Anyone Comfortably Retired With Retirement Savings Under the Million Mark?

My parents are living the dream at 78 years old. He retired at 60 with a nice 41 year pension, but only about $100K in a 401K. They still have about the same amount due to a bull market. They do live frugally, and have no debt, but still travel extensively.
 
As others have noted, it's all about how much you personally want to spend in retirement.

My one "iron rule" of retirement planning was that I did not want to reduce our standard of living after retirement and I did not want to excessively constrain our standard of living before retirement just to get there. Accordingly, while living a fine life, we worked until: 1) pensions and social security can easily cover our spending; 3) in the event something happens to those sources of money, a 4% withdrawal from our portfolio can easily cover our spending. We actually live better now than we did before, because we carry on exactly as before on a day to day basis, plus we have almost unlimited time and money for additional travel.

Yes, we could have retired sooner with less money, but we didn't want to make the lifestyle compromises necessary to do that. Nor did we want to ever have to concern ourselves with money again. We'll probably leave a lot on the table, but I have no need to spend my last dollar.
 
You can make plans and run scenarios, what-ifs, and work until you are 100% sure you have every aspect covered...then life can "kick you in the teeth" from another direction.

Plan, but don't wait too long to act.
 
I was able to retire with just over 500k in my 401k, 150k liquid, and my small pension (900/mo) & no debt at all. I have to pay 50/50 of my old megacorp insurance which is for me alone almost 700/mo now. I have 6 more years until medicare so that kinda stinks, but we have actually increased our net worth while spending what we wanted when we wanted. We do live a pretty simple life, with mostly hiking trips and the like, so not a lot of fancy travel- just fun & beautiful. I missed out on maybe 400k in income/ savings over the last 3 years (since I retired) but I have no regrets at all.
 
Fermion said:
You can make plans and run scenarios, what-ifs, and work until you are 100% sure you have every aspect covered...then life can "kick you in the teeth" from another direction.

Plan, but don't wait too long to act.
Click to expand...

Exactly. My Dad worked even after he retired- as a chem eng consultant. He liked doing it, but he was only 3 yrs into retirement (where I am right now) when he got St4 glioblastoma & rich or not, passed about 18 mos later. (& no, we didn't get an inheritance- his 2nd wife/ fam did). That was 2009. We really buckled down on our "get outta dodge" action plan after that- & DH was to retire the next year at 62.

To me, time is worth much more than money. I know a lot of folks feel differently, though.
 
My dad retired at 54 due to severe COPD from his job. Time is more important to me.
 
rathgar said:
When reading these boards, so many people have retirement savings in the millions.
We have less than 500K - we will have a pension, social security, dividends and some withdrawal from IRA - but not what I read on here.

Have any of you been able to make it without loads of savings?
Click to expand...

I find this almost amusing and I am not trying to be rude.

You have a pension as well as SS.

What other people have is completely irrelevant for you.People with much less than you are living very nice lives.
 
Last edited:
Fermion said:
You can make plans and run scenarios, what-ifs, and work until you are 100% sure you have every aspect covered...then life can "kick you in the teeth" from another direction.



Plan, but don't wait too long to act.
Click to expand...


+1

Excellent advice!
 
Farmer, you were in the military so could have gotten a civilian job after retiring.
 
Teacher Terry said:
Farmer, you were in the military so could have gotten a civilian job after retiring.
Click to expand...

To what purpose?

When I was courting my bride, we envisioned our future to be living on a farm into a dense forest somewhere.

We stayed together by holding onto that common goal.

When I retired, we consolidated our holdings to a single apartment complex. We refinanced it to get our equity out of the property, then we used that cash to buy our farm.

I rather like being retired.

Living below your means is habit-forming. Even retired we have continued investing. We recently bought a mixed-use commercial/residential building in the center of town. Remodeling is nearly finished. The most conservative business model predicts a very handsome return on investment.

At 42, the VA adjudicated that I had five disabilities. But none of them were actually 'dis-abling', but just things to watch for as I get older.

at 55, I had my first bout with cancer.

At 59, the cancer returned, and I am still going through the treatment for that. Now, at 60 I do not have enough energy to work 40-hours a week somewhere. All the livestock that we had, has been butchered and frozen or sold. We quit planting crops. Now we host community potlucks for folks to come to our home to pick apples and press cider [every volunteer gets a free gallon of fresh cider to take home].

