Reply to Top 1% of Retirees Have 16.7M

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]99th percentile of retirees have $16.7M of wealth.

[b]95th percentile of retirees have $3.2M of wealth.

90th percentile of retirees have $1.9M of wealth.[/b]

https://finance.yahoo.com/news/super-wealthy-retirement-looks-savings-095900179.html

Does this change the way you think in terms of how much you need to save to retire?[/quote]

Thanks for posting this.  It points out how ridiculous was the recent thread asking if $10M is enough to retire.[/quote]

If you are already in the 1%, which many in dcum are, $10m is not that crazy if you want to continue with the same lifestyle. [/quote]

This 1000%.  If you are living in a 5k Sq ft home with your 2-3 kids, spending $400K/year now on life and the kids, you are most likely planning to maintain a similar standard of living in retirement, most likely with 1 condo/TH and a second home as well.  To do that you need more $$.  Sure you could retire on much less, but most people want to continue a similar standard of living
[/quote]

So if you are no longer paying for your kids day-to-day and no longer saving or paying for college and your house is paid off…seems like $200k per year keeps you in the same lifestyle.[/quote]

Yes that is a given.  But you may increase travel, want to travel in higher level of service, etc.  But technically, yes you could live same lifestyle for less. 
You can also live for less if you downsize.  Take that paid off 5k sq ft home, net $1.5M and buy a condo for that or less and reduce overall costs.  Also reducing items you have to manage.  In a condo, your HOA fees cover the roof/exterior/landscaping/snow shoveling/etc.  So you don't have to actively manage things, which is nice in retirement
[/quote]

Condos are a path to poverty. Better off staying in your previous  house. [/quote]

Not if the condo is in a city

Took our 18 yo condo (purchased 7 years ago and rented out), renovated it/gutted it.  Now living in it as empty nesters.  It's in one of the top 3 condo buildings in our major city.  It will increase in value over time.  Maybe not as much as a house.  But I no longer wish to live in a suburb.  I want to live in the city, not worry about anything on the exterior of my "home".  My packages are delivered to my door (with no chance of being stolen, as it's in the condo building), my wine deliveries are always signed for, my dry-cleaning is picked up from the concierge desk and returned there 1-2 days later.  I'm only responsible for the inside of my unit.  No exterior painting or roof to worry about, windows are washed every 3 months, Hot water is central to the building, etc.  That's what we want for our retirement.....we don't want to have to manage a home or deal with a large place.  1500 sq ft condo is perfect for 2 people.

Also, I don't need my condo to appreciate drastically.  I own it fully, and real estate is only 5% of my Net worth.  So it's something we own for both living and enjoyment.  My other investments grow 10%+/year so if my condo only grows 2-3% I'm fine with that.  It's about quality of living.   [/quote]

Agree with this. We have a condo we bought 10 years ago and while it has not appreciated aggressively, it's in a desirable central neighborhood walkable to lots of amenities and close to public transportation. Our original plan was to sell it this year, but given the current state of the market, we've decided to keep it and rent it out. Yes it would be nice to get a few hundred thousand in equity out of it now, but it's not totally necessary, and instead our plan is to finish paying it off and hold onto it as an investment property until retirement, at which point we'll either move back into it (allowing us to sell our house) or sell it for the proceeds and invest them. It's actually pretty great to have an investment that also serves as an alternative housing option down the road, in case we realize we really want to be back in the city. This way we won't have to buy or rent a condo at whatever the market rate is at that point. We already have one (and got it pretty cheaply because of when we bought).[/quote]

Condos are the first thing to go down the crapper when the Real Estate market crashes (and this one will too). Owners are typically stuck with their condos for several years before price recovery. Be mindful of that.[/quote]

Im the PPP (previous PP).  We plan to actually live in ours for the next 20+ years.  So the inherent value for us is it's our home.  We renovated to make it exactly what we wanted (never renovated in the past 30 years, just lived with what was in our nicer homes).  Now we have the $$$ and want to live at 50+ with what we love.  However, condos in a major city will not depreciate a ton.  You may not see astronomical appreciation, but the right condo in the right location will hold value and get some appreciation.  We are in one of the top 3 condos in our city, with a great HOA management (we fix problems before they become major issues, and are well funded) with a great concierge/management team.  Centrally located.  It has held value for 8 years now. [/quote]

If it's your home and you are not planning on selling, it shouldn't matter. Check the values though.. In general, condos become 'fancy' and expensive towards the tail end of a housing boom and are the first to drop in value when the RE market starts tanking. If you are not dependent on selling one during those times, you should be fine as long as it's not in a location caught up by euphoria (e.g. Florida before the last crash and the direction they seem to be headed towards now). [/quote]

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