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The retirement thread - 2020 version - 5 questions about retirement

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    The retirement thread - 2020 version - 5 questions about retirement

    I'm not sure if one has been done before, but if you are so inclined, tell us what retirement looks like for you.

    1. When do you plan to retire?

    2. How much money do you think you will need?

    3. How long do you think you need your money to last?

    4. Are you planning to spend it all, or are you planning to leave something to others?

    5. In a brief summary, what is your vision of retirement? Ex. traveling the world, spoiling grandkids, living somewhere you've always dreamed of, or just being free from the necessity of work to pursue personal hobbies, etc)

    #2
    Oh, this is gonna be a fun thread -- it's all about dreaming! I, for one, look forward to hearing about everyone's dreams.

    1. Retirement Date: 1 Jun 2028 (just shy of age 42). That's when I will have served 20 years in the military. Beyond that... who knows. Maybe I'll eventually decide what I want to be when I grow up, and get (or create) a job that I can enjoy day in and day out. But really, if things go to plan, we'll be able to make it just fine on the very day I retire from the military.

    2. Retirement $$ Needs: I'm shooting to provide for roughly $100k in annual expenses (today's dollars), roughly 65% above the ~$60k/yr we currently spend. But.... just wait for #5. Worst case, we need $4M sitting in an account. However, we'll have my wife's current military pension ($20k/yr), presumably my military pension (estimate: $50k/yr), and we're planning to build up a handful of rental RE properties over the next few years -- currently, we net $12k/yr from one rental property. So assuming I do earn my full military retirement, we could easily 100% "retire" at age 42, and our "numbers" will likely be closer to: $500k in a taxable account somewhere (accessible before age 59.5), $500k in rental RE properties, plus $70k/yr from our pensions. Once we hit 59.5, we'll gain access to vastly more (conservatively: $4M)

    3. Money Should Last: The word "indefinitely" sounds pretty good to me.

    4. Leave an inheritance?: Definitely. I fully expect that the wealth DW & I accumulate will continue to grow well in excess of our annual spending. That means our estate will eventually involve multiple millions of dollars. As long as our children are responsible and dutiful with money, I fully expect to leave significant inheritances to them, both while we are living and even moreso upon our passing, in addition to whatever charities we become involved with.

    5. Vision for Retirement: I've got grand plans. First and foremost, raise my kids (later, yes -- spoiling grandkids sounds like a hoot). In 8 years, my oldest will be 13 years old, the youngest...well, we're still working on kid #3, so TBD. In the meantime, I know that I've got frequent, recurring military deployments & other travel on the horizon. I want to be able to settle down and truly focus on my family. Second, DW & I want to travel -- ALOT. I grew up a military brat, so I've traveled the world extensively -- dozens of countries & every continent except Antarctica (so far). DW hasn't been so blessed, and hasn't ever left North America. We will remedy that situation in spades. Third: Church & Charity. We want to devote our time, intellects, skills, and resources to supporting our church and the charities we believe in. That will likely involve mission trips & serving in our church, working for (or simply volunteering at) charities, and who knows what else. Those are the "Big 3" for us. Beyond that, ... eh, that's "future me" problems.
    Last edited by kork13; 07-11-2020, 08:17 PM.
    "Praestantia per minutus" ... "Acta non verba"

    Comment


      #3
      1. When do you plan to retire? We have a rough timeline mapped - targeting age 55 which is 3.5 years from now.

      2. How much money do you think you will need? Taking something of a "brute force" approach - which is to accumulate a portfolio that's more that what we'll need in retirement. Targeting a portfolio value of $5M, which should fund approximately $200k in income at a 4% safe withdrawal rate (rule of thumb) from our investment and retirement accounts. Taking SS early (age 62) will offset need to generate $200k from our investment/retirement accounts. Honestly, I believe $200k is more than we'll need, given that we won't be saving and children will be in college or grad school and thus we could easily live on a lesser amount. Everything I read says that first 5 years in retirement are critical to a successful plan - so we'll consider working PT for a few years to offset what we need to withdraw and this consideration would elevate if we don't achieve our $5M target in the next few years. I believe we're taking a fairly conservative approach - I likely could retire now and be ok, but will work to 55 to allow access to funds in my work 401k to allow for tax efficient withdrawals from retirement and investment accounts.

      3. How long do you think you need your money to last? Planning for 30+ years.

      4. Are you planning to spend it all, or are you planning to leave something to others? I've used a few retirement calculators - both FireCalc and Vanguard's MonteCarlo simulator. Both indicate very high probability of leaving a significant amount to our children, which we'd love to do. Creating generational wealth is definitely a goal.

