If invested modestly it should earn $50000 a year at 5%.
Don't get me started on that. I was looking at my small retirement account on the weekend and the various mutual funds have all given back all the gains they made over the last 8-9 months, so the return is zero. I'd be happy with 5% but I can't find where to get it.
Time to fire your financial advisor. I have a lot less than a million dollars but I'm still up enough to buy a new car if i had to.
Driver100 say your age in bonds but that might not be the best move in a rising interest rate environment. I put some money into dividend mutual funds that generate some growth and around 4% interest.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
Agree with about 10 years depending on how frugally you can do those things.
For what it's worth, I'm 30 now and our financial planner is telling us to to plan to have between $6mm and $7mm to maintain our current lifestyle.
I think in many cases, that maintain lifestyle is overstated. A lot of expenses change or go away. If you plan to retire with a paid off house, of a reasonable size, and kids are gone, a huge chunk of current expenses are too. Just budget more if you want t live in a manhattan condo and live a fancy city lifestyle!
I concur. Financial planners and software seem to always take into account CURRENT expenses rather than future expenses, which should be far less.
We'll sell our house and buy a smaller place with cash with low property taxes. Expenses would be minimal. I would likely even try to buy a vacation home before retirement.
Same here mostly. My plan in the next year is to sell this place and land somewhere at least slightly cheaper, with vastly lower property taxes, and have a more modest house free and clear by retirement age. Then maybe $500/month for taxes and insurance, plus normal utilities. With housing costs low like that, don't need all that much income to live just fine. Plus, I am really cheap!
@oldfarmer50, the Austin Seven was a a British auto. There is an article on the American ones built under license, the American Austin and American Bantam in the Sept 2016 issue of Hemmings Classic Car. They were real small and didn't sell too well. The article is interesting and may be available on the Hemmings website.
First off, what is the $1M constituted of - 401K, IRA and/or other investments? Does it reflect any Social Security or pensions? Do you own most of your home and can you cash out and downsize? Be careful buying an annuity. The current interest rates are not really conducive to that right now. When you figure what you are actually working with, you need to compound it for interest, dividend payments, expected stock price growth etc. and then deflate it out for expected inflation reduction in value over time. When you are done with that divide it out to what it is expected to result for monthly withdrawals. Present value is one method and it is in Microsoft Excel (but is only as good as the accuracy of the inputs).
On the retirement issue with @bwia, the makeup of the $1m is really important, as @berri asked about. Tax deferred vs tax already paid is a biggie, no matter your bracket. Plus, your other income (pension, SS, etc) is a big piece of the puzzle. We have found we spend about 80% of our pre-retirement expense, but we were really frugal in the 5 years before retiring. Some people only spend 65-75%. If you have a decent Social Security income and have no debts, that $1m could last 15 years or more. I agree with @ab348 - it's hard to get a consistent 5% return over 15-20 years unless you are a whiz with investments. The past few years have been great, but we will surely have a downturn and the S&P will tank 20-25% in the next 5-7 years.
The Mrs. and I just saw the total eclipse of the sun in Kansas City. We drove north into the city and stopped and parked in Country Club Plaza. Kinda cool - the Mrs. and I took turns looking up at the sun through the "safe" eclipse shielders. Things got eerily dark. Those glasses really block out the sun...you barely see the blocked sun through them. But I wouldn't want the alternative!
If invested modestly it should earn $50000 a year at 5%.
Don't get me started on that. I was looking at my small retirement account on the weekend and the various mutual funds have all given back all the gains they made over the last 8-9 months, so the return is zero. I'd be happy with 5% but I can't find where to get it.
5% is an average....some years equities will rise 10%. 5% is actually fairly modest. The Dow is up 9.5% this year! Also, you may need some dividend paying stocks, and a few high paying bonds....some of those run at about 5%.
If invested modestly it should earn $50000 a year at 5%.
