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01-14-2010, 01:42 PM
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#21
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Recycles dryer sheets
Join Date: Dec 2009
Location: Cleveland
Posts: 344
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Aiming for $1.25 million and paid home if I remain single.
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01-14-2010, 01:43 PM
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#22
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Yeah, if I got rid of a portion of the annual travel/fun budget I could make do with a little under $1 million. But what's the point of retiring to a budget without travel/fun in it?
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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01-14-2010, 01:51 PM
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#23
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Recycles dryer sheets
Join Date: Dec 2006
Posts: 154
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My goal a couple of years ago was 1.8 Mill.
Fortunate to have reached that and more.
Insurance costs of 900 to 1000 per month has to be included for the forseeable future, since the wife is almost 10 years younger than I.
Has anyone made plans to never participate in Medicare Part B and stay on private insurance till death?
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01-14-2010, 01:57 PM
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#24
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Recycles dryer sheets
Join Date: Dec 2009
Location: Cleveland
Posts: 344
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One important distinction is whether the amount will be gross or net. For instance, I have $450K in a traditional 401k. For planning purposes, should I consider that $450K or $300K due to taxes I will owe?
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01-14-2010, 02:57 PM
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#25
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Quote:
Originally Posted by skyvue
One important distinction is whether the amount will be gross or net. For instance, I have $450K in a traditional 401k. For planning purposes, should I consider that $450K or $300K due to taxes I will owe?
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At least in the US, drawing $30,000-40,000 or so from a typical retirement portfolio that would consist of 401k/IRA and taxable investments would not generate a lot of taxes for a hypothetical married couple.
So the numbers I'm looking at are "gross". If you had $2 million and were drawing from it, the taxes would be much more significant given our progressive taxation system here.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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01-14-2010, 03:21 PM
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#26
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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RV vagabonding in a used class C?
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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01-14-2010, 04:15 PM
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#27
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,202
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Quote:
Originally Posted by skyvue
One important distinction is whether the amount will be gross or net. For instance, I have $450K in a traditional 401k. For planning purposes, should I consider that $450K or $300K due to taxes I will owe?
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I use net. As fuego points out, 33% tax may be too high, but I don't know your situation, or what your state taxes are. If you use gross, make sure your retirement budget includes whatever taxes you'll pay. Either way works. I just decided to use net because a lot of my NW was in stock options that I was going to have to exercise near term, and pay taxes on them at that time. Once I did it for options, I decided to do it for all.
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01-14-2010, 04:22 PM
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#28
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Full time employment: Posting here.
Join Date: Jul 2007
Posts: 678
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I am aiming for $1.2 m with a paid-for house for DH and me. With no kids, it's pretty easy to estimate our expenses (plus a margin for health-care cost increases). If somehow we magically have reduced health care costs (like retiring in Mexico), I think $1 m is enough.
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01-14-2010, 05:09 PM
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#29
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Recycles dryer sheets
Join Date: Oct 2007
Posts: 133
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I am planning on ~$1.0 m - 1.2 m with paid off house. Hopefully this will occur in about 10-12 years. Then DW and I will buy a cruiser and do the loop (and cruise the Caribbean for a few years, until SS kicks in), then figure out where to go from there.
Will have boating expenses, but won't have car expenses, insurance, mortgage, taxes, etc, so should be able to live on less than 4% of nest egg.
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01-14-2010, 06:00 PM
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#30
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Full time employment: Posting here.
Join Date: Mar 2008
Posts: 799
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When I started out, I used $1 million because I really didn't have a good idea about my other sources. As I got closer to retirement, my pension and SS benefit (figured it to be 0 in early planning, became more defined and I revised down the amount I would need. Now that I'm less than 5 years away, my numbers are even firmer and that $1 million has dropped to $250,000 as the max needed. I even have one likely scenario where the funds are only needed until age 62 and possibly during the last 10 years, assuming I live to 95.
