Income If You Retire Today

[RetireAge50]

If you retire TODAY (or are already retired) what income would give you 100% success in FIRECalc?

For our family it would be $67,000 age 47 (Not Retired)

FIRECalc Settings:
Constant Spending
CPI Inflation
Total Market 60/40
Investigate Tab Set to 100% by Changing Spending Level

 

[LOL!]

It is generally considered gauche to try to make comparisons like this … even on an anonymous message board.

So I wil just lie about it: $539,000.

 

[MichaelB]

Over 30 years - 3.5%, over 35 years - 3.4%.

Of course, 100% does not mean my portfolio is safe from war, pestilence, pandemic, zombie uprising, or asteroid. In real life our withdrawal rate is higher.

 

[bld999]

" $539,000."

Now that's what I need, what's the input for that?

 

[eta2020]

" $539,000."

Now that's what I need, what's the input for that?

Cool 15 million

 

[RetireAge50]

I thought the relationship of income, age, and retirement status would be of interest.

It seems as though some here have high incomes but are still working or lower incomes and want to retire.

This type of poll would give a gauge what is about right versus an outlier. Give a perspective on OMY issues or retiring too early.

Congrats on the 500k+ income! Hope you inherited or did really well investing (as opposed to working too long).


Sent from my iPhone using Early Retirement Forum

 

[eta2020]

I think LOL was joking about 500k income

 

[LOL!]

This type of poll would give a gauge what is about right versus an outlier.

So set up an anonymizing poll.

And I wasn't joking about $539K as I clearly stated in that post.

 

[RetireAge50]

I figured you lied on the low side, probably much higher .


Sent from my iPhone using Early Retirement Forum

 

[rodi]

Interesting - you're not actually asking what people's budgets are - you're asking (in a reverse way) what their nest eggs are... at least I think you'd be able to extrapolate it from your spend number and your years of retirement.

Your poll does not take into account # of household members. (I have minor kids at home for another 7 years.)

My spending number is different than my withdrawal rate because I have some income streams outside of nest-egg withdrawals... and more streams will come online as I age (pension/ss).

My gross spend is close to a 6% withdrawal rate. My actual withdrawal rate is 3.5% - and will drop to less than 2% when pension & SS come online.

I always run firecalc in batches of 3: 30 years, 35 years, and 40 years. As was mentioned above - 40 years leaves out some big market downturns so it's not as thorough a stress test of market downturns - but it does test out the "running out of money over time" factor.

As for the other info. I'm retired as of June, age 53. Had firecalc 100% success (as well as several other calculators) before I pulled the plug.

 

[daylatedollarshort]

I don't usually use Firecalc but spending less than or equal to pensions + SS I assume would give us 100%.

 

[Senator]

I have rental income that generates ~145K a year, plus could draw another 27K pretty easily. If I hired out the management, I would only get ~$125K, plus the $27K.

If I sold everything, and did not get hot too hard ion taxes, I would only have enough for ~$80K.

So, being the risk adverse person i am, I am working until 7/5/2016 to finally blast off.

I spend less than $40K. I plan on some serious RV traveling, and have started to plan a 60+ day RV trip to Alaska in 2017.

I am single, no kids, not married. The DGF of 24 years wants to FIRE at the same time, so that might be a bit of money too.

 

[Options]

Overall W/R for 35 years is 2.5% or 39x-40x spending. W/R is higher initially, then drops in 5 years (or sooner) when other income arrives, then remains level when SS activates at 70. 100% success in FIRECALC, FIDO, Financial Engines, and ESPlanner. Actual retirement income may vary significantly from targeted income depending on how kindly the market gods smile upon me...

 

[RetireAge50]

We will feel comfortable retiring when we get 100% success for an income between 75k and 90k. Hopefully only a few years away.

For this thread/poll I input into FIRECalc all portfolio balances, pensions, social security, etc.

There has been a lot of discussion on budgets which vary based on family size, health, lifestyle, etc but this has more to do with available income before we start spending it.


Sent from my iPhone using Early Retirement Forum

 

[Bestwifeever]

I can't remember the last time I ran a retirement calculator but the results were "good to go." So that's our income, $Good-to-Go.

 

[eta2020]

The dividend yield of our 100% equity portfolio would cover our expenses and it grows much faster then inflation.

So I don't really care about FIREcalc.

