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To those between the ages 40-50

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To those between the ages 40-50

Old 10-02-07, 07:47 AM
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Siu Blue Wind
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To those between the ages 40-50

Are you prepared enough to comfortably "retire" early at the age of 50 if you wanted to? The buzz that I have been hearing lately is that a good rule of thumb is to be worth at least 1.5 mil individually by your 45th birthday. With the way things are going, the only thing you can depend on is your wise choice of investing.

To those youngin's that just clicked on here, you better start looking into it now.
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Please dont outsmart the censor. That is a very expensive censor and every time one of you guys outsmart it it makes someone at the home office feel bad. We dont wanna do that. So dont cleverly disguise bad words.
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Old 10-02-07, 07:52 AM
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Plan on retiring before 45th. I won't have the estimated $4 mil I need to retire in perpetuity by then, but I'll have enough that by 60 it'll be there assuming a 7% total return. I plan to do some very inexpensive things for a few months and then return to school after I "retire". I'll probably work part time or start my own small business also.
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Old 10-02-07, 07:53 AM
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I will retire the day I die sadly.
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Old 10-02-07, 07:53 AM
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We aren't yet, but we're getting there. Up until this spring we've been a military family, and there's generally not enough funds to have investment money available easily. We've got a TSP account with a small chunk of change in it, and a little bit elsewhere, but certainly not retirement money.Now my wife makes enough that her entire retirement check is being invested, so that's a fair chunk being put away fairly aggressively right now, and her company has a good investment system that we're maxed out in as well. Of course we're just approaching 40, so we're looking at maybe 55 - 60 as realistic.
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Old 10-02-07, 07:56 AM
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Sadly not even close.
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Old 10-02-07, 08:00 AM
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Retirement is the new luxury accessory. It's unavailable to most.
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Old 10-02-07, 08:02 AM
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Maybe when I'm 74 I'll have enough $$ ...
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Old 10-02-07, 08:03 AM
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born broke

will die broke


but I will ride a ****load of miles in between, that is all I care about. really.
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Old 10-02-07, 08:05 AM
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For those with young kids, 50 may be a bit optimistic. Our plan is timed around when our daughter finishes high school. At that time we will own our property, have zero debt (we have that now except for the mortgage and one small car loan) and have the retirement fully funded. We will continue to live within our means until then and stick to the plan.
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Old 10-02-07, 08:08 AM
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All joking aside you should start now.

If you can start saving for retirement when you are 20 the savings between 20 & 30 will be worth more than double any saving between 30 & 65.
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Old 10-02-07, 08:17 AM
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Originally Posted by flyingscotsman View Post
All joking aside you should start now.

If you can start saving for retirement when you are 20 the savings between 20 & 30 will be worth more than double any saving between 30 & 65.
+1

But even with a late start, the key is to make sure you contribute every month. I'm at the stage where I have zero debt other than a mortgage, and that is paid off within nine years or so. Whenever you pay something off, snowball the payment either into paying off other debt or into savings. You won't see the big growth for a few years, but the later growth is pretty astounding. The way I have things calculated, I won't be retiring by age 50, but before 60, I should be hitting around $3-4 mil net assets, and that's starting late in the game and not counting some pay increases and windfalls along the way.
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Old 10-02-07, 08:24 AM
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I don't worry about it...I manage my money well, and I'll retire when I need it.

Yes, start early....I wished I started when I was 18, and budgeted my money better. If I did, I would have been able to retire when I hit 35.
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Old 10-02-07, 08:26 AM
  #13  
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Originally Posted by Siu Blue Wind View Post
Are you prepared enough to comfortably "retire" early at the age of 50 if you wanted to? The buzz that I have been hearing lately is that a good rule of thumb is to be worth at least 1.5 mil individually by your 45th birthday. With the way things are going, the only thing you can depend on is your wise choice of investing.

