PBS Frontline : The Retirement Gamble, sorta Must See (2 Viewers)

[Dentist]

According to a 2013 study done by the National Institute on Retirement Security...

3 out of 4 black and 4 out of every 5 Latino working-age households have less than $10k in retirement savings. Half of white folk have at least $10k.

Even worse was another study by Duke U that said the average black family had $200 in liquid wealth, whitey had $23k. How the hell is that even possible?

I wouldn't have guessed 200 which is beyond paltry, or 23k which seems high.

But look at who's in prison vs who's in college. This situation is seemingly getting worse not better as time passes.

 

[FUBAR]

According to a 2013 study done by the National Institute on Retirement Security...

3 out of 4 black and 4 out of every 5 Latino working-age households have less than $10k in retirement savings. Half of white folk have at least $10k.

Even worse was another study by Duke U that said the average black family had $200 in liquid wealth, whitey had $23k. How the hell is that even possible?

I wouldn't have guessed 200 which is beyond paltry, or 23k which seems high. But look at who's in prison vs who's in college. This situation is seemingly getting worse not better as time passes.

Is it getting worse? We hear about the issues but in my daily life it seems things are getting more equitable. (Granted we live in a unique society)

 

[DocHolliday]

According to a 2013 study done by the National Institute on Retirement Security...

3 out of 4 black and 4 out of every 5 Latino working-age households have less than $10k in retirement savings. Half of white folk have at least $10k.

Even worse was another study by Duke U that said the average black family had $200 in liquid wealth, whitey had $23k. How the hell is that even possible?

I wouldn't have guessed 200 which is beyond paltry, or 23k which seems high. But look at who's in prison vs who's in college. This situation is seemingly getting worse not better as time passes.

Is it getting worse? We hear about the issues but in my daily life it seems things are getting more equitable. (Granted we live in a unique society)

You need to actually see the U.S.

 

[Slapdash]

According to a 2013 study done by the National Institute on Retirement Security...

3 out of 4 black and 4 out of every 5 Latino working-age households have less than $10k in retirement savings. Half of white folk have at least $10k.

Even worse was another study by Duke U that said the average black family had $200 in liquid wealth, whitey had $23k. How the hell is that even possible?

I wouldn't have guessed 200 which is beyond paltry, or 23k which seems high.But look at who's in prison vs who's in college. This situation is seemingly getting worse not better as time passes.

Is it getting worse? We hear about the issues but in my daily life it seems things are getting more equitable. (Granted we live in a unique society)

Inequality continues to grow strongly

 

[Buck Bradcanon]

Any of you guys use self-direct stock trading option in your 401k? Trying it on a small scale but I realize its prolly not very smart.

 

[Dentist]

http://finance.yahoo.com/news/-1-million-is-no-longer-enough-to-retire-on-185400615.html

Love the comments section... the yahoo/facebook trolls are awesome.

I agree with the premise of the article, yet the reality of that is mind blowing... most people will never accumulate anywhere near that.

I guess that's why most people live SS check to SS check and seniors are either some of the wealthiest, or more likely poorest people I know.

 

[Spin]

Just a quick thanks to all on this board that have offered me advice throughout the years. I've made drastic changes in my planning for retirement, as in actually doing something about it. Currently contributing the max my company matches into my 401k (they match 4% if I do 5%) as well as maxing out my company's match on my HSA. I plan on maxing a ROTH IRA once I get some of my debts paid down (still owe some on my van, and obviously still owe on my house)

It's weird really. My parents never discussed it with me, no class in high school really talked about it. To the point that I never really even thought about retirement savings or planning on what would happen 40+ years from now, or hell, even basic financial management. I got a later start then I would have liked on retirement savings, but I'm feeling relatively comfortable with my current plan, and should be around the ~ million range when I do retire (according to Principal's retirement planner). Although apparently that's not enough any more.

It truly is just mind boggling how little importance we put on education with respect to retirement and just all around financial management. But I've gotten great advice in this thread plus a few others discussing overall financial management and future planning.

Thanks.