It is my perception that anyone who can complete 20 years on Active Duty without being totally disabled is still pretty heavily beat up and worn out.

:)
 
You made it sound involuntary but you had choices. Most do go on to second careers but if you are happy that’s great. I can’t imagine living on so little.
 
Gumby said:
Who would hire a submariner? They're all kind of weird.
Click to expand...

I have had a few job offers, mostly from other bubbleheads.

Retirement looks good on me, I like it, and I intend to stick with it.

After 20 years spent working within the dolphin community and on subs, I don't know if I want to see another bubblehead for the rest of my life.

I have a different commercial property that I have been remodeling. It is almost done. Two last remaining contractors need to finish their work, and the state fire marshall should get us our 'Certificate of Occupancy'. Once that is completed, we have competing agencies that each want to fill our vacancies with tenants. I have the capital set aside to cover the quotes for the outstanding work. If no other boggy men jump out at me, it should be Fair Winds and Following Seas for here on out.

Our most conservative business plan projects a $50k/year Net Gain next year, and every year thereafter.

For me, that will be a massive increase to my annual income.

In 10 years, I may do another one.
 
When I first got out and worked as a civilian nuke, virtually everyone at the plant was a former submariner. There was one other submariner with me at law school. During my days in private practice, I never ran into one, but in my last position, as an assistant attorney general, there were two guys in the office who had been submariners. Most of us managed to move on rather well.
 
Teacher Terry said:
You made it sound involuntary but you had choices. Most do go on to second careers but if you are happy that’s great. I can’t imagine living on so little.
Click to expand...

Big assumption, TT. I have lived quite the nice RETIRED life thanks to the military and its pension.
 
ExFlyBoy5 said:
Big assumption, TT. I have lived quite the nice RETIRED life thanks to the military and its pension.
Click to expand...

+1.

I did 30 years evenly split between active and reserves. Retired from 2nd career at 60. Reserve retirement (with significant credit from AD), really rounded out my retirement. And, TriCare saved us from ACA nonsense. But as OG Farmer noted, my body is used up in a lot of ways.


Thread hi-jack: :D
Just got approved today for a ~$300K VA loan. :dance: Happy to carry that mortgage to my grave! I know that this is contrary to many here, but after owning several homes over the years, we decided to use some of our current home equity and the favorable VA interest rate to buy our last home. Once we start seeing hearses pulling U-Haul trailers, we'll revisit this decision.
 
Gumby said:
As others have noted, it's all about how much you personally want to spend in retirement.

My one "iron rule" of retirement planning was that I did not want to reduce our standard of living after retirement and I did not want to excessively constrain our standard of living before retirement just to get there. Accordingly, while living a fine life, we worked until: 1) pensions and social security can easily cover our spending; 3) in the event something happens to those sources of money, a 4% withdrawal from our portfolio can easily cover our spending. We actually live better now than we did before, because we carry on exactly as before on a day to day basis, plus we have almost unlimited time and money for additional travel.

Yes, we could have retired sooner with less money, but we didn't want to make the lifestyle compromises necessary to do that. Nor did we want to ever have to concern ourselves with money again. We'll probably leave a lot on the table, but I have no need to spend my last dollar.
Click to expand...

Red Badger said:
+1.

I did 30 years evenly split between active and reserves. Retired from 2nd career at 60. Reserve retirement (with significant credit from AD), really rounded out my retirement. And, TriCare saved us from ACA nonsense. But as OG Farmer noted, my body is used up in a lot of ways.


Thread hi-jack: :D
Just got approved today for a ~$300K VA loan. :dance: Happy to carry that mortgage to my grave! I know that this is contrary to many here, but after owning several homes over the years, we decided to use some of our current home equity and the favorable VA interest rate to buy our last home. Once we start seeing hearses pulling U-Haul trailers, we'll revisit this decision.
Click to expand...

I hit my 20 year mark in exactly 2 months from today. All Army National Guard, but over 5 years of active time with deployments. I'll be putting in another 10+ years... Unless I get too fed up with it!
 
Farmer has said repeatedly that he lives on his 20k/year military pension. I know people with bigger ones.
 
I was surprised at my recent college reunion the number of those retired from the military, most O-5.

I've recommended the same to my kids (use the Reserves if needed, but get the pension)
 
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