At what age will you retire and with how much?

[Anonymous]

Anonymous wrote:Most of what we have is in RE (mostly rentals, home equity is about 800K ). Since RE is going down and not up, I don't have much hope to multiply our NW even to keep up with inflation, since it's now a depreciating asset type If we sell and invest in markets we also may lose, I am terrified of stock markets. I hate my job and want to retire at 50 ( a year from now), but don't see how this will happen unless my husband agrees to keep working FT to provide healthcare until at least 60.

Real estate is now a depreciating asset? That's news to me. Unless you bought all your rentals in 2021, you're probably OK.

I'm sure there will be a correction but it's much more likely that you recover soon in real estate versus the stock market. People need houses. No one *needs* stocks; they're nice to have but if people need money, they will sell.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are 45 with $3M ($500K home equity). Kids in 9th and 5th grade. Not planning on retiring till kids are launched (done with college), so around 56/57. We want to pay the entire undergrad tuition, so I would think we would retire with ~$5M. We are relatively high earners $500K HHI (since 2021), so should at min be at $5M when the kids are launched minus any tuition cost

How do you think you will get to almost double your money in the next 12 years? 500K is heavily taxed and you probably still have mortgage (Home equity seems low for this area for a fully paid home) and have to pay for college. Are you all market wizards who know how to multiply your money so fast doing low risk transactions?

That’s a very reasonable scenario. They should be saving 75-100k/yr in that. Let’s say 100k..that adds 1.2M right there plus even if they put all their money in a 12yr CD (not a thing just illustrating) paying 4.5% they would easily double their net worth.

Not rocket science…

[Anonymous]

57 and 3m (1m)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are 45 with $3M ($500K home equity). Kids in 9th and 5th grade. Not planning on retiring till kids are launched (done with college), so around 56/57. We want to pay the entire undergrad tuition, so I would think we would retire with ~$5M. We are relatively high earners $500K HHI (since 2021), so should at min be at $5M when the kids are launched minus any tuition cost

How do you think you will get to almost double your money in the next 12 years? 500K is heavily taxed and you probably still have mortgage (Home equity seems low for this area for a fully paid home) and have to pay for college. Are you all market wizards who know how to multiply your money so fast doing low risk transactions?

That’s a very reasonable scenario. They should be saving 75-100k/yr in that. Let’s say 100k..that adds 1.2M right there plus even if they put all their money in a 12yr CD (not a thing just illustrating) paying 4.5% they would easily double their net worth.

Not rocket science…

I get it, they are planning to work and earn the same for 10-12 years, but there is no guarantee, economy isn't really stable. What if their income decreases. What if they get fed up working for another 10 years or become too old for the demands of their workplace?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most of what we have is in RE (mostly rentals, home equity is about 800K ). Since RE is going down and not up, I don't have much hope to multiply our NW even to keep up with inflation, since it's now a depreciating asset type If we sell and invest in markets we also may lose, I am terrified of stock markets. I hate my job and want to retire at 50 ( a year from now), but don't see how this will happen unless my husband agrees to keep working FT to provide healthcare until at least 60.

Real estate is now a depreciating asset? That's news to me. Unless you bought all your rentals in 2021, you're probably OK.

I'm sure there will be a correction but it's much more likely that you recover soon in real estate versus the stock market. People need houses. No one *needs* stocks; they're nice to have but if people need money, they will sell.

Thank you, you are nice in walking me off the ledge I feel like I will jump off a bridge if I have to keep working for another 10 years. I am ready to retire now or at least seek some part time arrangement or leave my industry for something low paying and low stress.

[Anonymous]

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Anonymous wrote:65
Only SS and pension
40K in the bank but that was only because I lucked into an inheritance
100K in home equity that happened completely in the last two years, I only put 3% down on my condo

I retired three years ago and so far life is grand, I have enough to live on, good health insurance, and feel relatively financially secure despite not having the millions that DCUM seems to think is necessary for retirement.

A real pension is key and most people don’t have those. So we need to save a lot of cash.

How much is pension? Like what type of monthly income does it equal to? Is it 20K a month, 10 k a month, or 3K a month? It would be great if people are specific, because this makes a huge diff

Each person is different. It’s more about %.

I have 2 family members getting 70%.
I have 1 getting 50% untaxed.
I will get 35%… that’s not enough but it helps.

It's better to put in monthly income otherwise it's meaningless. Just like with money generating assets you would say how much income you expect monthly. Also if non taxable obviously it's a lot different than taxable like if you have income-generating assets you have to rely on instead of pension.

It’s actually useless one person might need $4K to live and another thinks that is poverty level.

Not really, everyone will decide and compare their own situation. Otherwise why ask numbers at all? Why not just say age and the type of income you plan on living off if retiring (pension, social security, stock investments, interest or distributions, rental income, or combination of any). There are some who will become wards of the state subsisting of social security and needing subsidized housing too, it's irrelevant what monthly amount they make or what assets they have, likely none. But it's a way to live after retiring for many.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is stupid - nobody knows the future.

The stock market could very well be flat for the next decade, but I guarantee you none of the posters here are factoring that into their calculations.

If you look over the history of the stock market, of ANY 15 year period, including during the Great Depression, it's always up.

So while true, nobody knows the future, history gives us a pretty good idea!

How about DJIA 1966 to 1982? Or better yet, 1950 to 1982.

[Anonymous]

I’m shocked at how much money everyone has saved for retirement! Good for all of you (seriously, not being sarcastic).

