What is your net worth if you are 55 years of age

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Apologize if this is off topic but I was wondering what you think is a reasonable assumption to make about investment returns if you are within 10 years of retirement (assume 60% stocks) and after retirement. Also what is a reasonable assumption for average rate of inflation over the next 40 years

This a stupid question dear

It's not.
Nobody knows but reasonable conservative estimate would be 6% before retirement, 4% afterwards.

Thanks for taking the time to respond

[Anonymous]

Not in my 50’s yet but ~$80mm net worth with 7 figure daily fluctuations.

[Anonymous]

Anonymous wrote:

Anonymous wrote:52 years old.
Started working again after SAHM 9 years ago where I had $0.
After divorce settlement, real estate is worth about 1M (I really had to fight for this).
Pension/401 122K.
529s for 2 kids 83K.
Cash 21K.

No mortgage, no debt.
I let him keep all the jewelry and art.

Do you regret getting divorced? I'm about to get divorced @ 53 with two teens. DH blew $330k trading. He has nothing and I don't have much at all.

DP. Divorced here too. You take a huge hit financially. My stats are about the same as above. I have no idea how I will retire.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Late 50s and retired for a half dozen years or so. Net worth as of today: $7.3 million. $4.1 million in retirement accounts, $1.4 million in brokerage/savings accounts, $1.8 million in home equity. Kids have all graduated college already.

What do you do for healthcare and how much does it cost all in?

We were lucky. My former employer let us stay on the company group plan and pay the full premium. It's about $1300 a month. Our total health care costs are about $25k a year for premiums and out of pocket expenses combined. A good portion is deductible because it's more than 7.5 percent of our gross income. It's our single biggest expense but very doable.

That is eye-opening.

It sure is. And we're both healthy. But it's also worth noting that it can't get much higher than this either. We hit the deductibles every year, and that's that. And for further context, we draw down about $200k a year to live on, and our federal taxes most years are zero. So $25k is, again, pretty doable.

Could you provide some thoughts on the 200K$ expense during retirement? What do you spend it on? I estimated around $180K$ per year but I was told this estimate may be too low.

I'm curious too. Thanks!

Sure. I track our expenses through personal capital so I have the figures right at my fingertips. I'll use 2019 instead of 2020 because 2020 was obviously a strange year.

We went well over budget in 2019 because we bought a car, did some serious home improvements, and our dog got hit by a car and needed surgery. That said, we spent $225k in 2019 and here are the numbers:

Home improvement: 38k
Travel: 26k
Mortgage interest: 24k
Healthcare: 23k
Taxes: 20k (includes 12k in real estate taxes)
Car: 16k (bought used car, all cash)
Restaurants: 12k
Pets: 11k
Home maintenance: 9k (includes cleaning lady and yard guy)
Children/grandchildren: 8K (various things we did for them)
Groceries: 7k
Cash: 6k (ATMs over the year; some while traveling)
Utilities: 5k
General merchandise: 4k (Amazon!)
Cable/tv/internet: 3k
Cell phones: 3k
Gifts: 2k

Everything else: 7k (largest items: charitable giving, personal care, home insurance, clothes, storage locker, etc.)

As you can see, a lot of fat.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Apologize if this is off topic but I was wondering what you think is a reasonable assumption to make about investment returns if you are within 10 years of retirement (assume 60% stocks) and after retirement. Also what is a reasonable assumption for average rate of inflation over the next 40 years

This a stupid question dear

It's not.
Nobody knows but reasonable conservative estimate would be 6% before retirement, 4% afterwards.

I don’t know how conservative 6% is for a 60/40 portfolio. What are your estimates for stock and bonds returns?

In my financial model, I assume a 5% rate of return (blended) and 3% inflation (i.e. Real Rate of Return is about 2%). Even before retirement. Of course, I'm pleasantly surprised each year when my return is in the 2 digits thanks to whatever is going on out there. . Plan is to withdraw no more than 3% in retirement and the hope is to get more than 3% in real return on a go-forward basis.

I also assume a "reset" (an event where my accounts is reduced by a certain % and stays at that level) of my account balances by a large percentage at some point. I adjust each year's model to reflect that. If I get by a given year without a reset happening, I modify the model to incorporate the reset into the following year. How much? My model currently assumes a 40% reset in 2021. If we get through 2021 without a major fiasco, I'll up that to 45%. This is more of a stress test of my portfolio with ultra-conservative assumptions.

