What's the number?

[riser4]

$4 Mill after taxes. I'm not as old as some of you farts. This is assuming a) I live to 90 which isn't all that likely; b) SS and Medicare have been totally robbed blind by the Republicans by the time I reach eligibility; c) decent rate of return.

[skaredshtles]

$4 Mill after taxes. I'm not as old as some of you farts. This is assuming a) I live to 90 which isn't all that likely; b) SS and Medicare have been totally robbed blind by the Republicans by the time I reach eligibility; c) decent rate of return.

Jeezus. I'd never retire if that was the number. I'm glad that's not the number.

[RootSkier]

I've got both, but my company has now stopped contributing to the pension plan. In exchange for this they're kicking in more of a match toward the 401k. I feel like I'm in good shape. Not quite 50 with probably a million in my pension, over a million in 401k. My wife has around $200k in her retirement fund. I live in Seattle, so have a house that's worth a lot right now and will be paid off in a few years. My goal is to retire right around 55. We'll see. Seems like if $2.5MM is the number I'm not too far off.

FUCK I am going to be paying for college for two kids when I am 55.

[skaredshtles]

FUCK I am going to be paying for college for two kids when I am 55.

I hear ya, man... I've got one in now, one heading in next fall, and a third likely to start in 2023.

I'm planning to have two kids in college at the same time for at least 4 years.

[GeezerSteve]

FUCK I am going to be paying for college for two kids when I am 55.

Ah, so you signed up for the work 'til ya die program?

[dan_pdx]

$4 Mill after taxes. I'm not as old as some of you farts. This is assuming a) I live to 90 which isn't all that likely; b) SS and Medicare have been totally robbed blind by the Republicans by the time I reach eligibility; c) decent rate of return.

That would yield $160k annual income at a 4% withdrawal rate, do you really need that much? I am getting to be kind of an old fart, but that shouldn't impact the number that much if you're excluding SS from the calculation. The idea is that you can spend 4% of your stash in perpetuity because you're averaging something like 7% annual returns so you never spend down the principal.

[skaredshtles]

That would yield $160k annual income at a 4% withdrawal rate, do you really need that much? I am getting to be kind of an old fart, but that shouldn't impact the number that much if you're excluding SS from the calculation. The idea is that you can spend 4% of your stash in perpetuity because you're averaging something like 7% annual returns so you never spend down the principal.

Which is crazy, because then you're dead and there's $4mil laying around that you never used. The trick is using it all up *just* before you die.

[zion zig zag]

The idea is that you can spend 4% of your stash in perpetuity because you're averaging something like 7% annual returns so you never spend down the principal.

I would think the idea is that you are earning less than 4% in ultra conservative accounts, and very slowly chipping away at principle? I mean, 7% is what the stock market returns over long periods, and I have to think money in stocks isn't ideal in retirement. Or is everyone striving to die with what they started retirement with? That being said, I would think multi year annuities are paying at least 3-4% these days?

This thread is sobering, scary and funny, all rolled into one.

[dan_pdx]

Which is crazy, because then you're dead and there's $4mil laying around that you never used. The trick is using it all up *just* before you die.

The challenge is always getting the timing right! Though buying a crotch rocket with your last $20k and riding like you have no fear of death would be one way to get things aligned.

[skaredshtles]

I would think the idea is that you are earning less than 4% in ultra conservative accounts, and very slowly chipping away at principle? I mean, 7% is what the stock market returns over long periods, and I have to think money in stocks isn't ideal in retirement.

Your total allocation will invariably change, but stock will likely be a piece of any retirment portfolio... or should be, at least.

[dan_pdx]

I would think the idea is that you are earning less than 4% in ultra conservative accounts, and very slowly chipping away at principle? I mean, 7% is what the stock market returns over long periods, and I have to think money in stocks isn't ideal in retirement. Or is everyone striving to die with what they started retirement with? That being said, I would think multi year annuities are paying at least 3-4% these days?

This thread is sobering, scary and funny, all rolled into one.

