Target retirement income

[Anonymous]

We are aiming for $175K combined from investment drawdowns, pensions, and SS, for an early retirement (by our mid 40s).

Recently got an EU citizenship, so there is opportunity for some extended geo arbitrage. COL is much lower in much of Europe and QOL is the same or better.

Why work more of our best remaining years away just to get soaked by high taxes on W2 income and likely substantial reduction of SS benefits via means testing.

[Anonymous]

I am 56 and DW is 48 with a combined HHI of 400K.  We have 2.5M in 403b, a 2M+ home  with no mortgage, and 500K in cash.  I am looking to retire at 60 and DW at 60.  DW is joining the Fed next month so that we can have insurance when she retires at 60.   We will sell our home and move to Vietnam and live comfortably there.  We're looking at 100K/yr post-tax in retirement   Brothers and sisters who are already retired in VN and they love it there.  

[Anonymous]

Anonymous wrote:

Anonymous wrote:Y’all are nuts. Who needs 200k in retirement?

Admittedly planning on owning the house outright, and my work should cover our insurance if I stick around to retirement age. But we are only planning on spending 50k or so in todays dollars and already feel like that’s going to feel lavish. Where are these 200k+ numbers going? Genuine question, I’m trying to figure out if I’m missing something.

Everyone has different plans for retirement. We are expecting to spend about $250K/year after tax in early retirement. That includes budgeting $50K annually for travel, $20K for philanthropy, $35K to run our house even after it's paid (insurance, property taxes, utilities, cleaning service, landscaping, etc), $15K for our country club membership, $25K for financial advisory fees. Obviously, you can do things differently and spend a lot less money depending on your lifestyle.

DP. As another pp pointed out, it costs money to live affluent. The PP above plans on spending 250K/yr. Assuming 'conventional bare minimum' (i.e. 4% withdrawal rate), their target wealth number is at least $6.25mil, likely much more.

We are 58/52 with a net worth of $6.5m+. When both retire (in about 5 years), i expect that number to be about $8m+. Our lifestyle is far less affluent - no country club, no financial advisor, and likely half of what they spend on household expenses.. Even with that, we expect to need about $150K including a $36K/yr mortgage and one kid at home (our current run rate is $120K). Expenses can easily add up if you don't watch them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’m 61. I retired around a decade ago. My spouse and I live off of a little over $200k a year. We find it very easy to do and want for nothing. Yes, we’re in the DMV.

What are your healthcare costs?

The monthly premium is about $1400. It’s doable. It’s also partially tax deductible.

[Anonymous]

Retiring from my current job at the end of June. I’ll be 52 shortly thereafter. Current salary is $110,000. Two pensions will provide about $84k. The smaller of the two will receive a 1.5% COLA year one and then 3% every year after that. The larger one has an annual COLA up to 5% (it was 5% this year). I can work part time, so this retirement is basically semi-retirement. I do have a 403b.

DW’s retirement plans are basically the same.

[Anonymous]

Anonymous wrote:We are aiming for $175K combined from investment drawdowns, pensions, and SS, for an early retirement (by our mid 40s).

Recently got an EU citizenship, so there is opportunity for some extended geo arbitrage. COL is much lower in much of Europe and QOL is the same or better.

Why work more of our best remaining years away just to get soaked by high taxes on W2 income and likely substantial reduction of SS benefits via means testing.

Kids?

[Anonymous]

Maybe we are talking in different numbers. $200k gross (i.e., before tax) withdrawal I can sorta understand, especially if we are talking future dollars and not current. 200k net, in current dollars, seems impossible to me to spend.

[Anonymous]

We plan to spend about $180k in retirement.

We spend $115,000 now and that includes healthy sinking funds for new cars, home repairs (roof, appliances, flooring), and vacations. We expect to spend more on healthcare in retirement, more on vacations, and more on gifts to children and grandchildren. We anticipate paying Montessori tuition for any grandchildren and funding their 529 plans. With all that, we expect to spend quite a bit more than we do today.

We are 49/48 and plan to retire at 60/55. Assets currently around $5.5M and adding $100k a year.

[Anonymous]

$150k at ages 57/63.

[Anonymous]

Anonymous wrote:$150k at ages 57/63.

$140K 56/62. Kids will be in college, fully funded by 529. Our food bill alone will be halved, I feel.

When my kids were younger, 10 years ago, we lived on about $7500/month. Granted this was 10 years ago, and it seems like inflation is almost 30% since then. Still we could live on $8000/month easily. We live on $9000/month right now, with teens in the house. Our food bill alone is like $1200/month.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Y’all are nuts. Who needs 200k in retirement?

