Reply With Quote
Old 06-05-2017, 09:38 AM   #18
Recycles dryer sheets
Cassius King's Avatar
 
Join Date: May 2010
Location: Cincinnati
Posts: 271
Comparing oneself to this group is never good. I stopped doing that right after I started here. I have my own plan and life and it is very different than some here.

Just being here and asking questions means you've already done the hard work and are in company with the right crowd.
Cassius King is offline   Reply With Quote
Old 06-05-2017, 09:45 AM   #19
Thinks s/he gets paid by the post
 
Join Date: Jul 2002
Posts: 1,226
Quote:
Originally Posted by JeffInSeattle View Post
Here's an idea. Maybe a couple new forums would be useful ... leanFIRE and fatFIRE, that would cater to the two ends of the ER spectrum. That would give a sense of community for those of relatively limited financial means.
It would be hard to define, and all relative. I retired with young kids in 2000 with just less than a million but a decent pension that just about covered our day to day expenses.

Fast forward 17 years, a little part time work, always living LBYM (in hindsight, maybe a little too much LBYM), got the boys into colleges. FAFSA says my expected family contributions per year is six figures. Fortunately, the boys selected good state schools so the cost will be about half the EFC and no loans.

Staying invested, avoiding significant financial mistakes, controlling cost and desires.....time and compounding are your best friends.
RE2Boys is offline   Reply With Quote
Old 06-05-2017, 09:48 AM   #20
Full time employment: Posting here.
hesperus's Avatar
 
Join Date: Aug 2013
Location: san juan mountains, co
Posts: 750
No matter what your ER status, there's some good advice to be found here from people who know what it takes to get to and maintain FI. I came into a large windfall that allowed me to ER 6 years ago, and was glad I found this forum. Birds of a feather...
__________________

hesperus is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Amazed..... Just a comment. HsiaoChu Hi, I am... 87 03-28-2010 12:57 PM

» Quick Links

 
All times are GMT -6. The time now is 11:31 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.