What is your "magic number" for retirement?

[Anonymous]

I don't have one, I can live comfortably from the fed pension and SS but have to stay until 62. My kids will get my tsp balance, I have no clue why I'm saving anyway.

[Anonymous]

You people are crazy. My number is $1.5 million. I should get there by age 45 (I’m single) but am checking out at that age anyway even if I’m a little short. Life is too short.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This post scares me. A lot.

how much will you have in retirement?

You don't need $5mil unless you have huge expenses and/or want to travel in luxury a lot.

Think about what your expenses might be in retirement. Then pad it with an extra 20%.

My mom has Parkinson’s. She will need care costing 100k per year at some point. You can live a lone time with many diseases. Grandfather was chronically ill 40s and 50s. Could not work. Health disasters can blow through savings. For me, 3 million is the minimum I would be comfortable with to retire. My magic number is 4 million.

I can be prudent and have health insurance and savings, but there's no way I can save enough to cover all possible health disasters. And in some cases, money can't fix the problem.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This post scares me. A lot.

how much will you have in retirement?

You don't need $5mil unless you have huge expenses and/or want to travel in luxury a lot.

Think about what your expenses might be in retirement. Then pad it with an extra 20%.

My mom has Parkinson’s. She will need care costing 100k per year at some point. You can live a lone time with many diseases. Grandfather was chronically ill 40s and 50s. Could not work. Health disasters can blow through savings. For me, 3 million is the minimum I would be comfortable with to retire. My magic number is 4 million.

I can be prudent and have health insurance and savings, but there's no way I can save enough to cover all possible health disasters. And in some cases, money can't fix the problem.

But you can plan to have something in case a health disaster strikes. No one says it has to cover all of it. Also, my grandma is 96. That is a real risk of outliving one’s money. I will stick to my 4 million number (single nonprofit worker), which is a achieveable at 66 or 67 be cause I have been saving since age 21 and decided, then that I was not gonna be destitute in old age. I was saddled with crippling student debt at the time, and I said “there’s no way I’m gonna live like this when I’m old.”

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This post scares me. A lot.

how much will you have in retirement?

You don't need $5mil unless you have huge expenses and/or want to travel in luxury a lot.

Think about what your expenses might be in retirement. Then pad it with an extra 20%.

My mom has Parkinson’s. She will need care costing 100k per year at some point. You can live a lone time with many diseases. Grandfather was chronically ill 40s and 50s. Could not work. Health disasters can blow through savings. For me, 3 million is the minimum I would be comfortable with to retire. My magic number is 4 million.

I can be prudent and have health insurance and savings, but there's no way I can save enough to cover all possible health disasters. And in some cases, money can't fix the problem.

But you can plan to have something in case a health disaster strikes. No one says it has to cover all of it. Also, my grandma is 96. That is a real risk of outliving one’s money. I will stick to my 4 million number (single nonprofit worker), which is a achieveable at 66 or 67 be cause I have been saving since age 21 and decided, then that I was not gonna be destitute in old age. I was saddled with crippling student debt at the time, and I said “there’s no way I’m gonna live like this when I’m old.”

well make sure you read up on IRMAA and RMD’s.

I am just doing that now (as I approach retirement ), and realizing that I did not need to live so frugally (when I was young, and had more energy and companions to travel with).

[Anonymous]

If from an early age you are saving 20% of your income for retirement that is a very good thing. If you are saving 40%+ you may have a boatload at the end but really be depriving yourself in the meanwhile. I do like the idea of setting a goal and building a plan to get there but if the goal is too high you could be miserable on the journey.

[Anonymous]

Anonymous wrote:You people are crazy. My number is $1.5 million. I should get there by age 45 (I’m single) but am checking out at that age anyway even if I’m a little short. Life is too short.

You plan to live for 30 to 40 years after age 45 on $1.5 million? OK, there are scenarios where that is possible but I'd want a lot more than that to retire at 45.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You people are crazy. My number is $1.5 million. I should get there by age 45 (I’m single) but am checking out at that age anyway even if I’m a little short. Life is too short.

You plan to live for 30 to 40 years after age 45 on $1.5 million? OK, there are scenarios where that is possible but I'd want a lot more than that to retire at 45.

NP here and I'm in a similar situation. However, I have real estate abroad and plan to retire there.

[Anonymous]

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Anonymous wrote:My "I'd walk away without another thought" number is $10M (single, no kids, 50s).

I won't get to 10M absent some kind of windfall, but will likely retire with $3-4M TSP, $1M other, fed pension in the 150-200 range, $1M house paid off.

