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View Poll Results: For those of you that want to retire, and those that have recently retired, how much money do you ca
500K or less 10 3.08%
750K 22 6.77%
1 Million 44 13.54%
1.25 Million 36 11.08%
1.5 Million 35 10.77%
1.75 Million 16 4.92%
2.0 Million 56 17.23%
2.5 Million 38 11.69%
3.0 Million 34 10.46%
4.0 Million 15 4.62%
5.0 Million 9 2.77%
More than 5.0 Million 10 3.08%
Voters: 325. You may not vote on this poll

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Re: What is your magic retirement number in US$ dollars?
Old 04-20-2007, 07:48 PM   #41
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Re: What is your magic retirement number in US$ dollars?

Hope no one will mind too much if I engage in a tiny off topic observation -- please look at the graph. Notice two distinct peaks? (bimodal distribution).

Further, notice where those two peaks are centered -- i.e. at which exact values?

Now, anyone who does not believe that mental accounting, and emotion (such as attaching significance to round, invented numbers) does not exist and actually affect even our most basic thinking about FI/RE ("How much do I need in order to pull the trigger?"), then they need only look to that one chart of inputs the wisest, least emotional, most considered, most analytical, and most thoughtful when it comes to this question, and...



it looks like two little kids just threw out numbers to each other on the playground...

"I'd like a million dollars!"

"Oh, yeah? Well I'd like TWO Millions... nyah nyah..."

Magic, indeed.
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Re: What is your magic retirement number in US$ dollars?
Old 04-20-2007, 07:52 PM   #42
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Re: What is your magic retirement number in US$ dollars?

$2 million + COLA'd pension at 60 plus paid off house

It is a rough number and as we get closer to it, we can determine how realistic it is.
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Re: What is your magic retirement number in US$ dollars?
Old 04-21-2007, 05:43 AM   #43
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Re: What is your magic retirement number in US$ dollars?

I'm 24, but seriously I get bored really easy, and would like to keep my job as it keeps my mind occupied. I don't plan on retiring ever probably. But if I had to put a number on it, I'd say 15 million dollars, and I'm completely serious too. That way off of treasuries I'd be making close to 1 mil a year, and I could spend my days buying younger tail, and at the casino.
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Re: What is your magic retirement number in US$ dollars?
Old 04-21-2007, 05:55 AM   #44
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Re: What is your magic retirement number in US$ dollars?

Quote:
Originally Posted by AirJordan
I'm 24, but seriously I get bored really easy, and would like to keep my job as it keeps my mind occupied. I don't plan on retiring ever probably.
Trust me.... That will change!

Quote:
Originally Posted by AirJordan
But if I had to put a number on it, I'd say 15 million dollars, and I'm completely serious too. That way off of treasuries I'd be making close to 1 mil a year, and I could spend my days buying younger tail, and at the casino.

That sounds like every 20 something single male's dream!

However, the words casino and $15mm only workout on the casino's side of the books.
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Re: What is your magic retirement number in US$ dollars?
Old 04-21-2007, 06:09 AM   #45
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Re: What is your magic retirement number in US$ dollars?

Ok, So I figured out our pre-tax spending and then used an annuity calculator to estimate the value of pensions and SS. Then I subtracted the current pre-tax spending minus the pensions and SS at earliest retirement age and used the calculator again to estimate the additional savings needed.

The savings needed was about $750,000 so I can easily retire at this age. but I think I'll still work longer and build a cushion.

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Re: What is your magic retirement number in US$ dollars?
Old 04-21-2007, 08:05 AM   #46
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Re: What is your magic retirement number in US$ dollars?

2Cor521,
Thanks for listing your expenses -- they are low. Keep it up. Take care.

Spanky
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Re: What is your magic retirement number in US$ dollars?
Old 04-21-2007, 08:12 AM   #47
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Re: What is your magic retirement number in US$ dollars?

Quote:
Originally Posted by AirJordan
I'm 24, but seriously I get bored really easy, and would like to keep my job as it keeps my mind occupied. I don't plan on retiring ever probably. But if I had to put a number on it, I'd say 15 million dollars, and I'm completely serious too.
Well, Bill Gates worked (played?) despite his billions. It's funny that you join this forum when you have no intention to retire.
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Re: What is your magic retirement number in US$ dollars?
Old 04-21-2007, 08:31 AM   #48
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Re: What is your magic retirement number in US$ dollars?

Wife still working, but when she retires:
we plan to live on 2 pensions, 2 401k's, 2 social securities,
and just hold and grow the other assets for as long as possible.
.
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Re: What is your magic retirement number in US$ dollars?
Old 04-21-2007, 08:50 AM   #49
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Re: What is your magic retirement number in US$ dollars?

I voted a million but we'll have two cola'd pensions as well.

The real answer is what ever we've amassed six years from now.
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Re: What is your magic retirement number in US$ dollars?
Old 04-21-2007, 10:16 AM   #50
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Re: What is your magic retirement number in US$ dollars?

Quote:
Originally Posted by Spanky
Well, Bill Gates worked (played?) despite his billions. It's funny that you join this forum when you have no intention to retire.
Actually, it's not all that funny. I like my job and while there are days that I can't wait to retire, there are also days where I figure "What's the rush?" Anyhow, this is a terrific forum regarding money management, life strategies, life philosophies, conventional and unconvential wisdom, etc. (Don't tell anybody, but this is my favorite website).

