How much is enough?

novaman · 06-09-2007, 07:07 AM

I know that a lot depends on your individual lifestyles, but I'm curious to see how much everyone is targeting for FIRE.

cute fuzzy bunny · 06-09-2007, 07:19 AM

Depends on the lifestyle, spending budget and term of retirement.

You might get something a bit more useful by going with ratios...like 25x annual budget.

A million might be good for someone that spends 30k and spends most of their time at the park reading library books. For someone that spends 80k a year eating out all the time and travelling....not so much.

maddythebeagle · 06-09-2007, 07:32 AM

I need 20-30 million....I should have it in 2-3 months...

unclemick · 06-09-2007, 09:12 AM

Yep - check me off for the 25 times expenses/expected budget camp.

heh heh heh - lot of devil in those pesky details

.

old woman · 06-09-2007, 04:37 PM

A million would be huge to me. Right now I gross 50K but save 20K so 4% of a million would be more than I spend now by 1/3rd and after I get SS in 3 years my spending money would be twice what it is now.
Besides I have a roommate where many people are supporting more than one person even in retirement. If I had to support a child or spouse I would need more but a single can easily live on a million invested especially if the home is paid off and they have roommate income.

2B · 06-09-2007, 04:48 PM

Quote:

Originally Posted by old woman

A million would be huge to me.

I had a thread on the old board about the husbands that are looking towards ER and their non-working spouses that don't want to alter life style (keep the big houses, etc). The premise seemed to be "DH can die at the plow as long as she doesn't see a change." If he does, she can discuss it with all her girlfriends the next time they all meet for lunch.

If DW disappeared (without removing 50% of the assets), I could live in my definition of luxury of 50+ years. DW wants the big house and all the accessories. I will agree that she's prudent with her spending but it is still based on the fixed spending required for Lifestyle X and not my defintion of ER Lifestyle Y. I'd move more money to recreation/traveling and the big house/fixed expenses would disappear.

lazygood4nothinbum · 06-09-2007, 05:31 PM

i think i've posted this elsewhere: if a million doesn't buy your way out of indentured servitude, then life just ain't worth it.

Spanky · 06-09-2007, 05:44 PM

I voted for 2 - 3 mil, but our expenses are only $50K. I guess I am a victim of "the more you have, the more you want."

Alan · 06-09-2007, 07:02 PM

I voted between 2 and 3 million although I expect to RE with savings of 1.5 million because I expect to have company pensions (non-COLA) of $60K/year.

25 x expenses is $1.75M but if I make it through the next 33 months then I'll be Rich, Wealthy, Loaded, bags of lolly, wa ha ha ha

novaman · 06-09-2007, 07:17 PM

The results of this poll are very interesting. It looks like most can make do with 2million or less. At a 5% rate of withdrawal 2 mil gets you $100,000 a year. Some have pensions to supplement, some live in more expensive areas, some less, and of course lifestyle issues are a big factor, but it is interesting that most are falling at 2million or less

cute fuzzy bunny · 06-09-2007, 07:21 PM

You'd have to live a little extravagantly to spend six figures in retirement...and at that spend rate quitting your job probably never occurs to you.

Alan · 06-09-2007, 07:36 PM

Quote:

Originally Posted by cute fuzzy bunny

You'd have to live a little extravagantly to spend six figures in retirement...and at that spend rate quitting your job probably never occurs to you.

Good fun trying though

We've never been close to $100k/yr spending during our working lives, 'cos you never know when you might lose your job or some other disaster, but once it is unearned income we may well feel a little differently.

FIREdreamer · 06-09-2007, 07:54 PM

My goal is $1.5 million minimum or 25 times our projected expenses ($60K a year).

novaman · 06-09-2007, 08:29 PM

yearly expenses of over 100k a year could easily happen if you live in an expensive area like DC and you have several kids

retire@40 · 06-09-2007, 08:32 PM

Quote:

Originally Posted by FIREdreamer

My goal is $1.5 million minimum or 25 times our projected expenses ($60K a year).

An alternative goal for others in that spending bracket may be $1.25 million with a part-time job earning $10K a year. This may allow for a much earlier semi-retirement. Earning $10K a year is not that difficult, and the portfolio may grow to the $1.5 million on it's own in a good market.

