How Much is Needed To Retire? (A Twist)

[REWahoo]

Ol_Rancher, I took a look at your web site. My Stetson's off to you. Looks to me like you are livin' the good life. You don't have to worry about taking care of the livestock but get the benefit of watching them. Quite a deal.

My apology for the goat rancher question. No disrespect intended ("Get them sheep outta here...this is cattle country!").

Read some of your past posts and you have my sincere respect as to your profession as former teacher. We are both year one Boomers (1946) and a significant number of my former high school classmates went into the teaching profession and have all retired during the past few years. They tell a similar story to yours.

I was an instructor in the military for a couple of years (long ago) and really enjoyed the teaching part of the job. My motto was "I shall never deny a student their inalienable right to fail." Had it on a sign hanging over my desk. I think it was highly motivational.

REW

 

[Calgary_Girl]

I know that would be true in my case were it not for some extenuating circumstances.   I'm curious as to whether that is true for most people.  How many people actually achieve ER by savings alone?  I made a decent salary, took full advantage of tax deferred saving vehicles and in my late 30s had about 1/3 of what it would take to ER.  I think that's about average? Here are some of the contributing "circumstances" that I can think of:

1. Real Estate appreciation (your home)
2. Pensions (early collection)
3. Entrepreneur successes (stock options, selling your business)
4. Highly compensated careers (combined with saving a good chunk of it, most people I know in this category either does not save much or they are not willing to settle for a reduced lifestyle)
5. Investment windfalls (made a killing in the market)
6. Inheritance
7. Lottery
8. Working spouse

Although we are not retired yet, the majority of our savings are because of number 4. My husband makes a very good salary (over 6 figures) and gets fairly decent bonuses. We are able to pay our monthly expenses with my salary alone and invest my husband's salary into retirement accounts and other savings. We do have friends however that have good salaries but are too busy keeping up with the Jones'. A friend of ours blows his entire bonus on such things as putting in a $40K pool, buying an SUV for his teenage daughter as well as getting her horse riding lessons.

Thankfully, hubby and I are just happy knowing that we have no debt. Sure, once in a while we get the urge to maybe build our dream home or go look at new cars but 5 minutes later we're saying once again how happy we are not having any debt.

 

[Rich]

I’m 59. No debts. House paid off. In a year and a half I’ll be able to retire with two pensions ($95,000). Didn’t plan it that way, it’s just the way it worked out (twenty years in the NYPD, twenty pensionable years in my current position). Not sure what I’m going to do, but doubt that I’ll retire. Still enjoy doing stuff in my field (law enforcement) too much. Do enjoy this site for the information it provides.

 

[riverrat]

Retired 2004 age 58 wife 57

net pension income 48k/yr (2%cola)
house paid for - 600k
pretax 710k
after tax 30k
car debt 30k

net worth = 2.1 mil (based on 6% phantom asset (pension) netting 48k/yr

ss statements estimate 20k/yr for wife and me in 2008

 

[dex]

I’m 59. No debts. House paid off. In a year and a half I’ll be able to retire with two pensions ($95,000). Didn’t plan it that way, it’s just the way it worked out (twenty years in the NYPD, twenty pensionable years in my current position). Not sure what I’m going to do, but doubt that I’ll retire. Still enjoy doing stuff in my field (law enforcement) too much. Do enjoy this site for the information it provides.

Rich,
I spoke to a NYPD homocide dective. The topic came up about how great the pension is. He said he didn't want to retire. He liked the work too much.

In addition to your pension don't you get health care?
That is a fantasitc pension. At a 7% return that is a 1,357,000 savings- worry free!

If they only had Lasic eye surgery when I was young I might have had a similar pension. I am getting 13K pesion when I hit 60 plus social security - not too bad.

Have fun and enjoy it.

 

[Rich]

Dex wrote:
Rich,
I spoke to a NYPD homocide dective. The topic came up about how great the pension is. He said he didn't want to retire. He liked the work too much.

In addition to your pension don't you get health care?
That is a fantasitc pension. At a 7% return that is a 1,357,000 savings- worry free!

Dex, I too served for a bit as a NYPD Homicide detective. I retired as a lieutenant in 1990. At the time the retirement system was half of whatever you earned in your last twelve months of service. I've been chief of police for a small MA town now for the past fifteen years. I bought four years of military time so will be able to retire with a twenty year pension in about a year and a half, fifty percent or so of my average last three years salaries. I've also got my SS quarters in (from NYPD), plus some 457 money stashed away.

Funny, I've got young guys at work driving around in $35,000 cars (who aren't in the 457 plan) and the most I've ever spent on a car is $17,000 bucks. Can't tell them anything, and I've tried.

Life continues to be interesting.

Best to all,

Rich

 

[Rich]

Forgot to reply to Dex's question on health care.

Dex, yes, NYC employees get their health insurance for little or no cost when they leave (depends on the option they choose). But, if you live outside of the NYC metropolitan area (or certain parts of Florida and a couple of other places) the health care offered isn't so great. Therefore I buy into my town's BlueCross/Blue Shield.

Rich

 

[Martha]

It took reaching more than 1000 members on this site before someone called themselves "Rich".

Welcome Rich.

 

[Rich]

Martha, I'm not responsible, it's my name!

Rich (Dick, Richard: take your choice)