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Old 07-18-2014, 12:48 PM   #41
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Originally Posted by jim584672 View Post
I went to a popular annuity calculator on the web and a male at 62yo today could buy a 15k/year annuity for about 235k today. Since you have many years to go to get to 62 this amount should be discounted for net present value from your age now to age 62.

I am puzzling about the 2 mil plus group, why they didn't retire sooner?? I guess they have a high expense life style or something. Since I am in the "frugal" category 2 mill plus seems gigantic.

A 50yo male with 2 million could buy an immediate annuity and get $108,720 a year until they die. Who needs 108k/year for a retirement?
When I first calculated my NW in 2006 I had over $1MM (renting) and decided I was FI. The last of my kids were finishing college. I was in a lower paying job than what I had before and DW and I were discussing retirement then. I was 55 so it was only a little early.

We then had an elder crisis with both DWs parents which made retirement for me pretty meaningless if it revolved around going to the nursing home and doing home health care for my Alzheimer FIL.

I also got offerred a well paying job located near my in-laws. We moved and the next 6 years were totally tied up with DW not wanting to leave Houston for fear of the next crisis. Unfortunately, she was right which was proven the one time we tried.

I make very good money doing an easy job. I have 5 weeks PTO and can take off unpaid time if I want to do that. Because of DWs inability to leave town, I still have many weeks of PTO banked.

Over the last 2 years, we've moved to our paid for retirement abode. We've taken multiple vacations both domestically and international that I may not feel as comfortable doing when the cash flow stops. So, at 63 I will end my OMY status and leave. We have much more than we "need" for retirement but I've waited until the RE part is no longer applicable.
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Old 07-18-2014, 12:51 PM   #42
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Originally Posted by ERhoosier View Post
Very true.
And yet many politicians view these folks as "hard working ave Americans" while blasting the industrious small business owner with no govt' or corp pension (or benefits) and a similar REAL net worth as "greedy rich".
These individuals are a very small part of the military. Personally I am an E-7 with 12 years in service. I have been flying and doing the same exact job as the O1-04 the entire time. I work in a training squadron and it always amazes me that I have to teach someone, who is much better payed, how to actually do their job. Then a year later I evaluate them during a checkride. The military wastes so much money on the antiquated enlisted/officer system.

Anyway, becoming a millionaire is not that difficult. I am 33 (Just turned ) and pretty much started saving when I joined this forum. It really does come down to LBYM. Currently I have just over $300K investable assets and have never made more than $60k/year. Imagine if I don't save another penny but let compounding do its job for the next 30 years.
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Old 07-18-2014, 12:51 PM   #43
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...If you like the effects of 1 child, go check out China. They are in the process of having a reverse population bomb.
Back when China economy was still in the Dark Ages, childbirth limit might have made sense. Now, they are worrying about having a boatload of retirees without the support of workers. A couple (2 persons) down to one child. That single child has to change his/her parents' diapers while also works in the farm for food, builds gadgets in factories, then drives trucks to make Amazon-like deliveries to the non-producing geezers. I pity that younger generation. Or perhaps not, as they may just revolt and leave the geezers out to rot.

The same thing happens if there are too many savers and early retirees like people in this forum. Somebody has to work and to buy "stuff", so that corporations can make money and send out dividends to us.

See: Paradox of thrift - Wikipedia, the free encyclopedia.
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Old 07-18-2014, 12:53 PM   #44
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I am puzzling about the 2 mil plus group, why they didn't retire sooner?? I guess they have a high expense life style or something. Since I am in the "frugal" category 2 mill plus seems gigantic.
I am planning to retire at age 52. I couldn't sleep with a withdrawal rate greater than 3%. 3% of 2mm = 60k / year. My budget includes 6k for Income Tax, 3k for Property Tax and 28k for HI / OOP (total 37k). That would leave me 23k for living expenses plus travel. Doable, but not the kind of life I want in retirement. Its all a compromise.
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Old 07-18-2014, 12:56 PM   #45
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Senator, the answer is no: Early Retirement & Financial Independence Community - Net Worth Poll

Looks like ~50% have less than $2M, the minimum amount necessary to reach "multi" status.
I'm not sure everyone here with assets over $2M would want to take the poll, so the results could be skewed. As we've learned, you never know who is watching.

I had a great-uncle who wouldn't smoke cigars in public "in case someone thought I was rich" (which he was).
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Old 07-18-2014, 12:56 PM   #46
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If it makes you feel any better Senator, I stopped work a few years ago and only have 750K, not counting the value of my future social security. All of that is in investable assets. I don't own a house, but I do have a bicycle that I bought for $100 off Craigslist and a 24 year-old microwave that still works
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Old 07-18-2014, 01:00 PM   #47
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Hey, Major Tom, in case that old microwave of yours stops working, I'd like you to know that I have seen new microwaves selling for $50.

