one out of six retire a millionaire

[ncbill]

So it appears my wife and I will be in the 7-figure classification when we retire. Does that count as two retirees or one? If we split our assets in half at retirement it is nearly guaranteed that neither of us would qualify. My wife will receive a $7K annual pension and mine will be zero.

Between us we have 6 siblings. Four of the six have or will retire as paupers. The other two will have substantial assets but will probably miss the 7-figure group, unless a $40k Pension counts as $1M in assets via the 4% rule as previously asked. These remaining two siblings will enjoy healthy pensions in retirement, even if less than $40K annually, that might push them over the $1M threshold when combined with other savings.

Too many unknowns with the article's claims.

Don't discount pensions...had a relative retire ~25 years ago with little savings but a modest COLA pension, with generous health benefits that became generous Medicare supplement benefits. They've done just fine.

 

[scrabbler1]

$400K US? We don't spend that in a decade!

I haven't spent even $300k in the nearly 10 years I have been retired.

My snake-bit friend went over $1m last year, he got there the old-fashioned way…..he inherited (much of) it. But he won't retire (he is my age) because he would be bored, he told me.

 

[tmm99]

Last year we spent $48,657 Canadian ~ $36,855 US .....which included 3 back-to-back cruises, Costa Rica to Norway, followed by Krakow & Warsaw in the Spring.....then Bulgaria and a transatlantic cruise in the Fall.

This year will be slightly higher, with one trip under our belts and another to come, but that also includes payments on next year's trip(s)

What's the rallying cry "Blow The Dough"?

That ($48,657 CAD) is an impressive number considering the amount of travel you do. How much of that was spent on traveling if I may ask?

 

[W2R]

Would venture a guess that very few posters here spend 400k yearly.

That's a pretty safe guess!!!

With a paid off house and car, no dependents, and no desire to travel, my spending is even less than that of some ER-forum members who are really much more frugal than I am. Projected total spending for 2018 is substantially under $30K unless I can figure out a way to Blow More Dough this year.

Oh, and I just got it in writing - - my SS "raise" due to switching from divorced spousal to SS based on my own employment, is going to happen. So, starting next month I'll be receiving $555/month more than I presently get.

 

[Nemo2]

That ($48,657 CAD) is an impressive number considering the amount of travel you do. How much of that was spent on traveling if I may ask?

The first trip was our most expensive yet: $10,170 Canadian

The second $5,617 Canadian

Total $15,787 Canadian ~ $11,960 US.

I go on, (just for laughs), Cruise Critic periodically....noticed a post today where someone was going to pay ~$200 US for one hotel night (pre cruise) in Barcelona. On our latest trip we had a studio for 4 nights in Brasov, and a pensione in Sighisora for 3 nights, which in total came in almost exactly that amount.

Day to day at home we just hang out together, maybe get vids once in a while from the library, almost never frequent restaurants (although we did take my buddy and his wife out to lunch in Toronto after staying overnight with them the end of last trip).

There's nothing we need, and better yet, there's nothing we want to spend money on.

Added: Except for our health...we just went out and bought a new mattress.

 

[Out of Steam]

I continue to believe that anyone can do just fine in retirement on $1 million. Most are doing it with significantly less. As with spending during a career, it's all about living within your means.

Have to agree, but it would require serious frugality to do it before taking Social Security. Most middle-class couples get $3K (or more) a month from SS, and the $1 million should yield about the same.

$70K is a very respectable household income for two adults in most of the U.S.

 

[omni550]

One person's poverty-level lifestyle

I was at a meetup yesterday and met a lady who is living a very full and active life. Somewhere in our conversation, she said, "I'm poverty-level".

She's in her mid-60s, grew up in Michigan, and got married in the 70s here and had a daughter...moved to California as a hippie...and did odd jobs here and there....including being a cook in a nudist colony for 2 years (yes, she wore an apron. ). She never made much money, and with her scattered work history, has no pension. I'm not sure about SS, but if she gets any, I'm certain it's at the low end of the scale. She still owns the former marital home here (2BR built in the 1930's in a popular upscale suburb which she rents it out for $1400/mo, while she lives 20 miles away in a $30K apartment-style condo, ~800 sq. ft., with $300/mo fees (I didn't press for details..but she sounded thrilled that it is so "cheap"...so I'm guessing this covers all her utilities, water, exterior upkeep, etc.)

She's very active, goes on hikes, bikes, does yoga, volunteers as usher at local theaters, etc. She's a certified house sitter...and is traveling to New Hampshire (a 900-mile drive) to house sit (and cat sit) for 3 weeks in August. She mentioned several other house-sitting gigs she's done in interesting places.

