aja8888
Moderator Emeritus
It it wasn't for one's and zero's, we wouldn't be posting here today.
Far from it. All numbers are "real", including complex numbers with their so-called imaginary part.
I used this calculator and it came out much higher than opensocialsecurity for me, maybe different duration? I used 30 years for DW (start at 62) and 25 yrs for me (start at 67).
I was shocked to find a similar situation. We've been retired for 17 years and our taxable funds at retirement were in the order of $700K. We had additional 401K and IRA funds then but the fact is that we haven't tapped those until this year when forced by RMD's.To get back to the OP's question: While we did not retire on $750k (plus SS), I have come to the realization that we COULD have.
At retirement 3.5 years ago (at age 60), our after tax investment account was under $700k. We have lived off of that account since (about $75k per year), and it is now over $700k. We have been doing Roth conversions in that time, but that is beside the point. When we take SS in 2-3 years, our needed withdrawal will be less than our current int/div/cap gains from this account.
Now, SOR could have gone the other way, and it would be a little tougher, but probably still sustainable, with some adjustments.
For all intents and purposes our IRA's will be passed forward to our DS, which is why we are Roth converting, and we will probably reinvest in the after tax account when RMD's hit.
FWIW, our sales in the after tax account are from bond funds that are around par, so they create no taxes.
... another puzzling thing is that even tough our standard of living feels about the same over time our expenses have not really gone up that much with inflation. We are still spending about the same on average as we did back then maybe crazy substitution going on I dunno.
I was shocked to find a similar situation. We've been retired for 17 years and our taxable funds at retirement were in the order of $700K. We had additional 401K and IRA funds then but the fact is that we haven't tapped those until this year when forced by RMD's.
Took SS at 62 ( both myself and wife) currently 69 & 70. Small non cola pension of $4k a year started at age 65. Had no debts at retirement owned house, cars. Surprisingly, last I checked we still have about $700 k in our taxable account. (The 401K and IRA's have of course grown substantially). I know the $700k now are not the same as the $700 k 17 years ago on account of inflation but still...
And another puzzling thing is that even tough our standard of living feels about the same over time our expenses have not really gone up that much with inflation. We are still spending about the same on average as we did back then maybe crazy substitution going on I dunno.
Yes, You most definitely have a point. I have about 3,000 LP's (Vinyls in current terminology) I have only added maybe 40-50 over the last several years, My stereo equipment collection has not changed for a few years now as I am completely pleased with what I have. Wife has really taken up gardening as a hobby and I find a lot of our produce comes from her efforts.I believe there's a lot of that going on without people realizing. For example, I like to expand my culinary horizon, and learn to cook different dishes that do not require expensive ingredients. In fact, the late Anthony Bourdain said that steakhouses are just heat-and-serve restaurants, while it took more skills and know-hows to turn lesser cuts of meat into tasty dishes.
And I stop caring that much about fancy booze, of which I still have many bottles in my cabinet. I stopped buying CDs and DVDs long ago, because I ran out of shelves for them. Now, I just borrow books and movies from the library.
I think that when you get older, you become less demanding and are easier to please.
Many things matter less and less. To tell the truth, I read the "blow dough" thread and do not find much that interests me. FIRECalc tells me I could double my spending, but I would not find happiness in it, so I don't do it.
Darn, I am only 62. But my attitude is that of an octogenarian, compared to people here. Not sure if this is good.
I planned for ER without knowing what our SS was going to be. It's because I kept reading about it not being around, and that it would not be much anyway.
NW-Bound, this is exactly why I don't do much calculating that includes SS. I like to consider it "gravy" and try to ensure we have enough excluding that.
If you know you can make it without SS, then surely you can make it with!
I am depending on SS benefits to provide me with a level of financial certainty needed to maintain a comfortable retirement hopefully >35 yrs. I'm 9 yrs away from FRA (full retirement age), I worked more than 35 years, and I expect to receive SS, so it's a part of my plan.
Thanks..so, 70+% have a pension..and 60+% say it has an impact on their ability to retire.
I'd love to know where all of these pensions are coming from. What companies are still doing pensions (and, can I apply )? Or is the 60-70+% all .GOV, Teachers and Auto workers?
Ditto for me, except 10 years to FRA.... SS is, and has always been a part of my plan, and at max contributions for 20 years or more, a larger part.
A lot of the construction trades have pensions. That's where my DH's comes from.
I would assume that someone who has managed to save 750K had a job and will have SSI.
Probably true in most cases, but there are certain jobs that do not participate in the Social Security system (e.g. - public school teachers in Connecticut).
I see LBYM and my mind immediately translates it to "Living Beyond Your Means" even though I know people are saying "below your means."
==> Relating back to the original post of retiring 'only' on $750K. A 4% withdrawal per year would be $30K/year to start, then adjusted for inflation in subsequent years. If you had nothing else (no other savings, no other investments, no pension, no inheritance, no SS, no earned income), approximately $30K is what you'd need to live on if you needed that $750K to cover a full retirement horizon of 25 to 30 years.
Yes, there are people who live on $30K/year. I don't personally know anyone, but yes they do exist.
My base expenses are around $15k. $30k I would need to blow that dough.From past postings, it sounds like there are a few although not too many on this site who live on 30k.