Retirement Targets

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SCyclone

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Mar 11, 2014
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Fort Dodge, IA
Sorry to hear that brother. I hope there is a miracle for you my friend. Have some fun with the time you got. I am sure you have to be very careful with this COVID crap right now.

I'm doctoring in Iowa City - wonderful doctors there, to be sure - but am also beginning to look at holistic and off-the-radar stuff. What do I have to lose?
 
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yowza

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Jun 2, 2016
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I don't know how many of you look at your SS earnings online on their website, but I can't be the only one that thinks about what I could have done with mine and my employers contributions and invested those sums. I know it is old age insurance and FICA is really paying the insurance premium, but still.
 

ISUConE

Active Member
Feb 1, 2019
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Yo, you need any new friends??? Haha, kidding...sort of. I mean, if you need a photographer at all, I'd be your guy.

Jokes aside, good for you. Sometimes you either call it dumb luck, or you were just smart and took a heck of a nice risk. But, if you've done that well over the years and mitigated your risk nicely, then I commend you. Not everyone wants to do that. That's a heck of a plan and will be a nice nest egg. I would advise you, if you haven't done some things that you expect to be there and do at 55, you still may want to spend some money now just in case something bad were to happen such as traveling (when ready). I'm not saying something will, but health wise, you never know.

Haha. It's been a combination of some dumb luck, some good strategy and discipline, some good help from inheritance. My biggest mistakes were selling several great stocks too soon. Live and learn. I should have plenty of time to let my current investments grow for a long time and keep adding more.

I don't overspend on too many material things, but have a nice house, drive nice vehicles and a cheap boat that runs fine to pull the kids around the lake. I've appreciated going on nice vacations a lot more now and will continue to do so to make great memories with the family. I live very comfortably, but within my means. My wife likes to spend a little too much here and there but oh well. I don't try to pinch every penny to save for retirement, just try to have a good balance.
 
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yowza

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I'm doctoring in Iowa City - wonderful doctors there, to be sure - but am also beginning to look at holistic and off-the-radar stuff. What do I have to lose?

Right on. Also keeping a positive attitude. We are all going to meet the same fate at some point. Nearly every time I pass by a cemetery I think about that. Again wishing for something to help you beat it or extend your life as long as possible.
 

dmclone

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Oct 20, 2006
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I turn 64 next week, but was recently diagnosed with a terminal lung condition. Kinda put a damper on retirement planning, but I still have the vixen to worry about. I think she'll be more than fine, since she inherited a bit of farm ground from her family.

And you people with $2.5-3 million already....what in the hell do you need Social Security for? Pocket change?
Damn, I don't know what to say. ....Sorry that you have to go through this..
 

qwerty

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All the so called experts say you need 60-70% of your current income in retirement...Well I make about 200k and I sure as heck won’t need $130 k a year in retirement.

No debt other than house payment..

I’m retirement at 60 and I’ll, prob have $1.5 mil...SS will be there but I’ll prob not take it until 67 to get full amount. SS will be about $3000 month or so..

I’ve figured my fixed monthly bills in retirement will be around $4k or so..includes food.

5% return on my $1.5 mil is 75 k a year or $6000 month or so. Interest alone will more than cover my monthly expenses..

Big question and risk is age gap between 60-65 and healthcare. I’ll need to buy insurance for that 5 year period.

If you see people who say they have $5-6 million in their company 401k they are probably full of it. If you max out your company. 401k for 30 years you will have about $3million at age 70 assuming a 7% return.

Mostly how much you need entirely depend upon how much you think you will spend. Some people want to buy a 2nd home in Maui...other are content with staying home all day never traveling..

Scary how similar we are (except the salary). I was planning on retiring at 60 but have recently backed it up to 62. All signs show around $2.2mil at that time and until I found a good SS breakeven spreadsheet online last year, I planned on waiting until 67 also. If you run the numbers of being retired and using your own money instead of SS money, the breakeven moves from the oft quoted age of 78 to 88-90. I don't think I will make 88 or 90 so now I plan on taking SS at 62 (and preserve more of my money). Also, if I do die in my 70's, I have thus passed on more of my money. I don't get to pass on the foregone SS payments if I wait to take it at a later age.

