Retirement

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Tom-D

Tom-D

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Tom-D
how much equity or money would it require you to say "I quit- I'm outa here. cya"
 
Trying to establish your gofundme request?

Some refer to this as the "**** You" money.

I'd say 10 yrs of current pre-tax earnings would be enough.

Also, one's age is a factor in the FY calculation.
 
Hope your back will get better so you don't have to retire because of that!
 
What are your expenses?

Got the house paid for?

Like new cars or old cars?

Gonna live in NYC or SF, or gonna live in Podunk, Mississippi?

How high of a standard of living do you want?

What will you do for medical insurance / care?
 
Tom-D said:
how much equity or money would it require you to say "I quit- I'm outa here. cya"
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I used to think all of it, but as I get older I'm thinking maybe just half.

Nauga,
and a little stinkbait
 
That is a personal thing. Some can live on nearly nothing. All the money in the world might not be enough for others.
 
Tom,

I went through this in 2015. I wanted to work to age 62 but the changes in the engineering department really soured me. Our new boss, in his first meeting told me I was extinct. My way of running projects and being so hands on and in the field was no longer the way things were done. I went home and worked the numbers.

I ran the budget numbers, factored in both of my retirements, Mary's SS, my investments and an annuity set up after an accident in 85. We listed our house for sale and i retired the day of settlement.

We have no house payment here at the beach home, no credit card debt and the plane is paid for. The budget numbers we ran are still looking good two years later and we are used to our income. I'm looking forward to my SS at 62 as a pay raise and added savings. I did take on a consulting job this year but it's over on Friday. It was fun, good money and provided extra play money.

Bottom line, run those numbers and see what you do compared to the budget. It really wasn't as much as how much, but more is the budget doable. Not having to deal with work unless you want to is priceless.
 
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Greg Bockelman said:
That is a personal thing. Some can live on nearly nothing. All the money in the world might not be enough for others.
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Very true and it HIGHLY depends on where you live/want to retire. The pot of money you need to retire in Hawaii is a whole lot lot more than what you need to retire in West Virginia.
 
It truly does depend on how you want to live. I was faced with this in 2011 at age 60. Company I worked at was going to layoff a lot of people. They first offered very lucrative early retirement package. I originally intended to stay, but I got a heads up that I might end up on the "list". I took the package and figured out how to stretch a portion of the money until I hit 62 and could collect SS. My wife and I had worked hard to clear ourselves of all debt except for the mortgage, which we were a couple of years in on a 10 year refi. We have never lived a lavish lifestyle but have kept our partnership in the airplane and still get to fly. I keep busy as the President of my EAA Chapter.
 
Tom-D said:
that has nothing to do with the question.
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Jeez Tom, there were untold numbers of ways you could have phrased that so that it wouldn't sound so antagonistic and whiney to someone that was wishing the best for you.
 
JOhnH said:
Jeez Tom, there were untold numbers of ways you could have phrased that so that it wouldn't sound so antagonistic and whiney to someone that was wishing the best for you.
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Not Tom's way. :D
 
Depends on the life style you hope to live,after retiring.
 
It'd have to be 30+ years of earnings, lol. I don't require much to live on, as $100K would pay off the house and OK isn't exactly expensive as far as COL goes. However, making that last for the next 60 years is a different story, or at least the next 32 until SS kicks in (which will likely be 70 if SS is still around).
 
How long did your ancestors live?
(Dying at 70 is a lot different than 100.)
 
Take your annual expenses and add a safety factor to it. Say your projected annual expenses are $70k. Add a safety factor of say 10% to $77k. From that figure, subtract any pensions or social security benefits. Let's say those total to $35k. Your shortfall is $42k. Assuming you are around 65 years old, conventional financial planning says you need about 25X the annual shortfall $42k X 25 = $1,050K for a 95% chance of not running out of money for 30 years. That number obviously changes with supplemental income, lowered expenses, retiring at older age, dying early. It's a good place to start.
 
I think Tom is retired from the Navy. If so, he has medical for life (Tricare) which functions as secondary when Medicare kicks in at 65, plus a military pension. Plus Social Security so just with these is a pretty good start.
 
There are many calculators online.
If you have your own retirement plan ie mutual funds investment in an IRA, you will always wonder if you are going to make 10% or 0% in any one year. Yes we can look at averages, yes you can put it in vehicles which historically do not fluctuate, but there is always going to be some insecurity.
 
Tom-D said:
how much equity or money would it require you to say "I quit- I'm outa here. cya"
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I've said "I quit, outta here, see ya" numerous times without retiring. No need to retire at all.

Amount of money needed is the same as any other time... income vs outflow. How long can I eat assuming everything else is paid off? If I have plans to do other stuff, save for those.

Not ever going to sit in a chair all day and die, unless I physically can't get out of it. Seen people who retire to do that, dead in a few years. Have to have something to do, and at that age, people to annoy. Haha.

We kept having to tell my late 80s grandfather to stop climbing up on the roof to do maintenance. We would come over and he could hand us tools. He lived to early 90s. Two bouts of cancer were all that ever slowed him down for a few weeks. Yeah, he needed a couple of naps a day, but when awake, there was stuff to do. He busted a rib in a fall a month before he decided to stop eating and leave the planet. All his friends were dead, and he'd outlived his spouse by a decade.

