Way off the subject---RETIREMENT---but important to me!

Its slow fishing season....so.....help me out on a serious subject....Retirement $$$$$.

I know there are a ton of variables involved, like standard of living, health, travel, etc. BUT, what would be your educated or uneducated guess on the amount of money one might need saved in a piggy bank to retire on at 60 yrs of age? I know health insurance is the big thing retiring early. Just a typical middle class husband and wife, nothing extravagant maybe a couple weeks vacation a year traveling, house paid for, etc. $200K, $400K, $1M, $1.5M?

I'm 50 and read up a lot on this. Some of the amounts I see, I don't spend NOW much less after I retire. Not asking for anyone's personal retirement account balance. Just opinion. I'm actually pretty fortunate that I have a Pension and a 401K, but curious about what a good nest egg might be. Yes, I worry about it often! Especially considering the market like it is. Took me 7 years to recoup what I lost the first time. I keep having dreams of it crashing again!

It realty depends on the age you wish to retire relative to your life expectancy. Then you factor in your life style or life style you would like to maintain in retirement. Lastly, the amount of return on your money invested. Everyone's number will be different. The closer you get to retirement , the more conservative you will want to be with you investments.

Take your bills and how much you want to spend per week, then multiply in by 4.333 for a month, then by 12, for a year. Then say 25 years, that'll put to at 85. now DOUBLE IT and you're close

Really need an accountant or CFA to take a look at it for you. as speck said it is case by case. I'm 25 and putting a good chunk back every month because I don't trust the government to do it for me. When you think you have enough, keep saving. Rainy days can hurt you. And it never hurts to diversify as much as possible. I love the rental market with rates the way they are.

My son asked me the same thing a few days ago, lol. I told him, retiring at 60, with a life expectancy today of about 85, you have to figure 25 years of retirement. If you are happy with your current lifestyle ad spending habits, figure out how much per year it's costing you, including leisure. Multiply that by 25, and add 10 percent a year for higher costs of living as time goes by, and you will have a rough guess. just my 2 cents worth, lol.

My age was 60 but after talking to my grandparents and other people in there 60's I've changed my mind to 65. I'd say as far as a nest egg just budget based on how you want to live.

I retired at 58 and live off of my monthly check. I did spend the pay-off for things I wanted at the time. Debbie retired at 60 and gets half of the amount that I get. We haven't touch the 401. It gets a little tight about the end of the month,but we do just fine.
I need 3 tires and 2 or 3 batteries for my boat. Looks like 5 or 6 months of buying one per month before I'll take the boat out.

Won't matter to me--I'll never have the chance to retire :)

i believe a good pension is the key to retirement. i was fortunate in as much as i worked for a great company that has a nice one. i rolled my 401k over to ramon james and like most i took a bath on it in 08. they got it all back plus some now. i have my ss checks go straight into a savings account and have not used much of it in ten years. i live off of that pension check, everything i got i own. i have the savings and rollover in case of emergency. frankly at your age i would think long and hard before you pull the trigger. insurance alone is gonna get to ya till you get to medicare age and who knows it may not be here then, but i sure hope so for all the folks that have paid in to it all these years.

My wife and I got everything paid off in 2006. I retired at 65 and 10 months which was my full retirement date in 2008. My wife is retiring this Thursday. We both will draw full SS and both draw two pension plans each. We also drew 401Ks that we pretend doesn't exist. We spend very little, have a garden we can from, but if we want something or want to go somewhere, we get it or go. I had thought about retiring at 62, health insurance changed our mind. Been retired going on 7 years, still have my health, I don't know how, I love it. Just be sure that you have enough to support yourselves. The average American male without a hobby draws 11 SS checks.

I retired at age 53, my wife at 50.....am 70 now and having a ball. Wife and I both have pensions plus social security....and have a nest egg and investment income and we own farm land and timberland that brings income.. Life is good.

IMO it is best to have income you can count on in retirement. In other words it is best not to plan on drawing out any of your principle savings but ideally should be able to live off of the income that it produces along with any other retirement incomes like SSI, pensions etc.

Now exactly how much income is personal matter based on needs and lifestyle, but best to be able to count on it. The worst thing IMO is for a person to continually draw out of his principle in retirement and then out live it and yet still need it.

