Anyone else aiming for around $1Mil

[accountingsucks]

I usually don't see specifics talked about here re: actual $ made, saved up, etc. When I look at my calcs, the number that keeps coming up for me that makes the most sense as realistic and in a timeframe I'm happy with is $1Mil in savings and a paid off home. If I get to that, I'd be reasonably confident it would be sufficient. This would be retiring between 45 and 50 and I'm 34 now. I'm also in a profession that would be fairly easy to work part time or on a consulting basis if I ever had to do so. I live in Canada and don't need to worry about health care either. Is this number in the ballpark of what other younger folks are aiming for down the road?

 

[Meadbh]

I'm not "younger folks" as such (52) but FWIW my goal is $3m NW with 5 years expenses in cash and no debt except that which produces cash flow.

But maybe you will have a pension?

 

[W2R]

I don't live in Canada.... and I'm not young.... but anyway I think a million would provide a normal middle class income in the U.S. central areas such as the Midwest, where cost of living is reasonable. (It probably wouldn't work near the U.S. coasts in places like NYC, LA, or Seattle). In fact, I don't think a million would be at all necessary for those who live very simply and frugally.

I guess it all depends on what you are used to living on. If/when it is practical, why not try living on the income you would expect from that nestegg and see how it feels?

Some people just wouldn't want to spend any more. Others would.

 

[mudguy]

I'm from Canada and my goal is also 1 million and a paid of home. I'm 29 and hope to be there by 45 or hopefully earlier. I plan to exaust my RRSP by 65 to get full benefits, and take advantage of the tax free savings acount.

 

[accountingsucks]

I'm not "younger folks" as such (52) but FWIW my goal is $3m NW with 5 years expenses in cash and no debt except that which produces cash flow.

But maybe you will have a pension?

No I will not have a pension from work. I also assume in my calcs I will get nothing from the gov't but I thnk that is unlikely.

$3m NW would likely put you into the top 2 or 3% of NW individuals in the US I imagine.

 

[eridanus]

I live on $40,000 so I, too, am aiming for $1MM and a paid off home (I currently have a mortgage). The only unknown is health care. :/

 

[knucklehead 61]

i am aiming for 3m before i pull the plug. only need another 700k & i am out the friggin' door, hopefully when i am 45 to 48. (43 now)

 

[stevenst]

A great topic. It's interesting to see the spread to the 'what's your number' question, and the thought that goes into it.

I'm 53, and have targeted $1.2M + paid off home + 1300/mo defined benefit pension(COLA'd for 10 years). At that point, I can walk. There's a health care wild-card in there that could screw it up.

If I were 34 with 10-15 years to go, I'd worry that $1M in 15 years might look like $700K does today. But your 'no health care worries' is a BIG risk reducer.

Steve

 

[aaronc879]

Like the OP I am aiming for $1MM and no debt. That's $1MM in 2029 dollars not 2010 dollars. I will be 49 in 2029 and hope to be retired no later than that. I will not have a pension. I'm not sure I will be able to get myself to work long enough to reach $1MM as i'm sure I won't need that much.

 

[brewer12345]

$2MM and a paid off house is the very rough bogey I use, but that is prone to extensive revision when I get there depending on facts and circumstances. We will relocate to a lower cost area and DW or I may dabble in something that would bring in a little money. I have small kids so the timing and expenses are harder to predict.

 

[Alan]

My target was $1MM at 55 to go along with a non-COLA pension. I also get retiree health insurance but I decided I could go anyway even without retiree health insurance. (I would get my own).

As it happens I exceeded that goal because I had to wait 'til age 55 to get the pension.

 

[Coach]

My goal was 90% FIRECalc success, but it corresponded to about $1M and Social Security. I retired earlier this year.

Coach

 

[MasterBlaster]

New Targets

$1Mil in savings and a paid off home. If I'm 34 now.

It goes without saying that $1M won't be what it is now when you are 50.

using my trusty calculator I project that to have the purchasing value at 50 that $1M represents today you will need...


around $1.6M @ 3% inflation

around $1.9M @ 4% inflation

around $2.2M @ 5% inflation

 

[simple girl]

Our tenative goal is $1.2M, at which time we hope to both semi-retire (work several months a year, travel the rest). These plans I'm sure will be revised and made more specific as we get closer to the actual semi-retirement date. We are 42 and 46 and hope to be there within the next 5-10 years.

 

[kumquat]

Back about 15 years ago, when ER was just a dream, I thought 1.3 would be a good number.

Allowing for inflation, that number is?

 

[Alan]

back about 15 years ago, when er was just a dream, i thought 1.3 would be a good number.

Allowing for inflation, that number is?

$1.97m @ 3%
$2.25m @ 4%
$2.57m @ 5%

 

[sirion]

I'm aiming for $3.5M plus a paid off house. It's funny, because we live very frugally now so sometimes I don't think I need this much, but we expect to do a lot more spending when we retire. Also, I'm very conservative and do not want to run out of money or ever be a burden to our child. We live in a very HCOL area (metro DC) and that definintely hurts us. If our daughter decides to settle elsewhere, we will likely follow her.

 

[FUEGO]

My number is probably just a tad over $1 million in today's dollars and a paid off home IF this health insurance thing goes through (here in the US). There will be an extra cushion above that amount to cover "temporary" kid expenses (that will drop close to zero about 10 years after ER - hopefully).

That just over a million figure is at a 4% SWR. I may go with something less, closer to 3%, so might need closer to 1.4-1.5 million. Depends on the situation and circumstances in 7-10 years come FIRE time.

 

[IBWino]

We live in Northern California and are targeting $1.7MM with no debt and retirement in six years at 55. My wife will have a modest pension (~$1400/mo.) that will hopefully cover health care. I had originally hoped to retire a bit sooner, but my work conditions have improved, so for now, I've decided to stick with it for a few more years.

 

[Keim]

I always figured about 1.5m with a paid off house for my spouse and I. But I'm sure I'll be willing to look strongly at it with 1m.

I honestly think the determinant will be when my youngest (5y.o.) gets through college.

 

[skyvue]

Aiming for $1.25 million and paid home if I remain single.

 

[FUEGO]

Yeah, if I got rid of a portion of the annual travel/fun budget I could make do with a little under $1 million. But what's the point of retiring to a budget without travel/fun in it?

 

[theloneranger]

My goal a couple of years ago was 1.8 Mill.
Fortunate to have reached that and more.
Insurance costs of 900 to 1000 per month has to be included for the forseeable future, since the wife is almost 10 years younger than I.
Has anyone made plans to never participate in Medicare Part B and stay on private insurance till death?

 

[skyvue]

One important distinction is whether the amount will be gross or net. For instance, I have $450K in a traditional 401k. For planning purposes, should I consider that $450K or $300K due to taxes I will owe?

 

[FUEGO]

One important distinction is whether the amount will be gross or net. For instance, I have $450K in a traditional 401k. For planning purposes, should I consider that $450K or $300K due to taxes I will owe?

At least in the US, drawing $30,000-40,000 or so from a typical retirement portfolio that would consist of 401k/IRA and taxable investments would not generate a lot of taxes for a hypothetical married couple.

So the numbers I'm looking at are "gross". If you had $2 million and were drawing from it, the taxes would be much more significant given our progressive taxation system here.