Did Anyone Retire with "Only" .75M$ Saved?

[NW-Bound]

My widow mother lives alone on less than $30K. I do not know the exact number, because I no longer do taxes for her, and my brother has taken over. However, she owns a home worth $300K, and has no debt. She just paid $15K cash for a 1-year-old car from Hertz sales. The home is her largest asset, and she never had anywhere close to $750K in investable assets.

However, my parents did not retire early, and both had small pensions in addition to their SS.

 

[badatmath]

I didn't take it as "only" meaning no SS, but "only" as compared to some of the financial gurus that act like we all need 10MM. Which is not going to happen.

 

[RobbieB]

Of course not. If you have 10 mill you are a 1%'er

Just 1 per hundred in that club.

 

[Calico]

My base expenses are around $15k. $30k I would need to blow that dough.

My expenses now (pre-retirement) are $16,800. Post-retirement they will be $22,800.

 

[NW-Bound]

I didn't take it as "only" meaning no SS, but "only" as compared to some of the financial gurus that act like we all need 10MM. Which is not going to happen.

Hey, I do not know if you are really bad at math as you humbly proclaim, but I know you are not bad at English.

 

[Katsmeow]

My widow mother lives alone on less than $30K. I do not know the exact number, because I no longer do taxes for her, and my brother has taken over. However, she owns a home worth $300K, and has no debt. She just paid $15K cash for a 1-year-old car from Hertz sales. The home is her largest asset, and she never had anywhere close to $750K in investable assets.

However, my parents did not retire early, and both had small pensions in addition to their SS.

My mother died at 94. In the year before her death I think her income was about $22k including SS which was the bulk of it. She had a couple of small pensions (I am talking about $3k a year). She had a small IRA which was not invested in equities. She did own her house and had no debt.

In the 10 years before her death she saved about $50k from that income. She spent money whenever she wanted to spend money. She had someone do her yard work and the last few years had someone help her with house cleaning.

The thing is that she just didn't have a lot of things she wanted to spend money on. Much of what I would consider necessary she knew nothing about except in the vaguest sense. She didn't have internet, she didn't have a smartphone. She didn't have cable TV. She didn't want to travel and didn't like to go out except rarely. This might not sound like an exciting life, but it was the life she wanted.

Again - to be clear -- it wasn't that she didn't spend money because she didn't have a high income. She saved $5k a year on average on that income. She just didn't have a lot of things she wanted to spend money on.

 

[googily]

Union?

Not who you were asking, but I have a (frozen) pension from a media company (not a sector mentioned previously in the sorts of places that would have pensions.) I actually have two frozen pensions from them, because I have been both a union-covered and an exempt employee. And I am already receiving DH's two frozen pensions from the same place. Then there's the cash balance account they set up when they froze pensions, and a second cash balance account they set up when they slashed the 401k match way back....

So, from one company, I'll be getting six monthly payments. (!)

Non-COLA, so not the huge numbers other people report, but that and social security (taken at 70, since I'll start survivor benefits at 60) will be a pretty good monthly income.

 

[EA-Sports]

After reading 200+ replies I’m wondering if I was the only who at first glance read the title as retiring with $75M not $0.75M lol...I need my glasses..carry on...

 

[COZICAN]

After reading 200+ replies I’m wondering if I was the only who at first glance read the title as retiring with $75M not $0.75M lol...I need my glasses..carry on...

You're it

 

[googily]

After reading 200+ replies I’m wondering if I was the only who at first glance read the title as retiring with $75M not $0.75M lol...I need my glasses..carry on...

Me! Me! In Tapatalk there's a line break after the . , so it truly looked like $75M. I couldn't believe the restraint of everyone in the thread to not say anything!

 

[RunningBum]

I didn't take it as "only" meaning no SS, but "only" as compared to some of the financial gurus that act like we all need 10MM. Which is not going to happen.

Can you point to a financial guru who "acts like: we need $10million? I've never seen one, unless it was in response to someone who wants to spending something like $400K/yr.

 

[RunningBum]

I see LBYM and my mind immediately translates it to "Living Beyond Your Means" even though I know people are saying "below your means."

You're not alone, I translate it the same way much of the time.

 

[SpinDoctorTX]

So as a couple you are living on less than 35k a year?

Yes, and happily. We've lived well below our means since being married in 2002. Both of us had suffered the horror of a spendthrift ex spouse. We've had no debt since 2002, after paying dearly just to get rid of our exes. I think that is the most important thing. Once folks are free of that, the pressure lifts. & potential plans can be managed/ tweaked.

By maxing out 401ks/ IRAs + doubling down on saving/ investing in general, DH retired at 8/2009 at 62 & I did in 2016 at 56. Both had already travelled for biz/ vaca to quite a few places, so if we never go anywhere outside of the USA, it's all good. I also have a small pension which overpays my 50/50 retiree HI. I'll be 59 next mo, so it is my bridge to Medicare.

Next week we are going to Seattle & Vancouver- staying at AirBnBs in WA & Can. I budgeted 2.5 K and I think we'll come in under that (but there is wiggle room). No scrimping required.

 

[Dtail]

Yes, and happily. We've lived well below our means since being married in 2002. Both of us had suffered the horror of a spendthrift ex spouse. We've had no debt since 2002, after paying dearly just to get rid of our exes. I think that is the most important thing. Once folks are free of that, the pressure lifts. & potential plans can be managed/ tweaked.