      5. In a brief summary, what is your vision of retirement? Ex. traveling the world, spoiling grandkids, living somewhere you've always dreamed of, or just being free from the necessity of work to pursue personal hobbies, etc)[/QUOTE] This vision has become a bit hazier over the course of the last few months given the coronavirus, progress on vaccines, the long-term efficacy thereof, the need to generate enough vaccine for the world's population, etc. We had a fairly modest vision for retirement - planning on a lake house or golf-community in the Southeast, with time spent on recreational/fitness, reading and continuing education, travel, and volunteer activities.

      Comment


        #4

        1. When do you plan to retire? 2028 at the age of 42

        2. How much money do you think you will need? $3,100/mo in rental income; should have roughly $500k in my 401k which won't be touched until 65. Around age 60-65, I'll decide whether to keep the rentals or sell and invest them in my portfolio. Plan subject to change over the course of 20 years haha

        3. How long do you think you need your money to last? I don't really know how to estimate this but since my primary income source is continuous, it isn't really a factor until I start tapping the 401k at which point, it should have enough to sustain me indefinitely

        4. Are you planning to spend it all, or are you planning to leave something to others? Every asset I have will go to DD whether I die tomorrow or in 40 years. I don't have any particular goals surrounding how much I'd like to leave her, I'm content in knowing she's going to be ok regardless

        5. In a brief summary, what is your vision of retirement? Ex. traveling the world, spoiling grandkids, living somewhere you've always dreamed of, or just being free from the necessity of work to pursue personal hobbies, etc) All the travel. I want to slow travel the world until I find a great place perfect enough to settle down for good. I also could see myself eventually settling wherever DD lands or perhaps splitting time 6 months out of the country and 6 months in. I also am not adverse to the idea of working in retirement but I want it to be for a passion and on my own flexible schedule, not a 9-5 in the rat race. Teaching yoga perhaps. Using my events background to plan yoga retreats. Helping with housing and necessities in an impoverished area... IDK. So many years to fill and when I think back on where I was 10-15 years ago, my vision of traveling the world hasn't changed but my passions and interests have so I'm keeping it flexible

        Comment


          #5
          I'm not sure if one has been done before, but if you are so inclined, tell us what retirement looks like for you.

          1. When do you plan to retire? Thinking about 2021 @ age 55.

          2. How much money do you think you will need? $48k COLA military pension (been receiving since 42). $56k SS starting @ 70. Planned spending: $135k / year (varies by age). $1.6M should cover us nicely. We really only need enough savings to bridge us to SS @ age 70. The pension and SS covers most of our planned expenses @ 70, but we want a cushion and some play money.

          3. How long do you think you need your money to last? Plan shows 90 but it really doesn't matter in our case because the pension + SS more than covers planned expenses past age 80. Just need to keep an eye on survivor benefits for my wife.

          4. Are you planning to spend it all, or are you planning to leave something to others? Planning to spend it all, but because of the way probabilities work, there is a 95% chance there will be something left and a 30% chance there will be a LOT left.

          5. In a brief summary, what is your vision of retirement? Ex. traveling the world, spoiling grandkids, living somewhere you've always dreamed of, or just being free from the necessity of work to pursue personal hobbies, etc). Family and travel.
          Last edited by corn18; 07-12-2020, 06:49 AM.

          Comment


            #6
            1. When do you plan to retire? I retired about 9 years ago. It could be any day for DH.

            2. How much money do you think you will need? Enough to cover current income (plus inflation), plus savings for future medical costs.

            3. How long do you think you need your money to last? Our projections are until at least age 100. (Could be considerably shorter if we get hit by a Mack truck or Covid-19.)

            4. Are you planning to spend it all, or are you planning to leave something to others? We have some money that is is allocated to medical needs such as medical premiums, medical co-payments, durable medical equipment and long term care costs. If that money is not needed for those expenses, it will be passed on. But, getting old can be pretty expensive health care wise.

            5. In a brief summary, what is your vision of retirement? Ex. traveling the world, spoiling grandkids, living somewhere you've always dreamed of, or just being free from the necessity of work to pursue personal hobbies, etc) Definitely traveling--especially visiting family and also visiting National Parks... (No grandkids, yet.) Working on hobbies. I've been retired for 9 years and have not run out of interesting things to do.

            Comment


              #7
              I am going to copy Kork's nice formatting.

              1. Retirement Date: Financial Independence age 50 (done with "having to" work full-time). Full retirement: TBD

              2. Retirement $$ Needs: $1 Mil+ a paid-for home (financial independence). (This will happen to coincide with our kids being done with college, so our expense should drop dramatically). $2 Mil for full retirement, but doesn't matter as much the closer we get to collecting social security.

              3. Money Should Last: The word "indefinitely" sounds pretty good to me. <------ I will agree with Kork. I had a great grandparent that lived to 100+ and have some living relatives getting close to 100. I always presumed our retirement money would need to last a long time. Probably planning for 50+ years.