 

[KCitons]

Just a quick thanks to all on this board that have offered me advice throughout the years. I've made drastic changes in my planning for retirement, as in actually doing something about it. Currently contributing the max my company matches into my 401k (they match 4% if I do 5%) as well as maxing out my company's match on my HSA. I plan on maxing a ROTH IRA once I get some of my debts paid down (still owe some on my van, and obviously still owe on my house)

It's weird really. My parents never discussed it with me, no class in high school really talked about it. To the point that I never really even thought about retirement savings or planning on what would happen 40+ years from now, or hell, even basic financial management. I got a later start then I would have liked on retirement savings, but I'm feeling relatively comfortable with my current plan, and should be around the ~ million range when I do retire (according to Principal's retirement planner). Although apparently that's not enough any more.

It truly is just mind boggling how little importance we put on education with respect to retirement and just all around financial management. But I've gotten great advice in this thread plus a few others discussing overall financial management and future planning.

Thanks.

Mine never taught us about retirement, but did encourage us to save. I've made the offer to my 17 and 18 year old kids. Whatever they put into retirement savings by the time they are 21, we will match it.

 

[17seconds]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

 

[Slapdash]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

That seems irrational

 

[NutterButter]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

You think you'd need more than that in today's dollars?

 

[FUBAR]

According to a 2013 study done by the National Institute on Retirement Security...

3 out of 4 black and 4 out of every 5 Latino working-age households have less than $10k in retirement savings. Half of white folk have at least $10k.

Even worse was another study by Duke U that said the average black family had $200 in liquid wealth, whitey had $23k. How the hell is that even possible?

I wouldn't have guessed 200 which is beyond paltry, or 23k which seems high.But look at who's in prison vs who's in college. This situation is seemingly getting worse not better as time passes.

Is it getting worse? We hear about the issues but in my daily life it seems things are getting more equitable. (Granted we live in a unique society)

Inequality continues to grow strongly

Sure, but is that truly a race issue?

In the 7 states I've lived in over the past 16 years, there seems to be more racial harmony than I saw in Detroit growing up.

There are still problems for sure, I'm just not sure it's worse, racially.

 

[Binky The Doormat]

So what is everyone around here doing that is at or close to retirement to balance their need for:

- ready/living cash

- hedge against inflation

- protect against catastrophic stock market/bond market/dollar value drops

What kind of percentages are in your various buckets?

 

[Binky The Doormat]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

You think you'd need more than that in today's dollars?

I think the issue is many people may have saved enough for $40k/yr for 20 years, but in today's dollars instead of tomorrow's dollars.

I worked out my "number" once. It was hitting $5mil at age 65. That should fund 30 years of life, to age 95, from 2042-2072. Because, by 2042, $40k might be peanuts, and by 2072 it most certainly will be.

$5mil seems like a crazy amount to get to in savings. I've got 27 years to get there, so it's putting away $186,000/yr. I can't even fathom that. It's just crazy.

And I have zero confidence in SS lasting until I need it.

I would run that through Firecalc with a few more scenarios - what can you practically put away these days, what opportunities for large income increases do you have and how many kids/age?

 

[NutterButter]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

You think you'd need more than that in today's dollars?

I think the issue is many people may have saved enough for $40k/yr for 20 years, but in today's dollars instead of tomorrow's dollars.

I worked out my "number" once. It was hitting $5mil at age 65. That should fund 30 years of life, to age 95, from 2042-2072. Because, by 2042, $40k might be peanuts, and by 2072 it most certainly will be.

$5mil seems like a crazy amount to get to in savings. I've got 27 years to get there, so it's putting away $186,000/yr. I can't even fathom that. It's just crazy.

And I have zero confidence in SS lasting until I need it.

5M seems roughly in the ballpark of what you'd need at 40K/yr in today's dollars. But its not like you need the entire 5M at 65. That money is still going to grow during retirment. If you had say 3M and even at a small rate of return like 4%, you'd be looking at 120/yr just in interest. That alone would be enough to cover the 40k/yr in the early years.

 

[lod01]

And I have zero confidence in SS lasting until I need it.

Well, I'll fill you in on a little secret. It will be there. Ignore the BS you hear about it not being around in 'blah blah blah' year. Without it you have millions on people instantly living in poverty with ZERO income. Common sense tells you it impossible to do away with it because the average humanoid cannot be trained to sock $ away for retirement. That average humanoid spends all his $ regardless of how much he makes and lives paycheck to paycheck. No one will be able to change that.

