Retiring early..How much?

[boatnam2]

Do you think you could live on? As i get older i think how much would it take for me to sit at the river and not worry about life, maybe be a wet t-shirt cordinator or something....I think about 5k a month Im done...

 

[Sun burners]

I think about this every morning around 0415.
$7k so I can sponsor the wet Tshirt contest.

 

[Yldboyz]

Do you think you could live on? As i get older i think how much would it take for me to sit at the river and not worry about life, maybe be a wet t-shirt cordinator or something....I think about 5k a month Im done...

Health insurance and health conditions will play a big factor in your retirement......

 

[shintoooo]

Is your house paid off?

 

[Hammer]

Do you think you could live on? As i get older i think how much would it take for me to sit at the river and not worry about life, maybe be a wet t-shirt cordinator or something....I think about 5k a month Im done...

I wouldn't worry about it, between Obama and social security you should be more than ok.

 

[HavasuHank]

i have 15-20 years to go and i'm already thinking about how much i'll need.

 

[YoPengo]

Is your house paid off?

One is... The other... Ten more years if I don't get stupid and move.


Sent from my iPhone using Tapatalk

 

[boatnam2]

I will have insurance and no house payment, Plan on staying rent free at river 4-6 months other 5 or 6 months i will rent somewhere. Not to worried about that part.

 

[Paul65k]

The real question is HOW do you want to live.

We have a house right on the water in Havasu that costs me like $10K a year (all in with taxes, water/sewer/garbage, insurance and electricity)....so in that case you could actually live there on Social Security......but I'm not really thinking that I want to live like that.....at least not yet.

I think the number is $5K a month if your house and all the toys are paid for. That will pay for Food, utilities, healthcare, dining out, gas for the boat, a nice trip somewhere every year, and all the other daily stuff......you might even be able to do it for $3K if you really throttle back and don't go out much.....but $5K will cover it in today's dollars.......unless of course you drink like some on here then you need to add another $1,500 a month just for Beer

An alternate plan of course would be to become a "Manwhore" and find some Sugar Mommy to keep you in the style you would like to become accustomed to....but she'd probably be like 90 or something for old guys like us :eek

 

[boatnam2]

I wouldn't worry about it, between Obama and social security you should be more than ok.

Obama and social security will both be gone by then lol.

 

[ChiliPepperGarage]

My biggest worry is massive inflation once they start to devalue the dollar to reduce the deficit. Whatever retirement savings you have now could have one tenth of the current buying power.thumbsdown

 

[Ziggy]

Do you think you could live on? As i get older i think how much would it take for me to sit at the river and not worry about life, maybe be a wet t-shirt cordinator or something....I think about 5k a month Im done...

Health insurance and health conditions will play a big factor in your retirement......

Oh yeah, the living part on $5k is doable, it's the staying alive part later on that might fucj up that plan.
All kinds of thought on it now that I'm over 50, how many new cars would I really need going forward, less "stuff" in general, just what you need. Other stuff like lower maintainence yards too, all kinds of crap you have but could do without easily to simplify life.
What kind of plan do some of you have, if any??

From my POS T-mobile thingie

 

[Outdrive1]

The real question is HOW do you want to live.

We have a house right on the water in Havasu that costs me like $10K a year (all in with taxes, water/sewer/garbage, insurance and electricity)....so in that case you could actually live there on Social Security......but I'm not really thinking that I want to live like that.....at least not yet.

I think the number is $5K a month if your house and all the toys are paid for. That will pay for Food, utilities, healthcare, dining out, gas for the boat, a nice trip somewhere every year, and all the other daily stuff......you might even be able to do it for $3K if you really throttle back and don't go out much.....but $5K will cover it in today's dollars.......unless of course you drink like some on here then you need to add another $1,500 a month just for Beer

An alternate plan of course would be to become a "Manwhore" and find some Sugar Mommy to keep you in the style you would like to become accustomed to....but she'd probably be like 90 or something for old guys like us :eek

Good post. I'm there now. This fixed income shit sucks though. I haven't worked since last year. I'm still young and like to buy shit. Not enough to go back to work though, lol.

 

[boatnam2]

The real question is HOW do you want to live.

