Retirees Thrive Regardless of Nest Egg

[Major Tom]

Many can derive happiness just by looking at their millions. Nowaways, it's not even a pile of cash, or shiny gold bars. It's just a number on the computer screen.

Woa, hold on there. What did you just say? Maybe we don't actually have any money at all? Perhaps it's all just numbers on a computer screen?

 

[W2R]

Many can derive happiness just by looking at their millions. Nowaways, it's not even a pile of cash, or shiny gold bars. It's just a number on the computer screen.

Woa, hold on there. What did you just say? Maybe we don't actually have any money at all? Perhaps it's all just numbers on a computer screen?

Impossible! NW-Bound has assured us that the figure below shows him with his money. Numbers? Computer screen? Nope, nope, nope. He is just saying that to keep us from feeling bad.

 

[FUEGO]

I buy it. For 50+ year olds, many are drawing pensions or SS or very close to SS age. Lots have paid off their 30 year mortgages (or the payment is so tiny it's nothing).

My grandma would certainly vote in the affirmative on this poll even though her SS is pretty small and she has a very low five figure bank account (plus paid off house). No way she would voluntarily go back to waking up at 4:30 am to make the rounds on the chicken farm collecting eggs at 5:30 and repeat that 4x per day till 6 pm. 7 days per week. Farming is hard, collecting an SS check and living on a "fixed income" and permits much more freedom to do whatever one wants.

My parents in-laws, with the same tiny SS payments ($1500/mo total after medicare part B deduction) and a very low 5 figure bank balance would agree. No more crawling in tight spaces, sweating in the sun all day, or stooping over circuit boards doing electronics assembly for minimum wage.

 

[Sunset]

Perhaps all those happy free people with less than 25K in savings simply are financially illiterate.

 

[Senator]

But note that those with $1M+ are 1% less so. Granted it's just 1% but I wonder why.

As someone mentioned, maybe a statistical noise. Or maybe the ones with $1M+ definition have larger expectations of what money should do, vs. what it can do. Or they are driven so much, that they think they are still 'not there' and need to work harder.

I always knew I would never be a billionaire, as long before I reached a billion, I would be out. I do like the thought of having more than 'average', so I can do most things that average people do.

If I knew I was only going to have $25K at retirement, I would have never worked in the first place. There is no way that working for 40 years, and living in poverty at the end, is worth that much effort.

 

[jim584672]

25K is poverty?? Guess I didn't get the memo. With a paid off place to live and car 25k can be enough to live comfortably.

 

[Senator]

25K is poverty?? Guess I didn't get the memo. With a paid off place to live and car 25k can be enough to live comfortably.

I believe they mean $25K in total assets, not annual income. You can live in $25K a year, as long as you do not do a bunch of stuff. There is no need to work at all if you only aspire to live in $25K a year.

 

[GTFan]

25K is poverty?? Guess I didn't get the memo. With a paid off place to live and car 25k can be enough to live comfortably.

100% agreed, in a lower COL area like ours 25k is plenty with no debt. That's all we need for basic COL but we spend a bit more for vacations and such.

 

[nash031]

100% agreed, in a lower COL area like ours 25k is plenty with no debt. That's all we need for basic COL but we spend a bit more for vacations and such.

The chart was "investable assets" not "income". I don't know many places where I'd feel comfortable retiring with $25K total saved. Even with a pension and SS, that's not a whole lot of buffer regardless of whether it qualifies as "poverty" or not depending on the metric.

 

[brett]

We live in Canada. Several things are happening to seniors.

The number of seniors who are retiring with debt, mortgage or consumer, is increasing. The percentage of personal bankruptcies by seniors is increasing. The percentage of seniors who are missing payments on consumer credit/consumer loans is increasing. It has been so for the past four years.


We are also seeing an increase in the poverty levels of seniors-most especially single/divorced women.

 

[aim-high]

Now in the interest of full disclosure many of my friends had some type of "government" job where they are drawing decent pensions.