Meadbh · 06-09-2007, 08:58 PM

I voted $3-4 million because I will have NO pension.

chinaco · 06-10-2007, 04:10 AM

We are close to our minimum goal (portfolio size) for ER now. That amount is not so much based on our minimum expense needs, rather perceived needs with a generous amount of discretionary spending. I believe we could ER now... But I feel that there are some incentives for me to keep working for another 4.x Years to ER @ 55. That qualifies me for the company medical plan and a small non-cola pension (pension is cut down on actuarial basis if ER).

We currently have about 7 years of anticipated expenses in intermediate bonds and cash. I am shooting for a 60/40 stock/bond allocation. This would provide us with 10 years of income (till we reach 65). That should hold us even if we had to liquidate all of the fixed assets in a horrendous bear or sideways drift market. Then some of SS can kicks in. If we were really strapped, we would both (DW and I) take SS @ 62... If not, I might wait till 66.x.

My goal is to have all debt paid off before ER.

kumquat · 06-10-2007, 07:17 AM

I voted for what we have now since I ER'd a week ago.

HFWR · 06-10-2007, 07:46 AM

< $1M for me, cause I wanna retire in this lifetime...

lightspeed · 06-10-2007, 12:50 PM

I voted 4-5 million because I'm so conservative, and and want a big cushion. I'm hoping to retire before my kids reach college age, so I'll need to fund 8 yrs, if not more, of college (2 kids) +/- med school? law school? in retirement. Also, what if we get another 9/11? 1.5 million is suddenly less than 1 million!

View Poll Results: What is your targeted savings goal to reach FIRE
$1 million or less	47	17.87%
between $1 million and $2 million	106	40.30%
Between $2 million and $3 million	58	22.05%
Between $3 million and $4 million	26	9.89%
Between$4 million and $5 million	11	4.18%
At least $5 million	15	5.70%
Voters: 263. You may not vote on this poll

06-09-2007, 07:07 AM	#1
novaman Recycles dryer sheets Join Date: May 2007 Posts: 94	How much is enough? I know that a lot depends on your individual lifestyles, but I'm curious to see how much everyone is targeting for FIRE.

06-09-2007, 07:19 AM	#2
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Hot cross bun Posts: 21,222	Depends on the lifestyle, spending budget and term of retirement. You might get something a bit more useful by going with ratios...like 25x annual budget. A million might be good for someone that spends 30k and spends most of their time at the park reading library books. For someone that spends 80k a year eating out all the time and travelling....not so much. __________________ To be truly happy, one must live absolutely in the present, with no thought of what's gone before, and no thought of what lies ahead. But to live a life of meaning...one is condemned to wallow in the past and obsess about the future.

06-09-2007, 07:32 AM	#3
maddythebeagle Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 2,395	I need 20-30 million....I should have it in 2-3 months... __________________ - Hurry! to the cliffs of insanity!

06-09-2007, 05:31 PM	#7
lazygood4nothinbum Thinks s/he gets paid by the post Join Date: Feb 2006 Posts: 3,359	i think i've posted this elsewhere: if a million doesn't buy your way out of indentured servitude, then life just ain't worth it. __________________ "life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901

06-09-2007, 09:12 AM	#4
unclemick Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Jul 2003 Posts: 5,212	Yep - check me off for the 25 times expenses/expected budget camp. heh heh heh - lot of devil in those pesky details .

06-09-2007, 04:37 PM	#5
old woman Recycles dryer sheets Join Date: Dec 2005 Posts: 240	A million would be huge to me. Right now I gross 50K but save 20K so 4% of a million would be more than I spend now by 1/3rd and after I get SS in 3 years my spending money would be twice what it is now. Besides I have a roommate where many people are supporting more than one person even in retirement. If I had to support a child or spouse I would need more but a single can easily live on a million invested especially if the home is paid off and they have roommate income.

06-09-2007, 05:44 PM	#8
Spanky Thinks s/he gets paid by the post Join Date: Dec 2004 Location: Minneapolis Posts: 2,641	I voted for 2 - 3 mil, but our expenses are only $50K. I guess I am a victim of "the more you have, the more you want."