I'm about to be faced with some of the same decisions. Been working for a great company that has a defined benefits plan and a 401K that I loaded up on when I was younger. I really couldn't ask for a better place to work. Good pay & benefits. I started with them when I was 20 years old and will turn 53 this August. I've always said I would retire at 55 as they will pay for half of my wife's and I health insurance at that point. Closer I get to 55, more I realize decisions are going to have to be made. And BIG ones too. Everything I own will be paid off before that. House & farm will be mine. My wife & I have no kids and will leave whatever is left to the nieces & nephews.
I keep thinking about the good men/friends that I have worked with over the years that passed away & didn't get to enjoy their retirement.
I don't want to be one of those guys....

I want to retire by 50.... But I better start saving for real if that is gonna happen. Make your assets work for you

I've said this before but worth repeating. A financial advisor once told me that you want to enjoy your retirement. Plan your money so that you bounce the very last check you write.

Their is some very good advice here. I'm jealous of you guys with pensions. The main thing I can add is being debt free including the home takes a tremendous load away. Owning a small farm can certainly provide income and pleasure if it is managed properly. Also, some of the happiest people I know are semi-retired. They have plenty of time for hobbies and some travels but also enjoy working at a slower pace and the extra income it produces.

Im with you MO'!!! I only have 3,564 days 9 hours and 17 minutes from this current time and im DONE!!!

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Originally Posted by feeshrman

Their is some very good advice here. I'm jealous of you guys with pensions. The main thing I can add is being debt free including the home takes a tremendous load away. Owning a small farm can certainly provide income and pleasure if it is managed properly. Also, some of the happiest people I know are semi-retired. They have plenty of time for hobbies and some travels but also enjoy working at a slower pace and the extra income it produces.

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Right on being debt free before you retire.....you don't want to be making payments on anything.

There is nothing like being retired and watching the pension check come in the mail, i retired at 51 after 30 years of service, worked two jobs for 26 years of that 30 sometimes 3 jobs, but you do what you have to do, 3 kids and college are not cheap, after i retired i was lost after two month being home and doing the honey due list, that got completed and i started looking for a part time job, well i found the job and back to full time work. The kids are gone and now the grand kids spend there papa's extra money but you only live once and you can't take it with you and if you try to take the cash someone will be there to write a check and remove the cash from the steel box. Waiting for SS maybe.:scratchhead:Doh::crazy:now fishing every chance :fish:fish

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Originally Posted by pesce

There is nothing like being retired

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I agree it feels great, the only feeling similar is the first time you own your home free and clear.

For myself being able to be home with the family is the real blessing

As has been said in other posts, you need to consider waiting till at least Medicare age because of the impact of healthcare costs and insurance is just part of it. For instance, I had a massive heart attack 1-1/2 years ago and the hospital bill was astronomical. If I had not had medicare the copay alone would have been a huge hit to my savings. The one word that everyone must remember is CONTINGENCY. There will be situations, especially as you get older, that most don't plan for. A lot of people do the math and plan for living 20 years...then wind up living into their 90's. The money runs out.

The cost of living eats it up and the longer you live the worse it is,but by then what are you spending, oh property taxes just to have a roof over your head, maybe after 75 or 80 they should suspend property taxes on senior citizens, but i was lucky enough to get 3% raise on my pension every year, private pension fund. Nobody ever said life was a bowl of cherry's. I must say my dad was right save a little spend a little he told me pay yourself first and hide it, to this day he was absolutely right in what he told me. Thanks Dad.

One thing good about Ms is that after age 65 you dont have homestead taxes any more up to a certain amount of acres attaches to your home, have to still pay taxes on the acreage above the allotted amount for homestead and any not attached to your homestead.
Life exspectancy is getting higher and higher, not good as far as medical expenses, old folks need a LOT of maintenance, just the facts. I am thankful for the medical improvements but when most of our guberment things were set up such as Medicare and Social Security (which was meant to be a supplement) folks weren't living near as long. Dont count on Social
Sercurity, doubt I will ever draw a penny and if we do get to it will just be mad money.

