Reply to If your HHI is $450k, what is your retirement number

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[quote=Anonymous][quote=Anonymous]Financial advisors say $4.3M for us to retire extremely safely around 47-49 years old, live on $160K ish (in today's dollars) and be very good until 95, with a substantial amount left.

My math says more like $3.5M since we don't have any college to fund, don't want to leave much behind, and don't have any family member that lived past 85. They agreed that is probably fine, but they are cautious.

We've always spent a lot less than we earn so $160K to live on, adjust up over time for inflation, would be plenty. Their calculation also doesn't include any SS. I'm 40, so I think not including anything at all is overly cautious (but better than being reckless). [/quote]

160K per year before tax is likely to be about 10K/month net.  IMO it's pretty tight in a high COL area even if your housing is paid off because you also will incur high health insurance expenses before you reach 65.  Our modest home has constant tax hikes due to prices rising, we are paying 2x of what we paid when we bought.  Any dwelling would be about 2-3K overhead costs (RE tax, insurance, utilities, repairs/maintenance, outsourcing of things you cannot do yourself), this goes for condos/TH too which have fees. Add health insurance and you are likely already spending 5K just to live without even eating or buying any necessities, which will be another 2K if you are thrifty. If you want to buy any big ticket items, like upgrade your furniture, car, remodel you need to dig into your savings.  If you want to travel and do some dining/entertainment that's easily 2-3K a month for nothing extravagant at all.  There goes your 10K.  Not a terrible retirement, obviously, but it's not really free of financial strain in case of big ticket spend.  It's a life where you will have to decide between taking that vacation or fixing your house, or buying a new car because yours broke down and foregoing all travel that year including seeing family airplane trip away.   
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