Ask the "Expert"

He makes a recommendation without knowing how much they spend each year. Right off the bat, I lost interest in what he had to say. That doesn't mean what he says is wrong, but I don't believe it's thorough enough. I like that he made more than one suggestion.

The folks writing in need to sit down and do their homework and see how much it costs them to live.
 
Advice to put a little more away is probably good. Although it looks like these folks have been able to put plenty away on a 100k a year salary and could conceivably take 80k before taxes @4% swr. Advice they cant make it is poorly made as he has no idea how much money they plan to spend in retirement or what kind of lifestyle they anticipate.

Unless they plan to become world travellers after retirement or develop a set of expensive hobbies, they'd probably be fine.

But at their ages, a couple more years to put them over the top wouldnt hurt.
 
I think the article presents a reasonable approach and points out most of the important considerations the couple should be aware of. Not bad for a short article.

Grumpy
 
Just not said:
Unless they plan to become world travellers after retirement or develop a set of expensive hobbies, they'd probably be fine.
Click to expand...

Don't forget three young kids to raise and put through college.

Grumpy
 
Unless I'm missing something, the author did the math wrong on the total assets. $1.1 million plus 500k from the house sale gives a total of $1.6 million in assets, not 2 million as the author states. I think he counted the house profit twice.

He also ignores the 72t "substantially equal payments" option for the tax deferred accounts. There would be no penalty for early withdrawal if the 72t exception were to be used to draw down the tax deferred accounts.

"Expert":confused:
 
I think this was good for a short article, but like all said, not enough info. To have that much savings at that age, I think the family is LBYM and they probably really dont need the 100,000 year. Moving to a lower cost area to retire (buy a nice house for 200,000) and be happy, I say. So what about their insurance, One of them probably could get a part time job  if they find they really need and one comes up with chronic problem. I went to an excellent state school and they already have 50,000 for that (they could just let that compound). Another key point is that they could relocate to an area that has an excellent state unitverity or at least a few options (kids could live at home)! which is a lot of the expense. 
 
Justin,
I noticed that too. Not to sure how to take advice from someone publishing an article to millions of readers and doesn't check his math.

I semi-retired with just over $2mil and it's very marginal for how I want to live. So, I agree with what he tell's them. Retire "sort of".
 
I see what he did.

He has them taking their 1.6M (including selling the house), buying another 500,000 house with a 50k down payment, then presumably paying the mortgage out of their 80k withdrawal. At the end of 30 years, they'd be worth 2m. Unfortunately he forgot the 450k mortgage on the balance sheet that takes down the net worth back to 1.6M.

#1...why would they sell their 500k house and buy another one when they already said they'd be buying down? Although they said they'd net 500k in profit, they didnt say thats what the house was worth...but still...
#2...he goes on about inflation, but the 4% hswr accounts for inflation, at least historically.

ick. not much of an expert...although he probably did raise all the questions they need to think over before jumping, most notably health care.
 
The only opinions that matter on this issue is theirs - they could succeed with half the assets or fail with twice the assets. While asking the "expert" is an interesting exercise, look at the flaws others have spotted right away. They need to do their own evaluation and commit to it - the experts won't bail them out if they make the wrong decision.
 
OAP - You have over $2mil and that's marginal? You need to come to my town. You could live in our best golf course community and still do great.
 
If our heroes got to where they are on 100k/year, living off 80k/year without saving and a reduced tax rate should be a walk in the park. Healthcare is only 12k/year - max - and that's for the luxury plan.

Also agree the author used some fuzzy math to get to 2m.
 
Hmmm

Er'd in 1993 - with 300k portfolio - worried at lot that it was 'marginal.'

2005 - 1.1 mil, 12 th year of ER - I still worry a lot whether it's enough.

Maybe after starting early SS late this year - I can stop worrying.

Then again maybe I'm just a 'natural worrier.'

Heh, heh, heh.
 
Sillysal,
I've been retired for 2 months now and I have lost nearly$80k of that $2mil.

Does anyone else besides me get tired of reading why the market behaved each day.

