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Orange Blooded [3036]
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Question about retirement savings?
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Jun 14, 2023, 4:24 PM
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If you read the “experts” there’s a lot of difference of opinions on how much you should have saved by retirement. There’s the rule of 25 which says have 25 x the yearly salary you want in retirement. Some say much lower. Also, some say plan to withdraw 3% off of your investments annually and some say as high as 5%. I know there are lots of variables and everyone’s situation is different. What do some of you retirees say? What has been your true experience? My wife wants me to retire early. I’m 59 and a little “skeered”.
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Legend [17407]
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Also consider annual non-discretionary and discretionary spending and …
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Jun 14, 2023, 6:00 PM
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Income streams other than retirement savings. Health and life expectancy are other factors. In other words, plan a budget for your retirement.
I retired in ‘20 and have not had any reduction in my retirement investment portfolio even with the recent market performance. My investment portfolio is fairly conservative.
GL
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All-In [49309]
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there's a significant reduction in Soc Sec at 62.
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Jun 14, 2023, 6:12 PM
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and anyway, that's the first year you can get it. Find your full benefit age, maybe 67?, and for every year you wait after that, your benefit grows 8% thru age 70.
I would not take a reduced benefit at 62, esp if you're concerned about having enough.
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Associate AD [828]
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Re: Question about retirement savings?
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Jun 14, 2023, 8:25 PM
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Tardog We have little in common, but I am 59.
First things first, figure out your life expectancy. My pop and his pop crapped out at 62, so I'm predisposed to spend my savings on hookers and blow, sooner than later. If your ancestors lived to 100, you probably want to be more responsible.
LOL, as the missus worries every day about retirement, and she's freakin' loaded. I never sweat it.
I'm torn, as I don't want to give up anything from the gubmint, but I will probably hold out on the off-chance that I outlive my ancestors.
As a broad rule, I would say, "if you don't need it, don't take it." And then there is more left when you do need it.
And if you are diagnosed with a terminal illness, withdraw everything and live out your months with Estonian hookers. There are no more beautiful people on earth than the Estonians.
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Orange Blooded [3036]
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Re: Question about retirement savings?
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Jun 14, 2023, 8:59 PM
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Lol. I hear you. As for life expectancy ,who knows? Right? But I do have pretty decent family history on my side. I would also say I’m in pretty dang good shape for an old fart. I can run about a 24 minute 5k, knock out 100 push-ups, etc. No meds , no BP problems, etc. Of course I could be walking around with some time bomb and not even know it. If I do retire early I plan to not take the SS until at least 67 as one poster suggested. My biggest questions are around percentage and rate of savings draw down. That’s the big ole scary! My financial planner says we can take 5% annually without worry. That just sounds high to me based on what I read??
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Associate AD [828]
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Re: Question about retirement savings?
Jun 15, 2023, 2:29 PM
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Off the top of my head, I would say that sounds high.
Speaking for myself, if I remain healthy - and my last annual with a new doc came out tip-top - I see no reason why I should start taking SS before 67. Although I basically gig work now, I don't plan to stop any time soon because I enjoy myself.
But if I feel myself starting to decline, who knows?!
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Orange Blooded [3036]
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Re: Question about retirement savings?
Jun 15, 2023, 2:41 PM
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I agree that 5% sounds high but he swears by it. That’s where my big confusion kicks in.
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110%er [7302]
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Re: Question about retirement savings?
Jun 14, 2023, 8:57 PM
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I’m not going to suggest a time or age when you should retire. Others who have already posted here seem to have offered reasonable advice as to what your spending needs will likely be when you retire.
Be sure you’ve thought this part out:
Home mortgage … how many years remaining? What % of your family’s pre-tax income goes towards paying your home mortgage?
IMO, extrapolating the life expectancies of your wife and you based on family history is not a good idea. Overall, developments in therapies for killer maladies such as cardiac and cancer continue to improve. If there is a family history of endocrine problems, these conditions have better tweaked pharma based treatment regimens than before.
All of this is to say that you and your wife will probably outlive the historical family expiration age.
Xxxxxxxx
Here is a big reason why you will want too much money after retirement than too little:
Medicare and Medigap (supplemental) is complicated. These supple tall plans vary enormously with drugs that they reimburse generously vs drugs that they don’t reimburse worth a urinary discharge. The drugs which any given supplemental plan does not reimburse well may be a highly expensive (in the $1000’s per prescription dose). Frequently, the generic version of that expensive drug will not provide the same good therapeutic effect that you get from the (expensive) brand name drug.
(*). For darn sure, you and your wife need to get tires to roof physicals every year and pay particular attention to your blood work. Compare your bloodwork histories and look for trends. Ask your physician about those blood numbers that are changing over time. Ask your physician about what step(s) might be needed for any blood component number that crosses the threshold of the ‘concern’ level.
(*). Medical stuff tends to be the factor which destroys prudently planned retirement planning. My awareness of this is based on taking care of my mother in law for 14 years. Neck deep experience in all of the variables of elderly care for a person with a BUNCH of medical complications.
Good luck with your retirement planning!
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All-In [47970]
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Re: SS, I chose to start taking the reduced amount at 62 for
Jun 15, 2023, 12:49 PM
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several reasons:
1 - Who knows what Washington will do? I don't expect any major changes but they could happen.
2 - A simple math grid shows I break even at 83. Have know idea if I'll make it to 83 but I can deal with this later (that figure does not account for any COLA changes)
3 - It's MY money I put in, and I'd like it back. It IS NOT a gubmint handout.
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Orange Blooded [3036]
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Re: SS, I chose to start taking the reduced amount at 62 for
Jun 15, 2023, 2:22 PM
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More good thoughts guys. Wilbur, the SS is the million dollar question. I plan to take it at 67 but you make points that I’ve wrestled with also. Who knows how long we will live in retirement?
Danny , we don’t have a mortgage. Have not had any debt since age 43 so the debt thankfully is not a factor. Also, good thinking on the medical. I do follow blood work ,etc very closely and have annual physicals. Zero medical issues that I’m aware of. I would categorize my wife and I as extremely active so we work hard at fitness and health. Very good suggestions Danny.
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