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Old 06-03-2017, 08:15 AM   #61
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Because I was only 45 when I ERed back in late 2008, the relevant part of my nest egg was the part in the more readily accessible taxable account, not so much the nest-egg-in-waiting tIRA. The accessible part of my nest egg was $600k while the tIRA was $235. This was near the depth of the 2008-09 recession so since that time both parts of the nest egg have risen a lot, the taxable to $900k and the tIRA to $500k.


The only things which haven't risen over that time are my age ~60+ "reinforcements" which are my frozen company pension and SS. As long as the taxable account gets me to age ~60 intact (and at worst I may have to tap into principal a little bit, so far I have only added to it), I will be okay. This is for one person, me.
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Old 06-03-2017, 09:20 AM   #62
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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.
ill provide details on mine, maybe im running it wrong. My pension pretax is 103113, i took the lump sum payout of 172000. so it reduced my pension by 10844 a year for life. so if i took max pension it would have been 113957. i threw that number into the immediate annuity link and that what i got. my pension is NOT cola. we do get 180 a year raise (15 bucks a month pretax) from some sort of contract deal.
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Old 06-03-2017, 09:24 AM   #63
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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.
see above for my details, im not shy about sharing. My name was posted on page 2 of the new york post as having the 6th highest pension in the history of the nyc police dept for retirees under 50. i got calls from relatives saying is that you? Its been almost 10 years since i retired so ive dropped to like number 1200 now. I should have retired 5 years earlier my pension would have been about 22 thousand a year less(take home). That would have been better than making some list.
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Old 06-03-2017, 09:33 AM   #64
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see above for my details, im not shy about sharing. My name was posted on page 2 of the new york post as having the 6th highest pension in the history of the nyc police dept for retirees under 50. i got calls from relatives saying is that you? Its been almost 10 years since i retired so ive dropped to like number 1200 now. I should have retired 5 years earlier my pension would have been about 22 thousand a year less(take home). That would have been better than making some list.
One downside of public employment! (Glad that my relatives don't know--although I imagine that they make some guesses...)
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Old 06-03-2017, 10:06 AM   #65
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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.

That gap was later filled. And there were more gaps, and those were also filled. All gaps since Feb were filled in May, then the market ramped up to new highs (with no current unfilled gaps).

It's a month out of date FWIW.
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Old 06-03-2017, 10:07 AM   #66
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Retired summer of 2009 at age 51. Nest egg $900k ($500k cash, $400k 403b). Total cost of living $55k per year. No pension, paid off house.
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Old 06-03-2017, 10:24 AM   #67
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Retired summer of 2009 at age 51. Nest egg $900k ($500k cash, $400k 403b). Total cost of living $55k per year. No pension, paid off house.
So you retired with just 16x of yearly expenses. If you had that money invested in stock market you've done very well. Just curious to see how 8 years later how you're doing?
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Old 06-03-2017, 10:49 AM   #68
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When I quit my job and retired in May of 2016 I had 29x living expenses. Today I have 32x living expenses simply because I do not need all the income I get, so I put it back in the market, plus the gains the market has given me. That and the fact that I feel poor around here compared to a lot of the others. But I am doing alright, especially considering the progress I have made the last couple of years.
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Old 06-03-2017, 11:08 AM   #69
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When I quit my job and retired in May of 2016 I had 29x living expenses. Today I have 32x living expenses simply because I do not need all the income I get, so I put it back in the market, plus the gains the market has given me. That and the fact that I feel poor around here compared to a lot of the others. But I am doing alright, especially considering the progress I have made the last couple of years.
Yeah, I think there is a tendency for people to be hyper conservative when planning....I guess you can never be too cautious, but still
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Old 06-03-2017, 11:11 AM   #70
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I'm single and plan to retire in six years at age 66 with 2.5 million and a paid off house (worth about 400,000). No pension or other income except ss. Obviously not early retirement, but given the longevity in my family I could easily live into my 90s.
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Old 06-03-2017, 11:14 AM   #71
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Yeah, I think there is a tendency for people to be hyper conservative when planning....I guess you can never be too cautious, but still
I think its because I quit my job at age 46, and I was planning on staying on the job until 52. The other issue is hanging around on this forum drives one to do better because there are so many high achievers here. Eventually, if one is dedicated to doing better, then hanging around here has got to have some kind of positive effect.
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Old 06-03-2017, 11:31 AM   #72
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Not retired really - but working part time at home and sooo much happier. I guess if you use the annuity thing and apply it to a rental property I participate in I pulled the trigger with only 900k
But I plan to keep working at home indefinitely, unless the need for group health insurance forces me back into an office. It is an option, as long as you have skills that work at home - and connections to get the work. Sometimes I won't do anything for a week or more. Nice!
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Old 06-03-2017, 11:34 AM   #73
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When I retired I was way short of the $1B that I had hoped that my stash total would have amounted to. I have managed somehow to make it so far on much less than that amount.


