Poll: When you retired, how many years of expenses had you saved POLL

[Echard]

Should the calculation take into account the inflation of expenses over time, or just todays dollars expenses divided into savings? Two very different numbers.

 

[COcheesehead]

Should the calculation take into account the inflation of expenses over time, or just todays dollars expenses divided into savings? Two very different numbers.

I just use unadjusted inflation expenses with the assumption your portfolio hedges inflation over time.

 

[Koolau]

I just use unadjusted inflation expenses with the assumption your portfolio hedges inflation over time.

...or in many cases, our portfolios have out grown our expenses. What a wonderful thing the market can be (sometimes.)

 

[pb4uski]

I don’t include our house in retirement assets. I include some land we own because that will be sold someday and used that value ( it adds about 3%) to calculate the years of expenses on hand.

I like how you describe the expenses less pension as gap.

I usually don't include any of our two homes in retirement assets. I can make a decent argument to include the one that was bought with retirement assets since one of the two homes will likely be sold before we pass on. The "return" is free rent and appreciation.

 

[street]

I voted more than 41X. When I retired 7 years ago, I had double that and now that has doubled again in portfolio verses yearly expenses.
It does not include SS, home and ranch just portfolio in stocks and other saving venues.

 

[O2Bfree]

Going with my estimated expenses, 37x. Going with actual expenses, 58x. Both numbers exclude SS. Gotta get busy spending!

 

[scrabbler1]

When I first retired in late 2008, I had about 38x expenses, despite the crashing markets back then. After my expenses rose into the late 2010s, they fell in the 2020s. My portfolio has doubled, though, so I am now at about 76x expenses.

 

[COcheesehead]

...or in many cases, our portfolios have out grown our expenses. What a wonderful thing the market can be (sometimes.)

We’re in the same boat. Ultimately someone else will spend our money.

 

[VanWinkle]

I had no idea how many years I had covered with my savings until I was retired and realized I didn't need more than 2% or less from my savings. With that in mind, I had over 50 years of income needed in my portfolio. Not bragging, just LCOL.

VW

 

[Koolau]

We’re in the same boat. Ultimately someone else will spend our money.

I hope they enjoy it. We certainly have enjoyed what we've spent (for the most part.) It's our plan and our hope that we can make a lot of lives better with what we leave behind. Only God knows at this point.

 

[aaronc879]

I voted more than 41X. When I retired 7 years ago, I had double that and now that has doubled again in portfolio verses yearly expenses.
It does not include SS, home and ranch just portfolio in stocks and other saving venues.

I'll send you my mailing address to help you get rid of some of that excess.

 

[Koolau]

I voted more than 41X. When I retired 7 years ago, I had double that and now that has doubled again in portfolio verses yearly expenses.
It does not include SS, home and ranch just portfolio in stocks and other saving venues.

That is impressive. Mr. Market has done his j*b and you have obviously invested wisely. Now the question is: What to do with it? Oh, wait. I know. LAND!



Enjoy!

 

[dixonge]

0.5x, and that's being generous.

We retired on wife's pension, moved to Mexico. We are now receiving all pension/SS we will ever receive (not counting occasional SS COLA bumps). Our investment fund is growing although it's never fast enough. Goal is to provide self-COLA for pensions. In the meantime we have more than enough to enjoy life and travel and still throw significant money into market.

So basically kinda the opposite plan of 90% of FIRE crowd. ¯\_(ツ)_/¯

 

[big-papa]

I had to calculate it for the poll because a multiple of expenses is not how I decided I had enough for retirement. I don't particularly like the multiple-of-expenses method because there is a direct path from that number back to some sort of SWR, which I see only as the result of an interesting historical study and not something predictive of the future.

I prefer the funded ratio for this exercise. Or, in my case, I used my actual withdrawal method, and then accounted for taxes. If that number was higher than my expenses with what I believe is a conservative margin, then I considered us good-to-go.

Cheers.

 

[street]

That is impressive. Mr. Market has done his j*b and you have obviously invested wisely. Now the question is: What to do with it? Oh, wait. I know. LAND!



Enjoy!

I hope for a legacy if God is willing. I live in a very low cost of living area in fly-over country.

I always felt I could share some of my numbers here because we are equal no matter what we have in the bank. We all have won and been blessed in a lot of ways to get where we all are today financially.

From the poll there are a lot of numbers with 41X more expenses and I would say there are many with similar years of saving verses expenses.

Koolau, I always like your fairness and knowledge in seeing other sides of topic here on ER. I always read and take-in when I see your posts.

Thanks, have a great day Sir.

 

[Koolau]

I hope for a legacy if God is willing. I live in a very low cost of living area in fly-over country.

I always felt I could share some of my numbers here because we are equal no matter what we have in the bank. We all have won and been blessed in a lot of ways to get where we all are today financially.

From the poll there are a lot of numbers with 41X more expenses and I would say there are many with similar years of saving verses expenses.

Koolau, I always like your fairness and knowledge in seeing other sides of topic here on ER. I always read and take-in when I see your posts.

Thanks, have a great day Sir.

 

[meleana]

I answered incorrectly 10 years or less. I thought you meant in cash until you collected SS.

 

[HMMY]

I retired with 25x expenses, excluding SS, which was 18 yrs away. 5 yrs later, I have 37x expenses because my portfolio grew (even after spending significantly more than budgeted for our retirement home) and because I spend less than I anticipated, 2.5%/yr, not 4%/yr. The plan is to start gifting when the kids are on their own.

 

[RobLJ]

Looks like 26 years (not counting SS). When DW retired and I went to half-time contract, it was 25 years, which was the 5 year period I was worried about.
We have increased spending, mainly because FireCalc and others say we can and we (in my view) passed the critical risk period since I am close to full Social Security age. Getting here with the portfolio intact was the risky period (or highest risk).

 

[Koolau]

I retired with 25x expenses, excluding SS, which was 18 yrs away. 5 yrs later, I have 37x expenses because my portfolio grew (even after spending significantly more than budgeted for our retirement home) and because I spend less than I anticipated, 2.5%/yr, not 4%/yr. The plan is to start gifting when the kids are on their own.

I just got monthly notification (via internet) that our main credit card (Costco) was under a $grand last month. Talk abut reduced expenses. Of course, that's Mainland living - not Paradise spending. Now that we're home, I'm guessing the ol' CC will be abused again!

But the port just keeps climbing - for now. We'll enjoy looking at it while it lasts. YMMV