How much is enough?

[novaman]

I know that a lot depends on your individual lifestyles, but I'm curious to see how much everyone is targeting for FIRE.

 

[cute fuzzy bunny]

Depends on the lifestyle, spending budget and term of retirement.

You might get something a bit more useful by going with ratios...like 25x annual budget.

A million might be good for someone that spends 30k and spends most of their time at the park reading library books. For someone that spends 80k a year eating out all the time and travelling....not so much.

 

[maddythebeagle]

I need 20-30 million....I should have it in 2-3 months...

 

[unclemick]

Yep - check me off for the 25 times expenses/expected budget camp.

heh heh heh - lot of devil in those pesky details .

 

[old woman]

A million would be huge to me. Right now I gross 50K but save 20K so 4% of a million would be more than I spend now by 1/3rd and after I get SS in 3 years my spending money would be twice what it is now.
Besides I have a roommate where many people are supporting more than one person even in retirement. If I had to support a child or spouse I would need more but a single can easily live on a million invested especially if the home is paid off and they have roommate income.

 

[2B]

A million would be huge to me.

I had a thread on the old board about the husbands that are looking towards ER and their non-working spouses that don't want to alter life style (keep the big houses, etc). The premise seemed to be "DH can die at the plow as long as she doesn't see a change." If he does, she can discuss it with all her girlfriends the next time they all meet for lunch.

If DW disappeared (without removing 50% of the assets), I could live in my definition of luxury of 50+ years. DW wants the big house and all the accessories. I will agree that she's prudent with her spending but it is still based on the fixed spending required for Lifestyle X and not my defintion of ER Lifestyle Y. I'd move more money to recreation/traveling and the big house/fixed expenses would disappear.

 

[lazygood4nothinbum]

i think i've posted this elsewhere: if a million doesn't buy your way out of indentured servitude, then life just ain't worth it.

 

[Spanky]

I voted for 2 - 3 mil, but our expenses are only $50K. I guess I am a victim of "the more you have, the more you want."

 

[Alan]

I voted between 2 and 3 million although I expect to RE with savings of 1.5 million because I expect to have company pensions (non-COLA) of $60K/year.

25 x expenses is $1.75M but if I make it through the next 33 months then I'll be Rich, Wealthy, Loaded, bags of lolly, wa ha ha ha

 

[novaman]

The results of this poll are very interesting. It looks like most can make do with 2million or less. At a 5% rate of withdrawal 2 mil gets you $100,000 a year. Some have pensions to supplement, some live in more expensive areas, some less, and of course lifestyle issues are a big factor, but it is interesting that most are falling at 2million or less

 

[cute fuzzy bunny]

You'd have to live a little extravagantly to spend six figures in retirement...and at that spend rate quitting your job probably never occurs to you.

 

[Alan]

You'd have to live a little extravagantly to spend six figures in retirement...and at that spend rate quitting your job probably never occurs to you.

Good fun trying though

We've never been close to $100k/yr spending during our working lives, 'cos you never know when you might lose your job or some other disaster, but once it is unearned income we may well feel a little differently.

 

[FIREd]

My goal is $1.5 million minimum or 25 times our projected expenses ($60K a year).

 

[novaman]

yearly expenses of over 100k a year could easily happen if you live in an expensive area like DC and you have several kids

 

[retire@40]

My goal is $1.5 million minimum or 25 times our projected expenses ($60K a year).

An alternative goal for others in that spending bracket may be $1.25 million with a part-time job earning $10K a year. This may allow for a much earlier semi-retirement. Earning $10K a year is not that difficult, and the portfolio may grow to the $1.5 million on it's own in a good market.

 

[Meadbh]

I voted $3-4 million because I will have NO pension.

 

[chinaco]

We are close to our minimum goal (portfolio size) for ER now. That amount is not so much based on our minimum expense needs, rather perceived needs with a generous amount of discretionary spending. I believe we could ER now... But I feel that there are some incentives for me to keep working for another 4.x Years to ER @ 55. That qualifies me for the company medical plan and a small non-cola pension (pension is cut down on actuarial basis if ER).


We currently have about 7 years of anticipated expenses in intermediate bonds and cash. I am shooting for a 60/40 stock/bond allocation. This would provide us with 10 years of income (till we reach 65). That should hold us even if we had to liquidate all of the fixed assets in a horrendous bear or sideways drift market. Then some of SS can kicks in. If we were really strapped, we would both (DW and I) take SS @ 62... If not, I might wait till 66.x.


My goal is to have all debt paid off before ER.

 

[kumquat]

I voted for what we have now since I ER'd a week ago.

 

[HFWR]

< $1M for me, cause I wanna retire in this lifetime...

 

[lightspeed]

I voted 4-5 million because I'm so conservative, and and want a big cushion. I'm hoping to retire before my kids reach college age, so I'll need to fund 8 yrs, if not more, of college (2 kids) +/- med school? law school? in retirement. Also, what if we get another 9/11? 1.5 million is suddenly less than 1 million!

 

[Spanky]

I voted 4-5 million because I'm so conservative, and and want a big cushion. I'm hoping to retire before my kids reach college age, so I'll need to fund 8 yrs, if not more, of college (2 kids) +/- med school? law school? in retirement. Also, what if we get another 9/11? 1.5 million is suddenly less than 1 million!

Are you really going to pay your kid's graduate studies? Medical or law schools will be very expensive. Paying 100% of their education may not help kids understand the value of money.

 

[unclemick]

Talk's cheap. There are plans and then there is life.

In the late 1980's I 'planned' on 1.3 mil in 2006 at age 63.

I was canned/layed off Jan 1993 with 250k mine, 100k hers. Never really went back to work(long story) but became a 'high class ER' in the stretch - in contrast to a lazy unemployed bum/slacker.

Also reinventing my past - after reading books like 'Your Money or Your Life' became frugal instead of "you cheap bastard" or "you tightwad SOB" or phases of lesser class and gravitas.

Love this forum - makes me feel like a clubmember or something!

heh heh heh heh - .

 

[Alan]

Talk's cheap

Great thought - if we all talked more instead of spending we'd be in great shape

 

[lightspeed]

Are you really going to pay your kid's graduate studies? Medical or law schools will be very expensive. Paying 100% of their education may not help kids understand the value of money.

I'm hoping they will understand the value of money whether or not I help them, by leading a fiscally responsible lifestyle. My parents helped me out and made that period in my life much easier, which helped me become successful, so I'd like to offer the same opportunity for my kids if necessary.

 

[Alan]

I'm hoping they will understand the value of money whether or not I help them, by leading a fiscally responsible lifestyle. My parents helped me out and made that period in my life much easier, which helped me become successful, so I'd like to offer the same opportunity for my kids if necessary.

I fully understand your feelings on this. We were both happy to fund our childrens' passage through college though we told them from the outset that we couldn't afford graduate school as well particularly as they were only 18 months apart in age. I also told them that it was an investment in our future in case disaster happens to strike in our retirement, then we'd be looking for them to return the favor

Both are now graduated and working in jobs they like and they are both fiscally very responsible. Funding them through college was extremely rewarding to us, even though our son suffered with health problems and took 5+ years to finish. (seizures, depression, very traumatic stuff, but he made it - a BSc in Computer Science that he is so very proud of)