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

[aja8888]

It it wasn't for one's and zero's, we wouldn't be posting here today.

 

[jimbee]

Far from it. All numbers are "real", including complex numbers with their so-called imaginary part.

I did use a smiley.

 

[Nemo2]

I'm probably the most non-mathematical individual that has ever walked the earth, but I'm currently reading a book that, (in one chapter at least), discusses Gematria - very interesting.....DW (who is mathematically inclined) will probably clarify things for me when she gets to read it.

 

[IrishMoss]

I used this calculator and it came out much higher than opensocialsecurity for me, maybe different duration? I used 30 years for DW (start at 62) and 25 yrs for me (start at 67).

Same for me. I'm taking the lower number opensocialsecurity calculated and using that just to be safe/conservative.

 

[CardsFan]

To get back to the OP's question: While we did not retire on $750k (plus SS), I have come to the realization that we COULD have.

At retirement 3.5 years ago (at age 60), our after tax investment account was under $700k. We have lived off of that account since (about $75k per year), and it is now over $700k. We have been doing Roth conversions in that time, but that is beside the point. When we take SS in 2-3 years, our needed withdrawal will be less than our current int/div/cap gains from this account.

Now, SOR could have gone the other way, and it would be a little tougher, but probably still sustainable, with some adjustments.

For all intents and purposes our IRA's will be passed forward to our DS, which is why we are Roth converting, and we will probably reinvest in the after tax account when RMD's hit.

FWIW, our sales in the after tax account are from bond funds that are around par, so they create no taxes.

 

[ejman]

To get back to the OP's question: While we did not retire on $750k (plus SS), I have come to the realization that we COULD have.

At retirement 3.5 years ago (at age 60), our after tax investment account was under $700k. We have lived off of that account since (about $75k per year), and it is now over $700k. We have been doing Roth conversions in that time, but that is beside the point. When we take SS in 2-3 years, our needed withdrawal will be less than our current int/div/cap gains from this account.

Now, SOR could have gone the other way, and it would be a little tougher, but probably still sustainable, with some adjustments.

For all intents and purposes our IRA's will be passed forward to our DS, which is why we are Roth converting, and we will probably reinvest in the after tax account when RMD's hit.

FWIW, our sales in the after tax account are from bond funds that are around par, so they create no taxes.

I was shocked to find a similar situation. We've been retired for 17 years and our taxable funds at retirement were in the order of $700K. We had additional 401K and IRA funds then but the fact is that we haven't tapped those until this year when forced by RMD's.



Took SS at 62 ( both myself and wife) currently 69 & 70. Small non cola pension of $4k a year started at age 65. Had no debts at retirement owned house, cars. Surprisingly, last I checked we still have about $700 k in our taxable account. (The 401K and IRA's have of course grown substantially). I know the $700k now are not the same as the $700 k 17 years ago on account of inflation but still...


And another puzzling thing is that even tough our standard of living feels about the same over time our expenses have not really gone up that much with inflation. We are still spending about the same on average as we did back then maybe crazy substitution going on I dunno.

 

[NW-Bound]

... another puzzling thing is that even tough our standard of living feels about the same over time our expenses have not really gone up that much with inflation. We are still spending about the same on average as we did back then maybe crazy substitution going on I dunno.

I believe there's a lot of that going on without people realizing. For example, I like to expand my culinary horizon, and learn to cook different dishes that do not require expensive ingredients. In fact, the late Anthony Bourdain said that steakhouses were just heat-and-serve restaurants, while it took more skills and know-hows to turn lesser cuts of meat into tasty dishes.

And I stop caring that much about fancy booze, of which I still have many bottles in my cabinet. I stopped buying CDs and DVDs long ago, because I ran out of shelves for them. Now, I just borrow books and movies from the library.

Individually, these items do not amount to much, but with time you spend less and less on nearly everything, and they add up.

