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Old 04-17-2013, 06:17 PM   #21
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One of the reasons I consider myself lucky is that I have my health. My Mom had a serious stroke in her early 50's and couldn't have ever worked again. So, do you have disability insurance? Add this consideration to all mentioned above and I'd keep working, saving but enjoying life as well.
Disability insurance is built in as job benefit package.

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Thinking about it, a million bucks wouldn't give you a great lifestyle if you had to live on it for 40 years or so. It wouldn't buy you much of an annuity at your age, so the good news is your ahead of most of your peers......today, but the race is far from over. good luck in the future.
Good advice here! thanks for all of you cool-headed. I know I won't change my life style. The best case scenario is early out offered 10 year from now which being offered from time to time for those close to retirement age.
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Old 04-17-2013, 08:27 PM   #22
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not to sound too macabre..... but from time to time it comes to mind whether I'll be alive or healthy enough to enjoy what I've been saving lo these many years...
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Old 04-18-2013, 08:32 AM   #23
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Disability insurance is built in as job benefit package.
Have you checked out the fine print on the DI? A lot of those work-provided policies are pretty lame. They may require full disability to get anything, and they may not be own occupation. One that is not own occ means that if you are a brain surgeon and have a stroke that leaves you unable to operate any more, but still able to flip burgers, you don't trigger the policy and go from earning $400K/year to $15K/year and the DI policy doesn't kick in.
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Old 04-18-2013, 09:55 AM   #24
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Have you checked out the fine print on the DI? A lot of those work-provided policies are pretty lame. They may require full disability to get anything, and they may not be own occupation. One that is not own occ means that if you are a brain surgeon and have a stroke that leaves you unable to operate any more, but still able to flip burgers, you don't trigger the policy and go from earning $400K/year to $15K/year and the DI policy doesn't kick in.
+1. My company just rolled out with a crappy LTD coverage. Luckily, since I had none prior to that, I have a guardian policy covering 70% of my income.

Here's what my company's LTD requires of you: you must terminate employment with them, you must qualify for SSDI, your benefit is capped at $3000/month, your benefit is offset by any income coming from SSDI (pssst....my SSDI benefit would be greater than $3000/month). In essence, I get nothing.
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Old 04-18-2013, 01:02 PM   #25
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Another benefit of buying your own plan - the benefits, should you need them, are exempt from federal income tax. Thus your 70% replacement is more like 100% or more in practice.
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Old 04-18-2013, 01:10 PM   #26
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Even though we already have "enough", I find it hard to stop saving a huge chunk of our income. So I don't think we can save too much. Ever. Without going into too much details, I think that our socio-economic background has a lot to do with our reticence to live it up. We feel awkward doing it, and it is just not us.
maybe if you found a ridiculously expensive hobby?
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Old 04-18-2013, 01:25 PM   #27
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I have 15 more years (will be 58) to go working for a megacorp with define pension and heathcare benefit for retiree. This may be a classic case of "golden handcuff". It's hard to leave early and forgo that benefit.... This month, our net worth hit $1M mark ... Sometime it crosses my mind that if we don't have to save a dollar more, we still have double than what we need in retirement (give or take).
It sounds like your private income will make it easy for you to forego the full pension and benefits, if you choose to do so.

Of course if you value the unnecessary extra money / security more than your freedom, you have the option of hanging on until age 58 ... but I'm not seeing any problem here.
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Old 04-18-2013, 01:50 PM   #28
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I've run a few scenarios through Firecalc, and have discovered that cutting back my yearly savings rate doesn't seem to push my projected retirement date *too* much. For instance, Firecalc says that if I retire at age 59 (year 2029) and collect SS at 62, and keep investing 20,000 per year from now until then, I have a 95.2% chance of success.

If I drop that investing to 10,000 pear year, if I push retirement out to age 61, (2031), I have a 96.4% chance of success. And if I cut out investing completely, and put off retirement until the age of 63, (2033), I'll have a 97.6% chance of making it.

So, in my case, I can have $10,000 more per year now to play with, but I have to give up two years of my retirement to work longer. Or I can have $20,000 more per year now, but at the cost of four years of retirement. Actually, I'd have less after taxes, because most of my investing right now is tax deferred, going into my 401k.

At this point in my life, there's really nothing I want all that bad, to start diverting that money. If I cut back on the 401k to, say, just enough to get the company match, I'd still probably do something like investing in stocks/mutual funds, or paying down the mortgage. So it would still be saving for retirement, just not tax deferred.