How are you getting a Fed pension of $150-200k? Are you dual Feds?

Never mind, saw you are single. How are you getting $150-200K pension? Doctor?

I also wonder how you are getting 150-200K pension?

Some private companies still need offer pensions.

Yeah but PP mentioned a TSP account.

Which, not that I am reading about a single TSP with $3-4M, I am realizing PP is trolling.

Can’t 2 Feds do that?

1 fed, independent agency, advanced degree, very long tenure (at top of wage scale now), max tax deferred TSP contributions nearly all in equities for the whole time. TSP now nearing 3M. If retiring at 62, the internal pension calculator puts the pension in the 150-200 range. No, I'm not going to post my statements and W2. But it's possible and I am definitely not the only person in my agency in this situation.

What is an independent agency? Also, the all equities strategy is risky for those not early in their careers. 60/40 is the norm and I wouldn’t break too much with that unless I was very comfortable with risk.

Basically, this person is at an agency that is not on the GS scale and has its own pension plan and version of TSP.

I posted earlier. Am likely at the same agency but longer tenure and greater age. My TSP is considerably larger. All equities for decades but a year ago put 15% into governments and am still questioning why I bothered. Pension is effectively a huge bond portfolio. Am near retirement and switched to including a percentage of governments for dealing with RMDs when they come.

I am also at one of those agencies and I still don’t understand how one person is getting a $150-200k pension. Or has a $3-4M TSP in their 50s.

I am 45 and am no where near that. I am at the top of the scale and will have 35 years at 62. My pension (today’s dollars) is $95K. My TSP is $1.3M with a 10% match.

Only thing I can guess is that this is Fed Reserve Board or CFPB at the top of the scale with 38-40 years?

If you are all equities, using the rule of 72 (sum doubles over ten years at 7% return), you likely will have $2.6M at 55 and $5.2M at 65. And that is without a single additional contribution. This is a good time to start directing all your contributions to your Roth instead--RMDs on a $5.2 M amount will be punishing.

That only happens if it is all in equities.

[Anonymous]

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My "I'd walk away without another thought" number is $10M (single, no kids, 50s).

I won't get to 10M absent some kind of windfall, but will likely retire with $3-4M TSP, $1M other, fed pension in the 150-200 range, $1M house paid off.

How are you getting a Fed pension of $150-200k? Are you dual Feds?

Never mind, saw you are single. How are you getting $150-200K pension? Doctor?

I also wonder how you are getting 150-200K pension?

Some private companies still need offer pensions.

Yeah but PP mentioned a TSP account.


Which, not that I am reading about a single TSP with $3-4M, I am realizing PP is trolling.

Can’t 2 Feds do that?

1 fed, independent agency, advanced degree, very long tenure (at top of wage scale now), max tax deferred TSP contributions nearly all in equities for the whole time. TSP now nearing 3M. If retiring at 62, the internal pension calculator puts the pension in the 150-200 range. No, I'm not going to post my statements and W2. But it's possible and I am definitely not the only person in my agency in this situation.

What is an independent agency? Also, the all equities strategy is risky for those not early in their careers. 60/40 is the norm and I wouldn’t break too much with that unless I was very comfortable with risk.

Basically, this person is at an agency that is not on the GS scale and has its own pension plan and version of TSP.

I posted earlier. Am likely at the same agency but longer tenure and greater age. My TSP is considerably larger. All equities for decades but a year ago put 15% into governments and am still questioning why I bothered. Pension is effectively a huge bond portfolio. Am near retirement and switched to including a percentage of governments for dealing with RMDs when they come.

I am also at one of those agencies and I still don’t understand how one person is getting a $150-200k pension. Or has a $3-4M TSP in their 50s.

I am 45 and am no where near that. I am at the top of the scale and will have 35 years at 62. My pension (today’s dollars) is $95K. My TSP is $1.3M with a 10% match.

Only thing I can guess is that this is Fed Reserve Board or CFPB at the top of the scale with 38-40 years?

If you are all equities, using the rule of 72 (sum doubles over ten years at 7% return), you likely will have $2.6M at 55 and $5.2M at 65. And that is without a single additional contribution. This is a good time to start directing all your contributions to your Roth instead--RMDs on a $5.2 M amount will be punishing.

That only happens if it is all in equities.

Why wouldn't you be all equities if you are getting an FDIC pension like the PP is? The pension is the bond allocation.

