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06-02-2017, 06:40 PM
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#41
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Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Ventura County
Posts: 1,432
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Quote:
Originally Posted by Walt34
https://www.immediateannuities.com/
We retired with ~$200k in savings/investments, but a well-funded COLA'd pension that according to the link above has a current value of many, many millions. I don't know exactly because the max amount invested on that site is $5 million and the resulting annuity is considerably less than the pension.
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Just plugged in the numbers in the link.... HOLY COW
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06-02-2017, 06:49 PM
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#42
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Thinks s/he gets paid by the post
Join Date: Mar 2017
Location: New York City
Posts: 2,838
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Wow, i just punched in my pension numbers into the immediate annuity calculator, it was 2,245,000 value. I dont know how the tax situation is with immediate annuities. As long as i stay in new york I only pay federal tax on my pension.
__________________
Withdrawal Rate currently zero, Pension 137 % of our spending, Wasted 5 years of my prime working extra for a safe withdrawal rate. I can live like a King for a year, or a Prince for the rest of my life. I will stay on topic, I will stay on topic, I will stay on topic
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06-02-2017, 08:27 PM
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#43
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Full time employment: Posting here.
Join Date: Sep 2012
Location: Albuquerque
Posts: 840
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Quote:
Originally Posted by Shabby
Yes, expenses are a huge factor, but with me there isn't much with paid off house, car, no debt, no kids, no wife. So....while I have $80k a year in "expenses", that could also be $40k. So the whole XExpenses thing is a bit lost on me.
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RobbieB had a poll in 2016, "What's your Net Worth" and about 40% responded $1.0M to 2.5M. About 50% responded above $2.5M. So you are probably about average for a single person. Of course, there was the usual confusion as to whether the net worth was to include home value, etc.
I tracked my expenses for several years, am close to SS so it is unlikely to change significantly, and have access to very reasonable health insurance premiums but still padded my desired retirement income about 20%. If you are comfortable that you could live on $40-50K including insurance and taxes if necessary and have a good quality of life, you might go for it. But I would want some possible fall backs such as ability to get a part time job or option to relocate to a less expensive home or area if needed.
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Retired on 9/30/2017 at age 62
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06-02-2017, 08:36 PM
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#44
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Full time employment: Posting here.
Join Date: Sep 2012
Location: Albuquerque
Posts: 840
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I must be doing something wrong on the annuities calculator but am not getting huge net present values for pensions. For example an immediate annuity costing $1M yields about $59K a year non-COLA or $46K a year with a 2% COLA. So I don't know how you guys are getting these multi-million NPVs unless your pensions are very large.
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Retired on 9/30/2017 at age 62
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06-02-2017, 10:05 PM
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#45
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Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Ventura County
Posts: 1,432
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Quote:
Originally Posted by ABQ2015
I don't know how you guys are getting these multi-million NPVs unless your pensions are very large.
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People here who've been unusually fortunate generally don't like to provide explicit details, but I think you hit the nail on the head right there.
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06-02-2017, 10:23 PM
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#46
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Thinks s/he gets paid by the post
Join Date: Nov 2009
Location: SF East Bay
Posts: 4,324
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I retired with ~42x my annual withdrawal, about 6 years ago. My withdrawal has increased a little, but so has my portfolio. The current portfolio is ~47x the annual withdrawal.
In addition, a modest SS income will come along in 8.5 years, if I take it early. I highly doubt that I will lower my withdrawal though - the SS income will be a welcome extra.
__________________
Contentedly ER, with 3 furry friends (now, sadly, 1).
Planning my escape to the wide open spaces in my campervan (with my remaining kitty, of course!)
On a mission to become the world's second most boring man.
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06-02-2017, 11:23 PM
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#47
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Recycles dryer sheets
Join Date: Nov 2014
Posts: 269
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I was really worried about nest egg size at first but realized that before retiring, I was basically already doing the things outside of work that I enjoyed so had a pretty good idea of what my retirement cost looked like. Currently savings only is 30 x yrly spending. When/if SS kicks in both SS alone should be higher than current yrly spending. Also we live in a semi somewhat retirement town. Currently I'm able to take care of just about all maintenance of what we have. If/when that changes as we age, cost in a retirement town are considerable. I did not for see fleecing of elderly to such a degree!
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06-02-2017, 11:37 PM
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#48
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Recycles dryer sheets
Join Date: Feb 2017
Location: San Antonio
Posts: 178
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Thank you Walt34.
~1.5 including pensions for me
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06-03-2017, 04:49 AM
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#49
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Michigan
Posts: 4,962
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Quote:
Originally Posted by Shabby
That was my thoughts. Use SS as a inflation buffer.
