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How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 03:36 PM   #1
 
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How Much is Needed To Retire? (A Twist)

The reason I added a twist, is I am nor requesting the same old canned answers here. I.E. Calculate how much you need, safe withdrawall rates etc.

What I want to know is, How old you were when you ER'd, Whay Year, what amount of NET WORTH including home equity (first or second minus mortgage(s)). People are actually ER'ing on. Also why I posted as Anon is just in case people do not want to share the info with real names or handles.

I will start the ball Rolling, Here is the Answer format I am looking for. I think it will be helpful to prospective Retirees. All our lifestyles will be different and at the end of it, hopefully we can get an average, if enough of you participate. Do not include Cars and general purpose assets like furniture Jewelery etc.

Any comments are of course welcome. I think one can do it on $40 per year.

Me:

Age ER'd: 49 (Spouse 44)
Year: 2002
Assets: $1m Cash (Post Tax)
$ 560K 401k (Pre-Tax)

No House (We Rent)

Anon

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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 03:42 PM   #2
 
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Re: How Much is Needed To Retire? (A Twist)

That was $40K per year not $40 per year, obviously.

Anon
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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 04:08 PM   #3
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Re: How Much is Needed To Retire? (A Twist)

Age ER'd: 52
Year: *2004
Income: net DBP plan paying 90% of net 'pre-retirement' income; anyway that's what MSN Money states

Assets:
  • no mortgage -- house paid off
  • not drawing on 457 yet
  • not drawing on small IRA yet
  • smaller savings acct, but adding to this monthly unless it's a 'travel month'
Liabilities:
  • lump sum payoff on car this month (I think, unless I book another trip besides New England in Oct & Ft Lauderdale in Nov) then I'll stick that monthly amt into my travel savings acct
  • lent son 12000 in Feb '04 -- took it from my Citicard at 4.9% until pd off -- he is still paying it off -- balance due is 9500
It's all relative
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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 04:16 PM   #4
 
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Re: How Much is Needed To Retire? (A Twist)

Age retired (semi) 1993 at age 49; fully 1998 at age 54.

Living on 25% of preretirement peak income

Spouse 55 and still working

No debt/no mortgage

Not drawing on IRA yet (no pension)

Living on spouse's wages and income from my investments. SS kicks in in 2 years.

John Galt
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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 04:24 PM   #5
 
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Re: How Much is Needed To Retire? (A Twist)

People have a hard time following directions don't they Anon?

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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 04:33 PM   #6
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Re: How Much is Needed To Retire? (A Twist)

Age retired in 2001 at 38.

Living on 10% of preretirement peak income.

Spouse 38 and works very part-time, but no benefits unfortunately.

No debt/no mortgage, not drawing on IRA yet.

We live on earnings from investments, haven't touched the principal yet in 3+ years...any extra money my wife makes we consider "found" money and will use it for things we would not otherwise buy...

Financially I don't need to work again, but in all likelihood once the kids are all in school(ages 1,3,6,8 now) I'll likely do something entreprenurial again and once they are grown and gone off to college I am moving to a deserted beach in some very warm place....or else on a sailboat.

I probably don't have as much as some of you guys, but having no debt and cheap tastes (my favorite beer is miller lite and my favorite wine costs about $3.50/bottle!) allows me to be retired...I used to figure on working till I was 65 or so and kicking back with many millions of dollars and a lavish lifestyle...but I became concerned that there was a pretty good chance I'd be dead before that ever happended...life is good now.
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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 04:44 PM   #7
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Re: How Much is Needed To Retire? (A Twist)

Ah - you've noticed ER's don't take directions well - eh!

ER'd 1993, age 49, single with girlfriend.

300k IRA including hers.
50k paid up duplex (5k rental income).
40k fish camp(house on pilings)

My all time personal best was living on 12k one year in the 90's - I LIKE CHEAP - er aggressively frugal. Mostly ran 18- 24k except for one tornado, two huricane hits - no insurance on fish camps over water. The 300k plus lagniappe money saved over eleven years went back over 1 mil this year(small dip in 200-02). Both of us added together worked maybe 2 1/2 years out of the eleven.
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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 05:28 PM   #8
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Re: How Much is Needed To Retire? (A Twist)

Quote:
My all time personal best was living on 12k one year in the 90's - I LIKE CHEAP - er aggressively frugal. Mostly ran 18- 24k except for one tornado, two huricane hits - no insurance on fish camps over water. The 300k plus lagniappe money saved over eleven years went back over 1 mil this year(small dip in 200-02). Both of us added together worked maybe 2 1/2 years out of the eleven. *
This is quite a nice achievement. One question- does your girlfriend also like cheap, or does she just like you enough to put up with cheap?

