Merrill Lynch study says you need $738.4K on average to retire

[Sunset]

Me either......average is waay beyond my reach.

I got it, you are a midget

 

[Nemo2]

I got it, you are a midget

Certainly when we're referring to mental capacity/ability.

 

[W2R]

I noticed that the BLS spending statistics for those over 65, were used to determine average spending in retirement.

Looking at the BLS spending statistics (reported in the fool dot com article cited in the article linked to for this thread), they added up to a total of $3673/month and they did not include any income tax as far as I could tell. My average total spending over 2012-2016 for everything but income tax added up to a total of $2738/month.

Therefore, based on numerical computations instead of mere guesses, I can confidently report that I am sub par and only 75% of an average retiree.

 

[NW-Bound]

... My average total spending over 2012-2016 for everything but income tax added up to a total of $2738/month...

That works out to $33K/year without income taxes. My mother's income is less than that, as I recall. I used to do her taxes, but my brother now takes up the responsibility. She is not complaining about wanting anything. She does not buy anything from Amazon, in fact has not turned on her PC for a decade now, but she goes shopping for clothes at the mall all the time.

 

[ExFlyBoy5]

Did Bernie Madoff tell you how he manages that?

His previous posts do...

i hold nothing but real estate, gold, and guns

Sounds like a great way to get fabulous returns to me. And very little chance that those values would decline.

 

[kcowan]

Thus far I've managed 28 1/3 years of 'below average' retirement.....and....we even manage to get out of the house...once in a while.

I would say that 28 years and still going strong is above average. Only time will tell how far above average you are.

 

[UnrealizedPotential]

To get 65k out of 380k one would have to take a lot of risk. How is that sustainable over the long term? One year like 2008 and what would your 380k be down to? My guess would be your 380k would be dust and so would your 65K. I smell a troll.

I have read the back story of 97guns. It is possible to do what he says he did. Not saying I believe it, but it is possible. I will give him the benefit of the doubt.

 

[W2R]

That works out to $33K/year without income taxes. My mother's income is less than that, as I recall. I used to do her taxes, but my brother now takes up the responsibility. She is not complaining about wanting anything. She does not buy anything from Amazon, in fact has not turned on her PC for a decade now, but she goes shopping for clothes at the mall all the time.

Exactly! I don't want anything either, and feel like I have enough for a happy and comfortable lifestyle of my choosing.

Yet, she and I are both less than 3/4 of an "average retiree", as far as income goes.

I don't really understand it because I didn't think most retirees had that much income. I thought more would eating dog food and getting assistance for their utilities, than would be enjoying a $33K/year income like that.

 

[calmloki]

Retiring early obviously requires more unless there's a pension. Twice that much is a nice start.

No pensions here and tiny SS payments (but thanks! Greatly appreciated!). Don't know where to mark my retirement date - early passed me by and I'm still making money but hardly ever worked for the man. OTOH, snowbirding and not bothering with shoes after the morning walk. $740k would make me real nervous.

 

[NW-Bound]

My mother's networth is less than $600K, as my best estimate. It's mostly in the house she lives in, and a rental that she just sold. She's living mostly on her small pension and SS. She could spend more, but does not want to.

No house payment, no car payment, and taking a cruise or two each year. She is doing fine.

 

[W2R]

My mother's networth is less than $600K, as my best estimate. It's mostly in the house she lives in, and a rental that she just sold. She's living mostly on her small pension and SS. She could spend more, but does not want to.

No house payment, no car payment, and taking a cruise or two each year. She is doing fine.

Sounds like a good life, I agree.

 

[97guns]

I have read the back story of 97guns. It is possible to do what he says he did. Not saying I believe it, but it is possible. I will give him the benefit of the doubt.

Really don't care if any of you believe my story or not,, I didn't tell it to make friends , I told it because I'm proud as hell of my accomplishments and savvy, sharkl like investing

 

[Lawrencewendall]

Really don't care if any of you believe my story or not,, I didn't tell it to make friends , I told it because I'm proud as hell of my accomplishments and savvy, sharkl like investing

Good on you. More than one way to skin a cat. Congrats and thanks for the motivation.

 

[Blue Collar Guy]

Really don't care if any of you believe my story or not,, I didn't tell it to make friends , I told it because I'm proud as hell of my accomplishments and savvy, sharkl like investing

i believe u, some day if u care to share this strategy with me id appreciate it

 

[UnrealizedPotential]

Really don't care if any of you believe my story or not,, I didn't tell it to make friends , I told it because I'm proud as hell of my accomplishments and savvy, sharkl like investing

That's fine. Don't care either.

 

[97guns]

i believe u, some day if u care to share this strategy with me id appreciate it

No strategy, just a leap of faith, no timing involved, I let returns on my money dictate my timing. in 2009 when my money in the bank stopped making the 5% on cd's I began looking for some return on my money. I had dabbled in RE before but it didn't work out and I got out but I had always wanted to be in it because I've seen most of my family members build serious wealth with it.

The RE bubble popped in 2008 and homes that topped out at $375k were now 75-80k, I snapped one up but it took me almost a month to find a tenant, I was worried but after I filled the vacancy I bought 2 more through financing, then #4 all cash. In 2013 my dad passed away and left me 200k so I added another at $160k, so my total investment is 90k for the first house, 20k and 30k on the 2nd and 3rd, 75k on #4 and $165k for #5 for a total of $380k which nets me around $65k a year and that's what I've been living on for the past 8 years and throwing all reserve monies to physical gold and silver

Values are now back up to $280k and my net worth sits at 1.7 mil

 

[UnrealizedPotential]

Really don't care if any of you believe my story or not,, I didn't tell it to make friends , I told it because I'm proud as hell of my accomplishments and savvy, sharkl like investing

You are right. I am sorry.

 

[Blue Collar Guy]

i have an uncle thru marriage, he like most of the brides family doesnt have 2 wooden nickles to rub together, much less 738 thousand. he is retired i think he gets 1060 a month soc sec and 194 in food stamps, and medicare, medicaid and a free cell phone. drives a broken down jalopy buys lottery tickets and goes to the casino. he currently lives with my mother in law (his sister). this is how a huge percentage of our population retires. 738k ,PFFF they make this stuff up

 

[Mulligan]

Easy, my IRA $400,000 nets me $130,000. Oh, I left out Wife's IRA, and SS, and several pensions. But hey, it only a study.

That is funny, yet true...I know people who live a very comfortable retirement with zero net worth...As long as those pension checks show up each month there is no problem!