We are 55 and 50 y.o. with plans to retire in no more than 10 years from now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Late 50s and retired for a half dozen years or so. Net worth as of today: $7.3 million. $4.1 million in retirement accounts, $1.4 million in brokerage/savings accounts, $1.8 million in home equity. Kids have all graduated college already.

What do you do for healthcare and how much does it cost all in?

We were lucky. My former employer let us stay on the company group plan and pay the full premium. It's about $1300 a month. Our total health care costs are about $25k a year for premiums and out of pocket expenses combined. A good portion is deductible because it's more than 7.5 percent of our gross income. It's our single biggest expense but very doable.

That is eye-opening.

It sure is. And we're both healthy. But it's also worth noting that it can't get much higher than this either. We hit the deductibles every year, and that's that. And for further context, we draw down about $200k a year to live on, and our federal taxes most years are zero. So $25k is, again, pretty doable.

Could you provide some thoughts on the 200K$ expense during retirement? What do you spend it on? I estimated around $180K$ per year but I was told this estimate may be too low.

I'm curious too. Thanks!

Sure. I track our expenses through personal capital so I have the figures right at my fingertips. I'll use 2019 instead of 2020 because 2020 was obviously a strange year.

We went well over budget in 2019 because we bought a car, did some serious home improvements, and our dog got hit by a car and needed surgery. That said, we spent $225k in 2019 and here are the numbers:

Home improvement: 38k
Travel: 26k
Mortgage interest: 24k
Healthcare: 23k
Taxes: 20k (includes 12k in real estate taxes)
Car: 16k (bought used car, all cash)
Restaurants: 12k
Pets: 11k
Home maintenance: 9k (includes cleaning lady and yard guy)
Children/grandchildren: 8K (various things we did for them)
Groceries: 7k
Cash: 6k (ATMs over the year; some while traveling)
Utilities: 5k
General merchandise: 4k (Amazon!)
Cable/tv/internet: 3k
Cell phones: 3k
Gifts: 2k

Everything else: 7k (largest items: charitable giving, personal care, home insurance, clothes, storage locker, etc.)

As you can see, a lot of fat.

NP. Do you pay the cell phone bill for your entire neighborhood? Nice guy

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Late 50s and retired for a half dozen years or so. Net worth as of today: $7.3 million. $4.1 million in retirement accounts, $1.4 million in brokerage/savings accounts, $1.8 million in home equity. Kids have all graduated college already.

What do you do for healthcare and how much does it cost all in?

We were lucky. My former employer let us stay on the company group plan and pay the full premium. It's about $1300 a month. Our total health care costs are about $25k a year for premiums and out of pocket expenses combined. A good portion is deductible because it's more than 7.5 percent of our gross income. It's our single biggest expense but very doable.

That is eye-opening.

It sure is. And we're both healthy. But it's also worth noting that it can't get much higher than this either. We hit the deductibles every year, and that's that. And for further context, we draw down about $200k a year to live on, and our federal taxes most years are zero. So $25k is, again, pretty doable.

Could you provide some thoughts on the 200K$ expense during retirement? What do you spend it on? I estimated around $180K$ per year but I was told this estimate may be too low.

I'm curious too. Thanks!

Sure. I track our expenses through personal capital so I have the figures right at my fingertips. I'll use 2019 instead of 2020 because 2020 was obviously a strange year.

We went well over budget in 2019 because we bought a car, did some serious home improvements, and our dog got hit by a car and needed surgery. That said, we spent $225k in 2019 and here are the numbers:

Home improvement: 38k
Travel: 26k
Mortgage interest: 24k
Healthcare: 23k
Taxes: 20k (includes 12k in real estate taxes)
Car: 16k (bought used car, all cash)
Restaurants: 12k
Pets: 11k
Home maintenance: 9k (includes cleaning lady and yard guy)
Children/grandchildren: 8K (various things we did for them)
Groceries: 7k
Cash: 6k (ATMs over the year; some while traveling)
Utilities: 5k
General merchandise: 4k (Amazon!)
Cable/tv/internet: 3k
Cell phones: 3k
Gifts: 2k

Everything else: 7k (largest items: charitable giving, personal care, home insurance, clothes, storage locker, etc.)

As you can see, a lot of fat.

NP. Do you pay the cell phone bill for your entire neighborhood? Nice guy

Ha ha, no. I actually meant to clarify that. It's the family plan and adult kids are on it. They pay us for their share so really the bill is half that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Late 50s and retired for a half dozen years or so. Net worth as of today: $7.3 million. $4.1 million in retirement accounts, $1.4 million in brokerage/savings accounts, $1.8 million in home equity. Kids have all graduated college already.