At the moment, she's here in MI to be close to her granddaughter, and is planning on moving back to CA in a few years when said g-d. gets a bit older. I said, "Wow, California can be pricey," to which she responded, "I have a friend in CA with an open spot in their home for me to live there indefinitely". She says they'll split expenses...as they have in the past. With her cooking skills, I'm sure she'll be helping out in the kitchen, too.

She's in great shape with beautiful teeth. She did mention that a crown was giving her trouble and someone in the group suggested going to the Univ. of Michigan dental clinic for good care at a reasonable cost.

So, she's crafted a low-income/rich-experience lifestyle for herself. I'd guess she's figured out LBYM....even when her M is rather low by many standards.


omni

 

[Offgrid Organic Farmer]

...
1957 6,339 production corvette, base $3,176 283ci V8; Optional 4-speed manual and fuel injection added

So in 1957 with $1 million you could buy 285 of these.

A 57' Corvette could do 0-to-60 in 15.7 seconds.

Today my 2011 Prius can do 0-to-60 in 10.5 seconds.

Today's cars are totally different.

 

[W2R]

Have to agree, but it would require serious frugality to do it before taking Social Security. Most middle-class couples get $3K (or more) a month from SS, and the $1 million should yield about the same.

$70K is a very respectable household income for two adults in most of the U.S.

Related to (but not contradicting) your statement about what most middle class couples get from SS, is this little tidbit which I found on the SS website.

In April of 2018, the average SS retirement benefit was $1365.11. The average spousal benefit was $735.55.
https://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/

I dunno, it just makes me feel so lucky when I read these stats so I thought I'd post the link here.

 

[Tom52]

A 57' Corvette could do 0-to-60 in 15.7 seconds.

Today my 2011 Prius can do 0-to-60 in 10.5 seconds.

Today's cars are totally different.

No way this is correct. A quick Google search shows a stock 57 Vette will go 0-60 mph in under 6 seconds which makes your Prius a real slug in comparison. Now your Prius would be a hands down winner in gas mileage.

Just for fun I checked the 0-60 mph time for a 2019 Vette ZL1, it is 2.85 seconds which makes the 57 Vette look like a slug.

 

[Redbugdave]

Stirring the pot a bit. Most of us have made it in the retirement category but I think another group, (the Millennials), will soon outshine us in that regard. What am I missing, as I smile at the article below in Newsweek.

53 percent of Millennials hope to be millionaires at some point. On average, the Millennial respondents said they expect to retire at the age of 56 as well.
Millennials Expect to Be Millionaires Who Retire in Their 50s, Survey Shows

 

[tmm99]

The first trip was our most expensive yet: $10,170 Canadian

The second $5,617 Canadian

Total $15,787 Canadian ~ $11,960 US.

I go on, (just for laughs), Cruise Critic periodically....noticed a post today where someone was going to pay ~$200 US for one hotel night (pre cruise) in Barcelona. On our latest trip we had a studio for 4 nights in Brasov, and a pensione in Sighisora for 3 nights, which in total came in almost exactly that amount.

Day to day at home we just hang out together, maybe get vids once in a while from the library, almost never frequent restaurants (although we did take my buddy and his wife out to lunch in Toronto after staying overnight with them the end of last trip).

There's nothing we need, and better yet, there's nothing we want to spend money on.

Added: Except for our health...we just went out and bought a new mattress.

Wonderful! Thank you so much for your detailed breakdown! I can see that your focus is on traveling, and you do it very well (cost-wise)! Yeah, I hear you.. why buy things if you don't need them or want them.

 

[Another Reader]

Stirring the pot a bit. Most of us have made it in the retirement category but I think another group, (the Millennials), will soon outshine us in that regard. What am I missing, as I smile at the article below in Newsweek.

53 percent of Millennials hope to be millionaires at some point. On average, the Millennial respondents said they expect to retire at the age of 56 as well.
Millennials Expect to Be Millionaires Who Retire in Their 50s, Survey Shows

 

[Car-Guy]

53 percent of Millennials hope to be millionaires at some point. On average, the Millennial respondents said they expect to retire at the age of 56 as well.

In 20+ years, a million probably ain't going to be much to retire on at that age.

 

[jjflyman]

This thread is very interesting. I have poked around lots of postings here, and my impression was that most of the people were easily millionaires, and most mutli-millionaires. It started to give me doubts about my own plans.