Mikey
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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 05:48 PM   #9
 
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Re: How Much is Needed To Retire? (A Twist)

Quote:
People have a hard time following directions don't they Anon?

They Certainly Do.

What I was looking for was numbers. as mentioned in my original post. So we could do an average for newbie ERs that do not know if they can make it or not.

Remember at Total NET WORTH. Please Her it is again.
What I want to know is, How old you were when you ER'd, Whay Year, what amount of NET WORTH including home equity (first or second minus mortgage(s)). People are actually ER'ing on. Also why I posted as Anon is just in case people do not want to share the info with real names or handles.

I will start the ball Rolling, Here is the Answer format I am looking for. I think it will be helpful to prospective Retirees. All our lifestyles will be different and at the end of it, hopefully we can get an average, if enough of you participate. Do not include Cars and general purpose assets like furniture Jewelery etc.

Any comments are of course welcome. I think one can do it on $40 per year.

Me:

Age ER'd: 49 (Spouse 44)
Year: 2002
Assets: $1m Cash (Post Tax)
$ 560K 401k (Pre-Tax)
No House (We Rent)

Total Net Worth in Cash tupe assets is $1.56m but have to pay rent. About $1000 per month.

Anon
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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 05:53 PM   #10
 
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Re: How Much is Needed To Retire? (A Twist)

I'm not er'ed yet..

family of four (2 small kids) wife doesn't work

Right now:

Post-tax 1.1M
Pre-tax IRA 0.19 M
Home equity 75k

When ER'ed, would like to have
2.5M (pre- and post- tax combined)
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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 05:55 PM   #11
 
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Re: How Much is Needed To Retire? (A Twist)

My age now is 36
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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 06:37 PM   #12
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Re: How Much is Needed To Retire? (A Twist)

It really doesn't matter to me what my assets are as they did not figure into my decision to ER or affect my ER lifestyle. That comes completely from my DBP plan, which most private sector employees do not have. I think it might be more relevant to know what ER's need to live the lifestyle that they have become accustomed to. But if you still want the info, it is only in the upper 6 figures.

FYI: 3% annual cap on COLA, DBP = 2092 per month
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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 07:45 PM   #13
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Re: How Much is Needed To Retire? (A Twist)

Although this maybe a sensitive subject for some of the people on the board I think it is useful to see data like this. This gives you an idea of what people's worth is like and their current income. It is nice to get reassurance knowing that if I had 1mil today I could ER if I could live on x thousands a year. I know the four+ percent rules exist but I think it is handy to see real examples.

I'm not ER'ed but here are my current stats and hopes:

Not Ered Yet
Current Age 28
Hoping to ER at 45

401k w/ approx 100k (Currently saving 20% w/ company match another 10%) - 12k is post-tax dollars.
Mortgage left with 80k loan and about 20k equity.
1 Car Loan to be paid off within three years.
About 7k in accessable cash.

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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 08:16 PM   #14
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Re: How Much is Needed To Retire? (A Twist)

>>So we could do an average for newbie ERs that do not know if they can make it or not. <<

As someone going into earlier-than-planned retirement in a couple months due to job elimination, I agree that specific numbers would be especially useful to new ER's with small asset bases who are wondering if they have enough. *
Hopefully members who, understandably, don't want to post their numbers using their real i.d will set up a anonymous i.d. and post some numbers (and then delete the i.d. in a few days to avoid cluttering up the membership role). *My numbers:

Age 58 - single *(have grown children who don't need my financial help, barring the unforseen)
Retirement Year 2004
Assets:
$385k in IRA/401k
$35k in individual stocks
$45k in a savings account
$17k (after taxes) coming in two months for severence and unused vacation.

No debt. Mortgage paid-off. Equity 115k

Income Sources in retirement:
1, *Pension (non-COLA): *$8,800 per year for life starting at retirement.
2. *SS at age 62: $17k per year *(probably will be a little higher by the time I reach 62 - as discussed in a recent thread about SS increases between retirement and starting to collect.)