 

[FUBAR]

And I have zero confidence in SS lasting until I need it.

Well, I'll fill you in on a little secret. It will be there. Ignore the BS you hear about it not being around in 'blah blah blah' year. Without it you have millions on people instantly living in poverty with ZERO income. Common sense tells you it impossible to do away with it because the average humanoid cannot be trained to sock $ away for retirement. That average humanoid spends all his $ regardless of how much he makes and lives paycheck to paycheck. No one will be able to change that.

Right, so it's either SS or welfare.

The politicians that kill SS would be booting themselves out of office.

 

[17seconds]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

You think you'd need more than that in today's dollars?

Yes. But I consider retirement a continuation of your current life, not a major lifestyle downgrade where in order to do it you have to move somewhere cheap and scrape by.

A manager at McDonald's makes $45K/yr. I don't want to retire on $30K + SS (if it is there). I'd rather keep working till I drop.

 

[NutterButter]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

You think you'd need more than that in today's dollars?

Yes. But I consider retirement a continuation of your current life, not a major lifestyle downgrade where in order to do it you have to move somewhere cheap and scrape by.

A manager at McDonald's makes $45K/yr. I don't want to retire on $30K + SS (if it is there). I'd rather keep working till I drop.

Doesn't a large portion of your current salary go to mortgage, retirement savings and college savings. Those are 3 expenses you won't have in retirement.

 

[KCitons]

And I have zero confidence in SS lasting until I need it.

Well, I'll fill you in on a little secret. It will be there. Ignore the BS you hear about it not being around in 'blah blah blah' year. Without it you have millions on people instantly living in poverty with ZERO income. Common sense tells you it impossible to do away with it because the average humanoid cannot be trained to sock $ away for retirement. That average humanoid spends all his $ regardless of how much he makes and lives paycheck to paycheck. No one will be able to change that.

I like to think of it as the starting point of the next Revolution.

 

[Doctor Detroit]

And I have zero confidence in SS lasting until I need it.

Well, I'll fill you in on a little secret. It will be there. Ignore the BS you hear about it not being around in 'blah blah blah' year. Without it you have millions on people instantly living in poverty with ZERO income. Common sense tells you it impossible to do away with it because the average humanoid cannot be trained to sock $ away for retirement. That average humanoid spends all his $ regardless of how much he makes and lives paycheck to paycheck. No one will be able to change that.

This is my position as well, it really has to be there. They are going to need to overhaul the current system but it will get done. I'm going with the thought that I will at least get the money back I put in over time, I think it's fairly reasonable to believe that will at least happen.

 

[FUBAR]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

You think you'd need more than that in today's dollars?

Yes. But I consider retirement a continuation of your current life, not a major lifestyle downgrade where in order to do it you have to move somewhere cheap and scrape by.

A manager at McDonald's makes $45K/yr. I don't want to retire on $30K + SS (if it is there). I'd rather keep working till I drop.

Doesn't a large portion of your current salary go to mortgage, retirement savings and college savings. Those are 3 expenses you won't have in retirement.

Maybe you won't have a mortgage but many will still have theirs, or rent. not too many of us live in the same place from the start of our career through retirement.

 

[xulf]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

You think you'd need more than that in today's dollars?

Yes. But I consider retirement a continuation of your current life, not a major lifestyle downgrade where in order to do it you have to move somewhere cheap and scrape by.

A manager at McDonald's makes $45K/yr. I don't want to retire on $30K + SS (if it is there). I'd rather keep working till I drop.

Doesn't a large portion of your current salary go to mortgage, retirement savings and college savings. Those are 3 expenses you won't have in retirement.

Maybe you won't have a mortgage but many will still have theirs, or rent. not too many of us live in the same place from the start of our career through retirement.

Then that person is over buying.

 

[FUBAR]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

You think you'd need more than that in today's dollars?

Yes. But I consider retirement a continuation of your current life, not a major lifestyle downgrade where in order to do it you have to move somewhere cheap and scrape by.

A manager at McDonald's makes $45K/yr. I don't want to retire on $30K + SS (if it is there). I'd rather keep working till I drop.