06-09-2007, 07:02 PM	#9
Alan Thinks s/he gets paid by the post Join Date: Jul 2005 Location: Baton Rouge Posts: 1,072	I voted between 2 and 3 million although I expect to RE with savings of 1.5 million because I expect to have company pensions (non-COLA) of $60K/year. 25 x expenses is $1.75M but if I make it through the next 33 months then I'll be Rich, Wealthy, Loaded, bags of lolly, wa ha ha ha __________________ Countown clock is at 18 months Japanese computer error message - "3 things in life are certain. Death, taxes and loss of data. Guess what just happened to you?"

06-09-2007, 07:17 PM	#10
novaman Recycles dryer sheets Join Date: May 2007 Posts: 94	The results of this poll are very interesting. It looks like most can make do with 2million or less. At a 5% rate of withdrawal 2 mil gets you $100,000 a year. Some have pensions to supplement, some live in more expensive areas, some less, and of course lifestyle issues are a big factor, but it is interesting that most are falling at 2million or less

06-09-2007, 07:21 PM	#11
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Hot cross bun Posts: 21,222	You'd have to live a little extravagantly to spend six figures in retirement...and at that spend rate quitting your job probably never occurs to you. __________________ To be truly happy, one must live absolutely in the present, with no thought of what's gone before, and no thought of what lies ahead. But to live a life of meaning...one is condemned to wallow in the past and obsess about the future.

06-09-2007, 07:54 PM	#13
FIREdreamer Full time employment: Posting here. Join Date: May 2007 Posts: 943	My goal is $1.5 million minimum or 25 times our projected expenses ($60K a year).

06-09-2007, 08:29 PM	#14
novaman Recycles dryer sheets Join Date: May 2007 Posts: 94	yearly expenses of over 100k a year could easily happen if you live in an expensive area like DC and you have several kids

06-09-2007, 08:58 PM	#16
Meadbh Thinks s/he gets paid by the post Join Date: Jul 2006 Posts: 1,416	I voted $3-4 million because I will have NO pension.

06-10-2007, 04:10 AM	#17
chinaco Thinks s/he gets paid by the post Join Date: Feb 2007 Posts: 2,456	We are close to our minimum goal (portfolio size) for ER now. That amount is not so much based on our minimum expense needs, rather perceived needs with a generous amount of discretionary spending. I believe we could ER now... But I feel that there are some incentives for me to keep working for another 4.x Years to ER @ 55. That qualifies me for the company medical plan and a small non-cola pension (pension is cut down on actuarial basis if ER). We currently have about 7 years of anticipated expenses in intermediate bonds and cash. I am shooting for a 60/40 stock/bond allocation. This would provide us with 10 years of income (till we reach 65). That should hold us even if we had to liquidate all of the fixed assets in a horrendous bear or sideways drift market. Then some of SS can kicks in. If we were really strapped, we would both (DW and I) take SS @ 62... If not, I might wait till 66.x. My goal is to have all debt paid off before ER. __________________ Disclaimer: I make no warranty or guarantee about the accuracy or completeness of this information. I am not a financial planner, my comments only represent my opinion.

06-10-2007, 07:17 AM	#18
kumquat Full time employment: Posting here. Join Date: Nov 2005 Posts: 685	I voted for what we have now since I ER'd a week ago. __________________ Life's a bitch and then you come back - Hindu proverb

06-10-2007, 07:46 AM	#19
HFWR Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: May 2005 Location: DFW Posts: 5,107	< $1M for me, cause I wanna retire in this lifetime... __________________ Have Funds, Will Retire I will now proceed to entangle the entire area...

06-10-2007, 12:50 PM	#20
lightspeed Dryer sheet aficionado Join Date: May 2007 Posts: 36	I voted 4-5 million because I'm so conservative, and and want a big cushion. I'm hoping to retire before my kids reach college age, so I'll need to fund 8 yrs, if not more, of college (2 kids) +/- med school? law school? in retirement. Also, what if we get another 9/11? 1.5 million is suddenly less than 1 million!