Poll:Is $1 Million still a relevant number nowadays for 2 retirees?

[unclemick]

Crossed the one million line at least twice in 27 years of ER. Negative direction is ALWAYS the scariest and most remembered.

Thanks to this and other forums - did 'The Bogle', "Hurry up just stand there." And the old standby - "Stay the course."

Heh heh heh - rebalance and soldier on. Tightened splinter and all. Grin.

 

[Koolau]

I've lost/made in one day enough to pay for the Charter Jet to Hawaii. Having said that, I feel pretty confident in stating that I will never in my lifetime experience Charter Jet travel, at least not intentionally. (That is to say, I would only do it if someone's life depended on it.)

That's an interesting take. I think I've mentioned that I've never paid for FC or even Bus class (for myself.) BUT I paid a small fortune to help a friend travel via Bus class. She had "died" on her last flight, most likely due to a blood clot induced by cattle-car class. Her husband (medical doctor) brought her back and kept her alive. A year later when they traveled, I made sure she could be as safe as possible - heh, heh, didn't pay for the husband who is healthy as a horse. I wouldn't do it for myself because I don't need it for safety and haven't (so far) spent the extra for my comfort. I guess it's all in the perspective, so YMMV.

 

[ncbill]

I'll stick to commercial...I'm willing to drive a couple of hours so I never have to fly on anything smaller than a 737...no puddle jumpers, thanks.

 

[Markola]

I'll stick to commercial...I'm willing to drive a couple of hours so I never have to fly on anything smaller than a 737...no puddle jumpers, thanks.

+1. Our extended family learned the ultimate hard lesson a few years ago, sadly, and I also had a pilot friend who was #12 in a Cirrus Designs plane in terms of ejecting the parachute after icing up, landing safely with 2 others aboard, thank goodness. DW and I were on a group trip last year in Costa Rica and Nicaragua and we literally rented a van service from one country to the other rather than flying the puddle jumper with everyone else.

 

[skyking1]

+1. Our extended family learned the ultimate hard lesson a few years ago, sadly, and I also had a pilot friend who was #12 in a Cirrus Designs plane in terms of ejecting the parachute after icing up, landing safely with 2 others aboard, thank goodness. DW and I were on a group trip last year in Costa Rica and Nicaragua and we literally rented a van service from one country to the other rather than flying the puddle jumper with everyone else.

That is really irresponsible, flying into ice and having to pop the chute and scrap the plane.

 

[Tiger8693]

A lot of Cirrus planes have FIKI systems. Maybe it didn't work properly? I wouldn't automatically assume irresponsible pilot.

 

[skyking1]

absolutely do blame the pilot. If you don't have all the gear, the excess performance, and experience you have nothing. I've seen my share of ice in the PNW.
If it's not coming off ASAP that is an emergency and you reverse course and get back down out of it. Declare and live to take your lumps on the ground.

 

[Tiger8693]

I have flown, done all required maintnenace and pre-flight checks, and had engine failure. I didn't/don't consider that my "blame". If he had a FIKI system that failed, I consider that the same. You of course, are allowed your opinion as well.

 

[skyking1]

There are degrees of risk. Flying a very light single into known or likely ice is pegging my meter, and I did banner towing for 5 years, essentially modern barnstorming.
When you had your engine failure, was there any significant additional risk, like night flying in the mountains, etc?
I did not fly the known ice P210's in known kludge either. The decision process to do so is a case of get-there-itis, IMO. You are right that is my opinion.
I had my only complete engine failure on my first solo cross country at 21 hours

 

[Tiger8693]

I had my only complete engine failure on my first solo cross country at 21 hours

Wow! That had to be an event that made you think twice about continuing! Mine was complete failure (turned out to be an oil issue) during day luckily. Could easily have been at night, and a lot more challenging. Had just over 1000 hours at the time.

Have climbed through and descended through ice conditions (with factory equipped plane), but didn't like it.

While there certainly is a lot of it, just get tired of the usual "pilot error" assumptions (and sometimes conclusions), but sadly, it usually is just that. I haven't flown (by myself, meaning without an experienced pilot or flight instructor) in several years. I usually leave the flying to professionals these days.

 

[skyking1]

Me too sadly. I have a twin in a hangar that needs engine and prop work x2, and a partner that is no longer able. We dream about it. It would take a chunk of the FIRE funds though

 

[Blue531]

The number needed to retire is dependent upon how much one plans to live on and how long he thinks he'll live, so that retirement number is different for everyone. You can pretty much multiple the amount and the years together and get a rough estimate of what you will need. There are people who can retire easily on less than a million because their cost of living is very low. I retired on less than half a mil at the age of 56. My retirement goal was to have at least 25x my yearly expenses. Once I had that I knew I was financially independent. I waited a bit until the amount of my net worth was over 33 times my yearly expenses and then I retired. Now my net worth is over 50x.

