What $ is enough for you to retire?

[mickeyd]

heh heh heh - I was a legend in my own mind when it came to cheap, frugal, tightwaditis, etc.

Take it easy greasy. Nobody likes a skinflint show-off!

 

[73ss454]

Hey, in Rich's line of work he really just got started. After all he was in school for 30 years.

 

[CuppaJoe]

Goooal!

Door no. 3?

 

[bbbamI]

You sure don't miss much ...

Kinda scary ain't it?

It increased that last .01% because at the moment I am relaxing at a beautiful campground on Sanibel, having just finished a long bike ride to the beach, lunch, and am gearing up for a power nap (not easy work, you know). I have to fit in a Dairy Queen run before it gets too close to dinner.

The result of all that recreation increased my FIRE motivation, explaining the increment. Thanks for noticing (love the emoticons). DW and I will take pictures this evening if we can.

That sounds lovely Rich....I'm so glad y'all are having a good time. With the holidays coming up, you just might squeeze out an additional 1%, but I won't hold your feet to the [-]FIRE[/-] fire.....

 

[MichaelB]

How much one needs for FIRE is about money, but it's also about oneself. Three questions come to mind

How well do do deal with uncertainty?
How flexible are your and your finances?
Do you have options in case things don't work out?

I suspect that 4% is reasonable and 3% is much safer, but the difference between the two isn't worth the additional effort for some while others won't rest easy even with 3%. If you don't know yourself before FIRE you certainly will afterward.

 

[Moemg]

Yesterday at the gym one of the women was talking to me about her late husband and she said " We were married 44 years but because I was always working we really never knew each other ". This struck me as the saddest thing I have ever heard and certainly a reason to back away from your job .

 

[ejman]

I wasn't quite sure how to respond to the poll because my expenses went down substantially after ER on account of no mortgage ( bought a smaller house on acreage with money left over from sale of the bigger house) and not contributing anymore to retirement programs. I chose door # 1 but I guess door #2 would be equally applicable since expenses on other stuff did not change much.

 

[Meadbh]

I voted door #2. My goal is NW CDN$3m for a 2% SWR of $60K, which is about what I spend now. No pension, which is why I am going for 2% SWR.

 

[calmloki]

I voted door #2. My goal is NW CDN$3m for a 2% SWR of $60K, which is about what I spend now. No pension, which is why I am going for 2% SWR.

"Physician, heal thyself" - Don't you pretty much have that big bugaboo medical care that scares the rest of us kind of doubly wrapped up, being Canadian and all?

 

[Moemg]

I voted door #2. My goal is NW CDN$3m for a 2% SWR of $60K, which is about what I spend now. No pension, which is why I am going for 2% SWR.

Since you are only going for 2% if you need someone to leave all the excess to I'd be glad to oblige .

 

[SecondCor521]

Somewhere between what I have now if I choose the "sell the house and become a nomad in a teardrop trailer" approach and about $750K if I choose the "replace what I'm spending now" approach.

2Cor521

 

[Meadbh]

"Physician, heal thyself" - Don't you pretty much have that big bugaboo medical care that scares the rest of us kind of doubly wrapped up, being Canadian and all?

Because
(a) I don't believe publicly funded healthcare is sustainable at its present level
(b) What if I move?
(c) I've read Otar
(d) I might spend more than I do now if I have more free time
(e) I don't want to be always looking over my shoulder.

Since you are only going for 2% if you need someone to leave all the excess to I'd be glad to oblige .

Heh heh!
Actually most of it will be going to my charitable foundation. That is, if I don't die broke!

 

[bbbamI]

That is, if I don't die broke!

Die broke...That's mah plan!

 

[heyduke]

Die broke...That's mah plan!

... and the only plan to have in my very humble opinion...

 

[Midpack]

Die broke...That's mah plan!

I wish I knew how to accomplish that, with no kids that would be my plan too. Haven't figured out how to predict returns or my exact expiration date...

 

[bbbamI]

I wish I knew how to accomplish that, with no kids that would be my plan too. Haven't figured out how to predict returns or my exact expiration date...

