Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 11-25-2011, 02:11 PM   #21
Recycles dryer sheets
Sandhog's Avatar
 
Join Date: Mar 2011
Location: Brooklyn, NY
Posts: 197
Quote:
Originally Posted by unclemick View Post
33% That's My Story. Dory33's article caused me to to join this forum in the first place.

12% my all time never to be repeated best for one year back in early ER.

I was sooo cheap - I could look in the mirror and blow myself a kiss!

After almost 18 yrs of ER - both FireCalc and ORP say I can loosen up and spend the big bucks cause I'm not getting any younger.

heh heh heh - We need less studies and more articles by people who are 'in' retirement.
+1

I concurred. It's better to live more and spend less. Best things in life are still free. For example, views of sun rise and sun set, majestic mountains and ocean tides, and most importantly hot chicks at the malls on hot summer days.
__________________

__________________
The time to take counsel of your fears is before you make an important battle decision. That’s the time to listen to every fear you can imagine! When you have collected all the facts and fears and made your decision, turn off all your fears and go ahead! – General George S. Patton
Sandhog 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 11-25-2011, 04:13 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 6,331
I do live below my means, when I include my retirement investments that I make during my working years - SS, IRA, Optional Savings plan, and pension contributions. Since I won't be making those when I retire, that should give me quite a nice cushion. They make up something like 30% of my current gross income (WOW!). Adjust for having to pay medical insurance and that moves down to about 25% of my current gross income. So, 75% should be fine, assuming I am careful and prudent.
__________________

__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is online now   Reply With Quote
Old 11-25-2011, 06:42 PM   #23
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 1,905
Top salary about $130K. On the other hand, have been spending about $48- $64K a year for the last 20 years or so. I found that my expenses did not go down much at retirement back in 2002 ( what with the new goat ranch and all) but on the other hand, they did not go up much either. Seems I'm stuck in that expenditure range and I'm quite happy with it - do not intend to change it. And fortunately my nest egg (plus SS) seems to be able to provide that level of expenidtures (at least so far) so for myself, 50% of salary seems to be the right number. But then again, as most of the posters here, I've been expending way below may means so a % of salary doesn't mean much...
__________________
ejman is online now   Reply With Quote
Old 11-25-2011, 07:27 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by arebelspy View Post
While I agree that planning retirement based on income instead of expenses is Stupid, with a capital 's', let me offer a small defense of it, and hopefully everyone won't jump all over me, but recognize it may make a little sense for some people.

It doesn't for most on this forum because we LBOM. MOST people though live AT or even above their means!

If their lifestyle while working is paycheck to paycheck (as it is for the vast majority of Americans these days, from what I understand), their expenses level IS their income level.

So it could make sense to start there and say "Okay, I'll need less in retirement because no commute, etc etc, so 85% of my income" or "I want to do X, Y, and Z, so I need 135% of my income."

Now yes, those authors could still put expenses and have all those LAtYM people put their income, however most of those Americans don't know their expenses!
Your points are all correct.

I think what annoys me is the scare tactics of the financial press and the counterproductive impact they have on the public.

20 years ago the headlines were we are all going to be millionaires because of the savings of our IRAs/401K. I am not sure but I think this lulled a lot of people into thinking that all they needed to do was save $2,000/year in a IRA.

Now days all of the financial press articles are all about how you need to save a zillion dollars. The amount of money to get 135% of your salary in retirement is so large that I suspect that a bunch of people will just say screw it I am going to work till I drop.
__________________
clifp is offline   Reply With Quote
Old 11-25-2011, 07:36 PM   #25
Recycles dryer sheets
JmfromTx's Avatar
 
Join Date: Nov 2010
Location: Houston/Galveston area
Posts: 163
Quote:
Originally Posted by ejman View Post
Top salary about $130K. On the other hand, have been spending about $48- $64K a year for the last 20 years or so. I found that my expenses did not go down much at retirement back in 2002 ( what with the new goat ranch and all) but on the other hand, they did not go up much either. Seems I'm stuck in that expenditure range and I'm quite happy with it - do not intend to change it. And fortunately my nest egg (plus SS) seems to be able to provide that level of expenidtures (at least so far) so for myself, 50% of salary seems to be the right number. But then again, as most of the posters here, I've been expending way below may means so a % of salary doesn't mean much...
You make a very good point. I spend more money now than when I was working and I have a lot less income. Percentage of salary doesn't mean a hill of beans if you don't spend it all every month.
__________________
Retired 3/1/2011
JmfromTx is offline   Reply With Quote
Old 11-25-2011, 08:18 PM   #26
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,100
Quote:
Originally Posted by JmfromTx View Post
You make a very good point. I spend more money now than when I was working and I have a lot less income. Percentage of salary doesn't mean a hill of beans if you don't spend it all every month.
Exactly.

Just coming to the end of our 2nd year of ER and we will have spent ~140% of our pre-ER spending for the second year running. That is still only ~50% of pre-ER income, but we have drawn <3% from our investments each year.

Studies like these based on income are meaningless. It is expenses that matter, and if you can LBYM in retirement, the relation to pre-ER income is irrelevant.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 11-26-2011, 07:15 AM   #27
Recycles dryer sheets
 
Join Date: Apr 2007
Posts: 354
I agree that those X% of salary figures are mostly completely worthless to those of us who live well below our means already. We are currently living very well off of roughly one of our full-time, middle management level salaries and benefits. We are currently saving 40k+ a year in retirement accounts (DH is in the "catchup" phase and I have a good employer match, so that helps a lot), plus another 5-15k/year in college fund contributions for the kids. The remainder goes into other types of savings/investments that will eventually be used to pay off our mortgage. I was playing around with the Fidelity calculators last weekend, which are actually quite similar to FireCalc in how they work, and it looks like we could have DH retire at 58 (in 5 more years) and me at 55 and be fine -- 100% success rate, even if markets perform poorly. I think we would actually have a hard time spending 100% of our current salaries, much less 135%. I would feel WAAAY too guilty spending that kind of money. Unless we won the lottery or something. And even then, I would feel better having a nice nestegg and continuing to live frugally for the most part. A 1-2% SWR sounds great to me.
__________________

__________________
lhamo 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
25% plan to delay retirement until 80 JustCurious Other topics 21 11-17-2011 06:44 PM
Middle-Income Boomers Expect Tough Retirement mickeyd FIRE and Money 27 07-27-2011 08:44 AM
GAO Report on Retirement Income Purron FIRE and Money 5 07-17-2011 03:27 PM
Mid 40's looking for soft retirement in 8yrs, 9 months and 23 days sspribyl Hi, I am... 0 07-17-2011 01:34 PM

 

 
All times are GMT -6. The time now is 09:01 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.