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View Poll Results: How much poll, 55 yr old couple 60k per yr.
Less than 1m 1 1.41%
1m 1 1.41%
1.1m 0 0%
1.2m 2 2.82%
1.3m 5 7.04%
1.4m 3 4.23%
1.5m 21 29.58%
More than 1.5m 38 53.52%
Voters: 71. You may not vote on this poll

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Old 04-17-2011, 07:50 AM   #21
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Mine is the "whistling past the graveyard" view (time is more valuable than money). How much should you have? As much as possible.
What is the minimum needed to do this? 5% is doable. I voted $1.2M.
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Old 04-17-2011, 08:13 AM   #22
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More great info.

What amazes me a little bit, is the amount of folks here with a COLA type of pension V. S. the % of folks who actually still have them. Most were fazed into 401k's in the 90's other than State /Fed workers.

My initial thinking was to keep the exercise simple without too much detail so it would be more of a basic math question. I gave a % of post Ret return rather than a variable such as rental income, windfall, etc.

Even that seems tough to nail down.

But am no surprised with the results, and am having fun!

The one from Merrill is helpful. I have actually been working with a guy from Merrill this year and am very impressed. They have a program with large Co's and offer free planning / personal plans when folks get close hoping to gain their business when retired. The personal plans they offer are very helpful. And am using their model with my 401 this year.
In Jan my 401k finally offered a "Self-Directed Brokerage Account" with
access to just about everything. Its now cut up into "balanced by age / risk tolerance" 5% here, 10% there etc.
And so far has proven safer than almost anything offered with a 4+% return this year. Just some added info......

Not sure where this thread is going, but 1.5 seems to be just more than enough using most models / calculators.
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Old 04-17-2011, 08:17 AM   #23
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I voted 1.3

More is always better though....

Also depends on your mood at the time, or the book you last read.

I just finished " Get a Life"
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Old 04-21-2011, 10:20 PM   #24
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bUmP
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Old 04-21-2011, 11:10 PM   #25
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How much would a couple need to retire at 55 with annual income of 60k?
It's not how much you make, it's how much you spend.
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Old 04-22-2011, 05:58 AM   #26
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Originally Posted by East Texas View Post
It's not how much you make, it's how much you spend.

Agree, poor wording on my part.

Is this better?

How much would a couple need to retire at 55 with an income requirement of 60k per year?

Or am I missing the point?



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Old 04-22-2011, 09:17 AM   #27
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Agree with others that more info is needed, but I did a quick and dirty calculation as purely a math exercice assuming 60k annual cash need inflated at 2.5% per annum, a 4.5% annual return on your nestegg and 10% tax rate on income from the nest egg and came up with 1.335m, rounded up to 1.4m.

Withdrawal rate is initially 4.3% but drops to 3.6% at age 62 when SS kicks in and lowers the annual withdrawals. Also assumes that SS COLA is same as inflation rate.

Funds run out at age 98. Also, it assumed that there were no taxes on any withdrawals (ie; taxable accounts) but the 10% provision for income taxes on nestegg income might be on the high side.

And like others have indicated, more is better.
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Old 04-22-2011, 10:55 AM   #28
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Real bond yields of 1.48%, Real equity returns (Gordon Equation) of 3.06%, with a 50/50 asset allocation, and principal consumption over 55 years (assumed portfolio exhaustion at age 110) gives you a withdrawal rate of 4.098%, which translates into a portfolio of $1,464,064.89.

Good luck.
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Old 04-22-2011, 11:10 AM   #29
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How much would a couple need to retire at 55 with annual income of 60k? Assuming a 4-5% post retirement rate....with... 2-3% inflation.
No debt, 85% med coverage till 65, $1800 SS at 62

Used many calculators, read books, talked with several financial planners and have as many opinions.......
Just curious what this group comes up with as I have much respect for the posters here (where I am more of a lurker)
I'll take a crack at it...

To prefund your SS payment until 62 you would need something a little less than $1800 X 7 years X 12 months/year ==> ~ $151k

Since SS pays you $21.6k/year ($1800 X 12) you only need an income of $38.6k/year from your nestegg.

Using the 25X rule (ie 4% SWR) I get a nestegg of $965k

I'll then allow ~$40k for medical prior to Medicare at 65

4% SWR -grand total then is $151k + $965k + $40k = $1.15M

Alternately, Using the 20X rule (ie 5% [unsafe]WR) I get a nestegg of $772k

5% WR -grand total then is $151k + $772k + $40k = $963k

- Now wasn't that easy and it's probably just as good as any other calculator you have used.
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Old 04-22-2011, 12:16 PM   #30
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No option for " a sh*tload"...
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Old 04-22-2011, 06:37 PM   #31
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I get the feeling many that voted get a lifetime pension and never bothered to figure this stuff out........ Or think they are going to live to 110.
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Old 04-22-2011, 06:49 PM   #32
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I get the feeling many that voted get a lifetime pension and never bothered to figure this stuff out........ Or think they are going to live to 110.
Or, perhaps they are perfectly competent individuals that happen to disagree with you....
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Old 04-22-2011, 06:56 PM   #33
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Perhaps.......

But those that posted more than 1.5 didn't provide much of a mathematical reason behind it.

Those under seemed to post why, and spelled it out more often.

But as I mentioned, it seems there is no right answer.

That's why its the "trick question".

Would it help if I added no house payment?
Thought no debt and 60k per yr would be enough.
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