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

#27
#27
The sailboat idea isn't bad at all. However, I'm looking for a cool million and a cabin in the hills of Tennessee.
 
#28
#28
vollygirl said:
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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My only issue is to choose a child. My frugal Volunteer son, who will assume Dad lives forever and puts me in a facility for 25 years, or my daughter who will make sure life is amazing (but only for five years before she needs to pull the plug). Why didn't Dr. Posey teach me this in Grad School?? Oh my, what to do with our Will!!! Guessing our son wins if his Vol Tix are hanging in the balance!:rock2:
 
#29
#29
GAVol said:
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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You don't pick how long you're going to live, you pick how long you're going to work. You can pick how much you're going to save. You can save 50% of your income, and get hit by a motorcycle the day after you retire. Or you can save 3% and live to be 100.

It's a crap shoot.
 
#30
#30
jjnealfl said:
My only issue is to choose a child. My frugal Volunteer son, who will assume Dad lives forever and puts me in a facility for 25 years, or my daughter who will make sure life is amazing (but only for five years before she needs to pull the plug). Why didn't Dr. Posey teach me this in Grad School?? Oh my, what to do with our Will!!! Guessing our son wins if his Vol Tix are hanging in the balance!:rock2:
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My youngest son told me once he was going to take care of me when I'm old and give me my medicine four times a day. Five years later he told me he's going to pick me up from the nursing home and roll all the windows down in the car. :lol:
 
#31
#31
The boats the thing. A sail equipped trawler an putz around the Carribean huntin' Fools Gold til your gas gives out.
 
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#32
#32
vollygirl said:
You don't pick how long you're going to live, you pick how long you're going to work. You can pick how much you're going to save. You can save 50% of your income, and get hit by a motorcycle the day after you retire. Or you can save 3% and live to be 100.

It's a crap shoot.
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Yeah but... you either have to have a plan or basically resign yourself to either reducing your lifestyle or working forever.
 
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#33
#33
GAVol said:
Yeah but... you either have to have a plan or basically resign yourself to working forever.
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No you don't. Be responsible. Retire when you need/want to.

And most importantly, be good to your kids. :) They got a 50-50 chance of being in great shape at a young age.
 
#35
#35
I'm glad my parents didn't retire when they felt like it on the assumption that I'm covering all of their life expenses afterwards.
 
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#36
#36
Saving $500-$1000 monthly for 20-30 years at a 10-12% int rate in a Roth IRA should put a person over the one million dollar mark for retirement which will pay out around $50K per year tax free (assuming the money still earns a low risk dividend in retirement). Will that be enough for your average american taxpayer to live a decent lifestyle until death, probably. Of course there's lots of variables and every situation is different. That's the way I see it. I could be wrong.
 
#37
#37
Retirement planning makes a lot of people nervous because the numbers involved seem so large, the time horizon long, and thinking about your death can be emotional. Also, everyone's lifestyle is different.

Based on my experiences, I recommend for young people: maximize your 401k/IRA contributions as soon as you can, pick low cost funds for those accounts and diversify between stocks/bonds/steady income, and NEVER touch them early. If you do all of that starting in your 20's. you should be fine.
 
#38
#38
OldandStillaVol said:
Retirement planning makes a lot of people nervous because the numbers involved seem so large, the time horizon long, and thinking about your death can be emotional. Also, everyone's lifestyle is different.

Based on my experiences, I recommend for young people: maximize your 401k/IRA contributions as soon as you can, pick low cost funds for those accounts and diversify between stocks/bonds/steady income, and NEVER touch them early. If you do all of that starting in your 20's. you should be fine.
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Exellent advice.
 
#40
#40
Here is the calculation:

Annual Expenses X 25 = Finanical independence

A 4% withdrawal rate will last over a 30 year period over 95% of the time
 
#41
#41
OldandStillaVol said:
Retirement planning makes a lot of people nervous because the numbers involved seem so large, the time horizon long, and thinking about your death can be emotional. Also, everyone's lifestyle is different.

Based on my experiences, I recommend for young people: maximize your 401k/IRA contributions as soon as you can, pick low cost funds for those accounts and diversify between stocks/bonds/steady income, and NEVER touch them early. If you do all of that starting in your 20's. you should be fine.
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That's what I'm doing. Currently 23.

It's kind of "funny" hearing people talk about needing millions to retire and I look at my accounts in the low thousands lol
 
#42
#42
DocVOLiday said:
That's what I'm doing. Currently 23.

It's kind of "funny" hearing people talk about needing millions to retire and I look at my accounts in the low thousands lol
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You are starting young which is the most important thing. I started at 27 and am 60 now. Forget about those articles talking about how much you need. No one knows what will happen in the next 40 years either for you personally or in the investing world.

It's kind of like exercising. Just keep doing it and over time, things will work out.
 
#44
#44
mtt2d said:
Saving $500-$1000 monthly for 20-30 years at a 10-12% int rate in a Roth IRA should put a person over the one million dollar mark for retirement which will pay out around $50K per year tax free (assuming the money still earns a low risk dividend in retirement). Will that be enough for your average american taxpayer to live a decent lifestyle until death, probably. Of course there's lots of variables and every situation is different. That's the way I see it. I could be wrong.
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I thought $5500 a year was the max you could put in a Roth IRA. Am I mistaken, or has there been some change recently that I missed?
 
#46
#46
OldandStillaVol said:
Retirement planning makes a lot of people nervous because the numbers involved seem so large, the time horizon long, and thinking about your death can be emotional. Also, everyone's lifestyle is different.

Based on my experiences, I recommend for young people: maximize your 401k/IRA contributions as soon as you can, pick low cost funds for those accounts and diversify between stocks/bonds/steady income, and NEVER touch them early. If you do all of that starting in your 20's. you should be fine.
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Agreed. That's great advice. I'm 24 and doing this exactly. It's amazing how many people I talk to daily, who are not matching what their company will match into their 401k. You're just giving up free money if you don't at least match.
 
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#47
#47
GAVol said:
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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Don't have any crumb snatchers. They aren't cheap labor anymore.
 
#49
#49
bleedorange0037 said:
I thought $5500 a year was the max you could put in a Roth IRA. Am I mistaken, or has there been some change recently that I missed?
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You have a retirement plan at work? Or is it your shop Smalls? Ask them to put in a Roth 401k, costs the company nothing and you can put away the 401k limit of $18k via Roth.

If the shop is yours and you've got others whom it might impact, I can offer other thoughts elsewhere.
 
#50
#50
NochNoch said:
You have a retirement plan at work? Or is it your shop Smalls? Ask them to put in a Roth 401k, costs the company nothing and you can put away the 401k limit of $18k via Roth.

If the shop is yours and you've got others whom it might impact, I can offer other thoughts elsewhere.
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Yes, I've got one at work that they match. However, I've been thinking recently I need to take some of the money from my side work and start maxing out a Roth every year on top of that. I'll definitely look into what you were talking about though.
 
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