              4. Leave an inheritance?: Is not a goal, but we are so financially conservative that I expect we will have money left over. (Probably my kids will inherit a *lot* of trickle down when our parents pass, so this may be also some of why I really don't give a flip about working longer and saving more money just for my kids. Meh. & our parents have really spoiled our kids already, so there is also that).

              5. Vision for Retirement: I don't really have any vision of retirement except not *having to* work. The flip side of that is I could see still choosing to work.

              #5 is a hard one for me to answer, because our personalities are so much "enjoy the here and the now" and "enjoy our work." So... Probably the only reason I have even thought that much about it is more of the "worst case". Both our parents retired during the great recession, unable to find work past age 50. (In addition to that, my dad was sidelined by his health in his mid 50s, and hasn't worked since). So we are pushing for financial independence at 50 so that we are more prepared for that potential scenario. But other than that, I don't really have any dreams of retirement. Or of things I'd rather do with my time. I do dream of working part-time or not stressing about taking an unpaid break from work (if I have other things come up in my life). I think I would personally be best served working part-time and having more structure. In my 50s. After that, will figure out in another couple of decades.

              Comment


                #8
                Originally posted by MonkeyMama View Post
                3. Money Should Last: The word "indefinitely" sounds pretty good to me. <------ I will agree with Kork. I had a great grandparent that lived to 100+ and have some living relatives getting close to 100. I always presumed our retirement money would need to last a long time. Probably planning for 50+ years.
                This is alot of my consideration as well... If they live beyond ~60y/o, my family tends to be very long-lived. My great-grandmother lived to 102, one grandmother is currently in her early 90s & going strong, and other side's grandfather is in his 80s & still golfing daily. Extended family (great aunts/uncles, etc.) are similar aged. That longevity is a significant reason I'm building plans to be around for quite a while.
                "Praestantia per minutus" ... "Acta non verba"

                Comment


                  #9
                  1. When do you plan to retire? Already 2.5 years retired.

                  2. How much money do you think you will need? I'd have been uncomfortable with anything less than $2-3 mil, we're well above that.

                  3. How long do you think you need your money to last? My dads, 90 and still going strong. I'm 60, spouse 57. Money needs to work for us at least 30, maybe 40 years.

                  4. Are you planning to spend it all, or are you planning to leave something to others? I really don't think we will ever spend down our full net worth, but likely we will most of the cash and traditionally invested cash. Hope to leave a bunch of real estate to heirs.

                  5. In a brief summary, what is your vision of retirement? We actually had a pretty good life pre-retirement doing most anything we wanted to do and having most anything we wanted. Best thing about retirement to me (form business owner) is no more going in to the office, no more people or project problems, my life's savings no longer at extreme risk, etc. We spend lots of time with the kids, grand kids and family, enjoy our life around the farm and at our vacation homes, fish and hunt whenever and wherever I want, go on trips on a whim, etc. I really enjoy taking off on unplanned, unscheduled road trips, just to see some country.



                  Comment


                    #10
                    I'll try to keep my answers on the short side, though the actual answers are much more nuanced than that.

                    1. When do you plan to retire? I'd like to be done working full time by 62 (I'm just about 56 now). My current job is something I really enjoy and it pays well so I might consider dropping down to part time (20 hr/wk) which would let me keep insurance and still earn about 130k/yr which would make our nest egg stretch a lot farther.

                    2. How much money do you think you will need? At least 25 times our spending which currently comes to about $1.8 million but I'd feel much more comfortable with $2-2.5 million.

                    3. How long do you think you need your money to last? Until at least age 90. I don't know if either of us will live that long but I certainly want to have enough money if we do.

                    4. Are you planning to spend it all, or are you planning to leave something to others? I certainly hope not to spend it all.

                    5. In a brief summary, what is your vision of retirement? Ex. traveling the world, spoiling grandkids, living somewhere you've always dreamed of, or just being free from the necessity of work to pursue personal hobbies, etc) I hope to travel more. We would very much like to have a home in central Florida where we'd spend a lot of our time but also travel other places, take more cruises, see more of the world.

                    Steve

                    * Despite the high cost of living, it remains very popular.
                    * Why should I pay for my daughter's education when she already knows everything?
                    * There are no shortcuts to anywhere worth going.

