Survey finds $880,000 is magic number

[W2R]

Quote:

Originally Posted by steelyman I'm the opposite, that's increasing due to my new friend the Roku (learned of them right here). I recently rewatched for the n-th time The Hustler, after posting here about the novel in the "What have you read..." thread. Great movie, but set in Pittsburgh, not Chicago as in the book. In the book, you learn the real name of Minnesota Fats, too! Books and film: excellent core pursuits with newfound time.

Frank has Netflix and he found out it was permissible to install it on my TV, too. So, he did. Then while he was over here, he showed me two or three episodes of a British sit-com on Netflix that he likes.

Otherwise, I've never used Netflix on my TV even though I have had it for months. I could be watching fabulous movies every night if I ever ran out of other fun pastimes.

[W2R]

Quote:

Originally Posted by Amethyst "The last thing you want to do in your first year of retirement is to have to put a new roof on the house, replace the heating and air-conditioning system, or buy a new car." All of which we have been doing...the car is next Amethyst

Agh!!! Sorry to hear that. When it rains, it pours!

Oh well, c'est la vie I suppose. It probably wouldn't be a good idea to schedule an expensive international dream vacation this year.

[Car-Guy]

I guess the magic number is going to be different for just about everyone. I know 880k would make me and the DW very uncomfortable at our current ages and lifestyles. However, I do agree with a number of points in the article (e.g. no mortgage or big ticket items to buy (or pay for) and no cc debt going into retirement). I'm not sure the "happiest" are the "master of the middle" but the quote in blue below is pretty much how we live.

"The happiest retirees are masters of the middle. They don't live on the cheap, they're not the most frugal, they don't usually clip coupons, and they don't stay in $49-a-night motels.However, they are not shopping at high-end department stores, not spending $1,000 a day in Europe, either. They have nice houses, not million-dollar homes. They eat in good restaurants, but not in $250-a-meal restaurants. It's really more about not being completely ridiculous with money. Happy retirees aren't necessarily penny wise but they are certainly not pound foolish."

[Looking4Ward]

Firecalc gives $880K invested in a 60/40 portfolio a 100% chance of lasting 30 years with an initial withdraw of $28.5K adjusted by 3% inflation each year.

I think that and SS would provide a comfortable living for many people.

[NW-Bound]

It's possible to live well whether you are rich or poor. When you are poor, it just costs less. - Andrew Tobias

The people with $880K+house+SS are not even poor.

[Amethyst]

Actually, these were not unexpected. I just thought it was funny that the article mentioned them when golly, we were doing them all ![/B]

Quote:

Originally Posted by W2R Agh!!! Sorry to hear that. When it rains, it pours! :

[Focus]

Quote:

Originally Posted by Amethyst "The last thing you want to do in your first year of retirement is to have to put a new roof on the house, replace the heating and air-conditioning system, or buy a new car." All of which we have been doing...the car is next Amethyst

You left out what he says after this: "You can blow 100 grand on those things." Sounds way too high! Hope it's not costing you nearly as much.

[Focus]

Quote:

Originally Posted by Car-Guy I guess the magic number is going to be different for just about everyone. I know 880k would make me and the DW very uncomfortable at our current ages and lifestyles. However, I do agree with a number of points in the article (e.g. no mortgage or big ticket items to buy (or pay for) and no cc debt going into retirement). I'm not sure the "happiest" are the "master of the middle" but the quote in blue below is pretty much how we live. "The happiest retirees are masters of the middle. They don't live on the cheap, they're not the most frugal, they don't usually clip coupons, and they don't stay in $49-a-night motels.However, they are not shopping at high-end department stores, not spending $1,000 a day in Europe, either. They have nice houses, not million-dollar homes. They eat in good restaurants, but not in $250-a-meal restaurants. It's really more about not being completely ridiculous with money. Happy retirees aren't necessarily penny wise but they are certainly not pound foolish."

I think many of us here can relate to that.