Well, I said it was my plan...I don't have it down to a science...yet. Perhaps I should check my tookus and see if there is an expiration date stamped there.

 

[RonBoyd]

Die broke...That's mah plan!

That used to be my plan, also. My new plan is to die with hundreds of thousands of dollars in uncollateralized debt.

 

[Rambler]

As REW says, "numbers is hard".

I'm hoping to be at around a 2.5% SWR with a 125k withdrawl. If that does not pan out, I'll be satisfied with up to a 3% SWR to get the same withdrawl. So, somewhere between 4.2M and 5M. In reality, I have no idea what we will need, since we live in Tokyo now and will be retiring to California. We know the property taxes and insurance part, but still not much of a clue on the health insurance part.

No pension, no health here, so going a little heavy on the port, just to make sure it lasts. By my calculations the 125k is very generous and we could make do with much less, but once I pull the plug, I don't want to have to go back to work to fund the hobbies. If I go back to work when the time comes, then it will be because I want to, it will be a low-stress job, and most likely one that I can choose when to work and when not to, or it will be a seat on a Board or two. If I don't want to go back to work then we will just figure out what expenses to weed out and live on what we have.

R

 

[friar1610]

Being frugal with cars won't cut it. One of my friends is still working at 69. He drives a 1959 MGA that he bought new in (surprisingly) 1959. Financially, two divorces are much worse, ask him.

You misunderstand. Being frugal with cars is but a small part of why, unlike your friend who works at 69, I have not done so since 58. Fortunately, no divorces in my resume (which, I acknowledge, can be costly.) If car frugality had been my only ER strategy, I would still be working (and driving.)

 

[WB52]

DW and I are both 49 this year with 3 kids (one in college, 2 at home). Excluding their college expenses, we need to accumulate $1.7m to FIRE with +23% higher net annual spending than current (we want to live it up and also have a buffer). We are 79.4% FI as of today.
I think about the potential rebound of the S&P 500 every day. I don't know how long it will take to reach that goal. Also, I have a milde case of one-more-year syndrome. However, we are both targeting 2012 for our Independance and Freedome celebration! In the meanwhile, I take encouragement from success stories on this blog. Thanks.

 

[misanman]

Almost there - or not

Door #3 for me. Could probably swing retirement now at an income somewhere between $70K and $80K/year and no debt, but job is good and I tend to be a "safe sider".

Of course, my hand could be forced if my employer decides they don't need my services any more. It does feel pretty good to know we'd likely be okay if that happens.

 

[Finance Dave]

$1.8M (hope to FIRE in 4-5 years) using 4-5% SWR, although the story is more complex. The $1.8M includes a lump-sum conversion of a cash balance pension plan we have....so in essence that assumes no pension since it's baked into that number already. We assume we'll get some SS, but only about 50% of what SS says since we're in the top decile of income earners and believe politicians will eventually come after our SS to some extent.

The big issue for us will be how to pay for health care between FIRE at age 52 and Medicare at 65. My MegaCorp drops us like a Britney Spears baby as soon as we FIRE. For now we've just built in about $6,000 a year for the pair of us in health care premiums into the $1.8M above....but may have to get actual quotes once we're closer to FIRE.

 

[SarahW]

Actually none of the 3 choices fit. We have no debt, no mortgage, substantial savings, megacorp insurance and retirement benefits, and pensions. I was burned out and decided (after a lot of hand wringing) to ER. My hubby is still working, loves his job, and likely won't ER for another 5 or 6 years.

 

[jdw_fire]

I wish I knew how to accomplish that, with no kids that would be my plan too. Haven't figured out how to predict returns or my exact expiration date...

awww that is simple, take your entire net worth and buy a COLAed SPIA. that lets the insurance do the "predicting".

 

[Midpack]

awww that is simple, take your entire net worth and buy a COLAed SPIA. that lets the insurance do the "predicting".

True enough. If it weren't for the (low) but real risk of failure, I might do just that...