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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 10:54 AM   #21
 
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Und now vi talk more about vy you don't feel rich. *Vy do you vant to feel rich? *Did you have strong mother figure?

Maybe it doesn't matter if you feel rich. *If you feel confident that you have enough money, you're all set. * It sounds like you'd have no trouble living on a 4% SWR.
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 02:29 PM   #22
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Texas Rich

How can I get the annuity you are talking about? What are the pros and cons.
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 02:32 PM   #23
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

You don't feel rich because your not, but you do have a nice chunk of change!

Uncledrz
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 02:36 PM   #24
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

I know it's all relative, and I'm sure this has been hashed over many times, but how much would you need these days to be considered "rich"? I'll probably never be "rich" myself, because as soon as I get "comfortable" I hope to leave the workforce.

If I had $1.6M in net worth, I'd probably feel "comfortable" enough to retire.
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 02:40 PM   #25
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Quote:
Originally Posted by uncledrz
You don't feel rich because your not, but you do have a nice chunk of change!

Uncledrz
I think this has basically been said before...... but rich is for each to decide. Probably not rich for you and me, but rich to someone with very little.
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 02:51 PM   #26
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Rich to me brother! Donations accepted. Write checks out to the Wildcat Foundation, preferably blank with a ceiling of 1.6 mil.

Quote:
I thought I'd seen this quote on the board before but I couldn't find it with a search. So with apologies if it's been said before by another poster:
A man is a success if he gets up in the morning and gets to bed at night, and in between he does what he wants to do.
Nords is right on as usual, my thoughts.
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 02:59 PM   #27
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Assuming about 5% real return between here and 2013-14, I'll retire with a port 1/2 as big... *

Between that (say about $2800 mo), SS at 62 of ~$1300mo (I forget the real number, but that sounds right...), and employer-assisted health insurance... *

Of course, I'll still have a mortgage pymt............................ *

Yeah, I can do it!! * 8)

Maybe when JG moves to TX full time, he can teach me his credit card scams techniques... *:P
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 03:13 PM   #28
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Quote:
Originally Posted by nellieb
Texas Rich

How can I get the annuity you are talking about?* What are the pros and cons.*
See for yourself about payouts: http://www.immediateannuities.com/

I put in $1.6MM for a 50 year old male in my state asking for a single life annuity and got a quote for over $8k a month.

The downsides are:

- You are vulnerable to inflation
- When you croak, there is no pot of money for your heirs
- You are in trouble if the insurer goes bust, so choose carefully.
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 04:03 PM   #29
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Quote:
Originally Posted by Have Funds, Will Retire
Assuming about 5% real return between here and 2013-14, I'll retire with a port 1/2 as big... *

Between that (say about $2800 mo), SS at 62 of ~$1300mo (I forget the real number, but that sounds right...), and employer-assisted health insurance... *

Of course, I'll still have a mortgage pymt............................ *

Yeah, I can do it!! * 8)

Maybe when JG moves to TX full time, he can teach me his credit card scams techniques... *:P
Does not look like we can do it "full time", although we might some day.

The credit card "techniques" are simple math. If you can borrow at -0- %
and invest the money at 4%........well, it doesn't take a lot of
brainpower.

JG

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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 04:09 PM   #30
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

True enough...although I've never seen one without a 3% fee for a cash advance...
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 04:11 PM   #31
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

After inflation 0 -1 % Why bother?
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 04:12 PM   #32
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Quote:
Originally Posted by dex
Something to mull over. For those of you who only think about the financial aspects of RE.

When I was young - 20's - I never thought I in terms of how much money I would have at what age.

Now that I am 51 with a net worth of $1.6m I still don't feel like I have a lot of money. Or maybe it isn't that I don't feel as if I have alot of money. Maybe it is that ...?
...
It is as if I won the race but the challenge/enjoyment was in running the race.

Thoughts?
So what will I do? I will tell you something more about the financial side of Retiring Early.

It may help your thinking if you determine what your $1.6 million means as an income stream.

I have written a couple of articles that you might find useful. They identify baseline amounts that you can withdraw with absolute safety for 40 or 50 years. They consist of TIPS and/or ibonds exclusively.

The articles also suggest ways to augment your income with almost as much safety. They add stocks under favorable circumstances.

All of my numbers include adjustments that match inflation. This is different from many annuities and pensions.

My articles are my responses in the Letters to the Editor section of my web site:

I Bonds versus TIPS
http://www.early-retirement-planning...ers101105.html

From A Novice in Investing
http://www.early-retirement-planning...ers091805.html

Figure out your actual needs first. Compare them with these baselines. I think that you will be happy. Then you can begin your actual planning.

Have fun.

John Walter Russell
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 04:18 PM   #33
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Uhoh. Looks like the straps have been loosened on the straitjacket...