Income needs: *24k per year in today's dollars.
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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 09:10 PM   #15
 
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Re: How Much is Needed To Retire? (A Twist)

--Age ER'd: 51 (Spouse 49)

--Year ER'd: 2004

--Liquid Financial Assets (Retirement & Taxable): $745,000

--Value Of Defined Benefit Pension (no COLA) If Purchased Annuity Paying Same Amount: $290,000

--Own House Free and Clear ($85,000)

-- NO debt

--Wife earns $20,000 per year and will retire in 4 years.

--Expenses $40,000/year.

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Re: How Much is Needed To Retire? (A Twist)
Old 06-30-2004, 10:45 PM   #16
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Re: How Much is Needed To Retire? (A Twist)

I am going to respond to Anon3. I think you are in good shape, mainly becaue you are only 4 years from a hefty social security payment. Assuming that your $24,000 annually is robust and takes health insurance into account, you need $24,000-$8800 to be made up from your assets for only 4 years. For this amount of time the little that you will lose to inflation on your fixed pension is not a big matter. So the $15,200 or so tht you need is only a little over 3% of your stash. That should be plenty conservative, according to FireCalc.

I think you should aim to cover this amount with conservative deployment of those assets over this time.

Once your SS payments kick in, you are in very good shape indeed. Cut your pension contribution in half-that was the original Terhorst "Kentucky Windage" adjustment for a non-inflation adjusted income stream. Use half of it, and invest the rest. So, you should have more or less perpetually 17,000+4400=21,400. The largest part is COLA, the $4400 you have given a COLA adjustment. So now, you have to get $24,000-$21,400 =$2600 from $482,000 invested assets. 2600/482000 allows an SWR of less than 1%. You'll get richer as time goes by.

Congratulations!

Mikey
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Re: How Much is Needed To Retire? (A Twist)
Old 07-01-2004, 04:54 AM   #17
 
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Re: How Much is Needed To Retire? (A Twist)

Age 51 (retired 2001) - Spouse 57 (retired 1998)

IRAs - $1.7 million
Taxable Account - $200K
Rental Property - $300K ($120K mortgage)
Home - $750K (no mortgage)
Health insurance provided by former employer
2 children - one graduated from college and employed, one college sophomore (public university)

Living on 72T withdrawal from husband's IRA - withdraw $60K per year.

Planning on downsizing home in next year to a smaller home in lower cost of living area.
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Re: How Much is Needed To Retire? (A Twist)
Old 07-01-2004, 04:57 AM   #18
 
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Re: How Much is Needed To Retire? (A Twist)

Another useful piece of info would be city of residence. I see some folks indicating that their homes are worth about $85k and $120k (ish). Not in California or Atlantic or South Florida, Houston, NY etc. Which could add the perspective, and give us our own "Best Places to Retire" information another thread perhaps? Also I think it does not matter when one retired and with how much. It is what they have today, and what they are living on right now that counts. In todays dollars. All our numbers are in todays funds. I will Bite also. P.S. What is COLA?

Age: 55 (spouse 50) No Kids (Anymore)
Cash: $750k Post-Tax
401k/Ira $500k Pre-Tax
Home: $247k No Debt
No Pension yet
No Kids
Location: Green Cove Springs, FL
Living Expenses: $33k pa.


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Re: How Much is Needed To Retire? (A Twist)
Old 07-01-2004, 05:32 AM   #19
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Re: How Much is Needed To Retire? (A Twist)

Mikey
There were some tongue in cheek comments about - about our only cast iron skillet - I had to sleep sometime - you're not going to take it with you - #^* and !#+^. So our budget got a little more frivolous the next year.

I like GDER's old method - swag the needed income stream and multiply by 25. Core budget, pensions, SS, can be worked fairly easily. The trick is to get a margin past the core for the fun stuff and tag a reserve for the lumpy periodic replacements (car, appliances, house repair, unplanned events, etc).

If you are in the accumulation phase - practice cheap and track expenses, swag any planned income in ER, take the diff and multiply by 25. FIREcalc is fun also.
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Re: How Much is Needed To Retire? (A Twist)
Old 07-01-2004, 06:52 AM   #20
 
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Re: How Much is Needed To Retire? (A Twist)

What is COLA?
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