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Old 08-12-2013, 08:33 PM   #41
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FIRE = Financially Independent, Retired Early

Welcome. I'm FI but not yet RE. Some of us are still cavemen who haven't yet mastered FIRE.
Or, if you're Frank Moses and collecting your pension, you're FIRED:


(was supposed to start the clip at 47 seconds...doesn't seem to paste with the bookmark)

..."you know, Financially Independent, Retired, Extremely Dangerous"
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Old 08-12-2013, 08:48 PM   #42
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Welcome to the board. I guess you've gotten a good lesson in the culture here...

Good luck
We have culture?
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Old 08-12-2013, 08:50 PM   #43
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Thanks for the suggestion. I will look for that survey function.
Also recommend reading the "stickies", topics in each forum deemed worthy of immortality, and the search function to see past discussions.
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Old 08-12-2013, 08:50 PM   #44
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Forgive me, I realize what you are saying is correct .. I thought since people here use aliases, are anonymous, and don't really know each other face-to-face, they could throw in some estimates. Interesting! Even a mask needs to be protected with another mask and another
I wear two masks, in case one blows off...
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Old 08-12-2013, 09:19 PM   #45
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Hi. New here. I'm planning to retire early. Just wanted to see how much people saved at age 50, 55, 60 ... Thanks.
People aren't being intentionally combative. They are simply trying to tell you that benchmarking against others solely on a number is close to useless information. You may only have $20k saved at age 50, but if you've been forced to live paycheck to paycheck your whole life to simply feed the family, that's pretty good. Meanwhile, the guy with $5MM in investments who earns $2MM/year is probably not anywhere close to being able to retire without massively downgrading his spending.

Raw numbers without context are meaningless. I know I need about $2.3-2.8MM saved to be FI. That's quite a bit, but it's what I think I need to retire in CA in my 40s based on our spending estimates and other sources of income.

Your number may be a lot lower, it may be a lot higher, you may have a pension, you may not... it's just so hard to glean anything useful out of:

I have $XX saved right now.

It's close to meaningless without context.

That said, welcome to the board. I am 36, so I can't answer your question, but as I said above, by 50 I hope to be FI/RE with roughly $2.3-2.8MM invested (not including home equity).
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Old 08-12-2013, 09:24 PM   #46
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Another little tidbit/rule of thumb I read a long time ago in the WSJ that might be of interest to the OP is a Fidelity "rule" regarding money in your taxable investment accounts. Take it for what it's worth, but it might be more useful than a bunch of random people's personal savings without context:

30: 0.5x salary
35: 1x
40: 2x
45: 3x
50: 4x
55: 5x
60: 6x
65: 7x
67: 8x

So if you make $50k/year, you would "need" $200k in your TAXABLE accounts to be "on track" for retirement at age 50. Again, take it FWIW, which is probably very little.
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Old 08-12-2013, 09:34 PM   #47
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There's also the boglehead survey Bogleheads • View topic - Improved Net Worth by Age [and plot]. I think my numbers made it into the first version but not this one.
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Old 08-12-2013, 10:45 PM   #48
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Cyber, don't take it personal; some here tend to be a little rough on newbies. I had my "learning" experiences, as well.

To partially answer your question and though might be slight underachievers on this forum, we're light-years ahead of our peers. It is really managing 90% of your spending and 10% of your investing, in my opinion.

We're mid-50's, just at 18x future expenses saved; SS+pensions are 60% of expenses, and right, we're sstill working but not for long.

Thank God(or the deity of your choice).....it's been a really, really long haul.
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Old 08-13-2013, 12:19 AM   #49
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You may be under the impression that everyone here retired early because of LBYM and saving/ investing. Some have, some sold businesses, some with great pensions, some with a few lucky breaks or windfalls, etc.
I thought most did via LBYM, saving, and investing. Like myself.

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Of course we do. Even yogurt does.
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Old 08-13-2013, 12:52 AM   #50
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We have culture?
Little Debbie Little Debbie

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Old 08-13-2013, 05:57 AM   #51
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Age 50: 8.2 times expected annual retirement expenses.
Age 55: 15 times expected annual retirement expenses.

This is relatively low to others. However, at retirement I will be getting a pension that will cover 2/3rds of expected annual expenses, giving me a SWR of just over 2% to cover the balance. Of course, that assumes the market stays at least where it is now, so I'm not taking it for granted.

Taking SS at age 62 would cover another 20% of annual expenses. Taking SS at my "full retirement age" (almost 67) would cover about 30% of annual expenses.
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Old 08-13-2013, 06:10 AM   #52
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Thanks. I understand that.
But here's my perspective. People who earn $1M and spend $2M would have 0 savings and have a negative net worth. So, most likely, savers who have $1 million at 50 are pretty frugal with their spending. My wife and I are frugal.
Not necessarily. Someone who make $300K a year and saves $50K will have $1 million after 20 years, but they will have been spending $250K/year all that time. So everything is relative.