 

[bigcmagor]

I was shocked to find a similar situation. We've been retired for 17 years and our taxable funds at retirement were in the order of $700K. We had additional 401K and IRA funds then but the fact is that we haven't tapped those until this year when forced by RMD's.



Took SS at 62 ( both myself and wife) currently 69 & 70. Small non cola pension of $4k a year started at age 65. Had no debts at retirement owned house, cars. Surprisingly, last I checked we still have about $700 k in our taxable account. (The 401K and IRA's have of course grown substantially). I know the $700k now are not the same as the $700 k 17 years ago on account of inflation but still...


And another puzzling thing is that even tough our standard of living feels about the same over time our expenses have not really gone up that much with inflation. We are still spending about the same on average as we did back then maybe crazy substitution going on I dunno.

These are the types of stories that give hope to those who wonder whether they have enough. Thanks to both of you for sharing.

 

[ejman]

I believe there's a lot of that going on without people realizing. For example, I like to expand my culinary horizon, and learn to cook different dishes that do not require expensive ingredients. In fact, the late Anthony Bourdain said that steakhouses are just heat-and-serve restaurants, while it took more skills and know-hows to turn lesser cuts of meat into tasty dishes.

And I stop caring that much about fancy booze, of which I still have many bottles in my cabinet. I stopped buying CDs and DVDs long ago, because I ran out of shelves for them. Now, I just borrow books and movies from the library.

Yes, You most definitely have a point. I have about 3,000 LP's (Vinyls in current terminology) I have only added maybe 40-50 over the last several years, My stereo equipment collection has not changed for a few years now as I am completely pleased with what I have. Wife has really taken up gardening as a hobby and I find a lot of our produce comes from her efforts.



My hobbies now are hiking, listening to music, learning to play the keyboard, reading and enjoying grand kids (not necessarily in that order) so yes, you be right. Oh, and the booze. I've discovered a couple of box wines that seem to perfectly compliment my doctors side comment that a glass of wine now and then wouldn't hurt me.

 

[NW-Bound]

I think that when you get older, you become less demanding and are easier to please.

Many things matter less and less. To tell the truth, I read the "blow dough" thread and do not find much that interests me. FIRECalc tells me I could double my spending, but I would not find happiness in it, so I don't do it.

Darn, I am only 62. But my attitude is that of an octogenarian, compared to people here. Not sure if this is good.

 

[CardsFan]

I think that when you get older, you become less demanding and are easier to please.

Many things matter less and less. To tell the truth, I read the "blow dough" thread and do not find much that interests me. FIRECalc tells me I could double my spending, but I would not find happiness in it, so I don't do it.

Darn, I am only 62. But my attitude is that of an octogenarian, compared to people here. Not sure if this is good.

We are a couple of years older, but your words ring true. I think part of it is, if you have LBYM for most of your life, you don't have expensive wants and desires. We pretty much buy and do what ever we want, but we don't WANT too many expensive things. (OK, we ARE going to snowbird next February, so that is a splurge). We look forward to camping with friends, free concerts on Main Street, lunch out once in a while, impromptu meet ups with friends, etc.

Life is good, and really not that expensive.

 

[IrishMoss]

Yes, it's amazing how investments in a long bull run market will increase over the years of that bull. It matters not whether your money is in taxable or 401K or Roth, if you have money and that money is invested for a long time, it tends to grow even when you're not watching it closely.

The good news is it all counts as part of your nest egg. And then the magic of a pension and/or SS will eventually kick in and whaddya know, you've got even more money to do what you want to do.

 

[SoReadyToRetire]

I planned for ER without knowing what our SS was going to be. It's because I kept reading about it not being around, and that it would not be much anyway.

NW-Bound, this is exactly why I don't do much calculating that includes SS. I like to consider it "gravy" and try to ensure we have enough excluding that.

If you know you can make it without SS, then surely you can make it with!