The percent replacement quoted by retirement experts is hogwash unless you want a glamorous lifestyle. I have zero debt and can live very comfortably in Iowa for $55k. Throw in some travel and frivolous fun and I come up with $67k per year (today's $) in retirement (little over 50% income). $67k is only taking out 3% per year so ultra safe, although early years will probably be higher to cover insurance and first five years are high expense while exploring your new found freedoms.

I have many, many spreadsheets and information I can clean up and share if there is a way to share files.
 

yowza

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Jun 2, 2016
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I'm doctoring in Iowa City - wonderful doctors there, to be sure - but am also beginning to look at holistic and off-the-radar stuff. What do I have to lose?

And at least some peace of mind knowing those you may have to leave behind will be okay financially to get through the rough time to come.
 

CloneGuy8

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Mar 20, 2017
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Doing the math, it makes sense for me to retire at 67 (those last few years of compounding interest are gold). But, I'm in my 30's. We'll see how I feel at 62
 

yowza

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Jun 2, 2016
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Scary how similar we are (except the salary). I was planning on retiring at 60 but have recently backed it up to 62. All signs show around $2.2mil at that time and until I found a good SS breakeven spreadsheet online last year, I planned on waiting until 67 also. If you run the numbers of being retired and using your own money instead of SS money, the breakeven moves from the oft quoted age of 78 to 88-90. I don't think I will make 88 or 90 so now I plan on taking SS at 62 (and preserve more of my money). Also, if I do die in my 70's, I have thus passed on more of my money. I don't get to pass on the foregone SS payments if I wait to take it at a later age.

The percent replacement quoted by retirement experts is hogwash unless you want a glamorous lifestyle. I have zero debt and can live very comfortably in Iowa for $55k. Throw in some travel and frivolous fun and I come up with $67k per year (today's $) in retirement (little over 50% income). $67k is only taking out 3% per year so ultra safe, although early years will probably be higher to cover insurance and first five years are high expense while exploring your new found freedoms.

I have many, many spreadsheets and information I can clean up and share if there is a way to share files.

When to take SS is always one of the key questions. For now, I just try to factor it out completely when looking at retirement. I am not quite close enough to focus on SS. I guess the good part is when the time comes you know exactly what the balances are in your other savings.
 

yowza

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Jun 2, 2016
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Doing the math, it makes sense for me to retire at 67 (those last few years of compounding interest are gold). But, I'm in my 30's. We'll see how I feel at 62

This is a Pro Tip from a guy older than you. **** will start to hurt for absolutely no reason at all. For me it happened right around age 46.
 

acody

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Nov 25, 2006
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Y'all keep mentioning Social Security and Stormin is going to show up.

I always enjoy these threads, you can really get a sense of how different everyone's upbringing was and how we prioritize because of it. Really interesting.

For me, I'm fully planning to work into my 70s and I'm in an industry where that's common. Thanks to a layoff in 2008 and being out of work for a little over a year, a major medical issue and, common theme, a divorce, I'm nowhere close to where I want to be but I've also decided that you have to live some too. I've simply prioritized making sure that my daughter's 529 is well funded and leaving myself 'the rest'.

My grandfather died with money but he never did anything and was a miserable SOB for most of the last 10 years of his life that resented anybody and everybody around him and chose not to have a relationship with any of his kids or grandkids. My dad has hammered into me that that isn't the way to live and that when the opportunity to do something comes along, you do it. That doesn't mean you go live beyond your means (I have zero debt beyond my house) but you can't take it with you.

Agree with your Dad's advice. My wife and I retired recently and have more than enough in our IRA's(combined 2.5 mil). I was a diligent investor for over 40 years and my wife was like a lot of the wives mentioned here as she wanted nothing to do with investing.
My advice to all of you that are getting close to retirement and wondering whether to pull the trigger. Decide what amount you really NEED(including some big time trips, etc.) on a monthly basis and stop focusing on how big of a number you can get to look at on your computer screen. Sure it's fun to watch the numbers grow, but keep in mind, you are also growing older. Your spending habits likely will not change much as you retire. Unless you plan on leaving a large pile of money to your family(which I do not) or buying expensive real estate, you may already have enough to retire.
 