By maxing out 401ks/ IRAs + doubling down on saving/ investing in general, DH retired at 8/2009 at 62 & I did in 2016 at 56. Both had already travelled for biz/ vaca to quite a few places, so if we never go anywhere outside of the USA, it's all good. I also have a small pension which overpays my 50/50 retiree HI. I'll be 59 next mo, so it is my bridge to Medicare.

Next week we are going to Seattle & Vancouver- staying at AirBnBs in WA & Can. I budgeted 2.5 K and I think we'll come in under that (but there is wiggle room). No scrimping required.

Nice to hear. I am always impressed with these spending levels connected still with a happy life.
It is not our style, but nevertheless interesting to read about.

 

[Vacation4us]

What always confuses me are we talking about before or after tax spending.

For example, I make about 120k a year, but after fully funding 401 k and taxes my take home pay is about 5k/month. Of that 5 k, my house payment alone is 2.5 k. So theoretically if the house was paid off I should be able to keep my life style as is and make it on 30k.

I am assuming my income would have to be at least 40k before taxes assuming all funds are taxable.

So when people discuss what they need or spend are we talking before or after taxes?

 

[W2R]

What always confuses me are we talking about before or after tax spending.

For example, I make about 120k a year, but after fully funding 401 k and taxes my take home pay is about 5k/month. Of that 5 k, my house payment alone is 2.5 k. So theoretically if the house was paid off I should be able to keep my life style as is and make it on 30k.

I am assuming my income would have to be at least 40k before taxes assuming all funds are taxable.

So when people discuss what they need or spend are we talking before or after taxes?

I think that generally when people talk about spending here, they include income taxes. Or, if taxes are not included for some reason, they specifically say that because otherwise it might be assumed that the spending total includes taxes.

Usually income taxes for retirees are a lot less than they are when working, though.

 

[Dtail]

What always confuses me are we talking about before or after tax spending.

For example, I make about 120k a year, but after fully funding 401 k and taxes my take home pay is about 5k/month. Of that 5 k, my house payment alone is 2.5 k. So theoretically if the house was paid off I should be able to keep my life style as is and make it on 30k.

I am assuming my income would have to be at least 40k before taxes assuming all funds are taxable.

So when people discuss what they need or spend are we talking before or after taxes?

Most retirees see taxes as another expense and include it in their spending levels stated.
Firecalc and some other calculators also expect you to include taxes as part of your spending.

 

[daylatedollarshort]

Can you point to a financial guru who "acts like: we need $10million? I've never seen one, unless it was in response to someone who wants to spending something like $400K/yr.

Suze Orman says $5M.

 

[CardsFan]

What always confuses me are we talking about before or after tax spending.

For example, I make about 120k a year, but after fully funding 401 k and taxes my take home pay is about 5k/month. Of that 5 k, my house payment alone is 2.5 k. So theoretically if the house was paid off I should be able to keep my life style as is and make it on 30k.

I am assuming my income would have to be at least 40k before taxes assuming all funds are taxable.

So when people discuss what they need or spend are we talking before or after taxes?

I think that generally when people talk about spending here, they include income taxes. Or, if taxes are not included for some reason, they specifically say that because otherwise it might be assumed that the spending total includes taxes.

Usually income taxes for retirees are a lot less than they are when working, though.

I think W2R is correct for most retirees.

I suspect most folks still working tend to to report after tax spending. This can make sense, as pointed out by Vacation4us, when the taxes paid are out of proportion for the spend.

I know I did this pre-retirement and made allowances for taxes (and HI) to calculate my expected spending in retirement.

 

[NW-Bound]

Suze Orman says $5M.

... although in her defense, someone said that she meant that number for early retirees in their 30s or 40s, who have children to support and are a long way to SS and Medicare.

 

[IrishMoss]

When I calculate my spending needs I'm only counting actual spend, not taxes. My taxable income is low and I'm keeping it low on purpose, withdrawing more from after-tax accounts. If I play it right this year I may not have to pay any income taxes come April.

 

[Major Tom]

From past postings, it sounds like there are a few although not too many on this site who live on 30k.

Yes, there do seem to be quite a few. I have been in a sub-category of that, having lived on 17K for the last 9 years, increasing to 18K a couple of years ago. I'm about to blow it out of the water though, after the very recent purchase of an older class B motorhome. My annual spend could go as high as 30K, though I'm going to try to keep it to a few k under that.

If I ever move into the RV, I can get my spend down to about 24K, I think. Not as good as the previous level of 18K, but still not bad.

 

[RunningBum]

Suze Orman says $5M.

I think of her as an entertainer or self-promoter, not a guru. But I guess she's got enough followers to be called a guru. I tune out anything she says, so I wouldn't know what amount she says. And that's only half, btw.

 

[IrishMoss]

It all comes down to expected yearly expenses. Everything else is calculated based off of that, including what size nest egg a person needs to amass.

 

[SpinDoctorTX]

Nice to hear. I am always impressed with these spending levels connected still with a happy life.
It is not our style, but nevertheless interesting to read about.

It helps that we mostly hang out with likeminded people. We take turns having other couples over for dinner, dessert & games. Our income was so low last year that we got every penny back! We were spending $ from our liquid accounts, and took 3 vacations plus had some medical expenses on DH's prostate cancer. This year will be much the same.