Doesn't a large portion of your current salary go to mortgage, retirement savings and college savings. Those are 3 expenses you won't have in retirement.

Maybe you won't have a mortgage but many will still have theirs, or rent. not too many of us live in the same place from the start of our career through retirement.

Then that person is over buying.

Not necessarily.

There's a decent chance we'll have a mortgage into retirement, by choice.

 

[NutterButter]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

You think you'd need more than that in today's dollars?

Yes. But I consider retirement a continuation of your current life, not a major lifestyle downgrade where in order to do it you have to move somewhere cheap and scrape by.

A manager at McDonald's makes $45K/yr. I don't want to retire on $30K + SS (if it is there). I'd rather keep working till I drop.

Doesn't a large portion of your current salary go to mortgage, retirement savings and college savings. Those are 3 expenses you won't have in retirement.

Maybe you won't have a mortgage but many will still have theirs, or rent. not too many of us live in the same place from the start of our career through retirement.

Then that person is over buying.

Maybe you didn't over buy at the time but you're probably living in more house then you need since the kids are gone.

 

[NutterButter]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

You think you'd need more than that in today's dollars?

Yes. But I consider retirement a continuation of your current life, not a major lifestyle downgrade where in order to do it you have to move somewhere cheap and scrape by.

A manager at McDonald's makes $45K/yr. I don't want to retire on $30K + SS (if it is there). I'd rather keep working till I drop.

Doesn't a large portion of your current salary go to mortgage, retirement savings and college savings. Those are 3 expenses you won't have in retirement.

Maybe you won't have a mortgage but many will still have theirs, or rent. not too many of us live in the same place from the start of our career through retirement.

hypothetically if you didn't have a mortgage would that be enough.

 

[Sand]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

You think you'd need more than that in today's dollars?

I think the issue is many people may have saved enough for $40k/yr for 20 years, but in today's dollars instead of tomorrow's dollars.

I worked out my "number" once. It was hitting $5mil at age 65. That should fund 30 years of life, to age 95, from 2042-2072. Because, by 2042, $40k might be peanuts, and by 2072 it most certainly will be.

$5mil seems like a crazy amount to get to in savings. I've got 27 years to get there, so it's putting away $186,000/yr. I can't even fathom that. It's just crazy.

And I have zero confidence in SS lasting until I need it.

5 mil? Way too high unless you're eating hookers and drinking blow. Using the typical 4% rule to get 40k in this year's money you'd need 1.8mil in 2042. 40k + SS is likely a pretty decent retirement.

 

[Dentist]

What percentage of your income do you guys estimate you'll need in retirement?

I mean on one hand I won't need to save for retirement, no mortgage, no college to save for.

On the other hand idle hands spend money, I fully plan to take nice trips in the first few years when I can still move well, and I may have more health expenditures.

What do you estimate?

 

[NutterButter]

I'd probably be fine with 40k after taxes. Figure 5k prop taxes, 5-10k insurance, 5k for other household bills which leaves 20-25k for food and entertainment on the low end. I don't plan travel much though. Maybe shoot for 50k just to be really safe.

 

[Sand]

What percentage of your income do you guys estimate you'll need in retirement?

I mean on one hand I won't need to save for retirement, no mortgage, no college to save for.

On the other hand idle hands spend money, I fully plan to take nice trips in the first few years when I can still move well, and I may have more health expenditures.

What do you estimate?

80% decreasing to 60% by age 75. Studies show that spending naturally decreases, so plotting out an even spending plan isn't reality.

 

[Doctor Detroit]

What percentage of your income do you guys estimate you'll need in retirement?

I mean on one hand I won't need to save for retirement, no mortgage, no college to save for.

On the other hand idle hands spend money, I fully plan to take nice trips in the first few years when I can still move well, and I may have more health expenditures.

What do you estimate?

Depends on where I live. If I live in Italy and Michigan, then I'm gonna need 80% or so. If I live in Michigan and say Texas, 60% would probably be plenty. How much I get for my house in Maryland will be key also, I don't factor that into retirement now, but that money will be to cover major renovations on the Italy and Michigan houses and also probably fund travel for the rest of my life.