To those youngin's that just clicked on here, you better start looking into it now.
No way is 1.5 mil net worth enough to retire comfortably at 50. More like 4 to 5, as a significant portion of a high net worth is not income producing (house, beach house, Big RV, et cetera). You need a solid inflation proof 125 to 175K per year for a nice retirement life style, and conservative returns (say 5%) figured in so you don't burn down your capital. That means you need about 3 mil producing income. And even then you hope something really bad does not happen to wipe you out.
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Old 10-02-07, 08:30 AM
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Originally Posted by Terrierman View Post
No way is 1.5 mil net worth enough to retire comfortably at 50. More like 4 to 5, as a significant portion of a high net worth is not income producing (house, beach house, Big RV, et cetera). You need a solid inflation proof 125 to 175K per year for a nice retirement life style, and conservative returns (say 5%) figured in so you don't burn down your capital. That means you need about 3 mil producing income. And even then you hope something really bad does not happen to wipe you out.
This all depends on how you intend to live and what your asset allocation is.
If, like you have stated, a significant portion of your net worth is tied up in non-liquid, non-income producing assets, then you will need a significantly larger net worth to retire.
I would strongly suggest reading the book "The Millionaire Next Door". The authors do a pretty good job of explaining this in some detail, with examples.
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Old 10-02-07, 09:05 AM
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calculation for my sheet:

=FV(rate,nper,pmt,pv,type)

where:

rate - anticipated rate of return
nper - number of 'periods' (such as years)
pmt - expected contribution per period
pv - current principal
type - optional, beginning or end of period (0,1)

- using this formula, i anticipate i'll be eligible for food stamps and public housing when i retire! w00t!

:-)
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Old 10-02-07, 09:12 AM
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I'm not even in the ballpark. And I don't personally know anyone who is, so I know I'm not alone.
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Old 10-02-07, 09:17 AM
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Double check yourself, SB. You might be surprised. I know I was.

I had an idea of what my position was. But very surprised when it came down to it.
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Originally Posted by making View Post
Please dont outsmart the censor. That is a very expensive censor and every time one of you guys outsmart it it makes someone at the home office feel bad. We dont wanna do that. So dont cleverly disguise bad words.
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Old 10-02-07, 09:20 AM
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Yes. But why would I retire? Work is much more fun, and I believe that I am improving the world.
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Old 10-02-07, 09:27 AM
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I did in 1999, then something went terribly wrong with the stock market. Now it looks more like 67 than this year as I have hit 50. My estimate is $2m is needed for me to retire.
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Old 10-02-07, 09:35 AM
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My goal was 45 but do to the recession in Ca. back in the late eighties had to sell off some property,moved to texas, re-invested and things are outstanding again.

I could retire now @ 55.5 .

Made good investments in real estate, did great in sales also business investments, and the business we own now.

Basically I am semi-retired work a job too have something to do just not ready to call it 100 %
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Old 10-02-07, 09:41 AM
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I am worth one dollar ($1). If I invest it "wisely", I could have as much as two dollars and seventy-four cents by retirement age.

Oooh, a candy bar!
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Old 10-02-07, 09:42 AM
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I won't be eligible until 55, but I can't see myself retiring then. When I do retire I should be getting about 80% of my salary as retirement.
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Old 10-02-07, 09:51 AM
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Isn't it a bit odd to think you need to have between 125 to 175 thousand a year to retire when the median income is LESS than 50,000 ? Why would someone need to have 3 times as much to retire as to live - when you have the expense of going to work - raising kids, sending them to college, etc.

Most people need probably between 60 to 80 percent of what they needed while working. So, to think you need 1 to 2 million says that you need between 50 to 100 thousand a year (conservatively). First figure out how much you will need - then figure out a conservative investment strategy to get there.

Oh - and I have plenty to retire now (age 48) and only work as an owner of businesses. Let's just say my nest egg is more than adequate for our needs. My nest egg is bigger than any of the estimates for retirement by the way so I am not talking sour grapes.

Understand most financial advisers who are saying ridiculous numbers like 2 to 4 million are people who are in the top 5 or more percentile in earnings. For 95% of the country, that is crazy.

People retire down here all the time on 1,000 dollars a month. If you have 250,000 dollars you can make it happen in many places. You buy a place, rely on public transportation and ride your bike. Or, you can work like a slave till you drop dead because you have to always have the latest gadgets.

There is a big difference between living and having.

Just my dos colones
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Old 10-02-07, 09:53 AM
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Originally Posted by Terrierman View Post
No way is 1.5 mil net worth enough to retire comfortably at 50. More like 4 to 5, as a significant portion of a high net worth is not income producing (house, beach house, Big RV, et cetera). You need a solid inflation proof 125 to 175K per year for a nice retirement life style, and conservative returns (say 5%) figured in so you don't burn down your capital. That means you need about 3 mil producing income. And even then you hope something really bad does not happen to wipe you out.
It depends on your standard of living...
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Old 10-02-07, 10:15 AM
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I put 10% of my income into retirement, hopefully it'll be enough that by 50 I can stop doing the work thing.
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