What's the number?

[iceman]

Maybe it's me, bro. So, what would you do for a million dollars?

[ill-advised strategy]

Maybe it's me, bro. So, what would you do for a million dollars?

I don't know. If I had any realistic idea how to make that happen my life would look a whole lot different than it does now.

[splat]

867-5309

[skiballs]

^^ got your number of the bathroom wall

[DougW]

I see your point and I think I agree. No DB so my number is lump that I have to generate an income from so my risk. So I have to , no I choose to, limit my risk by getting ready by working an extra 18 months or so. Doing it in stages. Getting ready , getting rid of stuff don't need or want any more. Getting stuff do need. I need a better table saw and a pressure washer and a pair of Big Dumps. Reducing risk by not budgeting for things but getting them done. Build a barn , getting kid started post grad.

better table saw - nice Bosch bitches plus milwakee mitre
pressure washer - check
Big Dumps- check
Build a barn - done
kid started post grad- done
new maul- done
new sled and trailer- done
new beacons- done

though working another 12 months so I hit beginning of ski season and not counting on Mrs earning shit

[iceman]

12 Months - 10 days for me freedom 53.

Does that mean freedom @ age 53? Not too shitty, eh?

[El Chupacabra]

Bump, a couple years later, since this is now the Old Guy Forum...
http://www.tetongravity.com/forums/s...-getting-older

... and since Mrs. C. and I were talking about this with some friends over the weekend. Reading back through the thread, Big Steve had some very good comments, and one point in particular: the answer for "how much $ do you need to retire (or, in other words, call it quits from the day job/ rat race)" has to come from "how much $ do you need to spend to live on."

I'm trying to figure that second question out, so I can figure out the first question. So, for my bump of this old thread, I'm interested in knowing: what's your annual spending budget? For ease of comparison across different cost-of-living areas, let's omit rent or mortgage payments from this number. Also, this is not a live in a van down by the river $5K/year level of bare sustenance, nor is it a win the lottery and live like Kanye $5M/year spending level. TGR-esque spending is somewhere above bare bones, and probably a good amount above it, in order to pay for skis + passes + travel + bikes (or kayaks, or fishing, or whatever outdoor thing is your thing).

Health insurance is a factor too, but it looks like Obamacare subsidized plans can make this less of a burden for those retiring before Medicare eligible age.

Enough rambling. What's your annual spending estimate for purposes of figuring out your retirement nest egg number?

[liv2ski]

Once retired, I am hoping we can keep the spending to about $5k per month with no mortgage debt. So what is that, about $7k a month to pay taxes too?

[Todds]

Bump, a couple years later, since this is now the Old Guy Forum...
http://www.tetongravity.com/forums/s...-getting-older

... and since Mrs. C. and I were talking about this with some friends over the weekend. Reading back through the thread, Big Steve had some very good comments, and one point in particular: the answer for "how much $ do you need to retire (or, in other words, call it quits from the day job/ rat race)" has to come from "how much $ do you need to spend to live on."

I'm trying to figure that second question out, so I can figure out the first question. So, for my bump of this old thread, I'm interested in knowing: what's your annual spending budget? For ease of comparison across different cost-of-living areas, let's omit rent or mortgage payments from this number. Also, this is not a live in a van down by the river $5K/year level of bare sustenance, nor is it a win the lottery and live like Kanye $5M/year spending level. TGR-esque spending is somewhere above bare bones, and probably a good amount above it, in order to pay for skis + passes + travel + bikes (or kayaks, or fishing, or whatever outdoor thing is your thing).

Health insurance is a factor too, but it looks like Obamacare subsidized plans can make this less of a burden for those retiring before Medicare eligible age.

Enough rambling. What's your annual spending estimate for purposes of figuring out your retirement nest egg number?

I think the best place to start is with how much you spend now. It probably reflects a level of spending you are comfortable with. A good ballpark calculation is $spent = $earned - $saved. That number will change when you retire, but it is a good place to start.

