What income are you aiming for in retirement?

[Anonymous]

We are retired and have two homes so that means a lot of overhead. Including property taxes but excluding income taxes and gifts to children and their families we are at $30k per month. That JPM 2% withdrawal is way too low and I've never heard that from anyone. Needless to say they are not our financial advisor.

[Anonymous]

What do you think the life expectancy of your spouse or you will be? Males are at 73 on average. I know several who haven’t even made that.

[Anonymous]

Anonymous wrote:What do you think the life expectancy of your spouse or you will be? Males are at 73 on average. I know several who haven’t even made that.

That's not the average life expectancy of someone who has already made it to 50 or whatever age OP's husband may be. For instance at 50, life expectancy of a male is roughly 28 more years. https://www.ssa.gov/oact/STATS/table4c6.html

Joint (one to be alive) will be even longer than the value for either party in a couple.

[Anonymous]

Goal is 500K post tax per year, in today's dollars.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We need 200K (~175K + income tax).

This morning I read that JPM came out with new guidance saying 4% Rule should be discarded due to ongoing inflation and potential lower returns in the next decade. People should consider 2% - 3% withdrawals. JPM is also the most conservative on projecting where the S&P500 will be at the end of 2024.

So based on this you will need $10m to retire?

We have the same goal as PP, but no, we do not anticipate needing 10M to retire. Try your math again.

I haven’t reviewed the math behind the JPM statement about 2-3% withdrawals but I am interested in reviewing it soon and plan to.

Also plan to have a paid off home at retirement.

My math is fine. If you accept the 2% withdrawal rate, that requires $10m to generate $200k each year. Does your math come to a different result?

[Anonymous]

Anonymous wrote:Why do you need so much if your house is paid off, depts paid off and you have Medicare?

$60K will be plenty.

Could we survive on $5k each month? Sure (though we'd have to move, because of property taxes.) Do I want to, and is that what I am aiming for (which was the question posed)? No way. There are lots of things I like to do that cost money, particularly in early retirement. I'll still be young and fit enough to ski for at least a decade, and I don't intend to spend that time at Wisp or any other mid-Atlantic hill. We have friends all over the country and world, and I'd like to visit them. We want to spend summers at a second home in New England. There are a whole bunch of places in the world I haven't had time to visit yet, and I don't want to do it staying in hostels. Like to be in a position to help out our only child with significant expenses.

So yeah, we'd be OK on $60k each year. Happy, even - it wouldn't be a miserable existence at all. But am I aiming for more? Absolutely. Why wouldn't I?

[Anonymous]

Anonymous wrote:

Anonymous wrote:$250k a year for the two of us.

. That’s my number as well except since retirement distributions are taxed at ordinary income rates that’s about 380k needed to have this much $ annually.

We have some $ in Roths and taxable accounts which should help with this. The 380 is only if it is all in traditional 401k/IRAs presumably.

[Anonymous]

$65K post tax should do it and not have to touch whatever I have saved in TSP, which should be $800K or so by then...

[Anonymous]

$750k in today's dollars. We earn about a million now and it doesn't feel like a ton - but we have three young kids sucking money out of us left and right. Figure in retirement we won't need as much to feel flush as the kids will be financially independent and all our debt paid.

[Anonymous]

Anonymous wrote:Why do you need so much if your house is paid off, depts paid off and you have Medicare?

$60K will be plenty.

NP Do you rent? my property taxes and home insurance alone are 21k.

[Anonymous]

Anonymous wrote:$750k in today's dollars. We earn about a million now and it doesn't feel like a ton - but we have three young kids sucking money out of us left and right. Figure in retirement we won't need as much to feel flush as the kids will be financially independent and all our debt paid.

You're an idiot.

[Anonymous]

Anonymous wrote:$250k a year for the two of us.

We’re about the same. 220k-250k per year before taxes. Our house is alr paid off.

[Anonymous]

FYI, here is a link to the Yahoo Finance article about JPM withdrawal rates:

https://finance.yahoo.com/news/jpmorgan-says-safely-withdraw-much-163855453.html

And a quote from deeper in the article:
"JPMorgan also advises retiring the 4% rule because of prospects for lower returns and higher inflation – “that all economists now see on the horizon” – means the 4% rule could be a prescription for serious financial trouble. While the S&P 500 earned on average 10% over the last 10 years, the bank’s recently published long-term capital market assumptions forecast a 60/40 portfolio returning just 4.3%."

[Anonymous]

We both have health issues, so when the older spouse turns 55-56, we will quit. We are pretty flexible on how much we can live on. But ideal would be $5M in investable assets to withdraw 200K per year + Social Security. Don't buy the JPMC analysis, no different than what will be Bitcoin price in 2 months .. could be anything.

We are at $3M right now, if we hold onto our jobs, with our high savings rate for $300K, we should be there in another 5 years. Once we hit the $5M, depending on health, we may evaluate

[Anonymous]

Anonymous wrote:Goal is 500K post tax per year, in today's dollars.

What is the networth you are targeting>