[Anonymous]

$3M; This excludes DH's retirement plan and we'll both have pensions.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You people are crazy. My number is $1.5 million. I should get there by age 45 (I’m single) but am checking out at that age anyway even if I’m a little short. Life is too short.

You plan to live for 30 to 40 years after age 45 on $1.5 million? OK, there are scenarios where that is possible but I'd want a lot more than that to retire at 45.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My "I'd walk away without another thought" number is $10M (single, no kids, 50s).

I won't get to 10M absent some kind of windfall, but will likely retire with $3-4M TSP, $1M other, fed pension in the 150-200 range, $1M house paid off.

How are you getting a Fed pension of $150-200k? Are you dual Feds?

Never mind, saw you are single. How are you getting $150-200K pension? Doctor?

I also wonder how you are getting 150-200K pension?

Some private companies still need offer pensions.

Yeah but PP mentioned a TSP account.

Which, not that I am reading about a single TSP with $3-4M, I am realizing PP is trolling.

Can’t 2 Feds do that?

1 fed, independent agency, advanced degree, very long tenure (at top of wage scale now), max tax deferred TSP contributions nearly all in equities for the whole time. TSP now nearing 3M. If retiring at 62, the internal pension calculator puts the pension in the 150-200 range. No, I'm not going to post my statements and W2. But it's possible and I am definitely not the only person in my agency in this situation.

What is an independent agency? Also, the all equities strategy is risky for those not early in their careers. 60/40 is the norm and I wouldn’t break too much with that unless I was very comfortable with risk.

Basically, this person is at an agency that is not on the GS scale and has its own pension plan and version of TSP.

I posted earlier. Am likely at the same agency but longer tenure and greater age. My TSP is considerably larger. All equities for decades but a year ago put 15% into governments and am still questioning why I bothered. Pension is effectively a huge bond portfolio. Am near retirement and switched to including a percentage of governments for dealing with RMDs when they come.

+1 There's a good book called "Are you a Stock or a Bond" that helps you think through allocation beyond thinking of age-based risk formulas. As a person with a government job and a pension you are a bond and can risk more in equities.

Besides pensions, what else is an annuity payment? SS is an annuity payment for retirees. Another reason to focus on stocks esp dividend paying stocks in your accounts. I would never do a 60/40 portfolio, I don't mind the risk. More in equities and have cash or equilvalents to cushion during bear markets.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My "I'd walk away without another thought" number is $10M (single, no kids, 50s).

I won't get to 10M absent some kind of windfall, but will likely retire with $3-4M TSP, $1M other, fed pension in the 150-200 range, $1M house paid off.

How are you getting a Fed pension of $150-200k? Are you dual Feds?

Never mind, saw you are single. How are you getting $150-200K pension? Doctor?

I also wonder how you are getting 150-200K pension?

Some private companies still need offer pensions.

Yeah but PP mentioned a TSP account.

Which, not that I am reading about a single TSP with $3-4M, I am realizing PP is trolling.

Can’t 2 Feds do that?

1 fed, independent agency, advanced degree, very long tenure (at top of wage scale now), max tax deferred TSP contributions nearly all in equities for the whole time. TSP now nearing 3M. If retiring at 62, the internal pension calculator puts the pension in the 150-200 range. No, I'm not going to post my statements and W2. But it's possible and I am definitely not the only person in my agency in this situation.

What is an independent agency? Also, the all equities strategy is risky for those not early in their careers. 60/40 is the norm and I wouldn’t break too much with that unless I was very comfortable with risk.

Basically, this person is at an agency that is not on the GS scale and has its own pension plan and version of TSP.

I posted earlier. Am likely at the same agency but longer tenure and greater age. My TSP is considerably larger. All equities for decades but a year ago put 15% into governments and am still questioning why I bothered. Pension is effectively a huge bond portfolio. Am near retirement and switched to including a percentage of governments for dealing with RMDs when they come.

+1 There's a good book called "Are you a Stock or a Bond" that helps you think through allocation beyond thinking of age-based risk formulas. As a person with a government job and a pension you are a bond and can risk more in equities.

Besides pensions, what else is an annuity payment? SS is an annuity payment for retirees. Another reason to focus on stocks esp dividend paying stocks in your accounts. I would never do a 60/40 portfolio, I don't mind the risk. More in equities and have cash or equilvalents to cushion during bear markets.

You can annuitize a portion of your retirement savings, which in essence turns them into a pension . The company (such as TIAA) pays you a certain amount for life, until you die. Any leftover on that account goes to them.

[Anonymous]

aim for 140k/year. So need 3-4M if we don't count SS. Currently at 2.5M.