Did Anyone Retire with "Only" .75M$ Saved?

[aja8888]

This thread is a mess......

 

[dtbach]

This thread is a mess......

Ain't that the truth!

 

[NW-Bound]

This thread is a mess......

It did not have to be.

As many tried to point out, $750K when you are in your late 50s or early 60s, with SS coming on in a few short years, what's the problem?

The OP even said her husband would be working for some income and health insurance. What's the problem?

And who does not have SS? Oh, the people with government or military pension instead of SS. Darn, that's even better. Where's the problem?

Of course, people can make problems out of nothin', but the OP said she's frugal and debt free.

 

[Tiger8693]

This thread is a mess......

How so? Not sure I follow...

 

[street]

Honestly, I know no one that had $750k to retire on. Think Mom had about $25k. Dad and his wife had $7k when he passed. Probably had about that much when he retired. Coworker friend got the boot to ER at 55 with almost a half million and thought he'd be fine and actually is. A close relative is retiring at FRA SS this year with a negative networth. Any time I spoke with these people they rarely complained about money. Always complained about health issues. As a group we worry about money on this forum way too much.

True! About everything you said.

 

[lampshade]

I know I am not retiring with .75M. I'd like a thread on who is retiring with $500,000. Where do you plan to live? Do you plan on getting a part-time job? Will you be collecting Social Security at 62? Do you have a pension?

 

[ERD50]

This thread is a mess......

Ain't that the truth!

How so? Not sure I follow...

I agree it is a mess. It's like asking "How long is a string?".

Without knowing what a person's expenses will be in retirement, or what their other sources of income are, or how health care is covered, what age they are retiring, how they plan to invest their portfolio, and a few other things, there is no answer.

Or, there is any answer "Yes, No, Maybe". It is senseless.

I know a couple who I suspect have near zero net worth. But they have COLA'd pensions that average 6 figures each. They can support a very nice lifestyle, and keep paying a mortgage, or rent, with no savings, on ~ $200,000 a year. So they answer yes, so what? It means nothing to someone else w/o that kind of pension.

-ERD50

 

[FireBug]

I truly don't mean to be rude or snarky and If I've missed something about the intent of the original OP's question (as in... it's just a fun question to toss out and discuss), let me know. But why ask a question, qet 10 pages of responses (many requesting more info). and then never participate in the conversation? Isn't that what this forum is all about? I apologize it this hijacks the thread and sends it in a different direction. Mods....feel free to do your thing and delete my concern if takes a nasty turn.

Also sorry if I missed an earlier response from the OP.

 

[pj.mask]

Lots of engineering/oil companies have a pension. Most have transitioned in the last 10 years to a defined contribution plan (similar to 401k match invested in treasuries) but many people were grandfathered in.

 

[34rlsa]

I truly don't mean to be rude or snarky and If I've missed something about the intent of the original OP's question (as in... it's just a fun question to toss out and discuss), let me know. But why ask a question, qet 10 pages of responses (many requesting more info). and then never participate in the conversation? Isn't that what this forum is all about? I apologize it this hijacks the thread and sends it in a different direction. Mods....feel free to do your thing and delete my concern if takes a nasty turn.

Also sorry if I missed an earlier response from the OP.

yep... agree

 

[IrishMoss]

OK I just saw some other posts the OP made (OP has posted within the last day or so) and she did not bother to mention another account with $100K in it that she didn't count in her "just $750K" to retire.

So people weren't even getting correct info in the first place by an apparently confused poster. Like many, she and hubby actually have much more in investments than what she thinks, she just wasn't counting it for some odd reason.

Mystery solved.

 

[FireBug]

yep... agree

You and I can chip in for flowers if the OP's been in the hospital

 

[tennisplyr]

I retired 8 years ago with less than that in a HCOL. My wife was working and we had low debt and free medical. Now we're enjoying life, moved to a LCOL area and still have under $1 million. Oftentimes life is not about money.

 

[flintnational]

Annual Spending < (investments x 4%)+SS+Pension*

As most of us know, "How much do I need to FIRE?" is a fairly simple math equation. Entering a zero for either investments, SS or pension, does not really change the basic formula. Income is income and spending is spending. To a large degree, the source or income or the purpose of spending is irrelevant.

So yes, one person would be able to retire with $750K in investments while another would not be able. The formula provides the correct answer for both individuals.

*If the pension does not have a cola, you would need to make an adjustment for inflation.