 

[FIREd]

FIREcalc settings:

Constant spending (CPI)
Total market 50/50 using 5yr treasuries for fixed income
aggressively discounted SS estimates (from the calculator on the SS website)

FIREcalc gives me 100% success for up to 3.6% WR (age 40)

Because it would be a very long retirement, the results should probably be taken with a grain of salt. Realistically, I'd like to keep my WR around 3%.

 

[nuke_diver]

I have rental income that generates ~145K a year, plus could draw another 27K pretty easily. If I hired out the management, I would only get ~$125K, plus the $27K.

If I sold everything, and did not get hot too hard ion taxes, I would only have enough for ~$80K.

So, being the risk adverse person i am, I am working until 7/5/2016 to finally blast off.

I spend less than $40K. I plan on some serious RV traveling, and have started to plan a 60+ day RV trip to Alaska in 2017.

I am single, no kids, not married. The DGF of 24 years wants to FIRE at the same time, so that might be a bit of money too.

I'd have been gone about 5 years ago

And be living in Tuscany with that kind of scratch

Adopt me

 

[Bikerdude]

I only need half of my portfolio for 100% success rate based upon the required years I have estimated.

 

[eta2020]

I'd have been gone about 5 years ago

And be living in Tuscany with that kind of scratch

Adopt me

Lovely place but Italy has very high taxes so you might see only 1/2 of that money.

Beautiful Prague or Vienna would be examples of my choice.

 

[ExFlyBoy5]

The dividend yield of our 100% equity portfolio would cover our expenses and it grows much faster then inflation.

So I don't really care about FIREcalc.

I'm another one that hasn't touched the FIREcalc. I figure if I have been spending below the income that my pension/RE income/dividends will be for the last several years, then I will be good to go.

 

[RetireAge50]

The intent here was NOT to get a gauge on if one feels safe at their own spending levels. It was to get an idea of retirement income levels at various ages.

For example:

Income, Age, Retirement Status

$67,000, Age 47, Not Retired

Or since this is gauche maybe:
$100k+, Age 53, Retired


We could all then take a look at the answers and say:
-I'm right about where most everyone else is
-oh my goodness I need to retire already
- or maybe I'll hold off on retiring a little bit more.

 

[NW-Bound]

The intent here was NOT to get a gauge on if one feels safe at their own spending levels. It was to get an idea of retirement income levels at various ages.

For example:

Income, Age, Retirement Status

$67,000, Age 47, Not Retired

Or since this is gauche maybe:
$100k+, Age 53, Retired


We could all then take a look at the answers and say:
-I'm right about where most everyone else is
-oh my goodness I need to retire already
- or maybe I'll hold off on retiring a little bit more.

Is it gauche if I tell you this: $100K+, Age 58, retired?

FIRECalc gave me a number quite a bit more than $100K, after I entered in our actual SS numbers. Surprisingly, SS at 62, FRA, or 70 did not change the amount it said I could spend.

Do I spend that much? No way. I want to have a lot of money to count. Having money is nice, just to behold it. No need to spend it. Remember that if you spend all that FIRECalc says you can, there's a good chance you become a thousandaire near the end of life, and that's not a good feeling.

 

[RetireBy90]

I'm another one that hasn't touched the FIREcalc. I figure if I have been spending below the income that my pension/RE income/dividends will be for the last several years, then I will be good to go.

I have run fire all and the Fidelity tool, and at least one other, but I don't think they ran my situation well. So, I have a pension, with cola, that pays house note, and DW and both will be eligible for SS, so with savings I do today at age 70 I'll have income equal to my spending today. Then we have a rental that will be paid off about that time for any increased expenses. All that to say my retirement savings only will need to last 10 years, and I'll have WR rate of 4% for those 10 years.

Calculators are designed to plan for a mostly steady income stream, which is not our situation. Between 60 and 70 I have 4 WR changes

Just to say you can and should use a calculator to get info, but dont worry if they don't model your plan exactly.

 

[Kaufmanrider]

I played with FIRECalc, entered my pension, future SS and current IRA (60/40). I retired this year at 49.

I tried various inflation rates, 2%, 3%, 4% and tried steady spending, Bernicke's Reality Retirement Plan, and Percentage of Remaining Portfolio.

100% success in all 114 simulations over 30 year period.

In addition, the Percentage Remaining states: FIRECalc found that 100.0% of the time, the portfolio you would have left behind exceeded the portfolio you started with.

Good new? Why do I still worry about money? What if I live past 30 years?