 

[Koolau]

I have flown, done all required maintnenace and pre-flight checks, and had engine failure. I didn't/don't consider that my "blame". If he had a FIKI system that failed, I consider that the same. You of course, are allowed your opinion as well.

All this talk of engine-out small aircraft emergencies prompted me to pull from my desk the valve lifter assembly of the Lycoming 108 that disintegrated in the Piper Colt I was training in (about 5th lesson?). Once we pulled the aircraft back to the airport, I found the assembly lying in the bottom of the crank case. https://en.wikipedia.org/wiki/Lycoming_O-235

SO glad to have an instructor on board. Also thankful for the half frozen winter wheat field available to set it down on. Every time I'm in the area, I drive by and - remember. YMMV

 

[Markola]

The number needed to retire is dependent upon how much one plans to live on and how long he thinks he'll live, so that retirement number is different for everyone. You can pretty much multiple the amount and the years together and get a rough estimate of what you will need. There are people who can retire easily on less than a million because their cost of living is very low. I retired on less than half a mil at the age of 56. My retirement goal was to have at least 25x my yearly expenses. Once I had that I knew I was financially independent. I waited a bit until the amount of my net worth was over 33 times my yearly expenses and then I retired. Now my net worth is over 50x.

Congrats. You are positioned for LIFT OFF. You’ve reached my dream investment state, which is the ability to live off of stock index fund dividends alone. If I were single and could rebuild my lifestyle without affecting others, I think I’d have no trouble going 100% stock index funds and cutting back expenses to the 2% or so SWR equivalent dividend yield.

 

[ncbill]

+1. Our extended family learned the ultimate hard lesson a few years ago, sadly, and I also had a pilot friend who was #12 in a Cirrus Designs plane in terms of ejecting the parachute after icing up, landing safely with 2 others aboard, thank goodness. DW and I were on a group trip last year in Costa Rica and Nicaragua and we literally rented a van service from one country to the other rather than flying the puddle jumper with everyone else.

Dad & several business buddies created their own private plane share.

A few years in the pilot dropped off everyone at our local airport and then took off for home...that was the last anyone saw of him or the plane, intact.

After the crash Dad had a pilot friend research the history of the airframe & says he now feels lucky to have survived flying on that particular model.

Even though my kids will all likely spend their careers as pilots, no small plane flights for me, thanks anyway.

 

[HoneyBadger]

I think 4MM net worth is the bare minimum for a single person in their 50s to retire in the US, with some spare room for handling surprises (realestate and/or medical).
I understand the cost of living is different in different parts of the country. But one's true spending is different from col.

Wow, I sure hope you're way off here, because DW & I are pulling the trigger in 22 months (@53 & 57) with a net worth of $1.3M, and that includes the value of our paid-off home. Perhaps a visit to the LeanFIRE forums would be helpful...many people have lifestyles that don't require vast sums of spending. As for medical emergencies, there's health insurance and LTC insurance.

At $75k annual combined income, waiting to amass $4M in financial assets wouldn't be FIRE, it wold be FHRN: Financially Handcuffed, Retire Never.

 

[Fermion]

There is help on the low end such that a person with $4M generally has more expenses than a person with $1M.

Is it better to have $4M? Yes! But you may end up not getting as much from your SS, paying more for your medical needs, than the person who only has $1M. The quality of life for both can be very similar.

 

[Koolau]

Wow, I sure hope you're way off here, because DW & I are pulling the trigger in 22 months (@53 & 57) with a net worth of $1.3M, and that includes the value of our paid-off home. Perhaps a visit to the LeanFIRE forums would be helpful...many people have lifestyles that don't require vast sums of spending. As for medical emergencies, there's health insurance and LTC insurance.

At $75k annual combined income, waiting to amass $4M in financial assets wouldn't be FIRE, it wold be FHRN: Financially Handcuffed, Retire Never.

As mentioned elsewhere, the amount needed for FIRE is very much influenced by "other income." If two earners receive SS and perhaps a pension, they might get by with relatively little in savings - especially, if like you, everything is paid off, including housing. Many folks here relate that they could exist on SS. With no other income, $1M seems at least in the ballpark of minimum, but there are so many potential budgets to chose from, so YMMV.

 

[GTFan]

...and also by the COL in your area. Lots of places to live cheap if you own everything, $1MM is easily enough.

