We Are 61 With $1,900,000 In Savings. Why Can't We Retire?

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[joethecomputerguy]

Because they don't have spending under control I retired at 52 with less than half of that. 7 years into retirement and I have more money today than I did when I retired 7 years ago. Some people are just stupid and don't get it. Retirement is awesome. I don't deprive myself either. 20 cruises in the past 2 years and I travel all over the place just on a budget.

[CrossCountryBR]

Imagine being 62 yo, pratically $2M in savings and $60k in SS and have to work longer to sustain your way of life. Crazy.

[Andre-qoek]

i love the primary goal being passing down generational wealth via education.

[coastalhillbilly]

“ends got to meet”
“It’s not what you make it’s what you keep”

[cscorona]

$2k a month for a boat is eye opening.

[BRunner]

Get rid of the boat, rent one when you want to go out

[richardbarry]

The best investment these folks can make is a course on frugal living. For example, the grandkids can go to community college and live at home for the first two years (as I did) and transfer, saving almost half of the college expense. A boat is a hole in the water that you pour money into. People need to grow up and realize by the time they are in their 60s that there is a lot more to living than spending.

[eforsy]

With their salaries and less than 2 million in savings says a lot about Greg and Norma's spending habits. They are not serious savers. Not bad, but definitely on the low end of savers.

[andrewhoover]

Increases in Taxes, insurance, maintenance, inflation are serious factors in delaying retirement.
Also how many family members depend on you, I.e. parents or impaired family members…everyone’s lot is different.

[davidfolts]

Thanks, Nick, for the excellent content. It was very well done!

[movdqa]

I retired at 61 and am 65 now. Social Security takes care of 90% of our living expenses. Our primary residence was paid off in 2000 and we've had no debt since then. We paid for our kids' college educations out of salary and a little bit of savings. Savings rate after 2000 was 38% except for when the kids were in college. So don't live large, save like mad, teach your kids to save like mad and hope that you have a decent amount of luck along the way. Our income, when I was working, was less than half of what this couple makes. This couple makes more money than probably 93% of the rest of households and their net worth puts them in the upper class. But expenses can always outrun income and assets.

[znogaragego]

They should have saved a lot more than $1.5M with those high incomes. Plus, why is housing cost so high in their retirement ages? Get rid of mortgages or downsize before retiring.

Like others said, they have spending problems not income.
$1.5M should plenty to retire on.

[DaveB-wi]

I think what is most telling about this comment section is that most people believe they should map their own values and what is important to them to dictate how all others should behave. We are all different, have different values, and are willing to sacrifice different things. Plus the calculus is very different for someone who loves their job versus someone who hates their job or someone who gets a huge amount of pleasure from an expense versus others who don't.

[maxmuller]

I am at an odd tipping point. I am 57 and i feel i am getting to the point where i am going to have too much money in the end, but the tools say I may not have enough. I am living on my retirement budget now with no bills, have a pension starting at 60, and have a good amount saved.

[xlerb]

I'm in a similar situation, but I think a little better. We've got a bit more money invested, we don't have any debt, no kid's educations to help with, and we don't want anything to do with boats, though we do have other somewhat above average expenses. I just retired at 63. My wife is still working part time. Her working doesn't bring in much money but she enjoys what she does and wants to keep working for now. We've also got some rental farmland that brings in a little money. It's not much but it's reliable. Our plan shows we could pull out a certain amount from investments with a very high confidence level, but we're pulling about $2 - 3K less than that because we just don't need the money right now.

[MWS]

I retired at 61 with $2.2M, and only one debt…....my mortgage. I drive a porsche 911 and a Tesla and I’ve already funded three college bills for my three sons. It’s 3 years later and I’ve not spent any of my original money and made $352K on the market. I’m planning to take my SS at 65 as there’s no way I’m waiting and have the feds keep my money any longer. My home is $1.5M, and owe $$400k in debt on my mortgage. I’m loving life. A boat..never again it’s a black hole that sucks money

[raymondmeyers]

There’s plenty of people who can retire on that as long as they’re debt free and live a moderate lifestyle in a moderate cost of living area.

[motogravel]

I think the home equity is interesting in this case. You mention the value of $700k and that would presumably go up. Whether or not they use some equity for her long term healthcare, wouldn't the sale of that home meet the $500k legacy requirement? Or - it could be sold as he enters long term care and then you could wipe out both of those expense items (hers and his) but still keep the $500k cash legacy. Either use the home equity / sale for both of their long term care costs, or use it for the legacy goal.

[adambram]

Their big mistake is sacrificing their retirement to fund their grandchildren’s college. Also, 529s suck. There are too many restrictions on how to invest with them and what they can be used for. Read Die With Zero and change your mindset on life and retirement. The grandchildren will get a lot more out of life experiences with the grandparents than having their college partially funded.

[wmdouglas]

$7000 per month for spending is way too high.