Don't get me started on that. I was looking at my small retirement account on the weekend and the various mutual funds have all given back all the gains they made over the last 8-9 months, so the return is zero. I'd be happy with 5% but I can't find where to get it.
5% is an average....some years equities will rise 10%. 5% is actually fairly modest. The Dow is up 9.5% this year! Also, you may need some dividend paying stocks, and a few high paying bonds....some of those run at about 5%.
I have various BMO Mutual Funds. They never seem to earn much of anything even when the markets rise. But when the markets fall, they track that pattern assiduously. Funny thing, that.
How long does a million dollars last in retirement?
My official retirement date is December 31. Last week we met with a financial planner and based upon the way he looked at me it seems as though I haven't saved enough to retire comfortably. But that is based on a life expectancy of 95. So I am debating whether I am retiring too early.
Reaching age 95 sounds nice but I don't see it in the cards. For me, 85 would be about right given that my mother and father lived to 61 and 77 respectively. They were the exceptions though, as most other family members lived to the high 90s and my grandmother 100.
So for you guys who are near or in retirement, how long will a million dollars last, if that includes travel, winters in the Caribbean, and developing a golfing habit?
Here is some better news for you. I have been retired for about 11 years. House is paid for, cars are paid for, no kids expense, etc. We live pretty well on SS and my two pensions, dip into savings if we want to splurge, and over the 11 years our nest egg has grown by $500K. Don't let them scare you.
The Mrs. and I just saw the total eclipse of the sun in Kansas City. We drove north into the city and stopped and parked in Country Club Plaza. Kinda cool - the Mrs. and I took turns looking up at the sun through the "safe" eclipse shielders. Things got eerily dark. Those glasses really block out the sun...you barely see the blocked sun through them. But I wouldn't want the alternative!
If invested modestly it should earn $50000 a year at 5%.
Don't get me started on that. I was looking at my small retirement account on the weekend and the various mutual funds have all given back all the gains they made over the last 8-9 months, so the return is zero. I'd be happy with 5% but I can't find where to get it.
5% is an average....some years equities will rise 10%. 5% is actually fairly modest. The Dow is up 9.5% this year! Also, you may need some dividend paying stocks, and a few high paying bonds....some of those run at about 5%.
Our financial advisor told us it was safe to take out 4% per year, which we do. We also have Social Security. Our condo is not close to being paid off, we just leased one car, we took a trip to Prague this summer, and we live in an expensive area. On the other hand, we massively downsized so our utilities are very cheap, we refinanced our mortgage at a very low rate, we don't spend a lot of money on daily activities, and we're doing fine. As @houdini1 said, don't let them scare you.
I disagree and think you have to figure future expenses about the same as current expenses. Don't forget the possibilities of inflation and unexpected or catastrophic situations which could increase your cost of living expenses. It's a worse case senario approach, but I think that to be safe, you can't count on your total costs decreasing. Estimating future expenses on the higher side is better than running out of money as you get older.
If invested modestly it should earn $50000 a year at 5%.
Don't get me started on that. I was looking at my small retirement account on the weekend and the various mutual funds have all given back all the gains they made over the last 8-9 months, so the return is zero. I'd be happy with 5% but I can't find where to get it.
5% is an average....some years equities will rise 10%. 5% is actually fairly modest. The Dow is up 9.5% this year! Also, you may need some dividend paying stocks, and a few high paying bonds....some of those run at about 5%.
I have various BMO Mutual Funds. They never seem to earn much of anything even when the markets rise. But when the markets fall, they track that pattern assiduously. Funny thing, that.
I always liked TD when I did my own - and they seemed to do OK. Now I let the "experts" do it, I just can't be bothered. Would rather play tennis than try to figure out stocks. Also, a cheap index fund usually ends up making more than the "so called experts".
The Mrs. and I just saw the total eclipse of the sun in Kansas City. We drove north into the city and stopped and parked in Country Club Plaza. Kinda cool - the Mrs. and I took turns looking up at the sun through the "safe" eclipse shielders. Things got eerily dark. Those glasses really block out the sun...you barely see the blocked sun through them. But I wouldn't want the alternative!