Dad would've been the same way if he hadn't popped a vessel in his brain stem at 61.

Grandfather who "retired" with a full pension, and sat in a chair, was dead around 60. Screw that.

The happy women in Karen's life who are in their 80s sing with her 150 woman competition chorus and keep up just fine. Only thing that slowed her dad down was dimentia, and that only lasted a few years.

You're either living or you're dying.

Heal up and get back to living, by the way. Sorry to read about your back. Getting injured as we get older sucks, it just takes freaking forever to heal up. Just keep trying to get out of that silly recovery bed because you've got more interesting things to go do.

Karen says she always knows which patients are going to get better because they're the ones that won't stay in the damned bed.
 
JoseCuervo said:
What are your expenses?

Got the house paid for?

Like new cars or old cars?

Gonna live in NYC or SF, or gonna live in Podunk, Mississippi?

How high of a standard of living do you want?

What will you do for medical insurance / care?
Click to expand...

Answer those as if they were asked directly, we know each person will have their own requirements
 
Let'sgoflying! said:
. . . you will always wonder if you are going to make 10% or 0% in any one year. Yes we can look at averages, yes you can put it in vehicles which historically do not fluctuate, but there is always going to be some insecurity.
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There are only two certainties, death and taxes. Behind that, it's all projections, guesswork and hope.
 
A high-up political leader once said that anyone with over $3.2 million in retirement funds was "wealthy".

Depending on where you live and your life style, that may not be enough or it may be too much. For me, given the anticipated rates of return, life expectancy, and place where I live, that would not be enough.
 
Hank S said:
There are only two certainties, death and taxes. Behind that, it's all projections, guesswork and hope.
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I'm not an insurance salesman. BUT...a single premium immediate annuity can remove the uncertainty of running out of money. No doubt about it, there are downsides but it can serve a useful purpose for some people. It does eliminate the uncertainty of cash flow. Now whether it's inflation adjusted or sufficient, that's up to the purchaser to evaluate.

This is a strategy many Fortune 500 companies have used to get pension liabilities off their books.
 
mscard88 said:
I think Tom is retired from the Navy. If so, he has medical for life (Tricare) which functions as secondary when Medicare kicks in at 65, plus a military pension. Plus Social Security so just with these is a pretty good start.
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The question wasn't about me or my retirement. I have been retired since 07, pretty much doing what I like.
wouldn't retiring these times be different?
simply curious as to How you would figure it out.
 
Walboy said:
^ That does nothing to address the question.
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It is a device he uses when he doesn't know what the subject is, but has an unstoppable need to spew.

The amount each person needs is unique to each person. Assuming this thread is about Tom, Tom will need to answer the lifestyle questions, or, otherwise it ends up being a lot of anecdotes of questionable value.
 
I was once told retirement was the ability to quit doing the stuff that wasn't fun.
 
Tom-D said:
Answer those as if they were asked directly, we know each person will have their own requirements
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Were you asking this thread on your behalf and situation, or was it rhetorical and / or generic, and had nothing to do with anyone in particular.
 
wsuffa said:
A high-up political leader once said that anyone with over $3.2 million in retirement funds was "wealthy".

Depending on where you live and your life style, that may not be enough or it may be too much. For me, given the anticipated rates of return, life expectancy, and place where I live, that would not be enough.
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What would cause one to not be able to live off of $3.2 million in retirement funds?

That is a large chunk of change, and could generate significant income.
 
JoseCuervo said:
It is a device he uses when he doesn't know what the subject is, but has an unstoppable need to spew.

The amount each person needs is unique to each person. Assuming this thread is about Tom, Tom will need to answer the lifestyle questions, or, otherwise it ends up being a lot of anecdotes of questionable value.
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JoseCuervo said:
Were you asking this thread on your behalf and situation, or was it rhetorical and / or generic, and had nothing to do with anyone in particular.
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yes I do ask questions out of curiosity of how others do things.
 
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Tom-D said:
The question wasn't about me or my retirement. I have been retired since 07, pretty much doing what I like.
wouldn't retiring these times be different?
simply curious as to How you would figure it out.
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Doing alright. Retired 3 1/2 years ago at 65. Military pension, SS, and a healthy account at Vanguard and other investments. So far so good.
 
Tom-D said:
yes I do ask questions out curiosity of how others do things.
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Ok.

Much different.

I know people with pensions that spend every dollar of retirement income, every month, as they know new money comes in the next month.


I would not be wired that way. I have saved and invested every day of my life since I was 8 years old, and I can't see that changing. I am sure I will want to keep my estate growing during my life time. Therefore, I likely need enough that I can live on only a small portion of the income.

I will not be spending my kid's inheritance.
 
Like the best type of woman, or just about any sort of political issue, your obvious best source of information is random people on the Internet.

In other words, talk to a pro.

Did that a couple of years back. The guy looked at our current assets as well as the pension I'll be getting from work. I asked, "When will I be able to retire and maintain my current life style?"

He looked at me and said, "Now."

I kept working because I liked what I did...and it was great to work with a bunch of very intelligent people. But I completed the latest program that I was lead engineer on, was told there were two more programs in the wings, and decided I just didn't want to stand up another brand-new spacecraft system. Gave my notice a couple of months back, effective 1 March. The long notice gave management enough time to bring in a couple of eager young space cadets to lead the new programs.

Ron Wanttaja
 
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