Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 06-02-2017, 06:40 PM   #41
Thinks s/he gets paid by the post
 
Join Date: Sep 2013
Location: Ventura County
Posts: 1,432
Quote:
Originally Posted by Walt34 View Post
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.
Just plugged in the numbers in the link.... HOLY COW
stepford is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-02-2017, 06:49 PM   #42
Thinks s/he gets paid by the post
 
Join Date: Mar 2017
Location: New York City
Posts: 2,838
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
Blue Collar Guy is offline   Reply With Quote
Old 06-02-2017, 08:27 PM   #43
Full time employment: Posting here.
 
Join Date: Sep 2012
Location: Albuquerque
Posts: 840
Quote:
Originally Posted by Shabby View Post
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.
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.
__________________
Retired on 9/30/2017 at age 62
ABQ2015 is online now   Reply With Quote
Old 06-02-2017, 08:36 PM   #44
Full time employment: Posting here.
 
Join Date: Sep 2012
Location: Albuquerque
Posts: 840
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.
__________________
Retired on 9/30/2017 at age 62
ABQ2015 is online now   Reply With Quote
Old 06-02-2017, 10:05 PM   #45
Thinks s/he gets paid by the post
 
Join Date: Sep 2013
Location: Ventura County
Posts: 1,432
Quote:
Originally Posted by ABQ2015 View Post
I don't know how you guys are getting these multi-million NPVs unless your pensions are very large.
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.
stepford is offline   Reply With Quote
Old 06-02-2017, 10:23 PM   #46
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 4,324
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.

Major Tom is offline   Reply With Quote
Old 06-02-2017, 11:23 PM   #47
Recycles dryer sheets
 
Join Date: Nov 2014
Posts: 269
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!
Hyper is offline   Reply With Quote
Old 06-02-2017, 11:37 PM   #48
Recycles dryer sheets
evilanne's Avatar
 
Join Date: Feb 2017
Location: San Antonio
Posts: 178
Thank you Walt34.

~1.5 including pensions for me
evilanne is offline   Reply With Quote
Old 06-03-2017, 04:49 AM   #49
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 4,962
Quote:
Originally Posted by Shabby View Post
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. :-)
+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
DrRoy is offline   Reply With Quote
Old 06-03-2017, 05:16 AM   #50
Thinks s/he gets paid by the post
 
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,688
>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.
traineeinvestor is offline   Reply With Quote
Old 06-03-2017, 05:28 AM   #51
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dash man's Avatar
 
Join Date: Mar 2013
Location: Limerick
Posts: 5,638
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.
Dash man is offline   Reply With Quote
Old 06-03-2017, 06:05 AM   #52
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
Quote:
Originally Posted by Shabby View Post
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)
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.
Danmar is offline   Reply With Quote
Old 06-03-2017, 06:14 AM   #53
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
Quote:
Originally Posted by Walt34 View Post
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.
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?
Danmar is offline   Reply With Quote
Old 06-03-2017, 06:27 AM   #54
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
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
ShokWaveRider is offline   Reply With Quote
Old 06-03-2017, 07:02 AM   #55
Recycles dryer sheets
Mo Money's Avatar
 
Join Date: Mar 2014
Location: .
Posts: 382
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
Mo Money is offline   Reply With Quote
Old 06-03-2017, 07:10 AM   #56
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 25,199
Quote:
Originally Posted by Walt34 View Post
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.
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.
braumeister is offline   Reply With Quote
Old 06-03-2017, 07:14 AM   #57
gone traveling
 
Join Date: Nov 2011
Location: The Deep South Bay
Posts: 744
Total net worth at FIRE $284K
97guns is offline   Reply With Quote
Old 06-03-2017, 07:19 AM   #58
Thinks s/he gets paid by the post
 
Join Date: Dec 2016
Posts: 1,305
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
FREE866 is offline   Reply With Quote
Old 06-03-2017, 07:35 AM   #59
Thinks s/he gets paid by the post
Ready's Avatar
 
Join Date: Mar 2013
Location: Southern California
Posts: 3,995
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.
Ready is offline   Reply With Quote
Old 06-03-2017, 08:03 AM   #60
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
Send a message via Skype™ to kcowan
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
kcowan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Do You Include the amount of your Nest Egg in your estimated four % rate of return? nico08 FIRE and Money 22 07-07-2013 04:20 PM
Do you think that you owe your kids a good nest egg? swampwiz FIRE and Money 108 07-31-2011 07:15 PM
Are you concerned that your nest egg will cause you to get means tested out of SS? swampwiz FIRE and Money 138 02-12-2011 10:52 AM
Protecting Your Nest Egg from the Vultures? ShokWaveRider FIRE and Money 62 11-14-2007 12:49 PM
How To Tap Your Nest Egg & Not Go Broke REWahoo FIRE and Money 4 07-16-2005 08:51 AM

» Quick Links

 
All times are GMT -6. The time now is 11:20 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.