How much do you need in your nest egg to walk away?

#1
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Biopsyman

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#1
I have always been told that you need 80% of your current salary or wage times the numbers of years you expect to live.. to maintain your lifestyle.

For example if you made 50K at 80% is 40K x 25 years to live post retirement is to save 1M.. This does not include pension or other revenue streams like social security.. Thoughts?????
 
#4
#4
tumblr_lq55t6IXLl1qfjko2o1_r1_500.gif
 
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#6
#6
Unless you plan on traveling, your lifestyle should theoretically get cheaper the older you get (assuming decent health, etc).
 
#10
#10
vols 30 said:
But people are living longer. That has to be considered. Tough to retire early these days
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I agree. It's the only way to set a goal unless you've got some sort of revenue stream that pays you indefinitely.
 
#12
#12
GAVol said:
I agree. It's the only way to set a goal unless you've got some sort of revenue stream that pays you indefinitely.
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I'm just gonna move in with my kids. :) (assuming they don't move away without telling me where they're going. )
 
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#13
#13
Biopsyman said:
I have always been told that you need 80% of your current salary or wage times the numbers of years you expect to live.. to maintain your lifestyle.

For example if you made 50K at 80% is 40K x 25 years to live post retirement is to save 1M.. This does not include pension or other revenue streams like social security.. Thoughts?????
Click to expand...

There are some software programs online that will allow you to input in your retirement age, savings, income streams (including a pension and social security), and how much you spend yearly in retirement and output the probability that you will still have positive amount in savings at Age xx.

Check the bogleheads forum to see where those programs are located. I've not used them. If it were me, I'd want to have enough so that there 95% chance that I will still have positive savings at age 90.
 
#15
#15
I'll play. I have a three year old now so that adds another massive expense. I'm going with about 45 mil. Because college will be about 30 million by then
 
#16
#16
I'm 51, no way I would retire now without at least 5 million. I plan on working as long as I have an able body and mind.
 
#22
#22
VolsSportsFan said:
What did say was silly though; you chastised him for something that in the context of his question, it was obvious what he meant.
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Chastise who? I didn't quote anybody. I didn't respond to anyone specifically. In my opinion, planning how many years you're going to live and basing your financial plan on that is stupid. It's my opinion. You don't have to like it.
 
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#25
#25
vollygirl said:
Chastise who? I didn't quote anybody. I didn't respond to anyone specifically. In my opinion, planning how many years you're going to live and basing your financial plan on that is stupid. It's my opinion. You don't have to like it.
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How do you have a plan for a lump sum of money if you don't at least guesstimate how long it needs to last?

This is a legitimate question. I'd love for somebody to tell me how to retire by 50.:)
 
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