Posted: 10/5/2012 6:05:20 AM EDT
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How much retirement savings will you need to retire comfortably in 30 years?
Given that debt should be minimal as housing should be paid off. |
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There is no set amount. Considering the cost of healthcare and insurance in your older years you will still need some form of income. If I'm lucky there will still be a pension for me in 17 years. That will let me "retire" with a part time job until I can draw Social Security (again, if its still there). The way things look now I will probably end up working till I die or become such a physical mess I can simply no longer work. Hopefully the death panels will have a merciful way to euthanize us.
FWIW my land is paid for and I'm renting at the moment while building my place so at least my home will be free and clear. |
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I will retire in less than 20 years. I will need around 3 mill saved assuming hyperinflation doesn't take hold in this country. That's optimistic unless you're already a person of considerable means. I have a pretty good nest egg so far. Hmmm..... I can get you to your goal quicker if you want to help me move some of my family's money out of a Nigerian bank. IM me for details. |
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The amount of dollar denominated assest one would need will be heavily influenced by the rate at which the FedReserve inflates the money supply.
Will it average 5% a year? 10%? 20%? Will investors stop buying FedGov junk bonds? There are too many variables to make an informed guess. |
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Quoted: Quoted: Quoted: Quoted: I will retire in less than 20 years. I will need around 3 mill saved assuming hyperinflation doesn't take hold in this country. That's optimistic unless you're already a person of considerable means. I have a pretty good nest egg so far. Hmmm..... I can get you to your goal quicker if you want to help me move some of my family's money out of a Nigerian bank. IM me for details. Sorry, I just invested it all in the beanie baby and beef jerky franchise for all the gun shows in the southeast. I am gonna be rich!
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In TODAY'S dollars, I need about $1,500,000 to retire with some sense of security, no frills, and with preserving my capital as a primary goal. I figure that will give me $45,000 to $60,000 in annual retirement income without being too aggressive.
I'm shooting for much more than that though by savings 25% of my gross plus any bonuses or raises along the way. |
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The commonly used metric is you can withdraw 4% or so from a conservative portfolio (lets say 50% / 50% mix) per year and it would never run out. So if you can get to $1 million, you could withdraw $40k / year basically forever. Make adjustments accordingly. Only you can determine what standard of living you will need in retirement. Also, so many 'x-factors'- what happens to SS, stock / bond market fluctuations, inflation rates, etc. 4073 |
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I don't think anyone in my age group is expecting to see anything from social security. For us it is not SSI it is SS tax. This makes it even more important to plan to support ourselves in our later years. How old are you? There is no way in hell you will get 'nothing'. You may not get anything like what the govt. is promising currently- but to just write off all your contributions is pure surrender. I usually plan on 70% or so of currently stated benefits. 4073 |
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Quoted: The commonly used metric is you can withdraw 4% or so from a conservative portfolio (lets say 50% / 50% mix) per year and it would never run out. So if you can get to $1 million, you could withdraw $40k / year basically forever. Make adjustments accordingly. Only you can determine what standard of living you will need in retirement. Also, so many 'x-factors'- what happens to SS, stock / bond market fluctuations, inflation rates, etc. 4073 In 30 years, that 40K will be like 10K now.  |
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I don't think anyone in my age group is expecting to see anything from social security. For us it is not SSI it is SS tax. This makes it even more important to plan to support ourselves in our later years. At 31 I know I'm pretty much just coughing up $600 per month to keep grandma in depends for another few years. I will never get a return on the tens of thousands stolen from me over the years. 
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The commonly used metric is you can withdraw 4% or so from a conservative portfolio (lets say 50% / 50% mix) per year and it would never run out. So if you can get to $1 million, you could withdraw $40k / year basically forever. Make adjustments accordingly. Only you can determine what standard of living you will need in retirement. Also, so many 'x-factors'- what happens to SS, stock / bond market fluctuations, inflation rates, etc. 4073 In 30 years, that 40K will be like 10K now.
I don't think you really need a lot to live on when retired. You have to be able to cover your house taxes and utility bills. Unexpected expenses (AC dying, roof leaking) happen but not all that often. |
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Quoted: Quoted: I don't think anyone in my age group is expecting to see anything from social security. For us it is not SSI it is SS tax. This makes it even more important to plan to support ourselves in our later years. At 31 I know I'm pretty much just coughing up $600 per month to keep grandma in depends for another few years. I will never get a return on the tens of thousands stolen from me over the years. <non working libtard>Shut up and pay your fair share</ non working libtard> |
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I don't think anyone in my age group is expecting to see anything from social security. For us it is not SSI it is SS tax. This makes it even more important to plan to support ourselves in our later years. At 31 I know I'm pretty much just coughing up $600 per month to keep grandma in depends for another few years. I will never get a return on the tens of thousands stolen from me over the years. Basically this. |
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I would like to retire with at least $50k in annual income, in 2012 dollars. Without a house payment, that should be a pretty comfortable retirement. Assuming I retire in 40 years, and inflation averages 3% a year, that would translate to $160k a year in income.
