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

[blueskyk]

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

We did too. Had about $750K in Investment assets, no debt, paid off house. But, we also have pensions (with survivability) coming at 65 (next year) plus decent SS (DH took his at 62, I’m waiting longer). These other income streams (about $7K/mo) leave us with sufficient spend for our lifestyle without having to use investment proceeds. We also have really good LTC insurance.

The key for us? We have a budget we agree upon and abide by so we knew what we needed going forward.

 

[aja8888]

We retired with $600k but through some probably risky investing the past three years we are now at $975k, and that is after spending ~45k a year. Hope to be at $1.5m in a couple more years.

Nice job with the funds growth!

 

[NW-Bound]

"Risky investing"?

If it could only go up, it would be called "risk-free".

 

[razztazz]

I had a small pension plus my own investments which together added up to less than $700,000. Maybe even closer to $600,000. I had former employer medical insurance though. That would be hard to retro-monetize to impute a market value to. All tolled probably between $750,000 and a mil

 

[aaronc879]

If the question is would I retire with "only" $750,000 in investments the answer is absolutely yes. I would retire tomorrow(age 39) if I suddenly had that much money laying around. If the question is "should you" retire then there's not enough info. Anyone CAN retire on that amount of money in fact a large majority of people DO retire on less than that. That does not mean it's right for you.

 

[bushpilot]

I am retiring at 55 in 3 weeks with less than that, and a pension of $113/month. We have very low COL, house paid for, etc. All the tools (firecalc, i-orp, Retirement Planner, Schwab Retirement Assesment, Quicken Lifetime Planner, etc.) suggest it will work with conservative estimates.

I will however plan for a little more part-time work, along the lines of $5-10k per year, for about 5 more years.

 

[bada bing]

My younger (55yo) brother and his wife both retired last week and they have just
about $750K in investments. They live in Juneau, Alaska which is a HCOL. The picture
is probably different than what you are posting though in that they both get immediate
state COLA'd pensions ($60k & $20K) and full retiree medical.

They'll do fine. If all they had was the nest egg - not so much. At least not in Juneau
with a couple winter vacations per year like they do now.

 

[IrishMoss]

Since a pension is guaranteed income, it really should be counted along with whatever lump sum nest egg. When people are posting "yes I retired with only $500K to my name" (extreme example), they often are not including their $500K+ pension in that number and are not including the SS they'll get over time, which may also amount to another $350K or more. In essence a lot of people are retiring with nest eggs well over $1MM and many approaching $1.6MM or more to start with.

 

[razztazz]

Since a pension is guaranteed income, it really should be counted along with whatever lump sum nest egg. When people are posting "yes I retired with only $500K to my name" (extreme example), they often are not including their $500K+ pension in that number and are not including the SS they'll get over time, which may also amount to another $350K or more. In essence a lot of people are retiring with nest eggs well over $1MM and many approaching $1.6MM or more to start with.

Bingo! Thanks for mentioning that. I almost did but... eh, had second thoughts. That's why I was careful to put all my chips on the table including the amorphous medical insurance. I left off any SS because I stopped working before I was 40 and had no idea what SS would be or how it would impact my later years. Yes, that will be like inheriting a couple hundred thousand if I take it at age 62

 

[IrishMoss]

I left off any SS because I stopped working before I was 40 and had no idea what SS would be or how it would impact my later years. Yes, that will be like inheriting a couple hundred thousand if I take it at age 62

You can get your estimate at SSA.gov. If you've worked at least 10 years you'll have enough credits to get something when the time comes. Even if it's not that much, it's still good to know because it all adds up and you should count it.

 

[Helena]

.

I retired early on much less than that. But I'm single and prefer to live modestly but comfortably in a less expensive part of the country.

.

 

[Katsmeow]

Of course, people retire with less a million. Most people retire with less than a million. Whether you can depends as others have said on a lot of factors. I read your original post about jut turning 60 and being ready to retire (posted last August) so I guess you are soon to turn 61.

For the benefit of others she said the following: they had $725k in invested assets (401k). They have a paid off home worth $225k.

They currently on about $2400 a month. At 68 she will get $2200 SS and husband will get $1800.

She is comparing herself to her mom who has much less money, but is 85.

OK. You have a net worth of close to $1 million. No, you can't invest the house but you don't have to pay a mortgage or rent. It is part of your net worth.

If you live on $2400 a month (does that include income taxes and all expenses) then your total expenses are under $29k.

Things to consider:

1. If you each wait until 68 to take SS you will have to spend part of that $750k on living expenses at for at least the next 7 years and possibly longer.

2. Expenses can change. Health insurance is the main concern. I know your DH plans to work for health insurance but for how long? And what if he loses that job? Until I went on Medicare I was paying over $1100 a month for health insurance for just me (DH was already on Medicare). DH's former employer was subsidizing part of that but it was still a lot of money. You have only 4 years to Medicare, your husband has a lot more time.

3. Other expenses can go up. I understand about your mom. Mine was that way too. Before she died last year she had an income of about $20 to $21k a year. She was saving money on that. But, like your mom, she stayed home a lot. She had a small home. She didn't have all the modern conveniences (no internet, etc.). They may or may not end up being true for you. Even if it is, you and your DH probably won't slow down for another 20 years or so unless you have ill health (which will probably increase costs). Remember you may at some point need to hire out some things you now do for yourself. DH still mows our yard but there will come a time that we need to hire someone.

4. You are considering moving from Vermont to somewhere cheaper to live. You need to look very carefully at where you want to move. There are not of places where you can buy a good home for $225k. Also remember some places with lower or no income tax or places that have higher property taxes.

