Home Forums Hunting & Shooting Hunter's Campfire What amount of wealth

I get your math, but are you really going to be 100% invested in equities during your retirement years? You may need a cart to carry around those balls of steel.

I retired at 53 from full time employment and then worked part time for another 8 years. That 8 extra years enhanced our retirement nest egg. Now, having been fully retired for about 6 years, I now see that I should have given up the extra money and taken advantage of the extra time. I will admit that is one advantage of looking back, you know where you have been.

With about 35 year of retirement times $50K a year equals $1.75M assuming the house is paid off. That doesn't include gains and SS so that's a rough estimate. I don't have expensive tastes but my grandfather made it to 103 after smoking for 40 years so that keeps me working. Inflation, especially today, is going to make these numbers difficult.

I used to think I want to run out of money the day I die but now I realize I want to be so far in debt they won't give me another penny.

I’m thinking somewhere around $5m, that supporting a 3% withdrawal rate would net one roughly $150k per year. For a 50 yo I wouldn’t go higher than a 3% burn rate, but if I was 65 I’d go with something near 4%.

Inflation is a massive worry now, cash is not yielding anything but buckle up, we’ll see 3% in MM accounts with 2-3 years I’m guessing, they won’t be able to hold interest rates this low.

As I said, I have an exceptionally high risk tolerance. But it comes from looking at the actual numbers, not from bravado.

But, lets take a real example. Dot com Nasdaq bust. Took 15 years to recover the lost value in the NASDAQ. Pretty much the worst case scenario. If you had a million dollars, that would mean you would have to live on the returns of about half of that after the bust (500K), at roughly 12% (average NASDAQ returns), let's call it $50K per year for easy math.

OR, you could be "safe", and invest in 70% bonds and 30% equities. And make 5 or 6%. Which is, correct me if I'm wrong, $50 to $60K per year.

So, taking the WORST CASE SCENARIO in the last 40 years, being "all in" in (RISKY) equities is about the same as being "safe". I humbly suggest that being "safe", especially in the current inflationary environment is financial suicide. Especially if you are married, as women are likely to live into their nineties. They HAVE to have growth in their portfolio, or they'll eat it all.

We've been retired since 2009 just living off a few rental properties and a 100 head of momma cows. Being debt free and living a modest lifestyle is the name of the game. I don't have the time to worry about some investment broker screwing me, I'd rather hunt, fish and play golf 3 or 4 times a week.

You should start thinking in terms of "critical mass". The amount of money that will sustain your income, without EVER touching the nest egg. Eat the golden eggs, but never eat the goose that lays them.

If you invest at 10%, your value will double about every 7 years. Start with 50,000 at age 35, you'll have 100K at 42, 200K at 49, 400K at 56, 800K at 63 and 1.6 MM at 70. The magic of compound interest (and note that in that example, no money was invested after age 35!)

If you have a million dollars, invested, and you draw less than the returns, you have reached critical mass, and you can (financially) live forever.

I am right there too, this mornng I told my boss I would work till Sept 8th to finish up several long term projects I have been pushing to complete then I am out of here (CA) and back in PA.

This afternoon I sent the wire transfer for the deposit on my retirement homestead it will be fully paid off and my investments have been moved into safer positions. My adviser tells me I will be making more than when I was working. Plan to live on half of that and make it last..

Most here are at dreamland for us.
Or so it seems.


But we are way ahead of average, and doing great according to the guy
who manages my IRA. And he doesn't know that my 401k is even better.

It's all crazy for me to think about.

Several years ago he ask us how much we would need monthly to live.
Not counting vacation, buying appliances...
We liked $16-1800.
He laughed, said he knew we were frugal, but that seemed short.
Thing is, we were living on less, with kids. After our mortgage.

He figures a much better number.

Hope he is right.
Might be with the stuff we have he isn't involved in.

But I'm not at all worried.
I have a union pension I can count on.
Right now, I'm counting.
30+ years X $19=$/month well?
It was up to almost $40/month, but being underfunded and all,
the expected payout keeps dropping.
None of that matters much.
It will be broke before 2032.

Not totally stupid, I never figured to get that.
Always thought it would be gone before I got there.

Meeting with my financial adviser next Wednesday. I want to retire in about 2 to 3 years, I am 58 now.

One of my big concerns is the cost of health insurance.

Health coverage will keep most working until they are 65+

Our medical industry is FUBAR.

300K more than what I have now. I would quit today.

OK, I haven't sifted through all of this.

Back in 62, :D, the dream was to have $100,00.00 in the bank at %3.

Three thousand dollars a year interest for income. That would work when a new car was two grand.

Lesson here, don't forget inflation.

I am 76, semi retired at 50, fully retired at 55. Here are some of my base numbers. We have no debt and have spent around $70,000 per year for the last 3 years. My SS is about $2,400/ mo., my wife's is around $1,200. Medicare with a supplement will cost about $350/mo. & you will be covered for major medical cost. I started getting SS at 65, and my net equity position has stayed about the same but has changed composition several times. We are currently at 70% cash, 10% bonds & 20% stock. As you get older you will get more risk averse & lower your stock & bond holdings.

Textbook advice.

WOW! I see guys get bad advice from their advisors, I feel bad for the guy that was told he needed 4 or 5 million
You need to work with someone that helps you not discourage you. Ours runs the information we have thru a thousand different scenarios to see if our investments will last gives you peace of mind. A lot of good advice and a bunch of bad of this thread you need to sort it out.

Lifestyles of the rich and famous takes a lot of money. You can blow a million on a car if your stupid. No amount is enough if you blow it.
Sensible people can retire without to much extra and enjoy life. Damn glad I don’t need 4 or 5 million to retire. I know some people with homes and stuff paid for who live on social security and are comfortable and happy.
Two or three homes across the country are not necessary. Ed

I must not live the life of the rich because everything I have read, seen and talked with professional's about does not show me that I need 3-5 mil to retire.
Be smart and as stated above don't be stupid with your money.
That said, health care and emergencies are a BIG unknown that can eat into a very well laid out plan of retirement.

You can have your plan "means tested" where they run multiple scenarios and see if it lasts. Things like high inflation, death of a partner, etc.

Nice to know the facts and not worry unnecessarily.

Wife and I live on (not counting what we put in savings or investments) less than 4 grand a month after taxes and are happy with our lifestyle. Once we have the house and car paid for it will feel even better.

Living frugally now so we don't have to eat dog food later lol

If you think you need a "minimum" of $5M to retire, you're not doing it right.

If you're not producing enough "income" in retirement to satisfy your needs and wants, you're not doing it right.