I am just such a risk averse guy I sometime think I will sit here under these fluorescent lights at w**k forever waiting for enough so I feel safe. I'm the same guy that has felt the SP500 has been over-valued for 10 years waiting for the correction back down to a PE of 15. :-)
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+1 on SS to cover future inflation.
PE's are not a good indicator of the future course of the stock market. Play this from the point at 19 minutes 12 seconds. I do not do any trading based on this guy but he is interesting.
__________________
"The mountains are calling, and I must go." John Muir
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06-03-2017, 05:16 AM
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#50
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Thinks s/he gets paid by the post
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,688
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>50 times projected annual expenses
We carried the mortgage on our house into retirement + have no pensions, annuities etc to fall draw on. Even so, it is much more than we need.
Portfolio growth has outpaced increased expenses + DW has gone back to a full time job, so the multiple is even higher now.
__________________
Budgeting is a skill practised by people who are bad at politics.
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06-03-2017, 05:28 AM
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#51
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,638
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We have enough. We're spending more than our plan this year for remodeling our Florida condo and getting a new roof this month for our PA home. But we have a large cushion, so it won't affect our long term spending plan.
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06-03-2017, 06:05 AM
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#52
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Thinks s/he gets paid by the post
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
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Quote:
Originally Posted by Shabby
I am super conservative and can keep working indefinitely if I wanted and saving more money. But, I balance that with wanting to enjoy my life and other passions. While everyones situation is different and nest egg is just one component, I was sorta curious if most people were more or less than this. Obviously pensions, location, lifestyle, make a big difference, I was just sorta wondering. Last thing I want to do is die at my desk still saving because it's never enough.
(I apologize for saying an actual dollar amount. If forgot that isn't cool on here)
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For all the reasons you mentioned, the size of the "nest egg" is somewhat irrelevant. "Just curious" makes sense but there is much better data available in previous polls, as pointed out.
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06-03-2017, 06:14 AM
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#53
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Thinks s/he gets paid by the post
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
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Quote:
Originally Posted by Walt34
https://www.immediateannuities.com/
We retired with ~$200k in savings/investments, but a well-funded COLA'd pension that according to the link above has a current value of many, many millions. I don't know exactly because the max amount invested on that site is $5 million and the resulting annuity is considerably less than the pension.
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Likewise, but I think you can use a multiplier, ie if your pension is twice the amount for a $5million investment the pension should be worth 2x$5million, no? Being Cola'd is the real issue I think?
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06-03-2017, 06:27 AM
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#54
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,666
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40 x projected annual Expenses, Not including home or SS.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
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06-03-2017, 07:02 AM
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#55
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Recycles dryer sheets
Join Date: Mar 2014
Location: .
Posts: 382
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At retirement, about 47x annual spend. Mr. Market has bumped it up to about 55x. SS will be a bonus, to the degree it's there when I'm 67ish.
__________________
“We always may be what we might have been.” -- Adelaide Anne Procter
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06-03-2017, 07:10 AM
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#56
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,199
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Quote:
Originally Posted by Walt34
https://www.immediateannuities.com/
We retired with ~$200k in savings/investments, but a well-funded COLA'd pension that according to the link above has a current value of many, many millions. I don't know exactly because the max amount invested on that site is $5 million and the resulting annuity is considerably less than the pension.
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You're joking, right?
Or did you miss that the site gives a monthly, not annual payment?
If you're serious, that's the biggest pension I've ever heard of.
__________________
I thought growing old would take longer.
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06-03-2017, 07:14 AM
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#57
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gone traveling
Join Date: Nov 2011
Location: The Deep South Bay
Posts: 744
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Total net worth at FIRE $284K
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06-03-2017, 07:19 AM
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#58
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Thinks s/he gets paid by the post
Join Date: Dec 2016
Posts: 1,305
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Reading this thread just got me really nervous.
I'm 6 months in and have only ~27x my annual expenses, yet cfiresm and FIRECALC have me at 95-100% success ratio
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06-03-2017, 07:35 AM
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#59
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Southern California
Posts: 3,995
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When comparing net worth and expense multiples, these threads can be confusing because some people are posting as a single person and some people post the combined savings of them plus their spouse. But two people will also spend more than one person, so their savings does need to be higher than that of a single person.
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06-03-2017, 08:03 AM
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#60
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
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Since taking early retirement the first time at age 49, there have been so many twists and turns that any number I quote you will be meaningless. What it takes more than anything is a commitment to make it happen somehow. Be willing to adapt, change, move or whatever!
__________________
For the fun of it...Keith
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