What income are you aiming for in retirement?
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Anonymous
| Dh and I will each have pensions of ~80-90k in today’s dollars (with COLA adjustments). Coupled with social security that should give us a base of 210-250k/year gross to budget around, while the interest from our retirement accounts (currently ~2 million with 10 years to go) will go towards travel, other splurges and helping out kids, which we can increase or cut back on as needed depending on market performance. |
Anonymous
| This is an unpopular opinion on DCUMs, but I am trying to enjoy myself while I am still healthy and younger. Of course I save, but I am not a slave to NW or some retirement figure. Who knows if I’ll live long enough to enjoy retirement. I figured that once I do retire, I’ll figure it out. And I’ll be ok living on less. Most of us did it when we were younger and I am sure most of us can do it again if needed. |
Anonymous
You sound like my parents. And guess how they "figured it out"? Kids paid. I hope you have wealthy and generous kids. |
Anonymous
If you are a professional upper middle class male your life expectancy is far more likely to be into the mid 80s or later. Most people on DCUM fall into this category. It's the reality of a two-tiered America that is the way of the future. In my case, as a single I'm aiming for $10k per month in retirement and a fully paid off house. I don't have complicated needs and know how to live frugally. It will allow me to live comfortably and 2-3 trips a year. Based on savings/investment trajectory and expected inheritances I'll probably exceed the $10k by a decent amount, which will probably end up being inherited by my nephew as I won't know what to spend the money on. |
Anonymous
You should definitely enjoy yourself when you're still healthy and younger, but it's much harder to go down in lifestyle than to go up. Once your joints are ache-y, it's even harder. |
Anonymous
|
$150k gross.
Our current living expenses is probably 7K (that excludes kids expenses) We want to retire early right after our youngest goes off to college, and budgeting $2k per month for private health insurance and oop costs. The rest will be travel expenses. We still have a mortgage ($180K), but no other loans. |
Anonymous
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I'm trying to figure this out too. We currently spend about $175k post tax. Two teens in the house, and a mortgage with about 7 years left.
I calculate minimum needs as $100k. But when I budget for what I want, it's more like $250k, where expenses stay the same except: health & fitness +$20k; shopping +$4k; travel +$20k; entertainment +$3k; gifts/donations +$5k; personal care +$2k; misc. +$5k; taxes +$15k. I wonder if this is nuts to plan to spend so much more in retirement than pre-retirement. |
Anonymous
| House paid off, planning for a minimum of $120k annually, which will be more than enough. May end up at $150k, will depend on the year. |
Anonymous
I'm targeting roughly 10M in investment accounts. The accounts will gain on average 10% a year (1M), of which 50% will go into taxes, leaving me with 500K. This doesn't take into consideration the CPI every year, but taxes also won't be 50% for every capital gain, so I think this will work out. I'll just take out less money if the market's returns are lower than expected. |
Anonymous
Population averages may not really work at the individual level. Google "recent sportspeople deaths" or "recent comedians death" and you'll see that many rich people also die in their 60s and 70s. Assuming better access to medical care, food, habits, etc. than your parents, I think each of us should expect a lifespan of your same-sex parent's age at death + 5 years. So if you are male, and your father passed at 80, you should expect to live to 85. I've seen this with a few of my friends. Anecdotal, of course.. |
Anonymous
| We are targeting $450k. About $150k will come from a government pension and SS if we wait until 70 for SS. The other $300k will come from savings. At 3% that's $10m, and we are close to that (technically over that but it includes 2 houses so we need to get to $10m in investments). |
Anonymous
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We (59/54) have about $7M. Will have $10+ in about 5 years when last kid will be out of college. Expect to spend $200K/yr.
We also have property and financial assets in another country, enough to sustain a UMC lifestyle. Hope to spend a good amount of time there as well at least into our early 70s, health and other family factors permitting, of course. |
Anonymous
Same. Single woman. |
Anonymous
| 10K a month post tax + and paid off house. |
Anonymous
Your $10MM I would imagine will be invested in dividend stocks and bonds…you should be easily able to earn $300k on that per year and never draw on principal. |