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!
Are you really going to pay your kid's graduate studies? Medical or law schools will be very expensive. Paying 100% of their education may not help kids understand the value of money.
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Join Date: Jul 2003
Location: north of Kansas City
Posts: 6,372
Talk's cheap. There are plans and then there is life.
In the late 1980's I 'planned' on 1.3 mil in 2006 at age 63.
I was canned/layed off Jan 1993 with 250k mine, 100k hers. Never really went back to work(long story) but became a 'high class ER' in the stretch - in contrast to a lazy unemployed bum/slacker.
Also reinventing my past - after reading books like 'Your Money or Your Life' became frugal instead of "you cheap bastard" or "you tightwad SOB" or phases of lesser class and gravitas.
Love this forum - makes me feel like a clubmember or something!
Are you really going to pay your kid's graduate studies? Medical or law schools will be very expensive. Paying 100% of their education may not help kids understand the value of money.
I'm hoping they will understand the value of money whether or not I help them, by leading a fiscally responsible lifestyle. My parents helped me out and made that period in my life much easier, which helped me become successful, so I'd like to offer the same opportunity for my kids if necessary.
I'm hoping they will understand the value of money whether or not I help them, by leading a fiscally responsible lifestyle. My parents helped me out and made that period in my life much easier, which helped me become successful, so I'd like to offer the same opportunity for my kids if necessary.
I fully understand your feelings on this. We were both happy to fund our childrens' passage through college though we told them from the outset that we couldn't afford graduate school as well particularly as they were only 18 months apart in age. I also told them that it was an investment in our future in case disaster happens to strike in our retirement, then we'd be looking for them to return the favor
Both are now graduated and working in jobs they like and they are both fiscally very responsible. Funding them through college was extremely rewarding to us, even though our son suffered with health problems and took 5+ years to finish. (seizures, depression, very traumatic stuff, but he made it - a BSc in Computer Science that he is so very proud of)
Alan, congratulations -- getting kids through college and settled on their paths in life feels like a huge accomplishment to one on the uphill side (with two sons, 12 and 16 years old). And sweating through a BSc in computer science would probably push any normal person into trauma territory...
Mead -- I noticed your photograph of Audrey Hepburn, probably from Sabrina? Last night I attended a fundraiser in the home where Sabrina was filmed back in the 1950s -- it was stunning. My buddies and I sat on their dock (without champagne glasses in our back pockets, but with martini glasses firmly in hand) and guesstimated the taxes on that particular piece of waterfront property, coming up with something north of $125,000. The person living there is ER, too... so I guess an ER budget does depend somewhat on lifestyle!
Thanks Bob. I wish you all the best with your 2. Our daughter got married while in college as well so that was another major expense out of the way. (6 years ago).
To me this poll would have meaningful results if it were broken down by age. If I'm 25 and looking at retirement, 5M looks good. If I'm 61, less than a M looks ok. This poll doesn't tell me much.
To me this poll would have meaningful results if it were broken down by age. If I'm 25 and looking at retirement, 5M looks good. If I'm 61, less than a M looks ok. This poll doesn't tell me much.
Yeah, there are MANY factors that would influence the target number, but I thought this would at least give a nice starting point to look at what most people are aiming for.
One thing that stands out is that less than 15% of those polled are looking at more than 3 million for FIRE. I was expecting a higher percentage. My perspective is probably skewed because I live in such an expensive area.
To me this poll would have meaningful results if it were broken down by age. If I'm 25 and looking at retirement, 5M looks good. If I'm 61, less than a M looks ok. This poll doesn't tell me much.
Another way to look at it is that imagine that you want retire now, how much money invested in a 60/40 portfolio will be needed.
I'm hoping they will understand the value of money whether or not I help them, by leading a fiscally responsible lifestyle. My parents helped me out and made that period in my life much easier, which helped me become successful, so I'd like to offer the same opportunity for my kids if necessary.
I would not have relied on the government and mega-corp if my parents had helped to pay for any of my college education. Anyway, I applaud your intention to support their education, and they will definitely appreciate it. I will be paying my daughter's college expenses in September. However, I am not sure that I will do the same for grad schools.
nova - I live in "nova" too, and I don't expect to need over $2M. My expenses now are less than $60K. Granted, I own a townhouse and not a house, and I don't have any kids to pay for, which may again further skew my spending...but I plan to have the mortgage paid off before I retire, lowering my expenses even further.
Everyone's situation is different. For me, it's not that difficult, it's just a matter of lifestyle choice, even though I choose to live in an expensive town.
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 9,535
I set $2 million as the number when I got married 12 years ago, and although $2million's not as much as it was, I think with NO debt and $2 million investable, we'll be ok.............
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Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
To me this poll would have meaningful results if it were broken down by age. If I'm 25 and looking at retirement, 5M looks good. If I'm 61, less than a M looks ok. This poll doesn't tell me much.
If you were 25 with 1M, you don't think you could retire? If you take 3% of 1M, you can pull off 30k per year. You can certainly live on that, and I think 3% off a portfolio can last 60 years.
I'm 29, and I'm aiming for a bit over 1M, which I hope to hit in about 10 years. It will be something around 30-35k I'm hoping to pull off the account yearly, which should be enough to maintain a frugal life sailing / hiking / etc. If we decide in the next 10 years that we'd like to do more upscale traveling (or who knows what else will happen), we'll adjust along the way.
I voted $3-4 million because I will have NO pension.
The way you say this makes me think that you assume that people who choose $1M have a pension? Many of us don't have any pensions (I know I won't have one), yet we're still aiming for about 1M. 1M for a 50-60 year old can throw off 35-40k per year. That's not too shabby.
So just to nitpick, if you're voting 3-4M, it's not because you have NO pension, it's because you are choosing a lifestyle which requires $105k-$140k per year.
So just to nitpick, if you're voting 3-4M, it's not because you have NO pension, it's because you are choosing a lifestyle which requires $105k-$140k per year.
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