Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-17-2013, 07:55 AM   #21
Dryer sheet aficionado
 
Join Date: Feb 2010
Location: Westchester County
Posts: 30
You know you're asking a tough question, but I understand wanting to get a sense of comparison. So, here's my info. I am 42 and finally FIRE'd this year, although I will be teaching college part-time for the forseeable future, earning around 10-20k per year. My current taxable portfolio is around $2,050,000 and I live off that with 5k per month, which is a bit over 3% WR. This has been more than enough (seriously, MORE than enough) but keep in mind the following:
- I have a partner still working whose take-home pay is about equal to my monthly minvestment return
- We have no debt
- We have no kids
- Partner will have full pension and health insurance for life when he retires end of 2014 (I will use Obamacare when my COBRA runs out in early 2014)
- We own a house worth $1,000,000+ which has no mortgage, and at some point we will likely sell it and downsize; currently pay property taxes of about $15,000 per year - ouch
- We live just outside New York City, so very expensive

So, now you have my information as a point of comparison, but as you can see the variables are huge. I am extremely fortunate and have a lot of cushions in various forms. But given my experience, and assuming you don't live in New York, I would say that $2 million would be MORE than enough for you too.
__________________

__________________
midlifeguy is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-17-2013, 08:36 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,974
Quote:
Originally Posted by midlifeguy View Post
You know you're asking a tough question, but I understand wanting to get a sense of comparison. So, here's my info. I am 42 and finally FIRE'd this year, although I will be teaching college part-time for the forseeable future, earning around 10-20k per year. My current taxable portfolio is around $2,050,000 and I live off that with 5k per month, which is a bit over 3% WR. This has been more than enough (seriously, MORE than enough) but keep in mind the following:
- I have a partner still working whose take-home pay is about equal to my monthly minvestment return
- We have no debt
- We have no kids
- Partner will have full pension and health insurance for life when he retires end of 2014 (I will use Obamacare when my COBRA runs out in early 2014)
- We own a house worth $1,000,000+ which has no mortgage, and at some point we will likely sell it and downsize; currently pay property taxes of about $15,000 per year - ouch
- We live just outside New York City, so very expensive

So, now you have my information as a point of comparison, but as you can see the variables are huge. I am extremely fortunate and have a lot of cushions in various forms. But given my experience, and assuming you don't live in New York, I would say that $2 million would be MORE than enough for you too.
May very well be with your specific bullets above, but how do you project your early (first year?) success to continue for the next 40-50 years, and your last sentence as it applies to the OP?
__________________

__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 01-17-2013, 08:59 AM   #23
Dryer sheet aficionado
 
Join Date: Feb 2010
Location: Westchester County
Posts: 30
Midpack -- I'm not 100% sure what you're asking, but I've run Firecalc on my plan if that's what you mean, and haven't even factored in SS or my 250k 401k, so I'm extremely confident. And after a while, you have to go with your gut anyway. There will always be a million reasons NOT to retire early, but I try not to let fear steer my decisions. On my last sentence, I'm just throwing out my gut response to the OP, having admitted that I know next to nothing about his situation. I don't believe that younger retirees should delay exiting the corporate grind on the off chance that they might live until 90 or 95, especially men, so I tend to err on the side of encouraging people like the OP to go for it.
__________________
midlifeguy is offline   Reply With Quote
Old 01-17-2013, 09:50 AM   #24
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
I was interested in the discussion between DonHeff and Independent.

I began retirement planning in 1986, before computers and easy to use retirement calculators. My plan was the deal maker for ER.
The plan was based on an item by item basis... mortgage, cars, household budget, and yearly plans for new vehicles, homes, expenses for our children, college, etc. it took into consideration estimates of wages, investment gains, Social Security, etc, etc, very complex and extending onto dozens of those large green spreadsheets. Days and days of calculations... revisions and re-thinking.

At the time (and sadly, still) I was not money savvy. In effect, my plans were straight line, and based on circumstances of the time. Bank accounts and Money Markets were paying off in double digits, home values were rising fast, and mortgage rates ran as high as 14%. Inflation was up and down.

Almost nothing went according to the plan, but strangely enough, between 1986, and today (2013)... we are exactly on plan, within $10,000. In FireCalc, we're 100% for age 84, and 94% for age 90, and that's on our Optimal budget. (Three budgets... Optimal, Nominal and Austerity).

The most interesting part of this untechnical planning is that we measure our progress by tracking our annual net worth. Despite small yearly variances, annual calculations track our original plan almost exactly.

So... great validation for FireCalc... and great luck for this unsophisticated retiree.

BTW... when I was born, life expectancy was 59.9 years... and family history not too good... Dad died at 52, brother died at 59.

In truth, life expectancy is a roll of the dice.
__________________
imoldernu is offline   Reply With Quote
Old 01-17-2013, 12:03 PM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,428
Quote:
Originally Posted by prof12 View Post
I just took the Life Expectancy test. Man, is that a depressing thing to do. I figured I'd be like most relatives and kick off at 83. Looks like I'm out of here between 65 and 78!!!!!!!!!!! Guess my SWR can go up a bit.
Prof12
I'll never forget what DW's uncle, who was one of these larger than life personalities and enjoyed rich food and lots of wine once said to me - "If I knew I was going to live this long, I would have taken better care of myself".
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 01-17-2013, 02:59 PM   #26
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
I would be comfortable with $72,000/.03 = 2.4 million. More is always better.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Old 01-17-2013, 07:48 PM   #27
Dryer sheet wannabe
 
Join Date: Jan 2013
Posts: 14
Thanks so much for the replies and the guesstimates. Well I am currently 34, so about 10-15 years away from being able to retire (hopefully). I am hoping closer to 10 since I am getting tired of the daily grind. I am female and working the hours I do is so hard on our family. I feel like there is not enough time left for the kids.

We currently have nowhere close to $2.5 to $3 million. Our net worth is probably at $450-$500k because of my student loans and underwater rental. We currently put in about $52k a year (total for 2012) for retirement. I got a $109k bonus after taxes this year and plan on putting most of it (minus $20k) into investments. Hope is that the bonus will continue yearly. The $20k each year will be used to make extra payment for current mortgage. Hope to be mortgage-free in 10. Not sure if I will pay off student loan early since interest is so low.

Expenses in retirement will be for property taxes, utilities, food, health insurance (for us and kids), and some extras. Currently saving for college for both kids, who will be teens when I want to retire. I guess I can work for another 5 years and have a lot more money or have hubby work until kids go to college. I am getting sort of burned out now though.

Life expectancy... dad's side is about mid 70s and mom's side late 80s and 90's. Life expectancy for my profession seems to be lower in some studies for men. Not sure about women.

I know that we still have many years to go and definitely do not want to run out of money when we are at the end of our lives. If our earning potential changes, we'll definitely have to adjust accordingly. It's nice to know what to aim for though.
__________________

__________________
darly2004 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 04:44 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.