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Very few people save THAT kind of money for 1 kid's undergrad education. And if they do spend that (even in today's dollars), it's because they already have it and can burn money. Don't let those big #'s scare you. Laughable considering what most people have saved for retirement. Just save diligently for college. It'll add up.
It is a shade conservative, but not by much for a 30 year retirement. There are some good variable schemes out there that are a bit more efficient.
The 4% rule is one that is discussed a ton on early retirement boards. Many (like myself) think it is very aggressive for early retirees. Most prefer a 3%-3.5% model for withdrawal reduction.
I think generally the 4% falls like everything else in retirement, in the "depends" category. Depends on your other income streams, depends on you lifestyle, depends on your personal nature. Nothing is hard and fast in this stuff, you obviously have it figured out. The 4% rule applies to those with a basic understanding of finances and to those who use financial advisors, like the article stated...that strategy generally works. It even said that a more aggressive approach can work, just depends.
Yeah I think all those models I linked to were run at 30 years of retirement so it all depends on when you want to retire and how long you expect to live. 30 years seems about right for me. Still haven't added up all my nest egg yet thoug, ugh, too many projects going on at once. Was just able to get logged back into my social security account a couple days ago.
Hell yes. Every time I look downstairs I see more stuff I want to toss out. My parents have so much crap that I want them to throw away, I just want to stop accumulating useless stuff.
I think the name of the documentary was Minimalization, and now I think about it was on amazon prime. The extreme was pretty wacko, but, a lot if really good points compared to the have everything need everything America we live in.
Speaking of which, has anyone been hired by a state school before? I've applied for a position a few weeks ago, called yesterday to check on it and was told it's been sent to the HR department. They hope to call next week. How long should I expect this process to take? I know federal hiring here takes a long time - although my application there has been sent to the credentialing authority for approval. I'm hoping to hear back from the school before being offered the federal job, even if it's a negative. I'm not sure which job I'd prefer.
I'm thinking we'll start around 7% in our early 60s, maybe higher before social security kicks in. Most likely we'll have 2 pensions, tsp and 2 Roths. Figure with the pensions and ss, we won't be destitute even if we spent everything before our 90s. Like the article said, after "real" retirement I'll be more concerned about doing things while we're healthy than running out of money.
But obviously that percentage needs to keep going up right? otherwise you'll never come close to exhausting your retirement savings.
Ugh. Scary that the feds will probably be faster. How long from the application being sent to HR to initial offer?
I could probably list 100 potential problems with this of the top of my head. In theory it's a great idea to share a ton of different things with the neighbors, especially outdoor/tools kind of stuff, until you put actual personalities into the equation.
This x 10000000000
it's open for discussion. Like everything else...it depends...lots of factors to consider. Just to throw a few things out there for discussion...What does the rest of your investment portfolio look like?
I max out my 401k, have some mutual funds and an IRA that I inherited that I can liquidate if needed. In the past I have invested heavily in the market and just felt in the past few years that I needed to diversify and get into some rentals. Seems to be working fine and I have to imagine even if the economy crashed the condo would still rent, beach house might be tougher (but the note is not bad on that) but the commercial property might be an issue. There is a medical practice in it now.
The withdrawal rate is related to the % you need from your your retirement portfolio (brokerage accounts, checking and savings, ira's etc) to live on.
Thats kindof why I was trying to figure out what your foundation was to get some perspective on the 2%. I am guessing around 4.5-5 million?
no reason to guess because my situation and someone else's are completely different.
You got it. Just keep saving, investing with LT focus, and watch your investment expenses. Set your living and financial goals and track them.
yup! This is why trying to guess is meaningless. What you want out of retirement is likely different from the next guy and so on.
This was talked about earlier in the thread but we planned on a fairly large expenditure for health care but we some how fell into a great situation because we fell into some weird tiny niche of being youngish, being very poor (income wise) and having high means. So we get health care for an extreme cut rate of what we had initially expected as we did not understand the qualifications for the health care until a retired buddy of mine told me about it. It looks like from what we can tell our state's qualifications for health care are strongly biased towards income. They only start to look deeper into retirement accounts when you hit 65.
Complicated subject, but if you're talking starting retirement in 1965 maybe 4% squeezes you a bit. If you retire in 1979 you can spend like mad and never run out. Sequence of returns matters a ton. That's why there are some variable schemes out there that try to help maximize your safe withdrawal percentage.
More hookers and blow, man. Even 3% is super duper safe.
All depends on expenses and pensions/SS. Very individualized and his current number really doesn't matter. All depends on spending.
Yeah, there's no doubt there is money to be made in real estate. While this thread is primarily focused on optimizing traditional investment/retirement vehicles (401k, IRA, 529, etc), there's no single say to skin the cat....and I think adding a more real estate perspective is needed. A tad selfishly, it's something I'm looking to dabble in soon....I'm in the process of reading the landlord thread and making some notes there prior to posting.
I leave it out because of the timing problem. I know we are getting a decent amount from my parents will but it is almost impossible to predict when we are going to get it.
I am about 15 years out realistically as I am still "young". I most def will be counting on the rental income as a source of funds for retirement and its also a part time job being the landlord and fixer of these places.
3% for ever is very safe but I know I am not going to have level spending in my life so I am hoping some of these lower need years will help offset the years where we spend more.
Agree - I wouldn't either. Kind of like SS - just a sweet, sweet extra. (Side note: actually thinking of delaying my SS a bit - where before I was definitely hitting it at 62)
ETA: just read your additional replies......looks like you've got a pretty good handle on things....especially with the windfall inheritance...maybe you wait til that happens to pick up additional properties