Or was it $39.99? Ah, I am getting old and my superior memory has started to decline.
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Old 07-18-2014, 01:00 PM   #48
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Originally Posted by Live And Learn View Post
I am planning to retire at age 52. I couldn't sleep with a withdrawal rate greater than 3%. 3% of 2mm = 60k / year. My budget includes 6k for Income Tax, 3k for Property Tax and 28k for HI / OOP (total 37k). That would leave me 23k for living expenses plus travel. Doable, but not the kind of life I want in retirement. Its all a compromise.
Your budget is $37k for health insurance premiums and total out-of-pocket costs per year? Is that what the ACA insurance will cost you? Crazy to think that the median household income is $53k or so in the U.S. and your health insurance in retirement will cost you $28k-$37k per year.
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Old 07-18-2014, 01:00 PM   #49
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I am at about $1.3M now between the 2 accounts even though I am using only 2/3 of it to pay my bills with plenty left over. In fact, I have a surplus in my bank account sitting around waiting for me to invest it somewhere. Oh dear, what shall I do with it??
Go have that kid, start a family .
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Old 07-18-2014, 01:04 PM   #50
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My take on this community is that it runs the gambit ranging from multi-multi millionaires, trust-funders and military/gov't pensionaires all the way to young folks who would rather live more simply than 'work for the man night and day'. Some are just taking a few years off.

What I"ve learned here is that RE means different things to different people; a different perspective than my original view of wealthy folks who no longer (if ever) have to work. As someone noted, it is more about behavior and attitude than a certain amount of money.
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Old 07-18-2014, 01:04 PM   #51
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Hey, Major Tom, in case that old microwave of yours stops working, I'd like you to know that I have seen new microwaves selling for $50.

Or was it $39.99? Ah, I am getting old and my superior memory has started to decline.
I've been wondering whether it's possible that such an old microwave could be leaking radiation, and it might be better for me to ditch it and get a new one anyway.

It's a Kenmore. I'm not sure if that is still a trusted brand, but my microwave certainly doesn't owe me anything.
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Old 07-18-2014, 01:06 PM   #52
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What I've learned here is that RE means different things to different people; a different perspective than my original view of wealthy folks who no longer (if ever) have to work. As someone noted, it is more about behavior and attitude than a certain amount of money.
Very well put.
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Old 07-18-2014, 01:12 PM   #53
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When I first calculated my NW in 2006 I had over $1MM (renting) and decided I was FI. The last of my kids were finishing college. I was in a lower paying job than what I had before and DW and I were discussing retirement then. I was 55 so it was only a little early.

We then had an elder crisis with both DWs parents which made retirement for me pretty meaningless if it revolved around going to the nursing home and doing home health care for my Alzheimer FIL.

I also got offerred a well paying job located near my in-laws. We moved and the next 6 years were totally tied up with DW not wanting to leave Houston for fear of the next crisis. Unfortunately, she was right which was proven the one time we tried.

I make very good money doing an easy job. I have 5 weeks PTO and can take off unpaid time if I want to do that. Because of DWs inability to leave town, I still have many weeks of PTO banked.

Over the last 2 years, we've moved to our paid for retirement abode. We've taken multiple vacations both domestically and international that I may not feel as comfortable doing when the cash flow stops. So, at 63 I will end my OMY status and leave. We have much more than we "need" for retirement but I've waited until the RE part is no longer applicable.
This can happen to me. I have MIL, and both of my parents who can end up needing elderly care. I am afraid, as soon as I RE, I will have to spend a lot of $$$ to pay for their LTC (and significantly deplete my RE fund), and spend most of my time taking care of them. That'd be no kind of RE I was hoping for, and may even force me to un-retire to rebuild my RE fund. At age 52, it's easier to go OMY than worry about this part of my future.
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Old 07-18-2014, 01:20 PM   #54
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The folks who love their jobs post on "late-retirement.org"
The requested URL could not be retrieved
While trying to retrieve the URL: http://late-retirement.org/
The following error was encountered:
Unable to determine IP address from host name for late-retirement.org
The dnsserver returned:
Name Error: The domain name does not exist.

Dang. I guess I'll just keep posting here...
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Old 07-18-2014, 01:28 PM   #55
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I'm not sure everyone here with assets over $2M would want to take the poll, so the results could be skewed.
So you're saying we shouldn't believe everything we read on the internet?
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Old 07-18-2014, 01:31 PM   #56
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The requested URL could not be retrieved
While trying to retrieve the URL: http://late-retirement.org/
The following error was encountered:
Unable to determine IP address from host name for late-retirement.org
The dnsserver returned:
Name Error: The domain name does not exist.

Dang. I guess I'll just keep posting here...
Their members (including moderators) have shorter lifespan and can't keep the website going for more than a week at a time.
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Old 07-18-2014, 01:37 PM   #57
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So you're saying we shouldn't believe everything we read on the internet?

I do. Didn't you write at some point that you are a 14 year old girl posting from the midwest?
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Old 07-18-2014, 01:37 PM   #58
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So you're saying we shouldn't believe everything we read on the internet?
They couldn't put in on the internet if it wasn't true!

It's a rule.
Somewhere.
I think.
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Old 07-18-2014, 01:41 PM   #59
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There is a strong correlation between net worth and age. The statistic cited by the OP is that 7% of US households have a net worth over 1 million. But I would think that the vast majority of these households consist of older people; very few people under the age of 40-something have a 7-digit net worth. So maybe 20% or so of the 50+ population is worth a million or more. Just a guess.
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Old 07-18-2014, 01:43 PM   #60
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Their members (including moderators) have shorter lifespan and can't keep the website going for more than a week at a time.
Yes, the longer you work, the less money you will need even though you build up a bigger stash.

I am amused when seeing people running FIRECalc out to 50 years (50!), while I myself think 30 years is already optimistic for myself.
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