Good article on retirement savings and spending

[Huntingfool]

I always laugh when I see financial articles that say "is a million enough to retire on." There is no way to answer that unless you know what your spending/budget will be. It varies totally from person to person. This article helps outline how to go about finding what you can withdraw based off of the age you retire, your income needs, etc.

Saving and Spending for Retirement: Here's What Fidelity Recommends

[tps7742]

Thanks for shaking and I can remember hearing/thinking in beginning my working career “ reach the magic 1 million mark and all worries would be over.” Of course that was 40 plus years ago and with inflation etc boy has that statement been corrected.” Yes there are very many variables as mentioned that plays a big part in how a person(s) of how and when they can retire comfortably.

[miket]

I read an article a couple of days ago that said you need 85% of your preretirement income to retire. If that is true very, very few would ever be able to retire.

That being said, I am still a little nervous about retiring early ( at 50 ) due to unexpected costs even with no debt except $280 boat payment and regular living expenses. I live frugally but its so hard to see what is coming down the road so far into the future

[tps7742]

I read an article a couple of days ago that said you need 85% of your preretirement income to retire. If that is true very, very few would ever be able to retire.

That being said, I am still a little nervous about retiring early ( at 50 ) due to unexpected costs even with no debt except $280 boat payment and regular living expenses. I live frugally but its so hard to see what is coming down the road so far into the future

The 85% stated does help tremendously if you want to meet the exact level of living before retirement imo. But each person/s are different. Good luck.

[miket]

The 85% stated does help tremendously if you want to meet the exact level of living before retirement imo. But each person/s are different. Good luck.

I get it if you have debt etc. I have done the math and right now can live off of $25k if I have to. Of course I dont want to haha. But the last few years I have made 20 times that. I could very comfortably live off $65k, and have been for years. As of right now my math shows about $50k/yr if I do CDs or some other low return investment. Of course I will diversify to increase that. ( this is, of course, without touching my original investment )

It does help that I have lived like Im poor my whole life ( because I was for most of it ) and have no desire for the finer things in life. The finer things in life to me are living on my property in peace, working on it every day, building my own stuff, a few cattle, garden etc. Oh yeah, and fishing and hunting

[tps7742]

Mike you have done well for yourself living below your means in which is the key also. I have followed your thread on you place in Arkansas and once again your planning, persistence has paid off. I do believe you have it figured out. Go enjoy the life/benefits from the fruits of our labors.

[CTR0022]

My advise is if your going to retire early <60 years old. You better be in a financial position to live off the proceeds of your investments to were you never have to touch the principal.

Which for most people you need in the neighborhood of $4-5mill making 4-5% annually to bring home $100-$150k a year after taxes.

[Flyway12]

Or. You develop a business you can continue to work on when you retire from your W2. I’ll never hang it up as a veterinarian, enjoy it too much. I will certainly do it much less though. I’m in my late 30’s and have diversified into the market, apartment complexes, rental houses and raw land. Keep building up the cash flowing passive investments

[BrianL]

https://www.firecalc.com/

This a a really good retirement tool.

[Huntingfool]

https://www.firecalc.com/

This a a really good retirement tool.

yes Sir I have posted that site many times on here - good calculator for sure - SO if you are not into planning your finances for retirement then that is OK. But in most cases that is rolling the dice - if you are OK with living paycheck to paycheck and then month to month in retirement then go for it. If you want to enjoy a comfortable retirement then that does not happen by accident. You have to plan and prepare for it - to each his own

[Txhunter3000]

If I need a calculator to tell me what I need to retire on, then I wasn't probably smart enough to get there in the first place.

[TX CHICKEN]

So you never spend your principal in retirement? Can you explain why? I just retired at 54 with a comfortable plan but I do plan on spending some of my principal if I live to 80/85.

My advise is if your going to retire early <60 years old. You better be in a financial position to live off the proceeds of your investments to were you never have to touch the principal.

Which for most people you need in the neighborhood of $4-5mill making 4-5% annually to bring home $100-$150k a year after taxes.

[Big pig]

I read an article a couple of days ago that said you need 85% of your preretirement income to retire. If that is true very, very few would ever be able to retire.

That being said, I am still a little nervous about retiring early ( at 50 ) due to unexpected costs even with no debt except $280 boat payment and regular living expenses. I live frugally but its so hard to see what is coming down the road so far into the future

Retiring at <50 would have been great for me, but that was the prime earning years and my kids were still college age.

But after 4 years of retirement at age 62, I think it is all about your lifestyle. We are living like we always did - (frugally). But with professional advice.

And insurance costs are a big hurdle if you are too young for Medi-Care. And health costs outside insurance can be real if you are unlucky. It happens. watched my bro in law spend lots extra with sudden serious illness. Not to mention assisted living costs.

Not sure being debt-free at 50 yrs old doesn't mean you won’t need more cars and possible a new house before you go. New cars and homes are stupid expensive.

BTW also watched my friends /spouses struggle with the change of working full time to being home full time. Not finances, just adjusting lifestyles being together 24/7.

good luck to everyone.

[GARY]

Many of the models and financial advisers provide guidance that leaves a large nest egg in the end. In my opinion its a byproduct of 1) their conservatism in how much you should spend 2) what your returns will be while in retirement 3) your intent to leave an estate.

I run my models an assortment of ways: 1) How little do I think I will need to live on in a couple of models 2) how much do I want to plan as getting in returns while retired 3) how much money I may want to leave for my kids. One model includes me pulling out more early and providing them some certaintity earlier in life than at the end.

In the end, it's all modeling. However, for me it's nice knowing that my wife and I are on the same page on what makes us happy and how little that can cost in the end.

[unclefish]

My advise is if your going to retire early <60 years old. You better be in a financial position to live off the proceeds of your investments to were you never have to touch the principal.

Which for most people you need in the neighborhood of $4-5mill making 4-5% annually to bring home $100-$150k a year after taxes.

Making 4-5% is painfully inadequate and frankly there is no reason to make that paltry amount. My FIL is 88 years young has been living off his dividends for the last 20 years. He averages around 10.5% annually. I've been doing the same thing since I retired two years ago. Its not that hard to do with the quality bond funds, CEF's, and dividend paying stocks that are available.