As to the question re: the magic number. The magic number keeps increasing: $1.5million originally sounded great, then $2million sounded a whole lot better. $2.5million should completely shut me up. But, the stock market is going to have to go on a real tear to get me there.
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Re: What is your magic retirement number in US$ dollars?
Old 04-21-2007, 04:43 PM   #51
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Re: What is your magic retirement number in US$ dollars?

Quote:
Originally Posted by Spanky
2Cor521,
Thanks for listing your expenses -- they are low. Keep it up. Take care.

Spanky
Thanks for the kind words.

2Cor521


Edited for typo.
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Re: What is your magic retirement number in US$ dollars?
Old 04-21-2007, 05:19 PM   #52
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Re: What is your magic retirement number in US$ dollars?

$2 million - in 20 years...so that # might go up, but that is not accounting for anything besides investments/retirement - no ss etc...not counting on that!

will reassess that # in 10 years or so...
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Re: What is your magic retirement number in US$ dollars?
Old 04-22-2007, 09:30 AM   #53
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Re: What is your magic retirement number in US$ dollars?

Quote:
Originally Posted by redduck
Actually, it's not all that funny. I like my job and while there are days that I can't wait to retire, there are also days where I figure "What's the rush?" Anyhow, this is a terrific forum regarding money management, life strategies, life philosophies, conventional and unconvential wisdom, etc. (Don't tell anybody, but this is my favorite website).
If you enjoy your work and have plenty of time to pursue your other interests/hobby, there is no harry - agreed.

This is the site I often visit in addition to the Bogglehead and Diehard forums.

Quote:
As to the question re: the magic number. The magic number keeps increasing: $1.5million originally sounded great, then $2million sounded a whole lot better. $2.5million should completely shut me up. But, the stock market is going to have to go on a real tear to get me there.
I guess there is no magic number. We just need to identify or forecast expenses required to support our lifestyle and unforeseen expenses and multiply that number by 25 (or higher) to arrive a number based on the assumption that our portfolio is properly diversified to achieve a return at least 3 or 4 % over inflation.
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Re: What is your magic retirement number in US$ dollars?
Old 04-24-2007, 05:34 PM   #54
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Re: What is your magic retirement number in US$ dollars?

Hi....looks like 1.2 mil in two years... partially retired now, fully in Oct, 2009...Budget will be about 5K month/no debt with both spouse and I collecting full Social Security (she at 62 and me at 63), and about 7k/year for a while from part time work at the golf course, and some high school officiating....good old Firecalc (70% equities in index funds) and www.i-orp.com say we sailing clear....
Thanks again to this board!!

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Re: What is your magic retirement number in US$ dollars?
Old 04-25-2007, 03:36 PM   #55
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Re: What is your magic retirement number in US$ dollars?

Quote:
Originally Posted by SecondCor521
Update:

For the three months ending today:

Mortgage Interest + Taxes + Kids + Child Support represent nearly 84% of my expenses.
Annual run rate on the rest is about $10,671. 25x number is thus $266,772

2Cor521
Housing (mortgage, insurance, taxes) cost me $36k/year, but $18k of that goes towards principle and I have 10 years left on the mortgage. Other expenses run at $1k/month or $12k/year.
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Re: What is your magic retirement number in US$ dollars?
Old 04-25-2007, 04:29 PM   #56
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Re: What is your magic retirement number in US$ dollars?

$22.4M in 2039 dollars, which equates to $7.5M in 2007 dollars with a 3.5% annual inflation rate.

- M
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Re: What is your magic retirement number in US$ dollars?
Old 04-25-2007, 10:06 PM   #57
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Re: What is your magic retirement number in US$ dollars?

I think a consideration in the magic number is whether the money is pre tax or post tax. If it's pre tax the 4% withdrawal is subject to a bigger income tax bite than post tax.
That means the spending power of the 4% is reduced.

Another realistic reduction to the 4% withdrawal is money that needs to be alloted for replacement costs.
Quicken and Microsoft Money can track spending from month to month but what about that month when its time to buy a new car.
Expenses for that month can rise from $4000 to $29000.

It's probably best to build long term expenses into a monthly budget. Maybe 5-10% for auto, home repairs, uncovered medical or dental bills.
They do come around every so often.


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Re: What is your magic retirement number in US$ dollars?
Old 04-26-2007, 04:17 AM   #58
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Re: What is your magic retirement number in US$ dollars?

Quote:
Originally Posted by Tommy
I think a consideration in the magic number is whether the money is pre tax or post tax. If it's pre tax the 4% withdrawal is subject to a bigger income tax bite than post tax.
That means the spending power of the 4% is reduced.
That's why you see so much discussion about taxes and tax efficiency on the board (on the income and gain side). The same goes for sales/backend taxes. Total Taxes are probably your largest single recurring expense... or close to it.

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Re: What is your magic retirement number in US$ dollars?
Old 04-26-2007, 10:41 AM   #59
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Re: What is your magic retirement number in US$ dollars?

What ever I've got on July 1, 2007. Cause thats when I retire
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Re: What is your magic retirement number in US$ dollars?
Old 04-26-2007, 03:40 PM   #60
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Re: What is your magic retirement number in US$ dollars?

Quote:
Originally Posted by USK Coastie
What ever I've got on July 1, 2007. Cause thats when I retire
So ... your plan is to retire at a particular future date, regardless of your financial situation? Seems rather arbitrary to me. There must be more to it that that, surely?
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