Now, it's true that everyone *can* survive on, say, $20K/year if they have to - that is, you can get enough nutrition, and a roof over your head, and some heat - so, objectively, $1 million ought to be enough for anybody. But the point is that the FIRE decision is a trade-off between time (for yourself) and money (so you can do what you want in that time). If your retirement plans call for a lot of yacht-based travel, that $1 million might not be a great amount. If your hobbies are chess and reading, you're more likely to be set.
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Old 08-13-2013, 07:02 AM   #53
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When I got whacked by Megacorp earlier this year at 47, we had about 20x expected living expenses socked away, about 3/4 of it in retirement accounts. So far we're doing pretty well and there's been no need to tap them or dig into savings much at all. and I know we can still do "better" on living expenses if we felt the need.
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Old 08-13-2013, 07:25 AM   #54
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I've already shared my basic financial info in other posts, so don't mind doing it here. My initial reticence was based on the fact that I didn't have any sense of whether the OP was serious in intent; a "legit" poster, so to speak. I see now that you are, cyber888.

I was laid off at the age of 45 and began living off my portfolio 2 years later at the age of 47. At that time, I had about 36 x annual expenses saved up. I am now 49 and, thanks to the market, that multiple has since grown to a little over 40. I have a source of minor part-time income, which has kept my withdrawals to 1/40 of the starting portfolio value (the value when I began withdrawals 2.5 years ago).

However, although I'm comfortable and content, I'd really like to spend a bit more money so am hoping that in a few years, the closer proximity of early SS combined with (hopefully) a little more portfolio growth will give me the confidence to increase withdrawals a bit. I just did a quick sum to estimate how much would be in my portfolio had I not ER'ed and, although it would have been nice to have that higher NW, it sure has been great not having to look for a job
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Old 08-13-2013, 07:53 AM   #55
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That's great Major. 40x looks nice and comfy till you take SS at 62.

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I've already shared my basic financial info in other posts, so don't mind doing it here. My initial reticence was based on the fact that I didn't have any sense of whether the OP was serious in intent; a "legit" poster, so to speak. I see now that you are, cyber888.

I was laid off at the age of 45 and began living off my portfolio 2 years later at the age of 47. At that time, I had about 36 x annual expenses saved up. I am now 49 and, thanks to the market, that multiple has since grown to a little over 40. I have a source of minor part-time income, which has kept my withdrawals to 1/40 of the starting portfolio value (the value when I began withdrawals 2.5 years ago).

However, although I'm comfortable and content, I'd really like to spend a bit more money so am hoping that in a few years, the closer proximity of early SS combined with (hopefully) a little more portfolio growth will give me the confidence to increase withdrawals a bit. I just did a quick sum to estimate how much would be in my portfolio had I not ER'ed and, although it would have been nice to have that higher NW, it sure has been great not having to look for a job
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Old 08-13-2013, 07:57 AM   #56
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Sorry to hear that. But glad you got 20x savings, which can bridge you to getting SS at 62. I itemize my expenses to the last cent, so I'm sure you know where to cut the things you can live without. Good look

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When I got whacked by Megacorp earlier this year at 47, we had about 20x expected living expenses socked away, about 3/4 of it in retirement accounts. So far we're doing pretty well and there's been no need to tap them or dig into savings much at all. and I know we can still do "better" on living expenses if we felt the need.
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Old 08-13-2013, 07:59 AM   #57
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That's great Major. 40x looks nice and comfy till you take SS at 62.
Please - call me Tom
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Old 08-13-2013, 08:02 AM   #58
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Hi Nick. Yeah, but if you do the math, $50K is actually 16.7% savings out of $300K, which means that someone is saving decently. I've often hear people saving 15% of income towards retirement. But of course, if I had that kind of income, I'd be saving 70% of it.

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Not necessarily. Someone who make $300K a year and saves $50K will have $1 million after 20 years, but they will have been spending $250K/year all that time. So everything is relative.

Now, it's true that everyone *can* survive on, say, $20K/year if they have to - that is, you can get enough nutrition, and a roof over your head, and some heat - so, objectively, $1 million ought to be enough for anybody. But the point is that the FIRE decision is a trade-off between time (for yourself) and money (so you can do what you want in that time). If your retirement plans call for a lot of yacht-based travel, that $1 million might not be a great amount. If your hobbies are chess and reading, you're more likely to be set.
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Old 08-13-2013, 08:21 AM   #59
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Sorry to hear that. But glad you got 20x savings, which can bridge you to getting SS at 62. I itemize my expenses to the last cent, so I'm sure you know where to cut the things you can live without. Good look
Before you get too concerned about Zig's situation, please note that he's a 'kept man'. His wife is employed full time - or maybe I should say "all the time".
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Old 08-13-2013, 08:35 AM   #60
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My signature line briefly describes how I am living. My income, however, is a function of the number of shares in each mutual fund I own, especially those in the big bond fund, and the monthly (or quarterly, sometimes) dividends per share paid out by those funds. The price of those shares, leading to my net worth, does not play a role in that. So even though the ratio of my net worth to annual expenses has grown from about 35:1 to about 55:1 since I ERed in late 2008, my annual dividend income has been fairly flat because the decline in dividends per share in the bond funds has been roughly offset by the increase in shares I own through reinvestment of excess dividends (and cap gain distributions).
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