Of course moving now is a big game (if you have to get out of a HCOL area), given the crazy RE market.

 

[Fermion]

I have noticed land is still pretty cheap (if you stay away from waterfront), so if I were to move now, I might seriously consider buying some land that I could pop down a manufactured home (I know, I know, uhg) and wait out the market.

This is for someone who is trying to retire on $1 mil in an era where even the cheapest stick built home now costs $250K in materials.

 

[Koolau]

I have noticed land is still pretty cheap (if you stay away from waterfront), so if I were to move now, I might seriously consider buying some land that I could pop down a manufactured home (I know, I know, uhg) and wait out the market.

This is for someone who is trying to retire on $1 mil in an era where even the cheapest stick built home now costs $250K in materials.

Yeah, I'd at least like to think that will all shake out in a couple of years. If NOT, then inflation (in general) may well be our next big issue. Some of the current issues are based on simple pent up demand. Supply chain issues may also be involved. Disruption of almost EVERYTHING by the pandemic has put pressures on many aspects of our financial world - sometimes in ways we don't yet understand. The "problems" are bound to show up more in some areas than others (housing actually makes some sense since Americans tend to move a LOT and DIDN'T move a lot during the pandemic.)

Check back in a year or two. The rear-view mirror is often instructive in these matters though YMMV.

 

[cyber888]

Wow, I sure hope you're way off here, because DW & I are pulling the trigger in 22 months (@53 & 57) with a net worth of $1.3M, and that includes the value of our paid-off home. Perhaps a visit to the LeanFIRE forums would be helpful...many people have lifestyles that don't require vast sums of spending. As for medical emergencies, there's health insurance and LTC insurance.

At $75k annual combined income, waiting to amass $4M in financial assets wouldn't be FIRE, it wold be FHRN: Financially Handcuffed, Retire Never.

Looking good HoneyBadger. My lifestyle is about the same as yours and will probably retire with 1.5 - 1.6 mil networth including the house.

 

[daylatedollarshort]

I have noticed land is still pretty cheap (if you stay away from waterfront), so if I were to move now, I might seriously consider buying some land that I could pop down a manufactured home (I know, I know, uhg) and wait out the market.

This is for someone who is trying to retire on $1 mil in an era where even the cheapest stick built home now costs $250K in materials.

Manufactured homes are a really underrated way to retire inexpensively. I've been looking at land online for one of our adult kids with maybe a tiny vacation home for us and you are exactly right. Land is relatively cheap even in some vacation type spots along the coast here (non-urban at least) and the price of manufactured housing is hard to beat. This is one of my favorite lean fire kind of articles:

How the trailer park could save us all - A healthy, inexpensive, environmentally friendly solution for housing millions of retiring baby boomers is staring us in the face. We just know it by a dirty name.
https://psmag.com/social-justice/how-the-trailer-park-could-save-us-all-55137

 

[Koolau]

Manufactured homes are a really underrated way to retire inexpensively. I've been looking at land online for one of our adult kids with maybe a tiny vacation home for us and you are exactly right. Land is relatively cheap even in some vacation type spots along the coast here (non-urban at least) and the price of manufactured housing is hard to beat. This is one of my favorite lean fire kind of articles:

How the trailer park could save us all - A healthy, inexpensive, environmentally friendly solution for housing millions of retiring baby boomers is staring us in the face. We just know it by a dirty name.
https://psmag.com/social-justice/how-the-trailer-park-could-save-us-all-55137

Back in my home town, there were perhaps half a dozen of these "parks" that were pretty much run down and disgusting. There were frequent drug raids, the occasional murder and lots of "domestic" calls to the police. BUT there was one park that maintained its integrity for as long as I can recall. There was not a single "slummy" unit. Every lot had grass and/or flower/shrub plantings with adequate parking for 2 cars. Roads were maintained and patrolled by local security who knew everyone. It IS possible to create such living conditions. IIRC all units were required to be properly secured against wind (though I'm sure a tornado touchdown would still have been devastating - not unlike it would be in a regular subdivision.)

I don't know that I would want to end my days there, but I see how a properly planned and maintained complex could make retirement affordable and even pleasant for not a lot of money. YMMV

 

[razztazz]

I don't know that I would want to end my days there, but I see how a properly planned and maintained complex could make retirement affordable and even pleasant for not a lot of money. YMMV

That's where I live. yes, most trailer parks deserve their reputation. All you have to do is drive by one. Not even through one. I live in one of the other ones. It's not a "retirement" community a la AZ or FL. Just a mobile home park that started as a city subdivision and has tried to keep it that way. Thus far... thus good.