To generate a retirement income of $160k a year, I would need to have about $4 million at retirement age. That assumes I withdraw 4% annually and the principle should deplete slowly enough to carry me at least 30 years. To meet that number, I need to save about 30% of my income right now (which I'm not doing), but hopefully as my income rises over time, that percentage should drop. My wife is a teacher, so she should have a pension, and of course SS when we retire. However, I set those retirement goals assuming those other incomes don't happen, so our retirement income would be nearly double my goal if it all works out. |
| No clue. I'm in my mid-20s and need to start digging in to it more. I contribute to a 401k and all that, but to be honest it fucking scares me to death to think about the amount of money I need to pack away. Especially the thought of skipping out on things in life now to put away money for an age and event that I may not even live to see. |
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As someone who is retired its the medical cost I should have thought through better.
Currently, if you retire at age 62 one gets reduced SS benefits but no medicare until age 65. If you retire even earlier one better plan on having medical because you will be paying full freight. Forget about dental and hope you have good teeth because for what it costs to pay cash one might as well get all there teeth pulled and get fitted with dentures while they are still working and have insurance Most people that retire are just happy to have a roof, food and medical. If you want all the fun travel, vacations, the summer and the winter houses, a real casket instead of an urn. You will need a lot more. If we hadn't saved every penny we could for over thirty years we would most likely be living in a cardboard box. Anything one gets from SS is a bonus but plan like you will never get a penny of it. |
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I'm 39. My calculations are in flux right now. I never assumed I would receive anything from SS. I did, however, assume that I would receive my National Guard retirement benefits at age 60, actually age 59 due to my second deployment. I have a bad feeling that the National Guard retirement won't be there in 20 years. That really changes my outlook on what I'll need. |
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There is an easier way to handle this if you are 20+ years from retirement:
1) After making a reasonable family budget, and actually sticking to it, how much can I reasonably invest for retirement? <––- then save that much and try to put in a little extra. 2) Spend some time teaching yourself about investments. Remember this; EVERY investment advisor gets paid one way or the other out of your money. So don't expect them to have your best interest at heart. Look up a Future Value calculator and do the math on how much difference 1/2% to 1% extra return (high cost investing vs. low cost investing) makes over your lifetime. The answer is a LOT!!. In other words don't worry about how much you need. Instead save as much as you can, and invest it wisely. |
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No clue. I'm in my mid-20s and need to start digging in to it more. I contribute to a 401k and all that, but to be honest it fucking scares me to death to think about the amount of money I need to pack away. Especially the thought of skipping out on things in life now to put away money for an age and event that I may not even live to see. You know what's even worse? Getting to old age and being broke. When you are young you can tolerate slumming it and working hard for your money. When you are old, it's not going to be nearly as tolerable to drag your ass to work every day just to pay bills. Just get used to the idea of putting aside 15%-25% of your income and pretend like the remaining 75%-85% is your total income on which you can base your standard of living. It's not a sacrifice if you get in the mindset that it was never there to spend in the first place. |
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I don't expect to retire. By the time I reach retirement age, social security will be gone, and any money in 401k, investments etc will be raided by government or worthless due to inflation. So I'll just work as long as I can, then I'll die. Unless your 401k money is in cash, it won't just inflate away. If your 401k is in stocks, then the value of those stocks will inflate right along with inflation. Stocks are priced based on earnings and what do you think earnings are going to do if Coca Cola Company is selling $10 cokes in the year 2030? |
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How much retirement savings will you need to retire comfortably in 30 years? Given that debt should be minimal as housing should be paid off. 30 years? If things continue the way they are now, I am not sure there will be such a thing in 30 years. If there is, I would say $2,000,000 min. |
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At the ripe old age of 20, took a job that purposely yielded me a good retirement at a bit of the expense of salary and decided at that time to stick with it. I am now retired and have enough to keep on keeping on at the rate I was during the working years which was moderate but not dead.
The only debt I put myself in was the purchase of a house and avoided large frivolous expenses. I did move from the area I was to Tennessee where living is a little easier to do but all that was planned back then. My advise to young people is consider your distant future the day you start working. It usually falls on deaf ears.
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In other words don't worry about how much you need. Instead save as much as you can, and invest it wisely. I don't agree with that. It's hard to retire with enough money if you never set a goal. Setting a concrete goal helps you track your progress throughout your life, instead of just saying "I'm saving and saving, I hope it's enough". It also helps you budget and plan your saving vs spending right now. What good is it to live like a pauper and save 40% of your income, if you never enjoy it? You could save $10 million for retirement and get hit by a bus the day before you finally retire and you have nothing to show for it. Setting a retirement goal lets you make sure you're on track to the retirement you want and you know exactly how much you can safely spend right now without compromising that. Trying to save every possible penny without setting a "finish line" to cross will drive most people crazy before they retire. |
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How much retirement savings will you need to retire comfortably in 30 years? Given that debt should be minimal as housing should be paid off. You currently need (if retiring today) between $1.8 and $2.5 M of money in various instruments, and everything you own payed off. Going with 4% inflation per year: You will need between $5.8 and $8.1M. |