We’ll be retired in 8-10 years. As a married couple, we’ll have:

- $100k/year in taxable pensions
- Maybe $2M in retirement accounts (50% traditional, 50% Roth)
- A paid off house with around $700-900k in equity, depending on the market at retirement.
- Medicare + FEHB, which is surprisingly expensive

I thought this sounded really well off, but not compared to most of you!

[Anonymous]

Anonymous wrote:I’m shocked at how much money everyone has saved for retirement! Good for all of you (seriously, not being sarcastic).

We’ll be retired in 8-10 years. As a married couple, we’ll have:

- $100k/year in taxable pensions
- Maybe $2M in retirement accounts (50% traditional, 50% Roth)
- A paid off house with around $700-900k in equity, depending on the market at retirement.
- Medicare + FEHB, which is surprisingly expensive

I thought this sounded really well off, but not compared to most of you!

Most people on here (and most people in general) don’t have pensions, especially not 6-figure ones. So we have to save like mad because our retirement savings (plus SS) are all we will have to support us.

DH and I will probably retire with 2 million and a paid-off house but zero pension.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’m shocked at how much money everyone has saved for retirement! Good for all of you (seriously, not being sarcastic).

We’ll be retired in 8-10 years. As a married couple, we’ll have:

- $100k/year in taxable pensions
- Maybe $2M in retirement accounts (50% traditional, 50% Roth)
- A paid off house with around $700-900k in equity, depending on the market at retirement.
- Medicare + FEHB, which is surprisingly expensive

I thought this sounded really well off, but not compared to most of you!

Most people on here (and most people in general) don’t have pensions, especially not 6-figure ones. So we have to save like mad because our retirement savings (plus SS) are all we will have to support us.

DH and I will probably retire with 2 million and a paid-off house but zero pension.

+1 I posted up thread. We'll have maybe about $3mil, with like $750K in home equity. We are not feds, so we will also have to pay for private insurance until we qualify for medicare. I don't want to work till I'm 65. We have a financial advisor, and they think it's completely doable. We don't live lavishly. Most of kid's undergrad college to a state school will be paid for with 529.

[Anonymous]

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Anonymous wrote:I’m 47 and have seven million and am starting to think that might be my answer. Tempted to quit.

No kids so no college expenses, but also no safety net when I’m old.

I would look into a 55+ community when you are much older where you can have a support group around you.

If I were you, I'd go PT. Maybe consulting when you feel like it. And travel.

Everybody will need a 55+ community and support group for when they get older.

I am older and kids are not that helpful.

that's depressing.

Actually it's not. The over 55 community is amazing and people are very active and supportive. And your not holding your kids back.

I have zero interest in one of those places. My grandparents lived in one - no way.

DP.. are you assuming that your kids will live near you to help you in your old age?

Both my parent's and ILs are 85+, and they need help. Luckily, one of their children live near them, but my IL did have to move to be near one of their kids.

It's hard to imagine how immobile we could be in our old age, but it does happen more frequently than we realize. I also realize that I will need to live in a very warm climate when I'm 75+ because at a certain age, apparently even 75F is too cold. I'm also seeing this with my parents and ILs.

If I need it, I'll do it at that time. But multiple posters are encouraging others to go right from their SFH to a 55+ community, regardless of whether they need it or not. That's not for me.

Watching my IL move at 88 was painful. We've been telling them to move to a smaller home with no stairs since they were 75. They procrastinated. I would do it before it gets to the point where you are forced to move because you need help. At that point, moving becomes even more painful, and expensive because you have to pay people to pack everything for you, and you are more desperate to move.

[Anonymous]

I'm 59 and don't see myself retiring for at least 10 years.

I expect we'll have about half a million in retirement savings and about the same in home equity.

[Anonymous]

Anonymous wrote:I’m shocked at how much money everyone has saved for retirement! Good for all of you (seriously, not being sarcastic).

We’ll be retired in 8-10 years. As a married couple, we’ll have:

- $100k/year in taxable pensions
- Maybe $2M in retirement accounts (50% traditional, 50% Roth)
- A paid off house with around $700-900k in equity, depending on the market at retirement.
- Medicare + FEHB, which is surprisingly expensive

I thought this sounded really well off, but not compared to most of you!

To generate 100k someone would need $2.5 mil (at a 4% withdrawal rate).
You likely will get about $60K in Social Security as well. That's another $1.5 mil.
You likely have some money in a brokerage as well.

Even if we assume a 6% annuity rate, that's about $2.6mil. Add in the top notch healthcare, you are golden! You have far more than most people around here.

[Anonymous]

Anonymous wrote:We are 55 and 57 and plan to retire in 2 1/2 years. We currently have:

$2M 401k/IRA
$300K regular investments/savings
$500K home equity

--Our kids are in college or will be in college when we retire. Their college is fully covered by 529 plan not listed above.

--We will have a very small pension of about $600/mo.

--We live on a salary of $180K now for family of 5 (with $20K going toward retirement savings, so really less).

We’re a little behind you age wise, but I think j this will be us too. These people on here with $5-10 million in savings and scared to retire are nuts!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is stupid - nobody knows the future.

The stock market could very well be flat for the next decade, but I guarantee you none of the posters here are factoring that into their calculations.

If you look over the history of the stock market, of ANY 15 year period, including during the Great Depression, it's always up.

So while true, nobody knows the future, history gives us a pretty good idea!

How about DJIA 1966 to 1982? Or better yet, 1950 to 1982.

Yes -- Up.