If you want, maybe cut back on saving just a little bit and splurge every once in awhile, if there's something else you really want the money for, to enjoy life now. Just don't go overboard.
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Old 04-18-2013, 02:02 PM   #29
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There were times I felt like I was saving more than we were going to need for retirement. But a couple of weeks ago I was laid off at age 47, and now I'm in a situation where I don't need to be desperate to take another job -- and indeed, might not actually *need* to w*rk again, all because of my obsessive very diligent saving of 30-40% of my income, year after year.
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Old 04-18-2013, 05:55 PM   #30
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Have you checked out the fine print on the DI? A lot of those work-provided policies are pretty lame. They may require full disability to get anything, and they may not be own occupation. One that is not own occ means that if you are a brain surgeon and have a stroke that leaves you unable to operate any more, but still able to flip burgers, you don't trigger the policy and go from earning $400K/year to $15K/year and the DI policy doesn't kick in.

Here is what is in the fine print:
"If you serve 18 months or more and become disabled for your position, you may be eligible for disability retirement. your estimated monthly annuity without survivor benefits would be about $4,503.

Subsequent years will be less. A disability annuity begins the day after separation or pay ceases, and continues while you remain, even for life. If you are also entitled to disability benefits from the Social Security Administration, your disability annuity will be reduced by the Social Security pension. Social Security disability benefits would be replaced by old age benefits at age 67".

One thing I need to find out from HR is "Subsequent years will be less". How much less?
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Old 04-18-2013, 08:42 PM   #31
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And the SSDI bennie would probably be on the order of 2500 a month.
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Old 04-18-2013, 10:31 PM   #32
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There were times I felt like I was saving more than we were going to need for retirement. But a couple of weeks ago I was laid off at age 47, and now I'm in a situation where I don't need to be desperate to take another job -- and indeed, might not actually *need* to w*rk again, all because of my obsessive very diligent saving of 30-40% of my income, year after year.
This.

You could be saving too much if you feel deprived in your day to day lifestyle, but if you are comfortable with how you are living, the value of having saved enough to absorb situations like this with calm is worth it all.
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Old 04-18-2013, 10:40 PM   #33
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You are probably not saving too much in reality. There is just as good or a greater chance the company will say goodbye to you than vice-versa, so you best stick to your plan.
As ziggy29 points out, he is the poster child for that sort of scenario. 15 years is a long time, and a lot of unforeseen developments can occur. But if you are FI, you'll be able to take it in stride.
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Old 04-23-2013, 03:47 AM   #34
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I think I've been saving approx 68 percent for the past 5 years.
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Old 04-23-2013, 07:29 PM   #35
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My DW and I are saving about 75% of our income these days. Really, I don't think we are sacrificing much in terms of lifestyle, and I am probably going to stop working next year before my 42nd birthday.

Definitely not saving too much.
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Old 04-23-2013, 09:23 PM   #36
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My DW and I are saving about 75% of our income these days. Really, I don't think we are sacrificing much in terms of lifestyle, and I am probably going to stop working next year before my 42nd birthday.

Definitely not saving too much.
Are your percentages after tax?
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Old 04-24-2013, 07:22 AM   #37
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Probably the most obvious/likely opposition to the chorus of "you can't save too much" is, by definition, not going to be represented here.
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Old 04-24-2013, 08:02 AM   #38
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Then when a co-worker dies in his 40's or the crap that happened at Boston today, I think I'm saving too much.
I really don't think that the last thought of a bombing or heart attack victim is "OMG, I could've bought that BMW!" Even a terminally ill younger person must have bigger worries than stuff they didn't buy. On the other hand, someone elderly being forced to severely cut back on things has plenty of time to regret not saving more.

Directly to the OP, if you feel you are depriving yourself, loosen up and spend a bit more. Congrats on putting away so much. That money gives you a lot of flexibility. You aren't guaranteed that job will be there for another 15 years, or the pension plan won't change. One of you may get sick and you may need or want to retire earlier than 58.
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Old 04-24-2013, 08:31 AM   #39
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I really don't think that the last thought of a bombing or heart attack victim is "OMG, I could've bought that BMW!" Even a terminally ill younger person must have bigger worries than stuff they didn't buy. On the other hand, someone elderly being forced to severely cut back on things has plenty of time to regret not saving more.
If I knew I were going to die, say, Jan 1 of 2014, I would definitely change what I am doing now in response. I wouldn't necessarily go out and buy a new 7 series, but I sure as hell would be working less--if at all--and would be alternating spending time with family and travelling.
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Old 04-24-2013, 08:57 AM   #40
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Here is what is in the fine print:
"If you serve 18 months or more and become disabled for your position, you may be eligible for disability retirement. your estimated monthly annuity without survivor benefits would be about $4,503.

Subsequent years will be less. A disability annuity begins the day after separation or pay ceases, and continues while you remain, even for life. If you are also entitled to disability benefits from the Social Security Administration, your disability annuity will be reduced by the Social Security pension. Social Security disability benefits would be replaced by old age benefits at age 67".

One thing I need to find out from HR is "Subsequent years will be less". How much less?
you should also find out what they mean by "disabled." when one is dead, it is rather cut and dry. but being disabled is a huge gray area.
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