We have a house right on the water in Havasu that costs me like $10K a year (all in with taxes, water/sewer/garbage, insurance and electricity)....so in that case you could actually live there on Social Security......but I'm not really thinking that I want to live like that.....at least not yet.

I think the number is $5K a month if your house and all the toys are paid for. That will pay for Food, utilities, healthcare, dining out, gas for the boat, a nice trip somewhere every year, and all the other daily stuff......you might even be able to do it for $3K if you really throttle back and don't go out much.....but $5K will cover it in today's dollars.......unless of course you drink like some on here then you need to add another $1,500 a month just for Beer

An alternate plan of course would be to become a "Manwhore" and find some Sugar Mommy to keep you in the style you would like to become accustomed to....but she'd probably be like 90 or something for old guys like us :eek

I like option #3 lol....Im just thinking out loud, more of a should i work another 10-12 years and be pretty set or throttle back and enjoy life at 55....

 

[2Driver]

I did the math like this:


Took what we spend a year currently
ADDED:
$20K a year for medical
Add 20% for inflation, emergencies, unexpected house repairs, new car etc
Then double that figure.

Many people make the mistake of setting their goal based on what they spend. I ask them what about income taxes and get a blank look. :eek

If you spend $50K a year you better plan on a gross income of $80K
If you spend $100K a year you better plan on grossing about $200K

 

[boatnam2]

I did the math like this:


Took what we spend a year currently
ADDED:
$20K a year for medical
Add 20% for inflation, emergencies, unexpected house repairs, new car etc
Then double that figure.

Many people make the mistake of setting their goal based on what they spend. I ask them what about income taxes and get a blank look. :eek

If you spend $50K a year you better plan on a gross income of $80K
If you spend $100K a year you better plan on grossing about $200K

Dream killer lol...

 

[TPC]

$5k per mo. minimum after taxes budget if you want reasonable quality motor sports hobby toys and the house is paid off.
Remember to figure in a yearly COLA too.

 

[boatnam2]

Let me ask the question in a different way, at 55 what kind of nut do you think you would need to be able to retire..Million, 2 million, more or forget it your a life'r!

 

[Ziggy]

I did the math like this:


Took what we spend a year currently
ADDED:
$20K a year for medical
Add 20% for inflation, emergencies, unexpected house repairs, new car etc
Then double that figure.

Many people make the mistake of setting their goal based on what they spend. I ask them what about income taxes and get a blank look. :eek

If you spend $50K a year you better plan on a gross income of $80K
If you spend $100K a year you better plan on grossing about $200K

Is that a notable financier formula or one you prepared for yourself? Are you trying to maintain your quality of living standards or would you be okay with less? This is the kind of questions I keep repeating in my head..................:screwy:

From my POS T-mobile thingie

 

[2Driver]

Let me ask the question in a different way, at 55 what kind of nut do you think you would need to be able to retire..Million, 2 million, more or forget it your a life'r!

Back into it.

I'd figure 5% return taxable if you don't want to risk principal - and you don't want to.

1,000,000 x .005 = $50K, less taxes and you are left with 35K a year. Hard to buy a new truck, boat, reroof the house or co pay a surgery on that. I'll tell you retirement planning can be scary.

 

[Mandelon]

Jim you will have to cut back on the chorizo to retire.

I have a few rental units that if I continue to keep paying a little extra on every month will be paid off by the time I'm 60. That would bring in a little over $6500 a month (in today's dollars). Even after the mortgages are paid off there will still be some expenses like water, maintenance and taxes. I plan to build a duplex on a vacant lot, that will add another $2000 a month to my inflation resistant income. Rentals can be a pain, but if you buy cheap, rehab and hold long term they make you serious money in appreciation and rents. You can hire a Property Manager or swap into a commercial property at some point instead. At least $2,000,000 in assets beyond your housing.

There's some IRA's and other investment stuff that is finally growing again. Add in the possibility of receiving social security and it ought to work OK. I can always work a little part time at a golf course or do some building maintenance, get hired on as a special inspector...some shit like that. Look into getting certified as a welding inspector or for special epoxy inspection....all you need is some certifications and you'll make good money part time.

I have two kids to put through college first.

But yeah, I'd say with your housing covered $5K spending money is alright... but EVERYTHING will be costing more....meat, fuel, utilities, milk, health care, insurance....ugh. So consider moving out of SoCal to somewhere less expensive. Like Panama, Costa Rica or Belize...or Texas.