Admittedly planning on owning the house outright, and my work should cover our insurance if I stick around to retirement age. But we are only planning on spending 50k or so in todays dollars and already feel like that’s going to feel lavish. Where are these 200k+ numbers going? Genuine question, I’m trying to figure out if I’m missing something.

Everyone has different plans for retirement. We are expecting to spend about $250K/year after tax in early retirement. That includes budgeting $50K annually for travel, $20K for philanthropy, $35K to run our house even after it's paid (insurance, property taxes, utilities, cleaning service, landscaping, etc), $15K for our country club membership, $25K for financial advisory fees. Obviously, you can do things differently and spend a lot less money depending on your lifestyle.

You are going to be spending 10 percent of your income on financial advisory fees?

That is the craziest thing I’ve ever heard…

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Y’all are nuts. Who needs 200k in retirement?

Admittedly planning on owning the house outright, and my work should cover our insurance if I stick around to retirement age. But we are only planning on spending 50k or so in todays dollars and already feel like that’s going to feel lavish. Where are these 200k+ numbers going? Genuine question, I’m trying to figure out if I’m missing something.

Everyone has different plans for retirement. We are expecting to spend about $250K/year after tax in early retirement. That includes budgeting $50K annually for travel, $20K for philanthropy, $35K to run our house even after it's paid (insurance, property taxes, utilities, cleaning service, landscaping, etc), $15K for our country club membership, $25K for financial advisory fees. Obviously, you can do things differently and spend a lot less money depending on your lifestyle.

You are going to be spending 10 percent of your income on financial advisory fees?

That is the craziest thing I’ve ever heard…

That's not our income, it's the expected annual spending. We have a very high net worth.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Y’all are nuts. Who needs 200k in retirement?

Admittedly planning on owning the house outright, and my work should cover our insurance if I stick around to retirement age. But we are only planning on spending 50k or so in todays dollars and already feel like that’s going to feel lavish. Where are these 200k+ numbers going? Genuine question, I’m trying to figure out if I’m missing something.

Everyone has different plans for retirement. We are expecting to spend about $250K/year after tax in early retirement. That includes budgeting $50K annually for travel, $20K for philanthropy, $35K to run our house even after it's paid (insurance, property taxes, utilities, cleaning service, landscaping, etc), $15K for our country club membership, $25K for financial advisory fees. Obviously, you can do things differently and spend a lot less money depending on your lifestyle.

You are going to be spending 10 percent of your income on financial advisory fees?

That is the craziest thing I’ve ever heard…

That's not our income, it's the expected annual spending. We have a very high net worth.

No matter your HHI, that’s crazy

Np

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Y’all are nuts. Who needs 200k in retirement?

Admittedly planning on owning the house outright, and my work should cover our insurance if I stick around to retirement age. But we are only planning on spending 50k or so in todays dollars and already feel like that’s going to feel lavish. Where are these 200k+ numbers going? Genuine question, I’m trying to figure out if I’m missing something.

Everyone has different plans for retirement. We are expecting to spend about $250K/year after tax in early retirement. That includes budgeting $50K annually for travel, $20K for philanthropy, $35K to run our house even after it's paid (insurance, property taxes, utilities, cleaning service, landscaping, etc), $15K for our country club membership, $25K for financial advisory fees. Obviously, you can do things differently and spend a lot less money depending on your lifestyle.

You are going to be spending 10 percent of your income on financial advisory fees?

That is the craziest thing I’ve ever heard…

That's not our income, it's the expected annual spending. We have a very high net worth.

No matter your HHI, that’s crazy

Np

Yea I agree. That’s insane.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Y’all are nuts. Who needs 200k in retirement?

Admittedly planning on owning the house outright, and my work should cover our insurance if I stick around to retirement age. But we are only planning on spending 50k or so in todays dollars and already feel like that’s going to feel lavish. Where are these 200k+ numbers going? Genuine question, I’m trying to figure out if I’m missing something.

Everyone has different plans for retirement. We are expecting to spend about $250K/year after tax in early retirement. That includes budgeting $50K annually for travel, $20K for philanthropy, $35K to run our house even after it's paid (insurance, property taxes, utilities, cleaning service, landscaping, etc), $15K for our country club membership, $25K for financial advisory fees. Obviously, you can do things differently and spend a lot less money depending on your lifestyle.

What about the other $100K in the budget?

Kind of sad to spend more on the empty part of a giant house than on philanthropy. With $50K/yr travel, are you even at home(s) more than half the year?