 

[EarlyBirdly]

Can you retire with less than 1m ?

Can most people wear a size 12 shoe? Yes, most people can. However, for many the fit will not be comfortable.

Million-Schmillion - Just another number. One size does not fit all.

I'm sure we ALL have those friends and relatives that have a much larger income yet, they live no better or worse than we do. Or conversely, they have a much lower income and still live just as comfortably as others. How is that?

It's all about how one handles finances.

I have a friend who has made more in the last 10 years than I have in my entire working Life. He has been through a self inflicted Bankruptcy, is approx. the same age, has a small pension....And NOTHING in retirement savings to speak of. He is still working until he can collect S.S. and get a Reverse Mortgage.

He could not retire on 1m (or even 2m) as it would be p!ssed away in short order.

So, "YES" with your sensibility regarding finance ( paid off house, etc.) you should be fine.

As someone previously stated, run YOUR numbers and if YOU feel confident then YOU are good to go....Key Word " YOU". No one else's numbers matter. You wouldn't try to wear their shoes so, why worry about their financials?

1m is just a made up number to keep you in the Harness and producing for the Financial Industry ( among others ) as long as possible.

Good Luck, Have Fun, and Welcome.

 

[pb4uski]

It all depends on what you need to live on, whether or not you have a defined benefit pension, how much your SS is, etc. That said, Burlington is not a low cost of living area.

What does FIRECalc say?

 

[ckelly78z]

The $750,000 number is about where I will be at 64, but also with a 30 year $1500 pension, and the DW, and I will both have a full SS payments. No debt, living in rural Ohio, driving used cars, do camping alot, and have a big garden...I don't see a problem because my parents are living on less, and doing wonderfully.

 

[ponyboy]

I hope this thread was a joke. I would say 90% of people in the united states retire on much less than $750k. People that post/contribute to financial forums are not the norm. We are a small group who are #woke when it comes to finances.

 

[flintnational]

OP, here is an article in the Atlanta paper by Wes Moss. He is a local fee only financial planner. In the article he suggests that $500k is a ballpark lower end retirement number.

"According to my research, with just a half-a-million-dollar nest egg, you can live a happy and financially secure retirement. While everyone’s financial retirement income needs vary, this number can work for retirees who carry little debt and who don’t live an extravagant lifestyle. "

 

[jim584672]

I'm in the pauper bracket of under a million when I started. Paid off housing and car, low MAGI for ACA, I don't feel like I'm suffering with some possum living lifestyle.

 

[Gumby]

Well, I just retired two weeks ago. The young wife is retiring this coming Monday. No way in hell would we have pulled the plug with only $750k in our portfolio (and that's with $100k in pension/social security income + retiree health care + a paid off house). But that's just us.

You need to evaluate your own situation and decide. Here is a list of questions to think about when you are pondering how much is enough. http://www.early-retirement.org/for...-answer-before-asking-can-i-retire-69999.html Tl:dr -- how much will you need to spend out of your portfolio every year?

Good luck with your planning.

 

[FANOFJESUS]

My mom retired on $1500 / mo social security and $30k in the bank. And she seems very happy.

People do that everyday. The media just does not write the stories about them. Do the companies just want them at the salt mine. It makes me wonder?

 

[Andre1969]

For some of us, the number ( went down, the older we got and the fuller the BS bucket got!

I could see that happening. And, I've had a few close calls here and there, where I was tempted!


In my case, I think the number going up has more to do with simply having more experience, and a better handle on what things cost. Plus, inflation. When I originally got serious about retirement goals, I figured that if I got to $1M in investible assets, and mortgage free, I'd be comfortable retiring. But, that was when I was 30, back in 2000. Adjusting for inflation, that would be like roughly $1.5M and no mortgage today. And, I do have a feeling, that if I was at $2.0M and no mortgage, I'd be comfortable retiring...or at least, willing to take the leap, and get comfortable with it later!

 

[youbet]

Anybody do it with less than a mill?

When folks ask about the size of a FIRE portfolio required to comfortably retire, it implies that the FIRE portfolio will be the main source of retirement spending funds. If it's not, why ask the question?

Pensions and other retirement benefits (such as retiree health plans), SS, spouses continuing to work, part time work or hobby-work, investing/financial management skills and willingness to spend some time at it, other assets (home, vacation home, corvette collection, etc.) are sometimes significant contributing factors.

For example, a DINK couple retiring from high level, long time employment with the Fed gov't and with reasonable expenses can easily retire with NO savings other than perhaps a decent emergency fund.

Asking if $0.75 MM is enough to retire on is meaningless...........

 

[ckelly78z]

The $750K is one aspect of my portfolio, while a $1500 pension could be considered an additional $540K, and the dual SS that my wife and I will get starting at 64 will be an another $792K. This will probably be supplemented by my shop fiddling with restoring cars, and tractors....i'm not too worried.

 

[Spanky]

We retired with $600k but through some probably risky investing the past three years we are now at $975k, and that is after spending ~45k a year. Hope to be at $1.5m in a couple more years.

it's pretty aggressive - 50% return in 2 years

 

[razztazz]

You can get your estimate at SSA.gov. If you've worked at least 10 years you'll have enough credits to get something when the time comes. Even if it's not that much, it's still good to know because it all adds up and you should count it.

I meant as of age 38. Today, yes-in-deedilly, I know exactly what it's gonna be!
Back when I retired the internet was brand new. You couldn't really access that kind of data easily. And at 38, 62, 65, 60-whatever was like 100 yrs in the future. SS was sort of a meaningless number and would not have impacted my retirement then anyway.