Here in Louisiana, I am able to claim farm use to avoid paying property/homestead taxes, thus I pay none. Can't remember what the minimum acreage is. What some folks have said here about being debt free is absolutely true. I'm fortunate enough to not have to pay a mortgage, haven't done so in over 20 years. Believe me, it took some discipline back in the days. For a new truck/boat, buy it and pay yourself back. Interest rates, no matter how small, will eat you up. Avoid them at all costs. Just my :twocents

In all truth, i'm glad when my feet hit the floor in the morning, Amen:pray Thank you for another day!

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Originally Posted by kycreekboy

I'm about to be faced with some of the same decisions. Been working for a great company that has a defined benefits plan and a 401K that I loaded up on when I was younger. I really couldn't ask for a better place to work. Good pay & benefits. I started with them when I was 20 years old and will turn 53 this August. I've always said I would retire at 55 as they will pay for half of my wife's and I health insurance at that point. Closer I get to 55, more I realize decisions are going to have to be made. And BIG ones too. Everything I own will be paid off before that. House & farm will be mine. My wife & I have no kids and will leave whatever is left to the nieces & nephews.
I keep thinking about the good men/friends that I have worked with over the years that passed away & didn't get to enjoy their retirement.
I don't want to be one of those guys....

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Ditto on you last two comments. Seen it way too often myself.

Lot of good comments. Thanks for contributing to the discussion. I'm glad my thinking is in line with much of what I've read. I pretty much have everything outlined in an excel spreadsheet that shows my 401K, Pension, Roth IRA and Social Security from age 51-75. Taking my current 401K balance and assuming I max contributions of 24K each year and also 6.5K in an Roth IRA (that's 2015 MAX limits). I have both a traditional Pension and what the call a Portable Pension (like a savings account balance). I take all of that and compute a monthly payout assumption for each year---obviously the later to retire the more. Key is we all have to make assumptions. Health cost, stock market (up or down?), job security, taxes, unknowns out there, etc. Right now I don't own a house, but saving money and plan on paying cash for one or maybe 70% so I can write something off on taxes for a few years at least--but have the money to pay it off if I want. I hate to owe money to anyone. Only reason I have credit cards is because you almost have to for hotels, traveling, ordering things, etc. Nothing wrong with them either if the balance is paid promptly.

I know one thing. You sure can't take it with you. Nothing wrong with working if that is your thing. My thought is work is fine if you want too, but not that you have too---in order to make ends meet.

I agree 100%. If you put 70% down on a home, you will be very comfortable and flexible with payment options. Owing money is not bad, but owing a LOT of money is. All the talk now is about finance while rates are low. People do just that, finance a home, vehicle, boat, vacation home, atv/utv, and put 0 down and have to pay on each luxury item (not home) for 8-10 years. Less savings, and when a big bill comes up, they sell things for a loss or take out a 2nd mortgage. I have two notes right now, and a small student loan. I hope to be debt free in two years, then look to purchase a home. I hate knowing I owe X amount of my paycheck to anybody each month. Money isn't all that matters, but it sure doesn't hurt to have a little stashed back!

From my short time working at the bank, it is sad to see the shape some folks are in trying to keep up with the Jones'...

the JONES are bad

Main thing is you are using your noggin and are actually THINKING and APPLYING yourself and your assets. That's a lot more than 80% of folks out their actually do. I say you are gonna be fine no matter what you decide.

Them Jones will put you in the hole. I ignore them myself.

Interesting......

How retirement plans vastly underestimate inflation

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Originally Posted by kycreekboy

I'm about to be faced with some of the same decisions. Been working for a great company that has a defined benefits plan and a 401K that I loaded up on when I was younger. I really couldn't ask for a better place to work. Good pay & benefits. I started with them when I was 20 years old and will turn 53 this August. I've always said I would retire at 55 as they will pay for half of my wife's and I health insurance at that point. Closer I get to 55, more I realize decisions are going to have to be made. And BIG ones too. Everything I own will be paid off before that. House & farm will be mine. My wife & I have no kids and will leave whatever is left to the nieces & nephews.
I keep thinking about the good men/friends that I have worked with over the years that passed away & didn't get to enjoy their retirement.
I don't want to be one of those guys....

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That is why one should enjoy their work and life all the time. You could retire at 55 and die at 55. No guarantee! I am 68 and still work when I feel like it. I have enjoyed every day of it whether retired or not.