Prepare for frontal assault. Thorazine, stat!
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 04:28 PM   #34
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Quote:
Originally Posted by Have Funds, Will Retire
True enough...although I've never seen one without a 3% fee for a cash advance...
Almost all are "capped". *The most I ever paid was $75 and lately
I can even negotiate that downward.

Consider this. *Let's say I have 12 cards. *At any one time, maybe 5 are
offering "promo" rates. *Then let's say I have $100,000 in credit limits
on just those 5 (20K each). *Okay, I take all the money and pay
$75 X 5 = $375.00 in fees. *Then, I invest the 100K at 4% for 6 months
which will amount to a bit less than the full $2000 as you are paying the CC
companies back (with their own money). *In my case, I pay no taxes,
so it is kind of the ultimate no-brainer. *Oh sure, you need to do some basic
math, pay on time, know when the promo rate expires. As lazy as I am,
I can still do this easily.

JG
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 04:48 PM   #35
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Quote:
Originally Posted by wildcat
After inflation 0 -1 % Why bother?
You're ignoring the effect inflation has on the underlying principal you borrowed from the CC. Say you borrow $10k. That amount decreases in real terms year after year due to inflation.
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 04:57 PM   #36
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Dex, is your feeling a bit of cold feet? If I remember, you planned to retire this year and then put it off to next year. Maybe you are like me and just can't get comfortable with it?
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 07:44 PM   #37
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Thanks for the replies. Belive me when I say that these are real thoughts and feelings when I post ideas such as this and I do not have the answer.

I'm happy that this post is generating such good dialog - I find it wanting sometimes.

ReWahoo - I have a very detailed spread sheet(s) of current expenses and estimated expense after RE. I estimate I want $45K after tax income. I also ran the calculators.

youbet - good insights - I'll think about them

Honkie - 15yrs younger and more money! Thanks for making me feel "good".

BUM - Money is only one part of the equation - I agree. But, it is one of those things - If I won the lottery no doubt about retiring.

Unclemick2 "in other areas have obvious emotional/what's the right Huh?way to put it content - which are important for us - in our ER - which another would do different." definatly a factor - That is what make all the questions about do I have enough money mostly a useless question. I didn't put my statement out that way because I know I have enough

SteveR - "The folks on this board are far far better off yet still can't seem to get a grip on the fact that they are in the top 5% of US households with their net worth. Some here are in the top 1% with more than $3 million."
Put that in context of the world. About 2 billion people in this world live on one meal a day.

Andre1969 - My net worth is currently in short term income generating instruments.

Martha - "Dex, is your feeling a bit of cold feet? If I remember, you planned to retire this year and then put it off to next year. Maybe you are like me and just can't get comfortable with it? "
Martha - I've taken all the physicals I can think about. I sold my home and am living in an apartment. I'm working toward RE in April of next year. And yes I am getting cold feet. I'm on vacation this week.

Let me tell you a little story. I'm makeing about $150K in an easy job - I don't hate it as do many. It is just that I know I don't have to work and I know there is so much more to life. You know the story about getting old and regretting etc. I've mentioned my upbringing.

Now add to the above the following. I read a story today about a guy I knew who is the CEO of FOX News Networks and now the FOX stations division. And I'm thinking to myself with a little work I could get to a position similar to his, be earning great money etc. But I don't really want it in my hart but the thought is there. Just like the thought is there that I could work a little more, have more money or buy a nice house etc. I could do this if I made the commitment to do it.

Then I think life is short. Do I want to be old, have money and not be able to do the things I want?

It is not easy to break old patterns of behavior. When people say it isn't about the money the quick come back is - yea right. When the trade off is between age and money; it really isn't about the money.
Then again, I sometime think I'm a romantic or a fool.

Saw a good movie today - Elizabethtown - makes you thing about what people will say when you die!
On that note ... Goodnight Gracie
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 08:03 PM   #38
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

When I was growing up in the late fifties there was a TV program called "The Millionaire".* A million was a big deal* back then-that was considered extreme wealth. Today, if they did that program it would have be $6,500,000 to be comparable. Methinks millionaires* 8) today are fairly common .
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-25-2005, 08:23 PM   #39
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

Well if you believe in the 4% SWR then $1.6M will get you $64k pretax income forever. In my spreadsheet with Ca. taxes that gives you just over $4600 a month in after tax income.

Also I assume that Social Security may kick in one day so factor that in.

So basically - you are there. Maybe you'd want to work a little more just to feel a little safer.

It's up to you from here. Retire if you want. Keep working if you want.

Keep working and live a little larger...
Keep working and save some/spend some...
Retire now...

It's your life and it's your call.

For what it's worth, I'm in a very similar position and have decided to keep working, at least for now.
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!
Old 10-26-2005, 01:54 PM   #40
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Re: Net Worth $1.6m @ 51 I don't feel rich - explain that!

How to feel rich with 1.6 million dollars

1. Travel or move to any developing country
2. Become one of the > 99% of the population
3. Feel what loosing it all in a horse race is like.
4. Keep poor friends

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