What was your magic Number? Was : Survey finds $880,000 is magic number

[Sea Kayaker]

2M net worth, no debts at 42, with a still happily working DW making a nice six figure sum...really couldn't be better for yours truly. Outside shot of reaching 3M by the time DW joins me in ER. Still can't believe we have managed this...

[EastWest Gal]

When I met with a financial planner 20+ years ago, I had a goal of retiring at 55 and knew nothing about stocks/bonds and the like. They said I would need $5M, based on inflation rates, living in Silicon Valley, and the like.

Many things have changed since then, from where I lived, inflation rates, interest rates, etc. Last year joined this forum, paid off the house, ran all the retirement calculators and realized we were at the magic number and I was good to go. I went.

So in the end, my magic number ended up at $3MM.

[Andre1969]

My original goal was $1M in investible assets, and a paid-off mortgage. I probably set that goal around 1998 or 1999, around the time I paid off the debt from my marriage and really got serious about investing. $1M really seemed like a lot of money at the time.

But, time marched on, and so did inflation. My tastes also got a bit richer. I was living in a condo at the time, and the type of house I really wanted probably cost around $140-170K at the time. Now, those same houses would probably run around $250-300K, but you couldn't give one to me. These days, the type of houses I really like (more land, more secluded areas, but not necessarily bigger, fancier homes) are more like $450K and up.

So now, I've adjusted my goal to around $2M, at which point I'd put a down payment on the house I want, and secure the mortgage. And then, when the time really feels right, pull the plug.

Adjusting for inflation, that $1M goal back in 1998-1999 would be around $1.5M today. If I had $1.5M AND no mortgage, that would equate fairly closely to my current goal of $2M plus a mortgage. So, maybe my original goal wasn't that far off?

[explanade]

I didn't have a number but when I first discovered ER, I was thinking more of immediate annuities and was thinking if I could replace at least 75-80% of my then salary, I'd have been happy.

The threads on index funds, AA and especially the debunking of annuities were all very helpful.

I do recall those ING ads showing various numbers. Before FIREing, I ran all the calculators of course.

It's only been about 7 months since I FIRE'd and 2015 will be the first year without a job but my expectations have changed a lot over the years.

I expect to spend less than 3% this year but would still represent more spending that I was able to do when I was working. Longer trips, more splurges.

[robnplunder]

Quote:

Originally Posted by NW-Bound Was or is or will be?

I am hoping it is $1.9M in 3 months. Nothing magical about it. It's up to me to make it work. I hold the wand.

[Looking4Ward]

$1.2M even though Firecalc kept returning 100% success with $850K.

[jollystomper]

Mine was $1.5M, as i figured that a 2% withdrawal rate of $30000 would make up the difference between my pension and what I would need for a comfortable retirement.

Of course, having hit that, my new "nice if I make it but not gonna stretch things out if I don't" number is $2M. Then, with a 2.5% SWR, DW and I can lead a "very comfortable" retirement.

[jcretire77]

$3,000,000 living in a paid off condo. But then we found a house that we both loved. Boy has that thrown a wrench into the plans.

[neihn]

Anywhere from 1.2 to 1.5M investment asset.

[calmloki]

I've lied to myself for decades. By assuming a 3% return after retirement, a 3.5% inflation rate, and a needed annual income about a third greater than we spend, Quicken retirement planner says my retirement plan fails about 3 years before the gal's demise 29 years from now. That plan has us selling all the rentals in 5 years, which probably won't happen - others derive income from them and they throw off more than we spend. Having not yet paid our taxes due our net worth is a bit high and is very close to the highest it was last year - even though we gave away an old multi-unit building in the interim. Magic prognostication says we will probably be ok even though the numbers I put in Quicken make it say we won't. If only we could retire. Or maybe we did. It's not easy talking retirement when you hardly ever "worked" at a "job" and are content in a van down by the river.

[Niuatoputapu]

Ah, what's YOUR number? Knowing it means something different to different people, and after-tax dollars are different than tax-deferred dollars, and 1986 dollars have a different value than 2026 dollars, and future inflation is a guess, I admit I like the game regardless. My number is $1.4 million in tax-deferred accounts on December 31, 2023, the first year-end after FRA. From that anchor point, I had ER numbers for ER in 2022, 2021, 2020, etc. because my date was only set recently. My plan was always a combination of amount and year, and waiting until I hit a winning combination.

[papadad111]

At age 25, I set an unrealistic goal of $5M in net worth (all assets before taxation takes its toll) or age 45.

I hit age 45 and FIREd.

Some things, namely freedom and time, money simply can not buy.

I will make do with what I have money wise in exchange for hopefully a few decades of enjoyment and adventure. Life is short. Time goes faster and faster the older we get!

[bclover]

Quote:

Originally Posted by youbet It's easier to believe when some life events make you feel more mortal.

AMEN!!
My magic number is what I had when my wonderful husband died at 55 before ever enjoying any thing he saved.
At the moment I realized that my focus on a magic number was totally screwed up.
I started focusing on my "magic life" with whatever number i have right now.

[Fermion]

Quote:

Originally Posted by bclover AMEN!! My magic number is what I had when my wonderful husband died at 55 before ever enjoying any thing he saved. At the moment I realized that my focus on a magic number was totally screwed up. I started focusing on my "magic life" with whatever number i have right now.

Wow, someone on this forum gets it. Congrats!

[Sittingduck]

"I found that if you have a goal, that you might not reach it. But if you don't have one, then you are never disappointed. And I gotta tell ya... it feels phenomenal"

Peter La Fleur - Dodgeball

[gardenfun]

Quote:

Originally Posted by Major Tom My magic number was however much I had when I was laid off and realized I didn't feel like going back to work.

+1


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[Totoro]

I remember a discussion with a work buddy about our "magic number" in 2006. Mine was 1M EUR at the time. His was 1M + the house. I did have a "living under the bridge" number of 250k.

Today the number still is 1M EUR, so I actually adjusted it down (counting inflation).

Where I'm at not now (still a rather long way off) is also good though.

[Spanky]

Quote:

Originally Posted by jcretire77 $3,000,000 living in a paid off condo. But then we found a house that we both loved. Boy has that thrown a wrench into the plans.

Check out these houses:
My Lottery Dream Home | Show | HGTV

[eta2020]

OP Here.

My was 3 Million in investable assets. Ever since we got to 2.7 million in investable assets I have different / relaxed feeling in work .

[phil1ben]

In my experience, until you hit 50MM, the magic number for most people is about twice what you have.