Gotta admit I haven't spent that much time looking into the details...I'm still working on getting the $2.5 M that I'll need to worry about stretching for 50 years :-)

But I think you might do something like hold a year in cash, another few years in safe conservative stuff like t-bills / bonds, and have most of the rest in the market, maybe with a bias towards mutual funds and boring stuff (Berkshire), not exciting (Tesla). Then you have a 3-4 year cushion that will carry you through any market crashes. I think I've seen this discussed here before - here's one tool people use to look at this stuff: www.firecalc.com

I understand the traditional advice is to move your asset allocation heavily towards bonds and other safe/low return investments in retirement, but traditionally people croaked in their early 70s. All us dentists here, thanks to our steady exercise regimes ( mean, I skin at least 3 days a year!) and access to excellent healthcare, are going to live into our 90s, so outliving the money is a concern. Personally I don't care about dying rich, but I'm risk-averse and I'd hate to live poor in old age.

[Danno]

FUCK I am going to be paying for college for two kids when I am 55.

I'm going to paying for my kiddo to go to college when I'm 65. FML

[El Chupacabra]

Which is crazy, because then you're dead and there's $4mil laying around that you never used. The trick is using it all up *just* before you die.

Your last check should bounce, if you planned it all perfectly.

[dan_pdx]

Your last check should bounce, if you planned it all perfectly.

Nigerian scammers will be bummed when I never return their overpayment

[neufox47]

Your last check should bounce, if you planned it all perfectly.

You guys seriously don’t want to leave anything to heirs? Maybe it’s because I have a 7 month old but I’d hope I’m leaving enough to pay for the grandkids or GGKs college or house down payment.

How else are you going to make sure they continue to come see you?

[skaredshtles]

You guys seriously don’t want to leave anything to heirs? Maybe it’s because I have a 7 month old but I’d hope I’m leaving enough to pay for the grandkids or GGKs college or house down payment.

I ain't gonna plan on it. If it appears that I'm a goddam tycoon in my dotage and I'm not going to be able to squander it all, sure, maybe I'll toss a little cabbage around.

How else are you going to make sure they continue to come see you?

They should come to see me 'cause I'm such a goddam nice guy. I don't want them coming around because they are looking forward to me dying and leaving them something.

[RootSkier]

Takeaway from this thread: get snipped early and often.

[dan_pdx]

Takeaway from this thread: get snipped early and often.

Ha! I road bike for fun, so far be it from me to impugn how someone else gets their jollies, but I think once or maybe twice is usually sufficient.

[fastfred]

Ha! I road bike for fun, so far be it from me to impugn how someone else gets their jollies, but I think once or maybe twice is usually sufficient.

Huh?
I used to ride ten thousand miles a year and banked on it that itd keep the sperm count low sure enough there is an off season and you forget to pull out all the way one night well it's almost time for a story before bed at least grandpa has a nice 529 for her that will cover private school and grad school

Sent from my SM-J737V using TGR Forums mobile app

[babybear]

Takeaway from this thread: get snipped early and often.

or if you have kids, make sure they invent something society changing or become some sort of a baller athlete

[riser4]

That would yield $160k annual income at a 4% withdrawal rate, do you really need that much? I am getting to be kind of an old fart, but that shouldn't impact the number that much if you're excluding SS from the calculation. The idea is that you can spend 4% of your stash in perpetuity because you're averaging something like 7% annual returns so you never spend down the principal.

So my number is make believe. Because I am never going to save that. It also, even though I mumbled something about returns, assume 0% returns, because I am a pessimist. 100K a year for 40 years. At some point that probably won't even be enough to buy a cuppa. $4 mil is the fantasy windfall that I would need to stop working today. The reality is, I am going to work until I can't and then someone can decide what to do with my corpse wherever it is I drop dead. In 18 years, SS and Medicare will be nothing but a fond memory, my 401k will be worthless, and any other bits of money I managed to stash won't add up to spit. If I haven't already been sent to a prison camp for being working poor and liberal.

[Ted Striker]

Someday mother will die and I'll get the money
Mom leans down and says, "My sentiments exactly, you son of a bitch"

[Benny Profane]

or if you have kids, make sure they invent something society changing or become some sort of a baller athlete

Or are really good at bullshitting investors out of zillions and start a tech unicorn. Cash out early.

[The AD]

FUCK I am going to be paying for college for two kids when I am 55.

Not having kids does have it's financial advantages, that's for sure.

[GeezerSteve]

In 18 years, SS and Medicare will be nothing but a fond memory. . . .

I heard that 18 years ago and 18 years before that