 

[Dtail]

NW-Bound, this is exactly why I don't do much calculating that includes SS. I like to consider it "gravy" and try to ensure we have enough excluding that.

If you know you can make it without SS, then surely you can make it with!

Our failure rate in Firecalc is fairly high without including SS.
My DGF is already receiving it (SSDI) and I expect to receive it too.

 

[IrishMoss]

I am depending on SS benefits to provide me with a level of financial certainty needed to maintain a comfortable retirement hopefully >35 yrs. I'm 9 yrs away from FRA (full retirement age), I worked more than 35 years, and I expect to receive SS, so it's a part of my plan.

 

[Tiger8693]

I am depending on SS benefits to provide me with a level of financial certainty needed to maintain a comfortable retirement hopefully >35 yrs. I'm 9 yrs away from FRA (full retirement age), I worked more than 35 years, and I expect to receive SS, so it's a part of my plan.

Ditto for me, except 10 years to FRA.... SS is, and has always been a part of my plan, and at max contributions for 20 years or more, a larger part.

 

[BuysToys]

Thanks..so, 70+% have a pension..and 60+% say it has an impact on their ability to retire.

I'd love to know where all of these pensions are coming from. What companies are still doing pensions (and, can I apply )? Or is the 60-70+% all .GOV, Teachers and Auto workers?

A lot of the construction trades have pensions. That's where my DH's comes from.

 

[NW-Bound]

Ditto for me, except 10 years to FRA.... SS is, and has always been a part of my plan, and at max contributions for 20 years or more, a larger part.

My wife stopped work at 50 and myself at 55, and FRA seemed so far away. And with the help of the bull market, I managed to grow my stash to be able to live on it without SS. And that's why I did not bother to figure out how much it would be.

Same as you, I topped out SS contributions for quite a few years. When I finally figured out our SS benefits, I discovered that if we delayed both of ours until 70, we would be able to live very well on it alone, assuming no benefit cuts due to short funding. We however started my wife's at 62, because hers is smaller and that strategy is recommended for a couple.

I would not recommend not counting SS. It was just oversight on my part, but it works out well for us because we are LBYM even in retirement.

I suspect many posters here are in the same boat. The complaint about RMD is quite common in these parts, because people have been hoarding money and not been "blowing it". Maybe the government will figure out that we do not need that money all that bad, and will levy more taxes to take it away.

 

[joeea]

A lot of the construction trades have pensions. That's where my DH's comes from.

Union?

 

[IrishMoss]

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

==> Relating back to the original post of retiring 'only' on $750K. A 4% withdrawal per year would be $30K/year to start, then adjusted for inflation in subsequent years. If you had nothing else (no other savings, no other investments, no pension, no inheritance, no SS, no earned income), approximately $30K is what you'd need to live on if you needed that $750K to cover a full retirement horizon of 25 to 30 years.

Yes, there are people who live on $30K/year. I don't personally know anyone, but yes they do exist.

 

[COZICAN]

I would assume that someone who has managed to save 750K had a job and will have SSI.

 

[Gumby]

I would assume that someone who has managed to save 750K had a job and will have SSI.

Probably true in most cases, but there are certain jobs that do not participate in the Social Security system (e.g. - public school teachers in Connecticut).

 

[NW-Bound]

Probably true in most cases, but there are certain jobs that do not participate in the Social Security system (e.g. - public school teachers in Connecticut).

... and these jobs have even better pensions.

 

[Dtail]

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

==> Relating back to the original post of retiring 'only' on $750K. A 4% withdrawal per year would be $30K/year to start, then adjusted for inflation in subsequent years. If you had nothing else (no other savings, no other investments, no pension, no inheritance, no SS, no earned income), approximately $30K is what you'd need to live on if you needed that $750K to cover a full retirement horizon of 25 to 30 years.

Yes, there are people who live on $30K/year. I don't personally know anyone, but yes they do exist.

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

 

[jim584672]

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

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