[RAE]

I guess I have to agree with him with regard to the core pursuits, and keeping busy in retirement. I keep plenty busy in retirement, and a lot of that time is spent on my core pursuits (gardening, fishing, camping, traveling, fitness, grandkids). If I did not enjoy these things so much, I probably wouldn't be enjoying my retirement as much as I am. As for money, I do agree with him that once you have enough to live the kind of lifestyle you want to live (and enough to feel secure), adding more probably wouldn't change things all that much. I'm pretty frugal and have been my whole life, and I doubt that would change if I came into a monetary windfall. I'd probably just invest it for now, and some worthwhile charity would likely get it (or most of it, anyway) after I'm gone.........

[martyb]

We have less than that amount, but with 2 COLA pensions (one now, the other in 2 yrs) + wife still working and she'll have SS later on, plus we live in Louisiana....think we'll make it ok.

Sent from my SAMSUNG-SM-G900A using Early Retirement Forum mobile app

[NW-Bound]

Quote:

Originally Posted by Amethyst "The last thing you want to do in your first year of retirement is to have to put a new roof on the house, replace the heating and air-conditioning system, or buy a new car."

Quote:

Originally Posted by Focus You left out what he says after this: "You can blow 100 grand on those things."

Yeah, if the car is a luxury car. I missed that he wrote that. Ridiculous.

One has to have a new roof, or an A/C replacement, but he does not have to have a luxury car. I've downgraded my evaluation of the author one notch.

[2017ish]

Interesting. I've read similar before and find them interesting, albeit with a truckload of salt. As others have noted, it is going to be different for everyone.

None of my relatives have ever attained that high a number (inflation adjusted or not), but those who have retired seemed to be happy--my grandma until she was 97, and my mom in her mid-70s now. OTOH, that number is far below what we want before pulling trigger.

Got a chuckle out of this though:

Quote:

The happiest retirees are masters of the middle. They don't live on the cheap, they're not the most frugal, they don't usually clip coupons

So even with 880K or some multiple thereof, we could never be happy retirees! (And I would have thought my in laws were happy after more than 25 years of retirement--but they still clip coupons whenever they are available....)

[daylatedollarshort]

I guess it comes down to who are you going to believe?

Rich, Smart People Use Coupons, Says a Coupon Company - TheStreet

"It's commonly believed that the practice of bargain hunting is reserved for those with less money, but this survey clearly shows that those with higher incomes are savvier online shoppers," explains Regina Novickis, a consumer savings analyst at the company. "Likewise, college graduates are putting their educations to use when it comes to shopping smarter" by using online coupons."

Here is a chart on typical net worth by age in the U.S., and this includes housing. The cutoff for the top 70th percentile age 65+ is $334K. Not that many households ever get to $880K, present company excluded:

http://www.usatoday.com/story/money/...-age/22415229/

And another study:

"Consider a 2014 survey of recent retirees by Baltimore’s T. Rowe Price Group.The 1,507 participants, who had a median net worth of $473,000, were living on an average of 66% of their preretirement income. Yet 57% said they were living as well or better than when they were working, and 85% agreed with this statement: “I don’t need to spend as much as I did before I retired to be satisfied.”

http://finance.yahoo.com/news/why-yo...140914778.html

[purplesky]

Quote:

Originally Posted by mathjak107 having 880k in nyc is very different from 880k in houston. i live in queens , not even manhattan and i would not even have considered retiring if all i had was 880k.

But with 880k saved for retirement you could move to many other locations and retire with dignity.

Thats the point. 880k is a sweet spot financially.

You could still live fairly close to NYC if needed on 880k and land on your feet.

[GravitySucks]

They don't live on the cheap, they're not the most frugal, they don't usually clip coupons, and they don't stay in $49-a-night motels.

That's right, I spent $39 a night in Myrtle Beach last month.




Sent from my Nexus 7 using Early Retirement Forum mobile app

[purplesky]

Quote:

Originally Posted by RunningBum No offense, but I'm not going to base anything in my life off of a survey of what makes others happy.