What do you do for healthcare and how much does it cost all in?

We were lucky. My former employer let us stay on the company group plan and pay the full premium. It's about $1300 a month. Our total health care costs are about $25k a year for premiums and out of pocket expenses combined. A good portion is deductible because it's more than 7.5 percent of our gross income. It's our single biggest expense but very doable.

That is eye-opening.

It sure is. And we're both healthy. But it's also worth noting that it can't get much higher than this either. We hit the deductibles every year, and that's that. And for further context, we draw down about $200k a year to live on, and our federal taxes most years are zero. So $25k is, again, pretty doable.

Could you provide some thoughts on the 200K$ expense during retirement? What do you spend it on? I estimated around $180K$ per year but I was told this estimate may be too low.

I'm curious too. Thanks!

Sure. I track our expenses through personal capital so I have the figures right at my fingertips. I'll use 2019 instead of 2020 because 2020 was obviously a strange year.

We went well over budget in 2019 because we bought a car, did some serious home improvements, and our dog got hit by a car and needed surgery. That said, we spent $225k in 2019 and here are the numbers:

Home improvement: 38k
Travel: 26k
Mortgage interest: 24k
Healthcare: 23k
Taxes: 20k (includes 12k in real estate taxes)
Car: 16k (bought used car, all cash)
Restaurants: 12k
Pets: 11k
Home maintenance: 9k (includes cleaning lady and yard guy)
Children/grandchildren: 8K (various things we did for them)
Groceries: 7k
Cash: 6k (ATMs over the year; some while traveling)
Utilities: 5k
General merchandise: 4k (Amazon!)
Cable/tv/internet: 3k
Cell phones: 3k
Gifts: 2k

Everything else: 7k (largest items: charitable giving, personal care, home insurance, clothes, storage locker, etc.)

As you can see, a lot of fat.

NP. Do you pay the cell phone bill for your entire neighborhood? Nice guy

Ha ha, no. I actually meant to clarify that. It's the family plan and adult kids are on it. They pay us for their share so really the bill is half that.

Figured as much . We do something similar - extended family - 8 lines on ATT. Works out to about $35 pp/month for the unlimited plan.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Apologize if this is off topic but I was wondering what you think is a reasonable assumption to make about investment returns if you are within 10 years of retirement (assume 60% stocks) and after retirement. Also what is a reasonable assumption for average rate of inflation over the next 40 years

This a stupid question dear

It's not.
Nobody knows but reasonable conservative estimate would be 6% before retirement, 4% afterwards.

I don’t know how conservative 6% is for a 60/40 portfolio. What are your estimates for stock and bonds returns?

In my financial model, I assume a 5% rate of return (blended) and 3% inflation (i.e. Real Rate of Return is about 2%). Even before retirement. Of course, I'm pleasantly surprised each year when my return is in the 2 digits thanks to whatever is going on out there. . Plan is to withdraw no more than 3% in retirement and the hope is to get more than 3% in real return on a go-forward basis.

I also assume a "reset" (an event where my accounts is reduced by a certain % and stays at that level) of my account balances by a large percentage at some point. I adjust each year's model to reflect that. If I get by a given year without a reset happening, I modify the model to incorporate the reset into the following year. How much? My model currently assumes a 40% reset in 2021. If we get through 2021 without a major fiasco, I'll up that to 45%. This is more of a stress test of my portfolio with ultra-conservative assumptions.

We are 55 and 50 y.o. with plans to retire in no more than 10 years from now.

PP, I'm curious about this. When you say "reset" is this to reflect a correction or crash? And if so, then I assume you take the new amount and assume a 5% ROI and 3% inflation moving forward with the new amount?? Thanks

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:52 years old.
Started working again after SAHM 9 years ago where I had $0.
After divorce settlement, real estate is worth about 1M (I really had to fight for this).
Pension/401 122K.
529s for 2 kids 83K.
Cash 21K.

No mortgage, no debt.
I let him keep all the jewelry and art.

I wonder if this poster means annual pension of $122K or 401K balance of $122K. Big difference. Obviously.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Apologize if this is off topic but I was wondering what you think is a reasonable assumption to make about investment returns if you are within 10 years of retirement (assume 60% stocks) and after retirement. Also what is a reasonable assumption for average rate of inflation over the next 40 years

This a stupid question dear

It's not.
Nobody knows but reasonable conservative estimate would be 6% before retirement, 4% afterwards.