Don't worry about us, we will be just fine.
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Old 06-03-2017, 11:47 AM   #74
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You're joking, right?
Or did you miss that the site gives a monthly, not annual payment?
D'oh!

You're right - I missed that it was a monthly payment, not annual. The amount of $1.2 million invested is much closer.
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Old 06-03-2017, 12:07 PM   #75
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see above for my details, im not shy about sharing. My name was posted on page 2 of the new york post as having the 6th highest pension in the history of the nyc police dept for retirees under 50. i got calls from relatives saying is that you? Its been almost 10 years since i retired so ive dropped to like number 1200 now. I should have retired 5 years earlier my pension would have been about 22 thousand a year less(take home). That would have been better than making some list.
My federal salary can be looked up on a database that is updated each year. I have not seen a similar database on federal pensions but it is relatively easy to calculate a fed's pension once you know their final salary and whether they are in the current retirement system (FERS) or the previous system (CSRS). Federal employee 401k accounts, the TSP, are not advertised of course. But few TSP accounts are greater than $1M although that number is increasing. TSP is only 30 years old and consists of index funds. The largest TSP accounts are those where financial types and lawyers have taken high profile public sector jobs in DC and rolled over their 401k into the TSP.
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Old 06-03-2017, 12:12 PM   #76
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Approx $5M inheritance 6 years ago. Portfolio has grown since then, and I have not taken pension or SS yet (only 58 yrs). No debt.
No reason to be averse to sharing, as that info is in my earlier posts when I asked for advice.
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Old 06-03-2017, 12:14 PM   #77
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Retired summer of 2009 at age 51. Nest egg $900k ($500k cash, $400k 403b). Total cost of living $55k per year. No pension, paid off house.
Do you have access to free or low-cost healthcare?
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Old 06-03-2017, 12:52 PM   #78
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One downside of public employment! (Glad that my relatives don't know--although I imagine that they make some guesses...)
my brother in law( Wifes brother) asked me for a 80k loan. he continued to talk and told me they would repay me in 15 years when their mortgage was paid off. This request took me totally off guard, i thought they were coming over for coffee and cake. At the time we had about 1.1 million but the article had come out. I told him i was sorry and i hope we can still be friends, but my money was all invested and i cant touch it, and i further said i can not co sign anything i might have to free up my credit for cosigning some thing for our son. These 2 things were not true. As they pulled out of my driveway with their Cadillac, and headed home to their house on long island i thought, gee glad i didnt get a new caddy till i could pay off my house. Or maybe it was the 2nd home in Florida that my mother in law gave them the down payment for. Could it be they want to repay my mother in law for the 10 G's she lent them to fix up their basement? I dont know , but when we lived in a 3 room apt for 17 years i dont remember anyone shelling out the greenbacks for us. LBYM,
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Old 06-03-2017, 12:56 PM   #79
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That gap was later filled. And there were more gaps, and those were also filled. All gaps since Feb were filled in May, then the market ramped up to new highs (with no current unfilled gaps).

It's a month out of date FWIW.


Please read the comment about where to forward in the video. I was not referring to the issue of chart gaps. At the 19 min 12 sec point there is info about PE ratios, which was the issue that I was offering some information about.
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Old 06-03-2017, 02:23 PM   #80
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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.
I'll share since my pension is basically a matter of public record. I ran the numbers for a military O5 pension (COLA at CPI), basing it on "savings" funding (which includes how much you'd need to pay in taxes). The payout starts at about $53,000 (~$4400 per month) per year, pre-tax. COLA @ CPI, payout starting at age 42 (currently 40).

The amount invested for that would be ~$2.09M. Remove the COLA @ CPI for the rest of your life, and it drops closer to $1.1M.

Lots of different factors can make pensions more or less valuable in these calculators. The two biggest (outside of the payment, of course) are longevity and COLA.
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