I will get 35% from pension

I would like 25% from my 401k (on pace to easily do this)

Then Social Security, Roth IRA, veteran's disability, and savings would all be above that 60% baseline

I will also most likely retire in my 50s so I will almost surely find some work, likely summer seasonal work

 

[Binky The Doormat]

What are you guys paying for health insurance? I am paying $10K premiums alone (still have kids on it) - add at least another $5K in office visits/tests/misc. procedure here and there/dental/ and then prescriptions.

House and cars are paid for: Here is roughly what we are looking at on an annual basis - after tax and before food, cable, cell phones, entertainment, schooling, gas ...all else

- $15.0K medical

- $ 5.0K property taxes (house/personal property)

- $ 2.7K house insurance (up over 100% the last three yrs - tornadoes)

- $ 3.7K car insurance (teenage son)

- $ 5.8K utilities

- $32.2K total

House repairs are adding up as well as repairs on our son's car. I realized a lot of you will not have children at home and will not have a long period before hitting medicare - but planning around $40K before taxes plus SS will not make for the life you may want or think you will have.

 

[NutterButter]

What are you guys paying for health insurance? I am paying $10K premiums alone (still have kids on it) - add at least another $5K in office visits/tests/misc. procedure here and there/dental/ and then prescriptions.

House and cars are paid for: Here is roughly what we are looking at on an annual basis - after tax and before food, cable, cell phones, entertainment, schooling, gas ...all else

- $15.0K medical

- $ 5.0K property taxes (house/personal property)

- $ 2.7K house insurance (up over 100% the last three yrs - tornadoes)

- $ 3.7K car insurance (teenage son)

- $ 5.8K utilities

- $32.2K total

House repairs are adding up as well as repairs on our son's car. I realized a lot of you will not have children at home and will not have a long period before hitting medicare - but planning around $40K before taxes plus SS will not make for the life you may want or think you will have.

You obviously have some big #'s on there that a single adult wouldn't have. I pay $500 for house insurance, $600 for car insurance. The only wildcard is medical and I'd be shocked if it would be more than $10k/yr out of pocket barring any major medical expenses.

 

[Dentist]

What percentage of your income do you guys estimate you'll need in retirement?

I mean on one hand I won't need to save for retirement, no mortgage, no college to save for.

On the other hand idle hands spend money, I fully plan to take nice trips in the first few years when I can still move well, and I may have more health expenditures.

What do you estimate?

80% decreasing to 60% by age 75. Studies show that spending naturally decreases, so plotting out an even spending plan isn't reality.

This really seems like it makes sense.

My grandfather is 88. He retired at 65. The first 10 years he went on 2 to 3 monster trips a year, bought a sailboat to sail, picked up golf, and took in theatre and football regularly.

Now my grandmother is gone, so there's no travel, almost no golf, the football got dropped, and the sailboat is sold.

This seems realistic to me. If I retire at 58 as planned I hope to go big early, maybe needing 80 percent the first 10 years, then it could really fall back to 60 or less as time went by.

 

[The Ref]

Id say after the house is paid off and my daughter is graduated and out of the house, 50-60% of current income.

 

[wilked]

What percentage of your income do you guys estimate you'll need in retirement?

I mean on one hand I won't need to save for retirement, no mortgage, no college to save for.

On the other hand idle hands spend money, I fully plan to take nice trips in the first few years when I can still move well, and I may have more health expenditures.

What do you estimate?

Dentist, wrong way to think about it...

Much better to think about what percent of current expenses you will have in retirement. Income doesn't necessarily drive expenses

Basically the focus should be on a budget driven exercise

 

[Tiger Fan]

What percentage of your income do you guys estimate you'll need in retirement?

I mean on one hand I won't need to save for retirement, no mortgage, no college to save for.

On the other hand idle hands spend money, I fully plan to take nice trips in the first few years when I can still move well, and I may have more health expenditures.

What do you estimate?

That's the easy stuff to figure out. Where it gets really challenging is when you get into the age where you need other people (kids, nurses, home?) to take care of you. I see what my parents go through taking care of their parents b/c (my grandparents) just didn't have enough saved up.