I think they mean being happy is just feeling comfortable with the math.

If you don't like what you see in the mirror, no dollar amount will make you happy. If you don't have your health the 880k will not make you happy.

But 880k is enough cash to provide a feeling of "I will be OK" if I get fired or if I am forced to retire early.

[haha]

This is a very popular article theme here on ER.com. Like building houses out of discarded corncobs on Mother Earth News.

Junk IMO. I would imagine that almost no one on this board who has any choice would willingly retire on $880,000. And as others have noted, $880,000 is a whole different fish in San Francisco, or Seattle or West LA or NYC or any of about 100 desirable communities than it might be in Peoria.. People say, well you can just move. Sure you can, but you can also decide to drink Old Milwaukee, or eat ramen noodles or drive an old Junker. But most people with any choice would prefer not to do any of these things.


Also who likes to think about money all the time? Maybe a "core pursuit" of people who decide to retire on $880,000 is scheming about whether they can survive whatever might come along to upset their apple carts.

Ha

[purplesky]

Quote:

Originally Posted by haha This is a very popular article theme here on ER.com. Like building houses out of discarded corncobs on Mother Earth News. Junk IMO. I would imagine that almost no one on this board who has any choice would willingly retire on $880,000. And as others have noted, $880,000 is a whole different fish in San Francisco, or Seattle or West LA or NYC or any of about 100 desirable communities than it might be in Peoria.. People say, well you can just move. Sure you can, but you can also decide to drink Old Milwaukee, or eat ramen noodles or drive an old Junker. But most people with any choice would prefer not to do any of these things. Also who likes to think about money all the time? Maybe a "core pursuit" of people who decide to retire on $880,000 is scheming about whether they can survive whatever might come along to upset their apple carts. Ha

WOW. What an arrogant post. Most people would kill to retire with 880k.

880k well diversified is enough to not have to worry about putting food on the table and keeping the lights on. That happy place that allows a person to sleep at night.

You can pursue a hobby on 880k invested properly. Not to mention SS and a pension that some people still have.

880k is a realistic happy place retirement number to start with. Yes 2 or 3 million is better. But 880k is reality.

[daylatedollarshort]

Quote:

Originally Posted by haha This is a very popular article theme here on ER.com. Like building houses out of discarded corncobs on Mother Earth News. Junk IMO. I would imagine that almost no one on this board who has any choice would willingly retire on $880,000. And as others have noted, $880,000 is a whole different fish in San Francisco, or Seattle or West LA or NYC or any of about 100 desirable communities than it might be in Peoria.. People say, well you can just move. Sure you can, but you can also decide to drink Old Milwaukee, or eat ramen noodles or drive an old Junker. But most people with any choice would prefer not to do any of these things. Also who likes to think about money all the time? Maybe a "core pursuit" of people who decide to retire on $880,000 is scheming about whether they can survive whatever might come along to upset their apple carts. Ha

I don't feel like I am qualified to speak for most people, but personally I do have a choice to spend more in retirement but I like being frugal and implementing many of the Mother Earth News ideas. We're getting into sustainable living as a fun hobby that saves money and is good for the environment. I would rather leave extra money to the food bank and an elephant sanctuary in our estate than see the money go to utility companies.

We could play bridge or golf or plan how a greenhouse on the south side of our house could save thousands of dollars off our heating bill over the rest of our lifetime. I am not sure why the green house idea and other sustainable living ideas would be such a crazy choice among all the different hobbies a retiree could pursue.

[Amethyst]

About half that, for roof, hvac and car. Another 50 grand for more house repairs and to sell the rental, including selling expenses and depreciation recapture. None of this would qualify as "blowing" I.e. frivolous expense. In fact we are the least frivolous family I know, other than our sense of humor which is quite silly at times, .

Quote:

Originally Posted by Focus You left out what he says after this: "You can blow 100 grand on those things." Sounds way too high! Hope it's not costing you nearly as much.