                    Comment


                      #11
                      1. When do you plan to retire? Most likely in 5 years, 42 yo

                      2. How much money do you think you will need?
                      5 million at 42yo, expenses should be 50k/year

                      3. How long do you think you need your money to last?
                      Generations

                      4. Are you planning to spend it all, or are you planning to leave something to others?
                      Leaving it all for generations, principal will never be touched. Children and generations beyond can only spend the interest/dividends minus 2.3%

                      5. In a brief summary, what is your vision of retirement? Ex. traveling the world, spoiling grandkids, living somewhere you've always dreamed of, or just being free from the necessity of work to pursue personal hobbies, etc).
                      Raise my kids, travel, enjoy life, probably retire in Singapore or some other first world Asian city/country.

                      Comment


                        #12
                        Hmmm, my plans are still pretty wishy-washy for a lot of this since I have a lot of time left.

                        1. When do you plan to retire? I would ideally like to retire in my mid 50's at the latest (still 20 years away), but honestly, I like my job so when I retire will largely depend on my partners and when they plan to retire. If my partners are all still working, I could see dropping back to part-time, but I wouldn't see much point in just stopping entirely. This also partly depends on paying the house off early, which is likely, but also just refinanced and started the 30 year clock over.

                        2. How much money do you think you will need? If no house payment, I'd probably want enough to cover at least $50k per year (Only counting my portion of the finances as we maintain separate finances).

                        3. How long do you think you need your money to last?
                        I have a weird combination of relatives that have lived to be very old and relatives that have died significantly younger, so it's a bit of a crap shoot! But I'm going to assume a longer life span since I don't want to run out of money and have to go back to work at an older age.

                        4. Are you planning to spend it all, or are you planning to leave something to others?
                        Eh, not planning to spend it all because that dangerously banks on dying at a specific age, but I'm not going to aim to pass on some huge inheritance. I won't be having any kids, so I really only need to potentially care about helping out partners if I die first (though they ideally should be financially not depending on anything from me anyway, so passing something along would just be a bonus). Anything I have leftover would likely end up split in some combination between living partners, close family, and maybe some sort of animal charity.

                        5. In a brief summary, what is your vision of retirement? Ex. traveling the world, spoiling grandkids, living somewhere you've always dreamed of, or just being free from the necessity of work to pursue personal hobbies, etc).
                        Traveling is big on the list, but mostly just being free of the need to work and having plenty of time to enjoy the people I love and some hobbies, like puttering around in the garden and flower beds. Even with enjoying travel, I'm still the type to probably only want to take a few trips a year, and I'm not a luxury expensive traveler.

                        Comment


                          #13
                          Great questions to think about.

                          1. When do you plan to retire?
                          Sticking with base of 63 or 65 (currently 39) for now. But ultimately I hope to keep working for as long as I can. Or when I pay off my house before 60?

                          2. How much money do you think you will need?
                          Goal right now is 1 million, which I'm sure will go up, depending on health expenses.

                          3. How long do you think you need your money to last?
                          For as long as I'm alive

                          4. Are you planning to spend it all, or are you planning to leave something to others?
                          I don't plan to get married nor have kids, so I'll leave whatever left for charities, and nieces and nephews.

                          5. In a brief summary, what is your vision of retirement? Ex. traveling the world, spoiling grandkids, living somewhere you've always dreamed of, or just being free from the necessity of work to pursue personal hobbies, etc).
                          First response is travel more no matter what stage of my life. I really have no desire or rush to retire earlier even though I believe I'm on good path for retirement savings. I'd rather retire later, meantime continue traveling and take more vacations, while continuing to work. Or just change careers, volunteer, and/or continue to my education to add new skill sets out of boredom.
                          "I'd buy that for a dollar!"

                          Comment


                            #14
                            1. When do you plan to retire? 5 years from now. We'll be 65 and 59. Will be FI but we work from home so will probably still work some.

                            2. How much money do you think you will need? $2.5-$3M - I'd like $140k per year so we can travel as much as we want but I think that is on the very high side

                            3. How long do you think you need your money to last? 30 years

                            4. Are you planning to spend it all, or are you planning to leave something to others? Leave an inheritance for our kids.

                            5. In a brief summary, what is your vision of retirement? Ex. traveling the world, spoiling grandkids, living somewhere you've always dreamed of, or just being free from the necessity of work to pursue personal hobbies, etc) - travel, travel, travel. Our country and world have so much to offer. We might still work some but I want to be able to pick up and leave on at a moment's notice. Course, we have a dog and cat so spur of the moment has to wait until they are gone.

                            Comment


                              #15
                              Originally posted by cypher1 View Post
                              5. In a brief summary, what is your vision of retirement? .... and/or continue to my education to add new skill sets out of boredom.
                              ooo.... I forgot about that. I think it would be alot of fun to just live near a university & audit random classes just for the sake of continuing to learn. Likewise, having the freedom to pick up (or pursue) hobbies at will would be great. Maybe I could go to cooking school and get formal training beyond what I've learned over time out of passion...
                              "Praestantia per minutus" ... "Acta non verba"

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