That's a key factor as to whether or not one needs millions. My brother can retire in his mid 50's and will have close to a six figure annual pension along with social security when he's ready.

I have no pension and will require and asset base of about $2.5 million to safely produce the income he'll have with his pension.

 

[W2R]

I have a 4-figure annual pension from my federal government job, mid 3-figures per month, whoopee! Break out the party hats and let's party.

Seriously, I am happy and thriving without a nest egg of millions. Honestly I don't know what I'd do with millions. I mean, really? Millions? Get real! That wasn't me when I was working, and it's not me now. I love my life and have no delusions of grandeur.

Now, time? Ah, that's a different kettle of fish. At this stage in life I'd value a few years more time so much more than having millions.

I guess this is a good place to post the cartoon that we all have seen.

 

[nash031]

That's a key factor as to whether or not one needs millions. My brother can retire in his mid 50's and will have close to a six figure annual pension along with social security when he's ready.

I have no pension and will require and asset base of about $2.5 million to safely produce the income he'll have with his pension.

Possibly, but expenses/desired spending is the single biggest factor. I know quite a few people with five-figure COLA'ed pensions who still need million(s) in order to support their lifestyle based on where they live. I'll be one of them!

 

[aim-high]

Possibly, but expenses/desired spending is the single biggest factor. I know quite a few people with five-figure COLA'ed pensions who still need million(s) in order to support their lifestyle based on where they live. I'll be one of them!

Exactly. My brother lives in the San Fran area. I live in the DC area. Not too many places cost more. Owning a paid-for house and two modest cars can cost over $20K a year in taxes, utilities, insurance, maintenance, fuel. Add $10K for healthcare (h/w) and another $10K for food and you're at $40K.

 

[daylatedollarshort]

What we've found now that we have more free time is that we can live the same lifestyle or actually better than we had before but spend much less.

 

[Mulligan]

I have a 4-figure annual pension from my federal government job, mid 3-figures per month, whoopee! Break out the party hats and let's party.

Seriously, I am happy and thriving without a nest egg of millions. Honestly I don't know what I'd do with millions. I mean, really? Millions? Get real! That wasn't me when I was working, and it's not me now. I love my life and have no delusions of grandeur.

Now, time? Ah, that's a different kettle of fish. At this stage in life I'd value a few years more time so much more than having millions.

I guess this is a good place to post the cartoon that we all have seen.

While I am not a millionaire, I have a great pension which takes care of me and I use my stash to invest and it actually provides some intellectual entertainment. I could have continued working to make more money, but quite frankly even though I do not have a million dollars, someone giving me a million wouldnt change my lifestyle....except for a real fancy sports utility vehicle. For me to change my lifestyle I need mega millions. I cant just scrape a few mill together to get that condo in Aspen. I need a bunch more to pay for fees, taxes, and upkeep. Better not to ever have it than, have it taking away from you in bankruptcy court. No matter how long or how hard I worked I could never be that rich so I accept my present fate and relish the freedom it gives me because many people have it a lot worse I know.


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[RobbieB]

I do have millions and I like it, it actually simplifies my life and makes it easier and more fun. No, not gonna buy that condo in Aspen either but I'll tell you what I do buy.

The most expensive stuff I can find. Well, not really the most expensive with regards to caviar and stuff of that nature, but here's a good example. I bought an Echo weed whacker at home depot. I used to buy the "value" stuff and it would work for a couple years and then croak. Not to mention it was not well balanced, hard to start and vibrated. That Echo cost 3 times the cheapies. Starts easy, runs smooth and my arms don't ache after from the vibes and the imbalance. Sweet!

So, when I go to the hardware stores now, I don't agonize over the choices, I just get the best stuff there.

I've also discovered the joys of real Balsamic vinegar, the traditional stuff from Italy. Costs a hundred and fifty bucks for 3 and a half ounces. And of course the superautomatic coffee machine that makes you swear there's a little barista cranking away inside.

