Newbie Hope to Retire Early

[nivek]

Hi there. I'm new here. I used to read one of the other early retirement forums. I like the look of this one and there seems to be lots of smart folks here with good insight.

I hope to learn a lot from you all. We're close to retiring early. We're debt-free and have a good bit set aside but at a very healthy 44 / 46, we've got a long life to plan for. How much is enough, especially when I see the storm clouds on the horizon and wonder if the dollar is going to be worth much in the future? :::: a bit rhetorical, but I ask myself it all the time ::::


- nivek

 

[Ally]

Hi and welcome! I haven't been here that long myself and have already learned so much. There are some really smart people here.

 

[DFA]

Welcome, there is a lot to learn from the people here.

 

[Midpack]

Hi there. I'm new here. I used to read one of the other early retirement forums. I like the look of this one and there seems to be lots of smart folks here with good insight.

I hope to learn a lot from you all. We're close to retiring early. We're debt-free and have a good bit set aside but at a very healthy 44 / 46, we've got a long life to plan for. How much is enough, especially when I see the storm clouds on the horizon and wonder if the dollar is going to be worth much in the future? :::: a bit rhetorical, but I ask myself it all the time ::::


- nivek

Welcome aboard, I agree this is a great forum after several years participating.

We can't really tell you how much is enough, but most would suggest you start here FIRECalc: A different kind of retirement calculator. You can make it as simple (1st tab/page) only or more complex (additional tabs). Very good place to start...

 

[Milton]

Welcome aboard.

We're debt-free and have a good bit set aside but at a very healthy 44 / 46, we've got a long life to plan for. How much is enough

You can use various calculators to obtain generic answers to this question; but the honest answer is "it depends".


One big factor - which is entirely within your control - is what activities you foresee doing in retirement. Obviously, a person with a lavish lifestyle needs more than someone who is content to live very modestly.

• Do you want to maintain a cottage or other vacation property?
• Do you plan to do a lot of travelling, or do you like to stay close to home?
• Do you prefer to stay in your large house in The Big Smoke, or are your prepared to downsize to a rented apartment in a small city?
• Do you enjoy expensive hobbies like yachting and golfing, or do you like reading and vounteering?
• Do you need multiple vehicles? Are you okay with doing without any vehicle?
• Etc. etc.

I see the storm clouds on the horizon and wonder if the dollar is going to be worth much in the future?

There are plenty of signs that the greenback's value will continue to decline; but no one really knows for sure what the future holds. There are several ways that you can hedge against further declines.

 

[Sandhog]

Yes, there are lots of smart folks like Milton on this forum but I'm not one of them. I ask myself the same question day after day; how much do I really need in the retirement? What if we have inflation like in the late 70s and early 80s after I retired? That's why I come to this forums to read smart folks whom are living in FIRE.

Welcome aboard.

You can use various calculators to obtain generic answers to this question; but the honest answer is "it depends".


One big factor - which is entirely within your control - is what activities you foresee doing in retirement. Obviously, a person with a lavish lifestyle needs more than someone who is content to live very modestly.

• Do you want to maintain a cottage or other vacation property?
• Do you plan to do a lot of travelling, or do you like to stay close to home?
• Do you prefer to stay in your large house in The Big Smoke, or are your prepared to downsize to a rented apartment in a small city?
• Do you enjoy expensive hobbies like yachting and golfing, or do you like reading and vounteering?
• Do you need multiple vehicles? Are you okay with doing without any vehicle?
• Etc. etc.

There are plenty of signs that the greenback's value will continue to decline; but no one really knows for sure what the future holds. There are several ways that you can hedge against further declines.

 

[Rustic23]

How much is enough? Well, tell me 'How long is a piece of string?'. You see both questions depend on something else we don't know.

I'm not sure anyone can answer that question for you. What is enough for me, might not be enough for you. Is 'enough' provided by a cola'd pension? Is it stock and bonds only? Will you downsize in retirement? Are medical cost covered? Lots of travel in the future? What are your spending requirements in retirement? Will you have to take care of relatives? And, about a zillion other questions.

So while a $100,000 in savings may be fine with me, I would guess you would be horrified at that sum. When we retired, my calculations indicated we would have between two and three times our everyday annual living expenses in income. This, with enough money in the bank for five years of assisted living expense, lets us sleep well at night. Have I covered everything? Most likely not, but I think the major bases are covered.

I will also admit that the first year was the 'most nervous'. As each year of retirement has gone by, I have become more and more comfortable.