What was your "safe" number?

[NW-Bound]

... I felt like we secured our basic needs "forever" with a paid-for home and our first million. That was when we lived in a low to average COL area...

My memory is so good, I remember that post of yours too (pat self on back!), back when you were not "multimillionaire".

 

[Senator]

I used $3 mil when I retired 27 years ago. If I had known about the future divorce, I would have buried it a bit deeper.

My Uncle always told me his ex-wife made him a millionaire. He used to have 2 million, now he only had one...

 

[wingfooted]

I actually had a discussion on the SAFE amount with DW earlier this year.

The number was $3MM in our after tax brokerage account.

Above $3MM I felt we were were in a comfortable enough position.

Below $3MM I be began to look at the gourmet cat food in the fridge as a potential asset.


Sent from my iPad using Early Retirement Forum

 

[bw1990]

My FIRE number is $2MM, but I remember when we hit $1MM that we'd be "just fine" if all we did from that point forward is break even over the next 20 years.

Like another poster, I'd rather call this "coasting" or "critical mass" ...

 

[flyingaway]

Our safe number would be $2M. With $2M, we would be able to handle loss of both jobs by downsizing our house. With our jobs and $2M, we would be able to spend more and save less and enjoy life, i.e., slow down in our retirement account contributions. However, I will not feel comfortable to retire before we reach $6M. With $6M, we can do whatever we want to do and do not need a job anymore.

 

[Lucantes]

$3M is our minimum number based upon our expected expenses and desired fun spends for an ER at 50 for both of us (2017). Currently at 77% of our goal and well on track to meet/exceed it.

 

[mathjak107]

same here , 3 million is our number . with no pension ,living in nyc (queens,not manhattan) and a bucket full of wants and do's we will need quite a bit of money. retiring july 31st at 4:30 pm

in fact after 3 months of waiting to be approved our long term care policies were approved yesterday so that adds quite a number to our expenses.

 

[foxfirev5]

$2M in liquid asset which I am not there yet, and $350k in home equity. But I am willing to take a risk and RE now. Taking risk means 5% WR with Bernicke spending model checked in FireCalc, and willingness to reduce spending if needed.

This is very similar to our situation. DW wants me to go now and I'm still in the OMY syndrome mode. Right now it's either May '15 or Feb '16.

 

[eta2020]

I second 3 million mentioned by several people.

I like to be extra safe so 3 million after 20% pullback (which can come at any time) which makes it about 3.7 million.

 

[dallas27]

In hindsight, I guess I didn't ask the question in a way everyone understood. For those that "got it", congrats on your reading comprehension skills.

So let me try this differently - Maybe a safe number (or Coasting number, which I agree could be a better term) should be in the format of number@age.

Also, to clarify - this number was a number in which you are "over the hump", and you know that even if life turns sideways on you, you'll have a little something, you will not starve. You might live in a tent hunting and fishing till the day you die, but you will always have a nice tent, a nice pole, and ammunition. You have your basic needs met for life, not your "lifestyle choices".

For those that said multiple millions for this number, I pray my question was unclear for you, otherwise I will pray for you, and I'm an atheist.

 

[Golden sunsets]

In hindsight, I guess I didn't ask the question in a way everyone understood. For those that "got it", congrats on your reading comprehension skills. So let me try this differently - Maybe a safe number (or Coasting number, which I agree could be a better term) should be in the format of number@age. Also, to clarify - this number was a number in which you are "over the hump", and you know that even if life turns sideways on you, you'll have a little something, you will not starve. You might live in a tent hunting and fishing till the day you die, but you will always have a nice tent, a nice pole, and ammunition. You have your basic needs met for life, not your "lifestyle choices". For those that said multiple millions for this number, I pray my question was unclear for you, otherwise I will pray for you, and I'm an atheist.

Dallas;It seems as though you are looking for confirmation that your $500,000 at this point in your journey is a good indicator that you be fine regardless of what happens. I don't think most folks think that they are at the "we'll be fine regardless stage" that early in the wealth accumulation stage. I think you received several answers of around 1M that you are choosing to interpret as still not answering your original question. But in fact to those folks 1m is way too little to retire on, but a good indicator that you will get there. I would concur with that 1M. When we reached 1M we felt we would be OK regardless. We knew we could withstand job loss/recession/depression/illness and come out the other end of that dark tunnel, not financially ruined. I would not have felt secure with only 500,000.

 

[Golden sunsets]

Oh and being snarky about reading comprehension of forum members won't win you any great favor.