Will you need to pay more for healthcare? Commuting costs would probably go down. Will you move? If yes, figure out how housing costs will change.

[El Chupacabra]

Once retired, I am hoping we can keep the spending to about $5k per month with no mortgage debt. So what is that, about $7k a month to pay taxes too?

I'm doing our calculations (rough estimates at this point, really) based on the idea that federal income taxes will be very low. This is based on the idea that it'll be just me + Mrs. C., so -- using 2014 IRS tax info --

15% tax bracket threshold is at 73,800 for married filing jointly (i.e. above that # is the next marginal bracket, 25%)
standard deduction is 12,400
personal exemption is 3,950 (X 2 for both of us, which is 7,900)

If a married-filing-jointly couple stays at 94,100 gross income in 2014, that means they stay within the 15% marginal bracket. Also, long term capital gains are taxed at 0% if you are in the 15% bracket or lower.

If your retirement spending comes from sources other than earned income (in other words, it comes from your taxable accounts or tax-advantaged accounts), I think quite a lot of income tax can be avoided.

[El Chupacabra]

I think the best place to start is with how much you spend now. It probably reflects a level of spending you are comfortable with. A good ballpark calculation is $spent = $earned - $saved. That number will change when you retire, but it is a good place to start.

Will you need to pay more for healthcare? Commuting costs would probably go down. Will you move? If yes, figure out how housing costs will change.

I'm not basing our calculations on savings = earnings - spending, because it's a little too simplistic, but it is a rough starting point, certainly. We probably wouldn't move anytime in the near future, but we definitely would not stay in the current house to our dying day -- it's 3 levels and will take too much physical maintenance when we're really old.

I started with trying to sort out the more-or-less required/fixed expenses --
- property tax
- insurance - home, auto, umbrella
- utilities
- health costs - insurance, prescriptions, deductible/ co-pay

Then there's the required expenses that are harder to estimate, but you have to sort it out somehow:
- food
- clothes
- routine maintenance/repairs - car, home
- occasional big ticket expense - car, home (e.g. major appliance replacement)

Then there's the not strictly required, but pretty much "must have" items -- obviously YMMV --
- travel
- recreation
- dogs + related expenses
- outdoor gear
- internet, Netflix

Anyway, you get the idea.

[XXX-er]

They (the guys who want to sell you investments) say you need 70% of salary but IME 50% has been adequate

[Cono Este]

Most of my clients are turning 65. It surprises me how little some people get by on. If your married and have two good SS checks totaling 4k, they seem to get by pretty well. If you can double that with other funds, id say you have a pretty good life with a house paid off.

Back in my younger days on the trading floor, the number was 4mm. And alot of guys hit it by 30 in my office. But hookers and blow were at least 50k a yr in that budget.

I think 2mm to retire early, with no kid expense, or mortgage would get you by nicely. Or 1mm with SS.

But you need "safe" investments. Hopefully in 10 yrs a 5% muni portfolio is possible again.

[strawjack]

Like probably a lot of you guys I have lived on dirt and got by happily. I now live pretty phat, but truly not very happily. Once my kids are done with school I'm hoping to drop down a few notches and start living more instead of just working...even when some look at my work as relatively 'easy' since I golf sometimes or like tonight another dinner meeting. But I kinda hate all that shit. Does nothing for me, so I know I'll be good sliding back into a chill low key high ski lifestyle.

There is no way I'll have a million when I decide to move on. Currently I have 350+/- in college bills over the next 5 years. I make too much so we don't get shit from anyone. Joy.

When the time comes I'm not going to worry about the $$. I plan on working anyway and even if I make 30k or less I will survive. Plus I'll move to where it's legal and grow my own.

[Marshall Tucker]

Scarin' the living shit outta me right now is being just on the south side of three college educations. Jezus H. Christ on a popsicle stick.

Knowing it coming is one thing.

Actually watching the $$ go out the door is another....but to C's question i think $100k and Me & The Mrs. are golden. Hell $75k and I won't complain a bit.