I don’t know how conservative 6% is for a 60/40 portfolio. What are your estimates for stock and bonds returns?

In my financial model, I assume a 5% rate of return (blended) and 3% inflation (i.e. Real Rate of Return is about 2%). Even before retirement. Of course, I'm pleasantly surprised each year when my return is in the 2 digits thanks to whatever is going on out there. . Plan is to withdraw no more than 3% in retirement and the hope is to get more than 3% in real return on a go-forward basis.

I also assume a "reset" (an event where my accounts is reduced by a certain % and stays at that level) of my account balances by a large percentage at some point. I adjust each year's model to reflect that. If I get by a given year without a reset happening, I modify the model to incorporate the reset into the following year. How much? My model currently assumes a 40% reset in 2021. If we get through 2021 without a major fiasco, I'll up that to 45%. This is more of a stress test of my portfolio with ultra-conservative assumptions.

We are 55 and 50 y.o. with plans to retire in no more than 10 years from now.

PP, I'm curious about this. When you say "reset" is this to reflect a correction or crash? And if so, then I assume you take the new amount and assume a 5% ROI and 3% inflation moving forward with the new amount?? Thanks

Yes. Using numbers.. Let's say Jan 2021 I start off with $1million in total assets, 5% growth takes it to $1,050,000. I adjust this down by 40% (it becomes $630,000). This flows into the opening balance for 2022 and all subsequent growth and spending is based on this balance. When Jan 2022 comes around and we have not had a "real" crash, I use the actual numbers as the ending balance for 2021 and opening balance for 2022. I also move the "reset" to end of 2022, etc.

[Anonymous]

Anonymous wrote:Not in my 50’s yet but ~$80mm net worth with 7 figure daily fluctuations.

The only question I have for you my friend is do you tithe?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Apologize if this is off topic but I was wondering what you think is a reasonable assumption to make about investment returns if you are within 10 years of retirement (assume 60% stocks) and after retirement. Also what is a reasonable assumption for average rate of inflation over the next 40 years

This a stupid question dear

It's not.
Nobody knows but reasonable conservative estimate would be 6% before retirement, 4% afterwards.

I don’t know how conservative 6% is for a 60/40 portfolio. What are your estimates for stock and bonds returns?

In my financial model, I assume a 5% rate of return (blended) and 3% inflation (i.e. Real Rate of Return is about 2%). Even before retirement. Of course, I'm pleasantly surprised each year when my return is in the 2 digits thanks to whatever is going on out there. . Plan is to withdraw no more than 3% in retirement and the hope is to get more than 3% in real return on a go-forward basis.

I also assume a "reset" (an event where my accounts is reduced by a certain % and stays at that level) of my account balances by a large percentage at some point. I adjust each year's model to reflect that. If I get by a given year without a reset happening, I modify the model to incorporate the reset into the following year. How much? My model currently assumes a 40% reset in 2021. If we get through 2021 without a major fiasco, I'll up that to 45%. This is more of a stress test of my portfolio with ultra-conservative assumptions.

We are 55 and 50 y.o. with plans to retire in no more than 10 years from now.

PP, I'm curious about this. When you say "reset" is this to reflect a correction or crash? And if so, then I assume you take the new amount and assume a 5% ROI and 3% inflation moving forward with the new amount?? Thanks

Yes. Using numbers.. Let's say Jan 2021 I start off with $1million in total assets, 5% growth takes it to $1,050,000. I adjust this down by 40% (it becomes $630,000). This flows into the opening balance for 2022 and all subsequent growth and spending is based on this balance. When Jan 2022 comes around and we have not had a "real" crash, I use the actual numbers as the ending balance for 2021 and opening balance for 2022. I also move the "reset" to end of 2022, etc.

40% is huge. One will need a very large amount of money using this method.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Not in my 50’s yet but ~$80mm net worth with 7 figure daily fluctuations.

The only question I have for you my friend is do you tithe?

not everyone is a religious nut who believes in some imaginary superior being...made up by some group to control the naived masses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not in my 50’s yet but ~$80mm net worth with 7 figure daily fluctuations.

The only question I have for you my friend is do you tithe?

not everyone is a religious nut who believes in some imaginary superior being...made up by some group to control the naived masses.

which is why some of us have a lot more than those who give a chunk away to support stained glass and lawyers.