 

[Dtail]

Annual Spending < (investments x 4%)+SS+Pension*

As most of us know, "How much do I need to FIRE?" is a fairly simple math equation. Entering a zero for either investments, SS or pension, does not really change the basic formula. Income is income and spending is spending. To a large degree, the source or income or the purpose of spending is irrelevant.

So yes, one person would be able to retire with $750K in investments while another would not be able. The formula provides the correct answer for both individuals.

*If the pension does not have a cola, you would need to make an adjustment for inflation.

Agree with the overall concept, but wonder in a scenario if spending is 40k, would more folks rather have that 40k covered by SS/Pension rather than 1mm in investments in a theoretically either/or scenario.

 

[SpinDoctorTX]

I know I am not retiring with .75M. I'd like a thread on who is retiring with $500,000. Where do you plan to live? Do you plan on getting a part-time job? Will you be collecting Social Security at 62? Do you have a pension?

I'd like that thread as well!

I retired 8 years ago with less than that in a HCOL. My wife was working and we had low debt and free medical. Now we're enjoying life, moved to a LCOL area and still have under $1 million. Oftentimes life is not about money.

+1

We are doing fine with just over 500k, my small pension $900/mo, 50/50 healthcare from last employer & my bit is $600/mo, DH's ss $1900/mo) plus $100k or so liquid and about$100k in items that can easily sold.

It helps that we have no debt of any kind and have installed solar on our roof, so no electricity bill). We also live in a LCOL area- Houston suburb- where services & shopping is cheap. DH has been going through cancer treatments and our out of pocket on on the problems have yet to exceed $300/ yr since the 2017 diagnosis.

We continue to travel (going to Seattle/ Vancouver in week) and doing all of the things we want to dot. If you like to hike like we do, it is a very cheap and fun thing to do.

I've yet to dip into the kitty yet (increasing value & can be easily sold) and I do not intend to take SS until 67 at least and 70 if able. I have long term care policy for me (through ex-employer) as I have longevity in my blood.

 

[flintnational]

Agree with the overall concept, but wonder in a scenario if spending is 40k, would more folks rather have that 40k covered by SS/Pension rather than 1mm in investments in a theoretically either/or scenario.

Pensions and SS can always be calculated as a present value lump sum. In fact, many folks have that option on their pension. Assuming it is an actuarially neutral calculation, it should not matter which is selected. That being said, personally I do see value for a guaranteed income stream (longevity insurance - but a lower wr should provide the same). But, that will likely depend on the individual situation. I know many here believe they can get more value from a lump sum pension (investing it) than the annuity payments. So, from a math point, I think the best we can do is equate the two and let the individual place priority as it fits their needs or beliefs. An SPIA can always be purchased if an individual places a high value on guaranteed income vs. investments.

 

[Dtail]

I'd like that thread as well!



+1

We are doing fine with just over 500k, my small pension $900/mo, 50/50 healthcare from last employer & my bit is $600/mo, DH's ss $1900/mo) plus $100k or so liquid and about$100k in items that can easily sold.

It helps that we have no debt of any kind and have installed solar on our roof, so no electricity bill). We also live in a LCOL area- Houston suburb- where services & shopping is cheap. DH has been going through cancer treatments and our out of pocket on on the problems have yet to exceed $300/ yr since the 2017 diagnosis.

We continue to travel (going to Seattle/ Vancouver in week) and doing all of the things we want to dot. If you like to hike like we do, it is a very cheap and fun thing to do.

I've yet to dip into the kitty yet (increasing value & can be easily sold) and I do not intend to take SS until 67 at least and 70 if able. I have long term care policy for me (through ex-employer) as I have longevity in my blood.

So as a couple you are living on less than 35k a year?

 

[Major Tom]

I truly don't mean to be rude or snarky and If I've missed something about the intent of the original OP's question (as in... it's just a fun question to toss out and discuss), let me know. But why ask a question, qet 10 pages of responses (many requesting more info). and then never participate in the conversation? Isn't that what this forum is all about? I apologize it this hijacks the thread and sends it in a different direction. Mods....feel free to do your thing and delete my concern if takes a nasty turn.

Also sorry if I missed an earlier response from the OP.

I am not suggesting that the OP is a troll, in fact, I don't believe that to be the case. However, the best way to ensure that a thread becomes very lively, with a lot of responses, is to post a vague, open-ended question that can be interpreted many different ways, and for which not much initial research has been done. Its a bit like writing song lyrics - if you leave it vague enough that almost anyone can see something of themselves in the words, lots of people will relate, and respond.