[zion zig zag]

I think we can get by on 50-75% of current salaries in retirement. No kids, no house payment, etc. I do want to long term (6 months?) VRBO in Spain, France, Ireland, New Zealand, etc., so I have to figure that in. I paid 40 quarters into SS but because of the FF pension I'll never see anything of it, I'm pretty sure that whatever my wife earns from SS is also reduced because of me so I'm not planning on getting anything there.

I'm learning now that the biggest factor is not how much but when. I'm eligible for a pension at 50 but I'm doubtful I'll hit the needed number by then. If it were up to me I'd live like a semi-pauper now to make it happen but my wife is much less concerned about retiring early.

[iceman]

Women seem to have a hard time with the concept of just chilling.

[MakersTeleMark]

Thanks for the birth control moments you FF's ;?)

[Harry]

I am now semi-retired, sort of like Big Steve. Age 57. I make 25 percent of what I used to, but I hike 6-8 miles per day in the summer, ski every day in the winter. I have lost 40 pounds and my blood pressure dropped 20 points on both numbers. Paid off place in Big Sky and paid off car. Not much spending money, but my life is so much better.

[Sirshredalot]

I am now semi-retired, sort of like Big Steve. Age 57. I make 25 percent of what I used to, but I hike 6-8 miles per day in the summer, ski every day in the winter. I have lost 40 pounds and my blood pressure dropped 20 points on both numbers. Paid off place in Big Sky and paid off car. Not much spending money, but my life is so much better.

Congrats. I'm much younger than you, but the wife and I are planning to retire in our mid 50s. a slope side condo will seem nice by then.

[Bromontana]

Respect to Harry doing it right in your own way.

Women seem to have a hard time with the concept of just chilling.

This is one thing I really dig about gfMT. She just wants a place in the aspens to play with a few pointers. Climb when it's nice out and travel the west.

Came into the PR to start a new thread on budgeting as a coworker has given me some good mentoring/common sense advice on the topic. Currently living off around 45% of gross income after about 25% in savings and another 25-30% for taxes.

I'd feel pretty comfortable with 500k-1M if allowed to manage the money actively. If not, need around $2-3M to make the math work on low risk yields and a modest but enjoyable budget.

fwiw - You Need a Budget. $60 app that's basically a personal accounting app. Like it a lot so far and I no longer stress about stupid decisions as the budget is pre-planned. No more bickering with the gf about whether to go out, we already know if it's in the budget and since it's already agreed to it's a non-issue. It has a desktop version and mobile app that have a live synch via dropbox. Pretty cool and powerful if you use it properly. Apologies for plugging a $60 app, but when you look at the big picture, the price of careful budgeting is difficult to overstate.

[El Chupacabra]

Re: budgeting apps and the like -

Any of you use Mint or Personal Capital to track budgeting/ expenses/ investments? I looked at both, but am a bit wary of turning over all passwords + account info to a website.

[strawjack]

I am now semi-retired, sort of like Big Steve. Age 57. I make 25 percent of what I used to, but I hike 6-8 miles per day in the summer, ski every day in the winter. I have lost 40 pounds and my blood pressure dropped 20 points on both numbers. Paid off place in Big Sky and paid off car. Not much spending money, but my life is so much better.

That's awesome! I'm 10 yrs behind you, but I'm hoping to pull off exactly what you are doing and MT is one of the spots picked out on my map...not so much for the wifey. My kid is MSU bound, so I'll be scoping that area over the next few years.

[Mofro261]

This question is like asking how many licks does it take to get to the center of a tootsie pop.

[neufox47]

This question is like asking how many licks does it take to get to the center of a tootsie pop.

Yea, heavily depends on how much you like your job / career at the moment. If I hate my job and have 3-4 million I'm out. If I like what I'm doing and it only requires 20 hrs a week or so I'd keep working indefinitely. I know a guy who is now a professional arbitrator, says he works about 15 hrs a week average and brings in $200 an hour. Why would you give that gig up?