What is your retirement number...and what do you do when you reach it?

[TexasHusker]

"Whatever the gubmit is incentivizing me to do, is often to my detriment and for the gubmit's benefit."

That's... evil. So don't be shocked when we read that and think that you mean that the IRA and 401(k) are evil.

Fair enough, but I never called them such. I am generally wary of programs that the gubmit is trying to shoehorn me into doing.

[tripods68]

Some of numbers are bunch of B#*$& pulled up in the air.

A lot of the guess can be eliminated if plug your numbers via monte carlo 5000 simulation. www.PersonalCapital.com is a great website under retirement planner that gives you great insight about your 'own' numbers.

[Nutria]

A lot of the guess can be eliminated if plug your numbers via monte carlo 5000 simulation. www.PersonalCapital.com is a great website under retirement planner that gives you great insight about your 'own' numbers.

https://www.personalcapital.com/financial-software

Our free financial software allows you to easily manage your entire financial life in one secure place.

There's just no way on God's green earth that I'm going to give all my passwords to some 3rd party web site.

Ain't. Gonna. Happen.

[Captain Save]

Retirement planning . should always be about income planning .. not a number..

so no I don't have a number. It depends on what it's invested in .. Your number should be a lot higher if it's in a 401k ... than if it's in a ROth for example.. if you plan on turning that number into income.

What would be the point of getting a high number.. if you're just living off interest...

[disneysteve]

Your number should be a lot higher if it's in a 401k ... than if it's in a ROth for example..

That's a good point that I'm sure a lot of people don't fully take into account. Not only are there tax issues to deal with, there are also access issues and required distributions.

[phantom]

https://www.personalcapital.com/financial-software
Our free financial software allows you to easily manage your entire financial life in one secure place.

There's just no way on God's green earth that I'm going to give all my passwords to some 3rd party web site.

Ain't. Gonna. Happen.

If you still want to try Monte Carlo simulation, you should check out FIRECalc. You don't have to give them access to your accounts, just some numbers.

[corn18]

If you still want to try Monte Carlo simulation, you should check out FIRECalc. You don't have to give them access to your accounts, just some numbers.

Also try http://www.flexibleretirementplanner.com/wp/

I use it as a check for my other methods.

Tom

[Nutria]

Your number should be a lot higher if it's in a 401k ... than if it's in a ROth for example.. if you plan on turning that number into income.

Why?

(Also, Roth is only $5,500/year under age 50, whereas 401(k) is $12,000.)

[corn18]

Why?

(Also, Roth is only $5,500/year under age 50, whereas 401(k) is $12,000.)

Taxes. 401k withdrawals are taxed as ordinary income and 100% is taxable if it went in tax deferred. Roth withdrawals are not taxed after 59 1/2.

Also, RMDs come into play at age 70. I don't want RMDs as my plan does not require withdrawing anything from my 401k after age 70. So that is an issue as well as it will be taxed.

[Nutria]

Taxes. 401k withdrawals are taxed as ordinary income and 100% is taxable if it went in tax deferred. Roth withdrawals are not taxed after 59 1/2.

But Roth is after-tax, so in order to invest that $5,500 you had to earn (in the 28% ) $7,640.

[corn18]

But Roth is after-tax, so in order to invest that $5,500 you had to earn (in the 28% ) $7,640.

Taxes with respect to when you withdraw, not deposit. If you withdraw $100 from a 401k (not a Roth 401k) you will pay ordinary income tax on the withdrawal. You need to plan for that. If you withdraw $100 from a Roth IRA, you don't pay any tax on that.

[LivingAlmostLarge]

$3m probably. Well see when we want to retire then we'll look more closely. I think we're far short of that now but we could retire if we wanted to scale back lifestyle. I think 5 years from now we should be just about right to hit enough and yet be completely satisfied. Wont do it though. DH likes working and wants to make it rain while he can. Then when he's fired or let go we'll discuss.

[Outdoorsygal]

No set number for retirement but this plan might be close. I'd like to always be working, making money doing something on the side, forever

85K Roth IRA
$15K Emergency Rainy Day Fund
85K Cash stashed in the house in a safe built into the wall.
150K Property Value
——————————
335K+ (Plan to spend 35K while alive so to leave remainder as inheritance)

MONTHLY INCOME- married couple
$1360 month Social Security Combined
$550 month Rental Income- Two tiny homes built on our property to rent out to people we know.
————————————————
$1910
We will also do side jobs from time to time for friends/acquaintances/former clients and save a little $ not factored in..
Husband is a painting contractor.


MONTHLY EXPENSES
$175 month eating out
$300 month groceries- Health food & supplements (padded by $50-$75)
$250 Long Term Care Insurance
$75 Month internet (cost is $50 now so padded)
$125 mo. gasoline (not padded)
$100 Cheerful Giving (not padded)
$100 to son and grandkids (not padded)
$50 month propane (Solar panels & batteries work 8 months out of the year- padded a little)
$50 property tax (Set at 1%) (padded by $8 due to rounding up)
$50 car maintenance (except he buys cars from the junkyard and fixes them up so padded)
$50 haircare (padded by $15)
$75 Biking maintenance (padded by $20 month)
$100 replacing stuff-TV, Computer, furniture, appliances, generator, batteries.
$100 Month car insurance (cost for a senior?) could be less or more-
$200 Travel/Entertainment (2 weekend cycling trips, 1 hostel ocean weekend trip)
—————————————
$1800

We will live a very self sufficient lifestyle off the grid in a house built on property (that shows a 280 sq ft home already though our home will be larger)
The expenses reflect a solitary lifestyle just in case health issues get in the way. Need to be prepared for the worst

We’ll be attending church, bible study, cycling club events, hiking, swimming, gardening, the weekly town potluck, and working a side job from time to time.
Hopefully babysitting grandkids. Taking a weekend vacation every 4 months with friends/family.. Husband likes to buy a vehicle from auto recyclers
, fix it updrive it for a few years, then he sell it making a profit. He may get a dealer license w/a Pal to work on vehicles to sell.
Additional income, a social hobby, and it keeps the mind fit too.


**Note** Keeping our Social Security at $1360 or below (for 2017 poverty levels) means qualifying for QMB Medicare Savings Program so no monthly medicare payments,
co-insurance or deductibles. It also covers LTC but we will buy a LTC policy also since the law allows for such now with qualifying for the program.
LTC policy would be first payer. We also might get certified as foster care providers again (we did this 15 yrs ago) but only to babysit for other foster parents.
.

[97guns]

Never had a number to achieve, my goal was to realize enough income from savings to stop working and all it took was $280k

[MakeAStash]

Initial goal was 50x annual expenses but now figure 30x should be safe enough.