1. The market was down on news that Hasbro Toys will not have enough plastic to produce their Batman III dolls.
2. The market was down today because analyst's projections of a $1.63 dividend for Pacific Cargo Containers was off by .01%
3. The market was down because George Bush fainted after eating a pretzel.

It's literally funnier that a comic book unless it costs you your retirement.
 
unclemick2 said:
Hmmm

Er'd in 1993 - with 300k portfolio - worried at lot that it was 'marginal.'

2005 - 1.1 mil, 12 th year of ER - I still worry a lot whether it's enough.

Maybe after starting early SS late this year - I can stop worrying.

Then again maybe I'm just a 'natural worrier.'

Heh, heh, heh.
Click to expand...

Unclemick: In 1993 given your assets, it was good mental health to be worried.

Given your stash now, and soc. sec. on the horizon, it's time to worry about something else. ;)
 
Ex - Jarhead

Yeah you rite! - it REALLY was marginal - history was very kind to us.
 
I am amazed... Assume as the husband from the article start making 100,000/yr right out of college. Out of 24 years they can save 1.1M ( excluding the house, may be they get it as a gift), that 45K per year after tax. So I am not good in math but I don't think they have a lot of expense and therefore 80K should be more than enough.
But it just does not make sense, my late DH and I together our salary is almost double theirs, and I got the same about of assets just because of his 400K life insurance. I must spent ways too much. I wish I can email them to ask for tips
 
That is only 4% OAP, only 4%.... ;)[

quote author=OldAgePensioner link=topic=3399.msg57016#msg57016 date=1120682388]
Sillysal,
I've been retired for 2 months now and I have lost nearly$80k of that $2mil.

Does anyone else  besides me get tired of reading why the market behaved each day.

1. The market was down on news that Hasbro Toys will not have enough plastic to produce their Batman III dolls.
2. The market was down today because analyst's projections of a $1.63 dividend for Pacific Cargo Containers was off by .01%
3. The market was down because George Bush fainted after eating a pretzel.

It's literally funnier that a comic book unless it costs you your retirement.
 
Actually Bush hit a policeman in scotland while on a bicycle today and fell off.

Thats what happened.

No, I am not making that up.

Apparently the presidential bike also suffered some damage.
 
On a day when I thought that Jacko Chiraco would be the biggest clown, the USA shines thru. Jeesh, do we never get tired of embar-ass-ing the country.

Could a person, any person, just not "BIKE RIDE" while in the international spotlight. What an idiot.

Does this guy never tire of being a fool?
 
OldAgePensioner said:
Could a person, any person, just not "BIKE RIDE" while in the international spotlight. What an idiot.
Click to expand...

OAP, the guy leading the Tour de France ("the" BIKE RIDE) fell yesterday while in the international spotlight. :LOL:

And he is a professional! ;)

REW
 
I figured we'd hit bottom when he fell off of the segway scooter thats almost impossible to fall off of.

Yeah, I know it wasnt turned on. That almost makes it twice as head slapping doh!
 
ben said:
That is only 4% OAP, only 4%.... ;)[

quote author=OldAgePensioner link=topic=3399.msg57016#msg57016 date=1120682388]
Sillysal,
I've been retired for 2 months now and I have lost nearly$80k of that $2mil.

Does anyone else  besides me get tired of reading why the market behaved each day.

1. The market was down on news that Hasbro Toys will not have enough plastic to produce their Batman III dolls.
2. The market was down today because analyst's projections of a $1.63 dividend for Pacific Cargo Containers was off by .01%
3. The market was down because George Bush fainted after eating a pretzel.

It's literally funnier that a comic book unless it costs you your retirement.

I don't read it. I don't react to it. I don't care.

JG
Click to expand...
 
Our president could have visited Scotland with an agenda to do G8 business. But, hell no, he decides that riding a mountain bike is his major priority.

The Europeans consider him a JOKE of highest order:confused:??

Why, George, just simply why? You have now confirmed yourself.

And yes, if he were in the Tour de France, OK. But he is our President .

For Europe his visit is: http://www.guardian.co.uk/cartoons/stevebell/0,7371,1521635,00.html
 
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