Hi Just wanted to know how much nest egg you retired on when you called it quits.
You can use an alias or be anonymous if you don't want anyone to know your identity.
Please do not say 'it depends on your expenses' - I know that since I keep a very detailed list
of my expenses, and I know everything to the last cent. Please also do not say 'it depends on your
lifestyle' - I know that since I'm willing to adjust my lifestyle at retirement and know exactly
where to cut. The point of this question is to get an idea of a ballpark figure that people
are comfortable with when retiring. That's it. Thank you!
FrugalDude, thank you for creating a new discussion thread! You may be interested in the discussions on a few similar threads:
Do you really need $1 Mil to retire if your house is paid & you have SS pay ?
Turning 50 in 3 months - have around $350,000 - am I doing ok or behind ?
It is OK to share general information regarding your financial preparation, but please do not share specific information regarding your personal situation.
In keeping with Genevieve's caution, I would like to state that my portfolio at the time I retired, 24 years ago, age 55, was equivalent to 12.3 times my last salary. I had 20% in Muni bonds, 5% in Money Market, 10% in bonds, and 65% was in S&P indexed stocks.
As time went by, I drew first on my Money Market, then on my Munis, and on my bonds. I turned the bonds into a fixed lifetime annuity which is now about 60% of my social security benefit. I took my social security at age 62, depleted my non stock holdings and withdrew some stock (10%) between age 55 and 70. From age 70 to present, I am only taking mandatory distributions from my remaining (90%) stock holdings. I feel that strategy will essentially provide me beyond my years and leave something for my offspring, unless of course, I end up years in a nursing home (horror!, horror). I now have only my stock holdings to live on, my annuity and my social security.
Hope that paucity of specific data helps. BTW, I have always lived within my means and have socked away what I did not need into a brokerage account, over and beyond my employer's/employee contributions to retirement.
Two and a half decade retirement (so far) - quite a track record. The end of August, 2014, will complete three years of ours.
My DH has a state pension and retiree medical benefits. Therefore, although we managed to save about 6x his last annual salary, it is in a moderately aggressive portfolio at the CFP firm that handles my MIL's portfolio as well, but hers is in a balanced allocation instead. We do not need to draw upon it, and live off DH's pension. He worked for 42 yrs and we've been enjoying our early retirement. Neither of us draw SocSec yet, but I do receive a small monthly annuity payment from an employer I vested with which pays at age 62 instead of the usual age 65.
We live in a high-cost state and plan to sell our home in a few years and move to a full service senior facility. Have no children so we purchased separate LTC policies for protection against disability impacting the other spouse's financial security.
Likewise, I receive a monthly payment from an early employer. I thought that by waiting and waiting to begin, I could get a larger monthly amount (plus we did not need any "extra" money those years). However, when I finally completed the application, the pension first wrote me a lump-sum check for all those months the went by when I should have been getting paid and the lifetime monthly amount remained the same, flat, never to increase. It is very modest, less than a tenth of what my spouse received from the Board.
Not such a huge amount, about 3x my salary. We did pull about a third of that out to pay off our home and any other nuisance bills hanging out there and, of course to cover the tax on that withdrawal. However, also moved to a low cost of living area and have a military retirement which also provides our medical care and prescriptions at a very low cost. Between the military and social security we are doing quite well and should be able to get by with only a small, if any, withdrawal from the tiaa-cref each year. Like you, my wife had us budgeted down to the penny, and we held out the possibility of getting part time jobs if necessary, but so far have found we don't spend nearly as much as we had anticipated. Because we are living in a resort area in a beautiful part of the country with lots to do, we feel like we're living the dream.
Would like to make a couple of comments, first, would the folks who use acronym like LTC (Long Term Care) please spell them out, at least once, I am at a loss to know what DH stands for, I thought perhaps Deceased Husband or Divorced Husband, but neither fit the context.
Second, I held back from spending on new cars and fancy trips while I was younger and raising a family. I often regretted it, then when I retired, I was elated to have scrimped and saved in my earlier years. Life is so much more enjoyable when you have a lot to look forward to, things you missed earlier in life. I remember as a child of dreaming of owning a ball point pen, I look at my grand kids today and I wonder, what would ever excite them today, as much as it excited me at their age.
Moral of the story: Having a good retirement is more important than being a spendthrift in your working years.
yanushkevich, I agree about spelling out acronyms. In this case, DH stands for Dear Husband. I learned that from a member explaining when someone else asked!
Thanks for your prompt response, I never would have guessed the correct content of this acronym!
yes, I first learned it while participating in an international e-mail group of partners and spouses of clergy.
Hey Frugaldude, I read an article today about a Nobel Prize winner. MIT professor Rbt C. Merton, who states that what is important for 401k owners is to determine ho much income you will get out of your nest egg.
