What is your "magic number" for retirement?

[Anonymous]

4 million. Divorced. We kept our own retirement accounts. I want 4 million at 66 or 67. I am mid 40s now with 730k.

[Anonymous]

I want to go at Fed MRA of 57. Single earner HH for past 17 years.
Pension + SS + rental income = $130k
Target is $3+m in non-RE assets so I can draw an additional $120k.
Mortgage will stretch another 5 years after age 57, but it is manageable.

Numbers would bump up significantly if I hung on until 62. But I don't think I can. And seems like $3 million will be enough, even plenty.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$5 million plus fed pension and health insurance

Is that for 2 or 1? What is the current estimated pension?

For 2, current estimated pension is $100,000 annually

[Anonymous]

Plan for Retirement:
$5 million in 401(k)s
$1 million in taxable
No pension, both close to max on SS
Retirement health insurance from employer
Mortgage not paid off, but low interest rate and over $800,000 in equity.

We are 54 and plan to retire before 60. We have $4.1 in 401k accounts and $400,000 in taxable. Kids in college, but funded through our 529s. We have an HHI of $600,000 and are saving a lot for the next few years.

[Anonymous]

Anonymous wrote:Have you looked into how much IRMAA will hit you, if you take Medicare Part B? Be forewarned .

That is a nice problem to have.

[Anonymous]

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.

[Anonymous]

Anonymous wrote:Assuming you've paid for your kids colleges and paid off your mortgage?

We are not planning to pay off the mortgage. In fact , we did a cash out refinance at 3%. We’ll have $200k yearly in pension earnings and an additional $4M in 401ks. Planning to work until last kid is out of college, so six years from now.

[Anonymous]

Anonymous wrote:We set one years ago but passed it about ten years ago. My husband is soon to retire at 60 and he kept working because he enjoyed it but now he’s ready as his work energy has diminished. It’s a much bigger number now.

Gosh. This is an anonymous board and yet you won’t share your numbers?

[Anonymous]

Anonymous wrote:$9000/ mth

That is a great way of looking at it. So our number is $16k monthly but that includes $6k in mortgage payments for two properties, so actually we are closer to you at $10k monthly.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$9000/ mth

I’m a single woman and own my home, btw

OMG, you will be rolling in it! How far away is this?

[Anonymous]

Anonymous wrote:Have you looked into how much IRMAA will hit you, if you take Medicare Part B? Be forewarned .

What the heck is IRMAA?

[Anonymous]

Anonymous wrote:Aiming for annual income of $450k, although that target keeps increasing. Have a pension of about $80k (already receiving it), SS (at 70) of $55k, income/dividends from current holdings of $65k and the rest will come from drawing down holdings. We have close to $10m now, excluding one house, and are about 5 years from likely retirement although might keep working PT for a few years after that.

Will you stay in DC? Why do you keep increasing the target?

[Anonymous]

Anonymous wrote:We're in NoVA, in our 50s with 2m not including our house. No pensions. Not particularly high earners (about 125k/yr single income with excellent benefits incl. significant retirement match) nor spenders (we have been able to save plenty on that income). I don't really think in terms of a magic number, rather I calculate--could we live on our assets comfortably now if I lost/quit my job. We're at the point now where it would be fine but we would probably have to relocate to a LCOLA and it may not be enough to do everything we would like to do. So from this point on, the "number" is really how much more do I value extra comforts/freedom/flexibility in retirement over the freedom of not working. Currently I enjoy my work so the choice is easy--that could change.

This is a healthy outlook!

[Anonymous]

Anonymous wrote:As a ten year retiree I have found that excluding education costs we are spending a lot more now then when we were working even though we don’t have a mortgage. We travel a lot more both domestically and internationally and we’ve joined two clubs. The things we use to do ourselves like yard work now others do. We could be spending 50% more.

Whoa. Thank you for sharing. I hadn’t thought of the cost of outsourcing lawn care, etc.

[Anonymous]

Anonymous wrote:I’d anticipate spending about the same in retirement as we do now, though kid-related expenses (which come out to probably 100k a year will be replaced by travel, dining out, entertainment). We are currently dual GS 15 feds so our healthcare will stay roughly the same and our pension plus social security will generate $250k or so a year, adjusted for inflation. Without having to save for retirement or kids education, we should be fine on this retirement income. Our house is paid off and we expect an inheritance between $5 and $10 million, which we will use to pay for grandkids education and plan to leave to our own kids. My parents have also saved about $200 per kid in an account that will hopefully grow so that when they reach adulthood they can use it for a downpayment on a house or whatever they need to get started.

I’m having a hard time visualizing $100k yearly in kid expenses. Are they in private schools with nannies besides?