 

[2Driver]

Is that a notable financier formula or one you prepared for yourself? Are you trying to maintain your quality of living standards or would you be okay with less? This is the kind of questions I keep repeating in my head..................:screwy:

From my POS T-mobile thingie

I did it myself many years ago and set it as my goal and we are there with some hard work and luck too. We saved stupid percentages from the day we got married and it made us work that much harder to get things we wanted or get smart about buying stuff like used boats vs new.

I figured an increase in retirement spending but that is me. In early retirement I have to pay all medical, no SS for the 1st 15 years and we planned on getting out and doing more plus the kid goes to college.

People think they will need less but it is usually hard to retreat a lifestyle and life's expenses don't stop. 10- 15 years from now you'll need a new car, how do you afford that on a "living budget"? You have to plan for everything possible . The truck never stops needing tires, hot water heaters still blow and all kinds of stuff happens that if you don't over shoot some ( Im more anal than most) then you end up in trouble at some point and if you are 70 and in financial trouble it would really suck.

 

[Flyinbowtie]

Do everything you can to figure in the stuff that won't stay constant.
Your gas bill, theoretically, should go down. Not driving to work every day is going to save some of you guys a lot of money...gas, wear and tear on a commuter, serious $ to be saved there.

Your medical insurance for you and the spouse is gonna go up. Way up. Obama care isn't going to fund like they want it to which is going to drives prices through the roof. When you are old enough for medicare, or get screwed up and wind up on Social Security Disability, you will need to buy a supplement.
They ain't cheap.
Inflation, as Chilipepper said, is going to hit at some point, there just isn't an option. When it does, your fixed income dollars are going to be eaten from the other end as you try to live on them.
You think that being retired will cut back the monthly nut, and it will, but if you and your wife are still healthy and want to do things, the cost of "living" vs. the cost of "being alive" comes in to play.
Some more advice for the average workin' people...
have all your toys bought and paid for when you pull the pin.
If you want to do a retirement car or boat build put the cash away for the project while you are still making the bucks. The play money dries up quickly when the checks cut back.
If you are planning to retire before you are 59-1/2 remember that 401k or 457b nest egg you have stashed cannot be accessed (without penalty) until you get to that birthday. Put that money out of your mind if you can't get to it.
If I was physically capable of a part time job to pull in cash for my toy projects I would do it in a heartbeat. I have a very nice complete shop and had a bunch of people wanting me to do wiring work on their new build and refreshed street and hot rods. I had planned to do it when I retired but can't with my back.:grumble:
Part time work for toy money is way different than having to "work" every day. Guys I know that retired before they were 55 have all found little niche jobs to keep them busy, and almost all are 180* out of what they did, "for a living".
Big decisions, lots to think about.
Save more than you need, spend less than you want to, and plan for the unthinkable, because it really does happen...and it will screw your life up in ways you cannot imagine.

 

[primetime]

I am just going to hope that the $20,000 a month I net on rentals will take care of my retirement.

 

[primetime]

Shit! There I go dreaming again

 

[boatnam2]

I am just going to hope that the $20,000 a month I net on rentals will take care of my retirement.

That will be cutting it close, I hope your ok owing a jet boat.....

 

[primetime]

40' skater with twin Berkeley jets.

 

[boatnam2]

Im off work now, so i will worry about it again on Monday...Mandelon chorizo is cheap its the dounts and beer that add up.

 

[boatnam2]

This is a hot topic in my work place, we are being bought by another company and most the guys i work with are in the same boat as me as far as years worked and age and and we are losing a shit load of dough on the back end. Many talk about leaving at 55 so i just was thinking about it and if its possible. I have made too many shitty financial mistakes coupled with a few divorces so my path is pretty clear lol.

 

[79 HUSTLER]

Also remember you may not live forever. I always planned on retiring by 40, ecomony has put a damper on that, but that was with a retiring with a rediculous lifestyle (money wise). I'm 33 now and have a chitty heart and worry about about a heart failure every day,runs in the family (my family also runs deep with cancer). Depending on where you live 5k could be easy, with no mortgage, depending on what happens with insurance.