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qwerty

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Agree with your Dad's advice. My wife and I retired recently and have more than enough in our IRA's(combined 2.5 mil). I was a diligent investor for over 40 years and my wife was like a lot of the wives mentioned here as she wanted nothing to do with investing.
My advice to all of you that are getting close to retirement and wondering whether to pull the trigger. Decide what amount you really NEED(including some big time trips, etc.) on a monthly basis and stop focusing on how big of a number you can get to look at on your computer screen. Sure it's fun to watch the numbers grow, but keep in mind, you are also growing older. Your spending habits likely will not change much as you retire. Unless you plan on leaving a large pile of money to your family(which I do not) or buying expensive real estate, you may already have enough to retire.
Yeah, just adjusted some numbers and I can actually spend $15k more per year than I plan and still not run out of money until 98. I am mid 50's so I flip flop all the time on what age to leave. The job is currently "OK" but it gets further from my ideal (and less fun) every year. The big decision for me is keep my current higher paying job and then go cold turkey to retirement or leave for an easier or part time job at a lower salary but then maybe stay employed longer. Six of one, half dozen of the other.
 

Lexclone

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Very cool thread and a lot of interesting perspectives.

Also, a lot of you are a lot older than I imagined.
 

qwerty

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And you people with $2.5-3 million already....what in the hell do you need Social Security for? Pocket change?
It's not that I need it but 1. I have paid in for my entire life, I would LIKE to get a little back 2. It helps preserve my personal money for legacy/grandkids 3. If you have been a careful spender and saver your entire life, you aren't going to change at retirement so its nice to have "validation?" that you are being rewarded for that long term sacrifice.
 
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clonedude

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Apr 16, 2006
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I don't know how many of you look at your SS earnings online on their website, but I can't be the only one that thinks about what I could have done with mine and my employers contributions and invested those sums. I know it is old age insurance and FICA is really paying the insurance premium, but still.

The way the world is right now, I'll bet some people are glad that their SS isn't dependent on the stock market.
 

MeanDean

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I’d like to be able to retire by 60 if I want, but realistically plan on working at least part time into my 70s. I need something to hate.

Planning on a minimum 1mill in 401k If things continue on the current trajectory, Ill be in the 1.5-2mill range by my 60’s. The wife will probably have a pension and we may land a nice inheritance as well. House will be paid off in 5-10 years.

Have you MET any Hawkeye fans?
 

SpokaneCY

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Apr 11, 2006
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Spokane, WA
Just curious also are your spouses as into retirement planning and understanding investing, etc as much as you are? I mean beyond understanding the importance of saving as I believe most spouses understand that.. Getting more into full on retirement planning and what you have to do and when.

I had to work on my wife over several years to make it tangible for her. It wasn't until SHE had some job strife that she understood what my plan was and that gaining financial independence was uber important.. She leaves all the details to me but we discuss often our plan assumptions and what our future looks like on paper.
 

SpokaneCY

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Apr 11, 2006
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The way the world is right now, I'll bet some people are glad that their SS isn't dependent on the stock market.

I'll likely have 30-40 years of retirement. Would give my left nut (which doesn't work that well anyway) to let LOTS AND LOTS of time to invest a portion of my SS benefit.
 

cygrads

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Jul 27, 2007
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Not trying to be boastful at all but my goal is to retire at 55 with around $20mil saved up. I've been investing since I was a teenager and have made some great investments as well as stupid ones along the way but overall I've done pretty well. Buying Apple in 2002 with a 10k inheritance from my grandpa was my best investment to date. I'm currently 35 and have mid seven figures saved up and invest around 100k per year depending on how my business performs. If I can average at least a 7% return per year, I should be able to hit my goal at 55. By the time I die, hopefully it will be a lot more and my kids and future generations will bet set for a long time.

I've never really carried any debt but this summer I took out a 375k mortgage on my house at 3% to invest in the stock market, which is an ill advised move by many people. Still have a big pile of it waiting for another drop if it ever happens. We will see how that plays out, but I feel confident I can make a better return in the long run. Wish I did it many years ago.
My BIL started investing in Apple from the beginning and that stock alone has paid for two kids college and two weddings and still plenty for retirement. If you're lucky and invest in the right company anything is possible.
 

Bestaluckcy

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We retired a few years ago when I had saved less than a half million. I was 63. Since then we have traveled to Italy and some of the states. The lake where we live has almost too much activity. Still expect to run out of time before we run out of money. Have more money saved now than when I gave up the paycheck. Really don't see the wisdom of being the richest person in the cemetery. Advise most of you to take retirement just as soon as you can pencil it. Time is what is limited.