Yup, if you don't buy the new house and the Maserati you can really go crazy on the small stuff -

 

[unclemick]

My income has multiplied ten fold since starting ER 22 plus years ago. Happiness difference was marrying at 70 after girlfriend of 29 years passed away suddenly right after Katrina.

Some days it's getting increasingly difficult to play the Curmudgeon.

heh heh heh - above a certain threshold level for me income doesn't count as much - counts of course but not as much.

 

[Mulligan]

Robbie, I dont think you took it this way, but I wanted to make sure I didnt sound like one of those types that I am frugal because of its "inherent values". I am always happy for anyone's wealth they have accumulated. I just got too damn lazy to work more to earn it, and I will be the first to admit it!
I am right around 6 figures annual income in retirement before taxes and live in a low cost rural area, so I am not hurting. But getting lazy and not wanting to work caused me to leave a lot of meat on the bone. But still never enough to get that Aspen condo...Sigh....


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[RobbieB]

Hey Mulligan, don't worry I was not upset or trying to be argumentative. Being frugal was how I accumulated a nice stash. And yes, I actually considered a new house and a Maserati, but not for long -

I do enjoy just buying stuff now w/o thinking about it like I used to. Just go and get some good stuff w/o worrying and have fun!

 

[Fedup]

I do have millions and I like it, it actually simplifies my life and makes it easier and more fun. No, not gonna buy that condo in Aspen either but I'll tell you what I do buy.

The most expensive stuff I can find. Well, not really the most expensive with regards to caviar and stuff of that nature, but here's a good example. I bought an Echo weed whacker at home depot. I used to buy the "value" stuff and it would work for a couple years and then croak. Not to mention it was not well balanced, hard to start and vibrated. That Echo cost 3 times the cheapies. Starts easy, runs smooth and my arms don't ache after from the vibes and the imbalance. Sweet!

So, when I go to the hardware stores now, I don't agonize over the choices, I just get the best stuff there.

I've also discovered the joys of real Balsamic vinegar, the traditional stuff from Italy. Costs a hundred and fifty bucks for 3 and a half ounces. And of course the superautomatic coffee machine that makes you swear there's a little barista cranking away inside.

Yup, if you don't buy the new house and the Maserati you can really go crazy on the small stuff -

Now you make me jealous. I need to get real Balsamic vinegar. I thought the 2.50 GBP I got recently was pretty decent. I use it to season every thing. That and diced prosciutto.

 

[W2R]

The most expensive stuff I can find. Well, not really the most expensive with regards to caviar and stuff of that nature, but here's a good example. I bought an Echo weed whacker at home depot. I used to buy the "value" stuff and it would work for a couple years and then croak. Not to mention it was not well balanced, hard to start and vibrated. That Echo cost 3 times the cheapies. Starts easy, runs smooth and my arms don't ache after from the vibes and the imbalance. Sweet!

I still think you are frugal! I don't even have a weed whacker any more. Instead I just pay somebody to do it. Time to pat yourself on the back.

 

[Mulligan]

I still think you are frugal! I don't even have a weed whacker any more. Instead I just pay somebody to do it. Time to pat yourself on the back.

Ya, Robbie. I agree with W2R.....I get enough reading about people with millions living off of rice and beans and splurging on weed eaters.
I want to read about the nice second home on the Virgin Islands or something like that you are buying....If I want to hear or witness someone with money being frugal, I can go hang out with my dad and see that any time!


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[RobbieB]

Well I did blow a grand on 2 nights in Monterey with a bay front view so close you can spit into the water and another grand on food, booze and in room massages -

Three grand in 3 days is really fun!

 

[W2R]

Well I did blow a grand on 2 nights in Monterey with a bay front view so close you can spit into the water and another grand on food, booze and in room massages -

Three grand in 3 days is really fun!

That's fabulous! Sounds like you had a great time.