I don't want to burden my kids whatsoever....so I'm factoring all of this in

 

[Balco]

What are you guys paying for health insurance? I am paying $10K premiums alone (still have kids on it) - add at least another $5K in office visits/tests/misc. procedure here and there/dental/ and then prescriptions.

House and cars are paid for: Here is roughly what we are looking at on an annual basis - after tax and before food, cable, cell phones, entertainment, schooling, gas ...all else

- $15.0K medical

- $ 5.0K property taxes (house/personal property)

- $ 2.7K house insurance (up over 100% the last three yrs - tornadoes)

- $ 3.7K car insurance (teenage son)

- $ 5.8K utilities

- $32.2K total

House repairs are adding up as well as repairs on our son's car. I realized a lot of you will not have children at home and will not have a long period before hitting medicare - but planning around $40K before taxes plus SS will not make for the life you may want or think you will have.

40,000 a year plus ss with no consumer debt is more than enough to retire on.

 

[Balco]

What percentage of your income do you guys estimate you'll need in retirement?

I mean on one hand I won't need to save for retirement, no mortgage, no college to save for.

On the other hand idle hands spend money, I fully plan to take nice trips in the first few years when I can still move well, and I may have more health expenditures.

What do you estimate?

That's the easy stuff to figure out. Where it gets really challenging is when you get into the age where you need other people (kids, nurses, home?) to take care of you. I see what my parents go through taking care of their parents b/c (my grandparents) just didn't have enough saved up.

I don't want to burden my kids whatsoever....so I'm factoring all of this in

How much does long term care insurance cost? I am 37, but thinking about it, as I am assuming premiums will be much lower at this age.

 

[Tiger Fan]

What percentage of your income do you guys estimate you'll need in retirement?

I mean on one hand I won't need to save for retirement, no mortgage, no college to save for.

On the other hand idle hands spend money, I fully plan to take nice trips in the first few years when I can still move well, and I may have more health expenditures.

What do you estimate?

That's the easy stuff to figure out. Where it gets really challenging is when you get into the age where you need other people (kids, nurses, home?) to take care of you. I see what my parents go through taking care of their parents b/c (my grandparents) just didn't have enough saved up.

I don't want to burden my kids whatsoever....so I'm factoring all of this in

How much does long term care insurance cost? I am 37, but thinking about it, as I am assuming premiums will be much lower at this age.

Honestly I'm not sure, but I have a great pension with my job and coupling that with my 401k; I'm more than covered for any scenario. I should look into this though just to see.

 

[Gawain]

Is this 40-K pre or post tax. Should be split 50/50 between traditional and Roth.

 

[FUBAR]

Love the comments section... the yahoo/facebook trolls are awesome.

"Really? We are worried that we cannot retire on $30,000 to $50,000 a year PLUS Social Security? "

yeah, pretty much

You think you'd need more than that in today's dollars?

Yes. But I consider retirement a continuation of your current life, not a major lifestyle downgrade where in order to do it you have to move somewhere cheap and scrape by.

A manager at McDonald's makes $45K/yr. I don't want to retire on $30K + SS (if it is there). I'd rather keep working till I drop.

Doesn't a large portion of your current salary go to mortgage, retirement savings and college savings. Those are 3 expenses you won't have in retirement.

Maybe you won't have a mortgage but many will still have theirs, or rent. not too many of us live in the same place from the start of our career through retirement.

hypothetically if you didn't have a mortgage would that be enough.

Depends on your chosen lifestyle. But sure, you could make it work.

 

[FUBAR]

What percentage of your income do you guys estimate you'll need in retirement?

I mean on one hand I won't need to save for retirement, no mortgage, no college to save for.

On the other hand idle hands spend money, I fully plan to take nice trips in the first few years when I can still move well, and I may have more health expenditures.

What do you estimate?

Dentist, wrong way to think about it...Much better to think about what percent of current expenses you will have in retirement. Income doesn't necessarily drive expenses

Basically the focus should be on a budget driven exercise

I'm not even thinking about it in terms of "percent of current expenses", I'm thinking about it separately from current expenses. Just planned expenses. either way works I guess but you need to figure out your retried budget before you can attach a percentage to it. It's not as simple as saying "I'll live the same lifestyle minus x,y, and z" if it were, I'd Just keep the same lifestyle minus saving for retirement. If we save 20% each month, you could just say your retired percentage is 80% but you'd be omitting extra traveling, work expenses and other things.