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01-14-2010, 09:12 PM
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#31
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Recycles dryer sheets
Join Date: Jan 2006
Posts: 346
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Quote:
Originally Posted by MasterBlaster
It goes without saying that $1M won't be what it is now when you are 50.
using my trusty calculator I project that to have the purchasing value at 50 that $1M represents today you will need...
around $1.6M @ 3% inflation
around $1.9M @ 4% inflation
around $2.2M @ 5% inflation
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Yes I've factored that in.. I have a big spreadsheet with saving, anticipated future expenses today inflated to future dollars, etc. I assume 2.5% inflation - yes it could be higher, but then I would get a higher return on my fixed income portfolio too and the increased gains would beat out the inflationary increase on my expense starting point if that makes sense. If I was 50 TODAY, I'd probably be happy with around 750K. Although $1M is my number my range would be $1M to $1.5M so the $1M is kind of my "get out of dodge" number.
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01-15-2010, 05:14 AM
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#32
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,056
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Quote:
Originally Posted by theloneranger
Has anyone made plans to never participate in Medicare Part B and stay on private insurance till death?
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It all depends when death happens
On a more serious note, I have retiree insurance through age 70 - who knows what the situation may be then.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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01-15-2010, 08:12 AM
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#33
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Quote:
Originally Posted by NW-Bound
RV vagabonding in a used class C?
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I'm too smart to get an RV! And I would certainly have wife issues. I'm more of a "spend a year bumming around tropical developing nations" kind of person if I wanted to live cheap. Think Mexico here probably.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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01-15-2010, 08:57 AM
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#34
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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Quote:
Originally Posted by theloneranger
My goal a couple of years ago was 1.8 Mill.
Fortunate to have reached that and more.
Insurance costs of 900 to 1000 per month has to be included for the forseeable future, since the wife is almost 10 years younger than I.
Has anyone made plans to never participate in Medicare Part B and stay on private insurance till death?
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Many federal retirees choose not to participate in Medicare Part B because of redundancy, though the redundancy is not complete. My BCBS will cost me $175/month in 2010 (but then subsidy of health insurance in retirement is well known to be a big part of the federal employment compensation package).
I am not sure but leaning towards not participating in Medicare Part B. Just haven't looked at it closely yet.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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01-19-2010, 11:12 AM
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#35
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Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 1,645
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I'm not sure what my number is. I guess I'm not sure what the future is (can be said by everyone I would guess!).
I have one small COLA pension in the bag, starting to pay out at age 60 and including military health care.
Working on the second federal pension that I qualify for at age 56 (with 35% reduction and no COLA until age 62). That also has health care provisions. If I work til age 60, there are no reductions (I'll have 30 years in). So, many options.
I stopped focusing on the $ end of it, and just keep trying to work and put away 15% of my salary.
So, I guess I'd like to see 1 million (or more!). Not sure if its necessary or possible tho.
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01-19-2010, 11:25 AM
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#36
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Full time employment: Posting here.
Join Date: Aug 2005
Location: Philly 'burbs
Posts: 547
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$1.5 mil, minimum.
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01-24-2010, 11:08 AM
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#37
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Full time employment: Posting here.
Join Date: Apr 2006
Posts: 880
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The goal is $1.5M with no debt or mortgage. There will be a small monthly pension. Right now the IRA and 401k are adequately funded - of course that depends on the markets staying healthy. The focus now is funding the Roth and building up cash reserves. Goal is retirement at 58 (six more years).
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01-24-2010, 12:30 PM
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#38
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,204
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We're already FI on paper (33X+) with no debt at all, but plan to keep working until we reach $3M like several others on this thread.
FI does not mean 'quit working' to me, it means do whatever work I want - which may include periods of nothing. YMMV...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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01-24-2010, 11:27 PM
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#39
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,588
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We will never get to $1M.
If we can't live off $40K (includes SS), we are toast. Hence my interest in Mexico, etc.
__________________
I have outlived most of the people I don't like and I am working on the rest.
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01-26-2010, 01:15 AM
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#40
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Thinks s/he gets paid by the post
Join Date: Feb 2003
Location: Nomadic in the Rockies
Posts: 2,720
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I'm 39 1/2 and tentatively planned for $1Mil / $40k per year in 2001 dollars (when I spent the time to figure my goals and strategies). Last time I projected I think I decided I might be lucky to hit that by my mid-to-late 50's, so I haven't thought about it much lately. Mainly I maintain the same strategy and try to find a comfortable balance between saving and enjoying myself in the meantime.
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