 

[phuggit]

I've got 9 years to go. As stated, health insurance is going to be the biggest drain on retirement funds. I've been putting everything I can into a veba account.

droidage.......

 

[HBCraig]

I took my Dad's advice. He said you need to be totally debt free and have over 1.5M in the bank aside from your investments. I have a looooonnnnngggg way to go.

 

[79 HUSTLER]

I took my Dad's advice. He said you need to be totally debt free and have over 1.5M in the bank aside from your investments. I have a looooonnnnngggg way to go.

If that were the case alot more of us would be retired..... But you should do it :champagne:

 

[ONE-A-DAY]

7 years to go @ 55 and im tapping out. My wife gets free medical for working 8 shifts a month which she wants to do indefinitely, she loves what she does for a living. The plan is at 55 to spend 8 days a month in California and the rest in Havasu.

At 58 she gets free medical for life so she will retire then. We have three places in havasu, two of which are rental income, plus my residual commissions and her pension we should be set. I can't wait.

 

[plasticman]

You poor bastards, If you were smart you would have been a "FIREMAN", work 10 days a month retire at 52 @ about 90% Plus you would have went out on some kind of disability, 50% income tax! Plus medical, not to bad. then on the other 20 days a month you worked in the real world, @ age 62 you collect SS. I say raise everyones taxes! Somebodies got to pay for this!

 

[outboardrick]

An alternate plan of course would be to become a "Manwhore" and find some Sugar Mommy to keep you in the style you would like to become accustomed to....but she'd probably be like 90 or something for old guys like us

That's my retirement plan :rolleyes

 

[Ziggy]

You poor bastards, If you were smart you would have been a "FIREMAN", work 10 days a month retire at 52 @ about 90% Plus you would have went out on some kind of disability, 50% income tax! Plus medical, not to bad. then on the other 20 days a month you worked in the real world, @ age 62 you collect SS. I say raise everyones taxes! Somebodies got to pay for this!

IMHO anyone who put their lives at risk for the greater good of the public deserves better bene's. :thumbup:

From my POS T-mobile thingie

 

[lIQUIDATEDdAMAGES]

So I'm a new member. Been lurking for a while but first post. For all the entertaining bullshit you idiots post this one is actually relatively useful. I am currently 2 years into my career having recently graduated. Own my boat straight up, recently financed a new truck, and have a little of my student loan to pay off still. Currently contributing 6% of salary to 401k with 10% employer match. What would you have done different in terms of retirement/advice?

 

[SJP]

72 yrs. and still going strong. Never going to retire, shucks 5k month wouldn't cover damages to toys in Parker, let alone anything else. Watch out, a good job may be needed to help family members, if things get tough; keeping my head down and friends close. Good luck all.

I like this plan. No number would make me feel like walking away.

 

[OutCole'd]

I'm fucked. I fugure I can retire about 2-3 years after I die.

 

[Paul65k]

So I'm a new member. Been lurking for a while but first post. For all the entertaining bullshit you idiots post this one is actually relatively useful. I am currently 2 years into my career having recently graduated. Own my boat straight up, recently financed a new truck, and have a little of my student loan to pay off still. Currently contributing 6% of salary to 401k with 10% employer match. What would you have done different in terms of retirement/advice?

So at 53 (54 next month) here is what I would be doing at your age........but most wouldn't at 30 years younger including me at that age probably

If you are truly serious about retiring early I would not have ANY payments of any kind including a new truck (Period) until you get your student loans paid off even if the interest rates are stupidly low.....doesn't matter this is BAD DEBT....both of these things. I suggest that you have ZERO bad debt.

I would have an older truck that I could pay cash for and buy a new truck ONLY after I paid off all of my debts and started to acquire some "Good debt". In my world the definition of "Good Debt" is anything that will appreciate and eventually create a revenue stream for you. It can be argued that a home (Residence) is good debt.....I would suggest that at a young age buy and live in a home with an additional income stream (duplex/triplex) would be a better solution for your first home....and when the time is right and it's throwing off good cash flow then you will have paid off all of your bad debt and be ready to buy that home you want to live in.......and have an income source to pay the payments (duplex/triplex) now paying you from both sides that you now rent out.