 

[NutterButter]

Is this 40-K pre or post tax. Should be split 50/50 between traditional and Roth.

Let's say pre with another 20k or so coming from SS.

What percentage of your income do you guys estimate you'll need in retirement?

I mean on one hand I won't need to save for retirement, no mortgage, no college to save for.

On the other hand idle hands spend money, I fully plan to take nice trips in the first few years when I can still move well, and I may have more health expenditures.

What do you estimate?

That's the easy stuff to figure out. Where it gets really challenging is when you get into the age where you need other people (kids, nurses, home?) to take care of you. I see what my parents go through taking care of their parents b/c (my grandparents) just didn't have enough saved up.

I don't want to burden my kids whatsoever....so I'm factoring all of this in

As someone once pointed out in this thread, in home care is maybe 1k per month. And surprisingly beyond that at least to me, the average length of stay in a nursing home is less than 3 years with most being under 5. I budget 10 years of in home care and 5 years of nursing home to be safe.

 

[FUBAR]

What percentage of your income do you guys estimate you'll need in retirement?

I mean on one hand I won't need to save for retirement, no mortgage, no college to save for.

On the other hand idle hands spend money, I fully plan to take nice trips in the first few years when I can still move well, and I may have more health expenditures.

What do you estimate?

That's the easy stuff to figure out. Where it gets really challenging is when you get into the age where you need other people (kids, nurses, home?) to take care of you. I see what my parents go through taking care of their parents b/c (my grandparents) just didn't have enough saved up.

I don't want to burden my kids whatsoever....so I'm factoring all of this in

How much does long term care insurance cost? I am 37, but thinking about it, as I am assuming premiums will be much lower at this age.

Even Dave ramsey says not to worry about this until your 60s.

 

[NutterButter]

hypothetically if you didn't have a mortgage would that be enough.

Depends on your chosen lifestyle. But sure, you could make it work.

I know I could, was curious if you thought you could. 400/wk for food and entertainment would be very comfortable living for me.

 

[Cliff Clavin]

Re: parents teaching their kids about retirement.

My dad started having me put away $25 a month into a retirement fund when I was 16. He'd just say we'll look at it in 5 years and you'll see how much you've made... 5 years later I had lost about 50% of that money. Made me think retirement savings was a bunch of bull#### and turned me off it in mid-20s.

 

[Sand]

Is this 40-K pre or post tax. Should be split 50/50 between traditional and Roth.

Other than property taxes (5k propertyy taxes = :X ), you shouldn't be paying any federal taxes at all. In fact, it's quite easy to structure withdrawals to get up to 90k or so and not pay a dime. I think I've posted this before, but read this. There are also good articles out there about this on Bogleheads and Kitces.

Without kids I think the wife and I could have a baller lifestyle with 90k or so.

 

[xulf]

Is this 40-K pre or post tax. Should be split 50/50 between traditional and Roth.

Other than property taxes (5k propertyy taxes = :X ), you shouldn't be paying any federal taxes at all. In fact, it's quite easy to structure withdrawals to get up to 90k or so and not pay a dime. I think I've posted this before, but read this. There are also good articles out there about this on Bogleheads and Kitces.

Without kids I think the wife and I could have a baller lifestyle with 90k or so.

Are you saying 5k is a lot?

 

[Sand]

Is this 40-K pre or post tax. Should be split 50/50 between traditional and Roth.

Other than property taxes (5k propertyy taxes = :X ), you shouldn't be paying any federal taxes at all. In fact, it's quite easy to structure withdrawals to get up to 90k or so and not pay a dime. I think I've posted this before, but read this. There are also good articles out there about this on Bogleheads and Kitces.

Without kids I think the wife and I could have a baller lifestyle with 90k or so.

Are you saying 5k is a lot?

That's a huge amount of property taxes. I'm currently in an expensive part of my state for property taxes and it would take a 750k house to get that. That size house easily gets you 7,000sq. ft. here. In the next county over 5k in taxes would mean a 2M mansion.