401(k)s face ‘crisis,’ says Nobelist Merton - Encore - MarketWatch
choosing you to be on my team
Please read Phillip Carret's story in wickipedia. He founded one of the first mutual funds (The Pioneer Fund) and it finally became Fidelity Mutual Trust. I watched him on a few episodes of the Louis Rukeyser show and he lived to be 101 and passed away in 1998. Was great friends with Warren Buffett's father. Even at the age of 98 or so, he totally believed in an allocation of assets 70% stock and 30% bonds. I have modeled my investing just about the same way. Roth IRAs (need earned income = pensions, interest, dividends and capital gains don't count) are the absolute way to go. I only have mutual funds within traditional and Roth IRAs. Own stock outright = no broker = go to the company's investor's website
where you can stock directly and join a DRIP (Dividend ReInvestment Plan) or check out Netstock Direct. The reason that I don't own mutual funds outside of IRAs is that you might end the year with a big capital gain, which reduces the price of a share in the fund and you have to pay taxes on that amount even if you did not actively sell anything. Learned my lesson decades ago. Just my 2 cents !!
Louis Rukeyser! Now there is a flash from the past! Every Friday night the spouse and I would turn on his show on PBS for a no nonsense financial education. He would hold his big time guest's feet to the fire. No fooling the audience. Wish PBS would find another like him.
This forum has been great for me, Paulmac, and you are right, there are a lot of great people out there who forged the path to salient investing for us.
I never agonized over the how -- by always choosing the maximum allowed in 401(k) and later 403(b) plus IRA - which then became Roth IRA. Other than that, we paid cash for four years of private university with our one offspring. (graduated '93)
the point here was avoiding carrying excess debt all the way into the retirement years (assuming that "student" loan borrowing is actually, in some sense, "family" borrowing - affecting the parents, especially when being carried all the way into retirement),
another for the team (agreeing strongly)
Please be mindful of the Code of Conduct when replying on discussion threads. Specifically, it is important that you are not providing specific financial advice to others on the community. I encourage you to continue sharing your own opinions and experiences, as I believe this is one of the most valuable features of the community; however, please be cognizant of crossing the line to advice.
Please let me know if you have any questions about this!
Yes, I have a question. What did I say that was against the Code of Conduct ?? j
The posts that were deemed in violation were edited and the writer(s) were notified. Your post was not included.
I did not give any advice. I merely quoted from Phillip Carret's opinion along with Louis Rukeyser and some
of his great regulars = Laszlo Birinyi and Gail Dudack. She was almost asked to leave the show when she
was the only analyst to state that there was a crash coming and when it did about 10 months later, a
public apology was issued. To me, there is a difference between giving ADVICE and stating my position or
that of revered fund owners/investors/self-made people,. This is America and everyone is free to live, invest and/r spend as they wish. Noone has to listen or follow the same path. I personally do not like to have to carve my own path
thru the bamboo forest of life. Any help and/or advice is just that. I am free to make my own decisions and I alone
am responsible for them. Thank you in advance for your time and help.
To all, I want to apologize for making my own personal opinion sound like financial advice, as I wrote to our community manager there is a fine line between opinion and advice, that being said, it saddens me that we cannot openly share our personal experiences without having them construed as advice. Worse some good folks have been apparently led to belive they were the culprits in this forum of discussions, my apologies to them especially.
Bottom line, for me, such a requirement takes some of the teeth out of a good frank discussion, and I respectfully decline from further discussions on this forum, thank you all for your inputs which I have read with great interest.
My apologies to you too Genevieve, as you too are constrained by our sponsor's rules, regulations and code of conduct requirement.
Please understand that it is not our intention that our Code of Conduct hinders conversation on the communities or causes anyone to stop participating. We recognize the importance of members sharing their opinions and experiences with one another. The Code of Conduct was put in place for a reason. As I’m sure you know, financial services is a highly regulated industry. There are certain federally-mandated and industry guidelines that we must follow. As some of you have pointed out, what differentiates advice from opinion is a fine line and we are trying our best to be in compliance with the letter and spirit of these regulations.
You certainly may share how you have managed to save for retirement, but please avoid stating or suggesting to others that they do the same.
Thank you for your understanding.
I do not understand why we cannot mention OUR own decisions without advising. We cannot mention any pioneer in the field or any type of mutual fund. It is a wonder in the What Are You Reading forum, that folks are allowed to mention a
copyrighted book or magazine. Feels just like the movie Farenheit 451. Sorry if I offended anyone but I also will not post to any financial forms again while I have over 36 year of investing and I am readying Money magazine. Thank you for your support.
Paulmac, please do not give up on us. I too have been burned a couple times by the rules. TC has rules too. Just remember, it is how you say what you mean that passes. ;-))
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