Is This How Much You Need For Retirement?

Reacting to: @benbeaman

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The decisions on how to invest, when to retire, and other financial planning topics are some of the most important financial decisions you will make in your life. I urge you to seek professional financial advice as you make this decision. Ideally, from a financial adviser, AND a CPA AND an attorney. Having the perspective of all three professions will help you make the right decision for you and your family.

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[eunicef]

I think a better formula is the one that ties into your monthly spend.

[thepenman]

If this is true, then most people will have to continue to work well beyond 70. This contradicts the idea of retiring as early as possible because by age 60, you only have 1000 weeks to live.

[kriskringle]

A million bucks? That's nuts. When you are working you have big expenses, especially if you drive a lot back and forth to work. My drive is 1.5 hours each way, I spend a huge amount on gas and car repairs. When I retire there's no way I'm going to spend all that money and gas, repairs, power drinks and Starbucks along the way to keep me awake because I didn't get enough sleep, nice clothes for work, haircuts so frequently, on and on. If I stay home and cut firewood from around my property even my heating bills go down. I can probably live on social security alone if I wait until I'm 70, it will be $4, 000 a month, then I have royalties of $1, 000 a month, and if I save up 200K at 5% interest in a secure high interest savings account that will give me $830 a month, I'm up to $5830 a month for sitting around doing nothing, not needing to spend any money. What are you guys talking about a million bucks LOL. I will have zero debt, no cards, no car loans, no house payment, just straight income. Property tax on my house is $3, 000 a year. What else are you gonna need. You need a million bucks if you still have massive debt before you retire, and in that case why did you just save a million bucks, pay off your debt first.

[dimashipatsiuk]

If the decent amount to retire is around 1 million then investing it in real estate will generate 6% annual profit. Which should be enough for an average person.

[fanzhang]

How much you need for retirement should base on the expense, not on 10 to 12 times of pre retirement income. Don’t believe that $ 1 million for $ 50 k pre retirement income family could retire more comfortable than $ 8 m for $ 1 million pre retirement income family.

[koobea]

Does the "how much money" question take into consideration Social Security yearly or just retirement accounts or what? The type of vague conversation might do more harm than good. People will think they'll never be able to retire.

[myrongator]

If Trump guts Healthcare then you can say goodbye to any savings.

[tomj]

Whoops, I've clearly over-saved, lol. Worse, it's 40 times our current spending. Worse yet, I can't seem to spend much no matter how much I try. For instance, last night our 16 year old oven crapped out, tomorrow is Thanksgiving. I spent the day working on the thing and didn't get very far and had resigned myself to buying a new stove. I started looking at new ones but I don't like convection ovens nor ones with bells and whistles that fail all too often. I like bare bones simple that lasts which coincidentally is about $600. Unfortunately no one seems to keep appliances in stock, they all have to be ordered now so I reassembled my stove so we could make dinner on the stove top. I tested the oven as well and it now works perfectly most likely because I cleaned the junk off the temperature probe and I got lucky. So now I'm faced with the choice of either replacing a stove that now is fully functional once again or continuing to use the thing since we still like it and lord knows what the quality of new ones is currently. I was ready to buy new parts but they weren't needed...as I said, I try to spend but what am I going to do?

[ingababy]

I’m moving out of America when I retire to a country where the cost of living is not so high. The USD go a long way outside of America.

[BB-xqrj]

It’s sad in this country healthcare is going to eat up 300K of your retirement savings on average 🤦🏻‍♂️

[stevelasser]

The runaway cost of healthcare in this country throws long-term financial planning into absolute chaos. I'm not at all sure that even 2.5MM with no debt structure will be enough to carry you through over a period of 20 to 30 years.

[clintonrice]

I think that makes a ton of sense, to be able to retire into about the same income with social security as what one was earning beforehand.

The question I’m confronting, for which I suspect the number of variables renders the question impractical to answer in any general sense, is that supposing I’ve saved about that multiple in my mid-50s, what sort of graph exists to offer a target multiple to retire before age 67 if I plan to take social security at age 67? I know I could “soft retire” today and take a job with maybe 30-50% of my income and work with less stress for the next 9-15 years, but supposing my investments add another 25% in the next four years, is there a benchmark for a 58-yr-old that if I have 14-15x income, or maybe 16x at 59, I could just retire and know I’d be drawing down my savings until whenever I start taking social security?

It’s a tough question, I know, but one that deserves some examination.

[gustavolatobias]

I believe this is not accurate. Here's why...First of all, I just retired at 53 and my wife retired 3 months ago. We have around $240, 000 saved. She has a pension and we have residual source of income through our rental property. Money saved will eventually deplete. Having a continuous income stream is a much better way to retire comfortably. Also, if you retire in the USA things can get quite difficult. Honestly, I've learned that the American Way, is NOT the best way. Also, most people don't want to work until they're 67. The point I'm making is that there are much better options out there than what's being presented. Living outside of the US can be 💯 percent more beneficial to retirees.

[Brad-eyhb]

Don't retire in this country. Health, pharma, retirement communities, etc....all gouging you to death

[Singlesix]

$500, 000 is not enough. Do the math yourself and don't trust the experts.

[PaulClark-hw]

Thanks for the analysis! I need some advice: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?

[jayholiday]

Lame rules of thumb and scare tactics. Do your own monthly budget. Why is Healthcare the only budget line item quoted as a lifetime lump sum instead of monthly cost? My ACA plan is only $221/monthly for a couple

[AG-sogl]

Reduce your fixed costs by 60% and move to Asia. Simple.

[clarkpalace]

Yeah show me a 20 something and what he thinks. Jeebus

[frederickruderman]

Why would I listen to someone at his young age ? I had a successful career in financial services as well, over 40 years. I learned more since I retired two years ago and then I possibly could’ve known in my 30s 40s or even 50s give me a break buddy