 

[garyt]

For those of us without defined benefit plans, $1M is not that much money going into retirement. I think a number of folks here are looking at "numbers" much higher. As was stated earlier, I wonder if the analysis attached a value for pensions or just ignored them in the analysis.

Marc

Agreed. I have just gotten to the $1 million mark but I and my wife have no pensions or paid health care in retirement. My sister and husband have $47K in the bank but both get decent pensions and have paid healthcare in retirement. They may be better off then I am.

 

[Ronstar]

The one out of six statistic makes sense to me. I only know of a few people with more than 1m in retirement assets. The rest retired on pensions and paid health insurance. Some up to $100k yearly pension.

 

[njhowie]

This thread is very interesting. I have poked around lots of postings here, and my impression was that most of the people were easily millionaires, and most mutli-millionaires. It started to give me doubts about my own plans.

I don't think it should make you have doubts about your own plans. You are judging based on a community which is specifically comprised of those who have retired, retired early, or are looking to retire early. It's very reasonable that you are going to find the major cross section is in upper net worth categories.

Further, I believe that the ranks have swelled in the past year or two as a result of (paper) gains in the financial markets. Some will fall as quickly as they have risen.

Stick to your plan. You're likely progressing just fine. Always remember that it's a marathon, not a sprint. Do not judge your own progress based on what you are led to believe about others - it could lead to taking unnecessary risks.

 

[njhowie]

Agreed. I have just gotten to the $1 million mark but I and my wife have no pensions or paid health care in retirement. My sister and husband have $47K in the bank but both get decent pensions and have paid healthcare in retirement. They may be better off then I am.

Or you may be better off than they are.

A bird in the hand...

The country has a major pension problem - too many promises have been made, and the finances do not exist to make good on those promises. Many pensions will be reduced over time.

 

[CRLLS]

How is it that so many here know what their friends, neighbors and coworkers have? I don't personally know what anyone's net worth, or retirement funds are. Is this information commonly shared? I have my suspicions for some, but don't really "know". The only ones that know my financials are DW and my Fidelity Advisor. (maybe my Uncle Sam)

 

[street]

Stirring the pot a bit. Most of us have made it in the retirement category but I think another group, (the Millennials), will soon outshine us in that regard. What am I missing, as I smile at the article below in Newsweek.

53 percent of Millennials hope to be millionaires at some point. On average, the Millennial respondents said they expect to retire at the age of 56 as well.
Millennials Expect to Be Millionaires Who Retire in Their 50s, Survey Shows

I do believe this could very much happen. There is a lot of goal setters in some of these young people that I know. There is a lot of up side I beieve for the young work force to acheive everything and more.

 

[braumeister]

How is it that so many here know what their friends, neighbors and coworkers have?

No idea.
I think I could guess at some of my neighbors based on their home's value, the kind of car/boat they might have, other lifestyle factors like international travel, etc.

But I would only be guessing, and could easily be very wrong.

 

[Ronstar]

How is it that so many here know what their friends, neighbors and coworkers have? I don't personally know what anyone's net worth, or retirement funds are. Is this information commonly shared? I have my suspicions for some, but don't really "know". The only ones that know my financials are DW and my Fidelity Advisor. (maybe my Uncle Sam)

Most have told me or given me enough info to figure it out.

 

[UnrealizedPotential]

No idea.
I think I could guess at some of my neighbors based on their home's value, the kind of car/boat they might have, other lifestyle factors like international travel, etc.

But I would only be guessing, and could easily be very wrong.

For some we can guess pretty accurately. They are always in debt, poor savings habits, always asking to borrow money,etc. For a large number of people, I do have to admit it is guesswork and we may be way off the mark what they really have.


I remember seeing a show many years ago spotlighting a man named Howard Drummond. He died in Michigan in 1989. Everyone thought he was poor. Never dressed well, ate at the same cheap restaurants very cheaply I might add. Always ordered the same breakfast special every day. Lived in a run down YMCA apartment. When he died, authorities discovered he had 250k in cash hidden in his room!



In 1989 that was a pretty good sum, especially for a man who by all who saw him thought he was poor.

 

[latexman]

Well I just mean this:

1957 6,339 production corvette, base $3,176 283ci V8; Optional 4-speed manual and fuel injection added


So in 1957 with $1 million you could buy 285 of these.


Today with $9 million to buy a similar performance and stylish car (compared to current average cars) would cost you about $100,000

Thus you could only buy 90 of them.

But realize, a 1957 Corvette was very basic compared to today's Corvette. Today's Corvette is faster, better handling, more comfortable, safer, more durable, etc., etc., etc. It's not really an apples-to-apples comparison. For example, a '57 did not come with A/C.