 

[eta2020]

Maybe 1 million at 50 of investable assets. But living in nice tent is is restrictive (my wife hates tents). It may be more fun to go to work then deal with her while living in a tent.

While 3 million (mentioned by several people) gives one freedom of living half a year here, half a year there. Freedom to eat good quality food. Freedom to spend 2 months in Amsterdam or Lisbon. Freedom to enjoy 30 dollar bottle of wine.

 

[dallas27]

Oh and being snarky about reading comprehension of forum members won't win you any great favor.

Ya, so I was saying congrats because they comprehended my poorly stated question, meant as a compliment to them and self-deprecating my writing skills.

edit: FWIW - reading comprehension is one of the skills I look for, most employees sorely lack this. I find it ridiculous when degreed workers neither read nor follow a instruction manual. I think it's a valuable skill. Especially when reading a lot of things that are now so-so translations from Germany, India, China. You really have to pay attention.

 

[RISP]

Maybe a safe number (or Coasting number, which I agree could be a better term) should be in the format of number@age.

That still depends way too much on your living expenses, and consequently on the country and area you live in.

I think you received several answers of around 1M that you are choosing to interpret as still not answering your original question. But in fact to those folks 1m is way too little to retire on, but a good indicator that you will get there. I would concur with that 1M. When we reached 1M we felt we would be OK regardless. We knew we could withstand job loss/recession/depression/illness and come out the other end of that dark tunnel, not financially ruined. I would not have felt secure with only 500,000.

+1

Oh and being snarky about reading comprehension of forum members won't win you any great favor.

+2

 

[JamesB]

There is research to suggest that 500k is the number needed to retire happy.

So, it seems like as good a number as any to call a "safe" number.

 

[eta2020]

Ya, so I was saying congrats because they comprehended my poorly stated question, meant as a compliment to them and self-deprecating my writing skills.

edit: FWIW - reading comprehension is one of the skills I look for, most employees sorely lack this. I find it ridiculous when degreed workers neither read nor follow a instruction manual. I think it's a valuable skill. Especially when reading a lot of things that are now so-so translations from Germany, India, China. You really have to pay attention.

BTW with 1 million you could probably live in quite nice tent .

http://www.tregib.co.uk/images/wfy int 1.jpg

 

[NW-Bound]

As I mentioned, as people get older and accumulate more and advance their lifestyle, they are accustomed to more luxuries that are now taken for granted. Yes, the hedonic threadmill is real. And people often forget what the basic necessities are. It is a lot less than what they are consuming now.

I have often half-jokingly talked about living in an RV, boondocking in the state of New Mexico and living like many RV bloggers I have read. It does sound like fun living, and healthy too, no matter what one's net worth is. Surely, you can do that with $500K, and that's a lot more than what some of these people have. I have yet to try that for a few months, to really experience it (sans DW as she would not join me ). And the comfort is way better than what a tent provides.

I think the stash for basic survival probably goes down to near zero for countries with a more generous welfare policy. They probably cringe at the thought of saving up $500K just for basic survival.

BTW with 1 million you could probably live in quite nice tent .

http://www.tregib.co.uk/images/wfy int 1.jpg

Sure, it's roomier than my motorhome, but where's the running water? Where's the toilet?

 

[NW-Bound]

Oh, an important thing about living in an RV out on state land in New Mexico is that it is only for people who no longer work or want to work. There's no job. But of course it is also hard to find a job near places you can pitch a tent.

 

[daylatedollarshort]

I don't see why a generic safe number in itself is meaningful without knowing age, expenses, family size, cost of living, other income streams, etc.

There is a huge difference between having $500K at 30, living in New York, no pension and very little SS credits built up with 2 kids to put through college yet or having $500K at age 55 with no kids, two pensions and two maximum SS benefits in the near future, living in Arkansas and 25 years less of lifespan to fund than a 30 year old.

 

[Chuckanut]

R - 25, L - 19, R - 32

Not much in it though.

 

[NW-Bound]

What's your address?

PS. I have a small fire safe to keep important documents in. The combination is posted right on the door.

 

[racy]

I calculate my safe number as being a portfolio where a 2% yield covers essential living expenses over and above SS.

 

[springnr]

Maybe critical mass is what your after?
http://www.early-retirement.org/forums/f30/the-concept-of-critical-mass-71734.html

 

[Cobra9777]

R - 25, L - 19, R - 32

Not much in it though.

Best answer so far.