Can I retire on 750K? is a good one.

I think I'll have a go at coming up with a few more -

I just bought a van. I have 15K in savings. Can I retire?
I'm tired of working. Can I retire?
I have (insert amount of money here). Can I retire?

In fact, any question with a dearth of supporting information will do just fine. I don't mean in any way to demean folk who post simplistic questions. In part, you guys keep the forums going. It's just an observation.

Oh heck, I'll take the bait. When I began withdrawals from my portfolio, at age 47, I had ~$750K. I am now 55, and it has worked out for me so far. My WR has been hovering at about 2% for most of this time. However, I just splurged and purchased a rather nice older Airstream Class B* camper. As a result, my WR is about to go up quite drastically, unless I move into it! We'll see how things go from here.


*NW-Bound made me do it. That's my defense,

 

[IrishMoss]

Or the ubiquitous "Has anyone ever....?"

Because the answer is obviously "Yes, someone in the world has done that..."

 

[flintnational]

......I think I'll have a go at coming up with a few more -

I just bought a van. I have 15K in savings. Can I retire? Yes, down by the river!
I'm tired of working. Can I retire? Yes, and live in a van down by the river!
I have (insert amount of money here). Can I retire? Yes, get with the guy that owns the van.

 

[W2R]

However, I just splurged and purchased a rather nice older Airstream Class B* camper. As a result, my WR is about to go up quite drastically, unless I move into it! We'll see how things go from here.


*NW-Bound made me do it. That's my defense,

Congratulations! Long time members here know you have been considering this for a long time, and have thought it through thoroughly.

It will be a great safety net to have, in case your present rental situation becomes unavailable to you at some future time.

 

[NW-Bound]

... My WR has been hovering at about 2% for most of this time. However, I just splurged and purchased a rather nice older Airstream Class B* camper. As a result, my WR is about to go up quite drastically, unless I move into it! We'll see how things go from here.

*NW-Bound made me do it. That's my defense,

What!!! I almost miss this.

All right! You finally agree that you cannot take it with you.

Will there be a thread where you tell us about your first trip? I am looking forward to it.

 

[ShokWaveRider]

I know I am not retiring with .75M. I'd like a thread on who is retiring with $500,000. Where do you plan to live? Do you plan on getting a part-time job? Will you be collecting Social Security at 62? Do you have a pension?

When we retired the first time (in 2002) we only had ~$500k and we also did just fine. We were even featured in Money Magazine in a section called "How I Did It". I still have the Magazine with the article for posterity.

Admittedly we did go back to w*rk for a short while, after 5 years of travel, although we did not intend on doing so, but we never spent more than we got in return on our capital (From Fixed income Investments). Now, as a result we are far better off. Things changed, I had some good opportunities presented and I took one, so we did digress for a few years till finally becoming a family of leisure. We took a short sabbatical so to speak from our life of leisure.

We still live the same way now, after 10 years of retirement, nothing has changed, we still do not spend more than we take in from our fixed investments and we do not have pensions or do we take SS...… yet.

 

[SoReadyToRetire]

... she did not bother to mention another account with $100K in it that she didn't count in her "just $750K" to retire.

So people weren't even getting correct info in the first place by an apparently confused poster.

Wow--I was really surprised to read this and the similar posts surrounding it last night right before I went to bed.

I haven't responded because (a) I was not asking for advice in my original post--I was simply asking if anyone had retired with under $1M; and (b) I was quite enjoying the variety of responses, and sometimes if an OP jumps in and replies, that tends to kill a thread and people move on--so to keep the new responses coming, I left it alone.

Also, I'm not "confused" about what we have. My post simply stated "this is what we have IN OUR IRAs (I meant 401k's, but same diff). I also said *"I know there's a LOT more to it than how much you have in your IRAs*. But I just wanted to ask--did anyone here take the leap with less than $1M put away?"

I am the least rude person you'll ever meet, honestly--and I couldn't believe that those few posts made it hard for me to get to sleep! I don't know why--shouldn't give that much power to the opinions of a bunch of people I don't know--but sheesh.

Finally, if this thread is "a mess", I had nothing to do with that. People go off on the tangents they feel like going on--and how does that hurt anything or anybody??

It's a spectacularly beautiful day, so I'm going back out to enjoy it. My thanks to everyone who actually answered my original question, and also to those who offered other thoughts and experiences without judging my crappy, rude, senseless and messy post. Now go have a nice day.