I also think that you are making a mistake of only contributing 6% to your 401 (k).....you should be contributing the absolute maximum that the IRS allows (I think it's $17K a year currently) even if that means 20% and learn how to live on what's left after you make your Student loan payments.......actually I'd sell the truck with payments and take that amount and double up on the SL payments until it's paid off.

Does that sound like shit......of course it does, is it fun.....no way, but you have the one thing that almost no one else on this forum has going for you right now and it is fucking priceless.......TIME. You are young (very young relatively) if you pay the small price now you will reap the rewards for the REST OF YOUR LIFE. A dollar saved now is worth 3, 10 years from now and 10, 20 years from now......Albert Einstein once said that man's greatest invention was...."Compound Interest"

You asked for the formula.....that's it.....unfortunately you are probably like the rest of the population (yours truly included) and will blend in some level of self indulgence.......crap if you didn't have those leanings why would you would be on this forum of overindulgence and debauchery :eek

You may not like this answer......but remember, You Asked!!!

All the best!

 

[Paul65k]

I'm fucked. I fugure I can retire about 2-3 years after I die.

It's like the commercial on TV......"at his current rate Bob will be able to retire when he's 153"

 

[2FORCEFULL]

I'm broke as a joke, but I have a nice van , my havasu home has wheels...I'm only 60 so probley live a couple more years..

probley move to havasu heights and park on the hill:cool

 

[Paul65k]

I'm broke as a joke, but I have a nice van , my havasu home has wheels...I'm only 60 so probley live a couple more years..

probley move to havasu heights and park on the hill:cool

Let me put my hip waders on cuz it's getting really deep on this thread :rolleyes

Steve.....sometimes you are more full of shit than a Christmas Goose

 

[POWERCATDON]

So I'm a new member. Been lurking for a while but first post. For all the entertaining bullshit you idiots post this one is actually relatively useful. I am currently 2 years into my career having recently graduated. Own my boat straight up, recently financed a new truck, and have a little of my student loan to pay off still. Currently contributing 6% of salary to 401k with 10% employer match. What would you have done different in terms of retirement/advice?

Buy a Home or Two. And Continue to Make increases to your 401k. and add a couple of ira's. First pay=off your Debt's (school Loans and Truck Payments.)

 

[POWERCATDON]

I'm broke as a joke, but I have a nice van , my havasu home has wheels...I'm only 60 so probley live a couple more years..

probley move to havasu heights and park on the hill:cool

Say's the Maga-Million Lotto Winner/Used Boats Salesman. LOL

 

[2FORCEFULL]

So I'm a new member. Been lurking for a while but first post. For all the entertaining bullshit you idiots post this one is actually relatively useful. I am currently 2 years into my career having recently graduated. Own my boat straight up, recently financed a new truck, and have a little of my student loan to pay off still. Currently contributing 6% of salary to 401k with 10% employer match. What would you have done different in terms of retirement/advice?

first off, need to know your age... when i was 15 I worked the hardest and was aways broke...didn't think I'd make it to 45 so that was my retire age...

at 30 owned more stuff but still broke...at 35 I went in the clothing business...never did anything like it before... at 45 retired, sold the chain of stores
retired a millionaire,..... bad stock, realestate, and crazy spending habits (boats& streetrods) sucked that up.wasn't drinking then.....had to sell our havi home to fund the new project
taxes on vac. land is surley gonna finish me off.... i'm paying school tax to 10 different districts... that and land owner assoc. fees...
I'm just about to quit pay'n the tax and let the land go... over a million worth that went to dam near zero.......can't give it away...

so, my advise to anyone is to make sure you always have a van with a bed...that way you can spend your last years in a van down by the river getting golden brown as you srivel up to an old raisen...PLAYER...:cool

 

[2FORCEFULL]

Buy a Home or Two. And Continue to Make increases to your 401k. and add a couple of ira's. First pay=off your Debt's (school Loans and Truck Payments.)

that works till you get the renter from hell that ties your property up in fed court for two years...

 

[2FORCEFULL]

Let me put my hip waders on cuz it's getting really deep on this thread :rolleyes

Steve.....sometimes you are more full of shit than a Christmas Goose

I can still get a big ass grin when I think OF all the girls i've bang'ed and all the money I spent..:finger

we sill need to hook up for dinner in havi...or you come to vegas

 

[2FORCEFULL]

The point being,most won't be doing what they thought when they are 65