Forbes: Do You Have Enough Money to Retire?

[Midpack]

Almost everyone here knows all this, but it's almost always discussed piecemeal. Just thought it was a nice if very basic, stepwise outline to determine 'if one is ready.' There are still plenty of members, mostly new ones, who provide incomplete pieces of info and ask 'can I retire?' So FWIW see the slide show here: http://www.forbes.com/pictures/mjm45...eed-to-retire/, with more information in these areas:

How much money do you need to retire?

Add up your savings
Apply the 4% rule
Figure out Social Security
Figure out your pension
[Include any annuity payments]

Add it all together

Now figure out [exactly] what you spend [and project what you'll spend in retirement]

Subtract

Quote:

Figure out the difference between your income and your expenses. Make sure you allow for taxes. If you’re positive (usually not the case), congratulations!

Zero in on your fixed costs
Make more tough choices (e.g., working longer or spending less, delaying starting Social Security).

[haha]

Quote:

Originally Posted by Midpack Almost everyone here knows all this, but it's almost always discussed

Quote:

Originally Posted by Midpack A good start is to zero in on fixed costs, which may include a mortgage, utility bills, and insurance premiums. Consider selling the house, usually a tax-free transaction and renting.

This is interesting. Many here recommend owning one's retirement home outright. I am pretty well undecided, although I do now own my place. If we get another wild blow off in property values, I will strongly consider selling and renting. In my experience, good apartment communities are better managed than all but the most upscale condo developments, and many smaller condo projects like mine have no manager at all.

If you have no on-premises manager, you will have problems that are not addressed, or in retirement oriented projects tend to be poorly handled by busybodies with too much time on their hands. The other residents in my building are fine, but the board members are all busy with full time jobs requiring travel etc., so there is not much response to issues.

In my last apartment, where I lived for 5 years, there was an excellent young man who quickly addressed any problems, kept the peace between residents, of whom there were some real doozies, kept the place nicely landscaped, clean and free of any meaningful issues. He took care of 2 other nearby buildings, but lived in our building. If he is still around and I do eventually sell out, I will look for a space in one of his buildings.

The residents were anywhere from 20s to me and 2 older women, with an income range from Trust Fund Babies (ERs to us), a tenured professor and others like this to baristas and hard working young people who wanted to live in a nice building.


Ha

[Alan]

http://www.forbes.com/pictures/mjm45...eed-to-retire/

Quote:

Originally Posted by Midpack Almost everyone here knows all this....

Maybe

[Nords]

Quote:

Originally Posted by Midpack Almost everyone here knows all this, but it's almost always discussed piecemeal. Just thought it was a nice if very basic, stepwise outline to determine 'if one is ready.' There are still plenty of members, mostly new ones, who provide incomplete pieces of info and ask 'can I retire?' So FWIW...

The vast majority of the new members largely ignore the existing material in favor of asking their own "fresh, new" questions.

But maybe the moderators could put this thread in the "Early Retirement FAQs" forum, so that the new readers can ignore it there with the rest of the threads that they don't read. That way they'd at least know where not to search for it...