Thanks, that is the only view I had of the eclipse today. I chipped a tooth and was in the dentists chair while it was going on. There was a window, but, it didn't get dark.
One of our tennis guys went to Nashville to see it. That is dedication.
If invested modestly it should earn $50000 a year at 5%.
Don't get me started on that. I was looking at my small retirement account on the weekend and the various mutual funds have all given back all the gains they made over the last 8-9 months, so the return is zero. I'd be happy with 5% but I can't find where to get it.
5% is an average....some years equities will rise 10%. 5% is actually fairly modest. The Dow is up 9.5% this year! Also, you may need some dividend paying stocks, and a few high paying bonds....some of those run at about 5%.
Our financial advisor told us it was safe to take out 4% per year, which we do. We also have Social Security. Our condo is not close to being paid off, we just leased one car, we took a trip to Prague this summer, and we live in an expensive area. On the other hand, we massively downsized so our utilities are very cheap, we refinanced our mortgage at a very low rate, we don't spend a lot of money on daily activities, and we're doing fine. As @houdini1 said, don't let them scare you.
That's the standard "safe" withdrawl level I guess. I just started having all the dividends sent as a check instead of reinvesting. That is just about 4%. It's nice getting cash every month with a bump on each quarter.
My property and house was paid for the day we moved in and as you know my hooptie collection doesn't cost much. We both get DB pensions and social security which just about equals our pre retirement income.
Our only enemy now is legacy planning.
Speaking of SS, they sent me a letter today asking how much more I plan on making from work this year. Hello! I'm retired! What part about that don't you get? Then they want me to tell them how much I will make from my job NEXT year. Huh? How are you supose to report income you don't have from a job you may or may not ever have?
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
I disagree and think you have to figure future expenses about the same as current expenses. Don't forget the possibilities of inflation and unexpected or catastrophic situations which could increase your cost of living expenses. It's a worse case senario approach, but I think that to be safe, you can't count on your total costs decreasing. That is better than running out of money as you get older.
of course COL can go up. That has to be factored in (inflation). But what should go down in constant dollars is a lot of specific expenses. Not commuting, buying work clothes, even paying into retirement plans. Not to mention cheaper housing (potentially) and the biggee for many people, not having kids to support. In a year, my daughter will be on her own too (our youngest) so I will lose some tax breaks, but will overall be ahead losing on her "carrying costs" (college, car, medical, food, etc.). If I also move to save 6-10K/year just in property taxes (hey, I don't need these schools any longer!) the savings should really pile up.
But, you can add replacement expenses for travel and leisure mostly, and eventually, the specter of medical care or retirement housing.
Roadburner....I would say 99% of the people I talk to love having 1) a rear camera, and 2) blind spot warnings. They certainly can't hurt, and they may do some good. Don't know why you think it isn't necessary...is it the $100 the camera costs?
Says the guy who buys $4 HDMI cables... Cost has nothing to do with it. I don't find either technology useful- despite what your friends think. In most cars blind spot monitoring is unnecessary- assuming you have enough sense to adjust your mirrors correctly- a huge assumption for most vehicle operators, I realize. The parking sensors are at least borderline helpful- and much more useful than a camera as they function at night- but still I consider them to be just another "feature" I'd rarely need.
I gave you the link that said there is no difference between a $1000 HDMI cable and a $4 HDMI cable, they are basically the same unless you can hear like a bat, or want to believe what the guy with the $1000 cable tells you. You can believe your audiophile guy and I will believe what I read...it was well documented, the signal is the signal.
People who don't need or want safety devices usually don't know their own limitations. How can you know someone didn't leave something behind your car....or someone didn't pass out behind your car? Why would you object to something that has no disadvantages, but could do something beneficial....like save a life? As was pointed out....you don't always drive near your home.
Do you not wear seat belts, because you could never be in an accident?
I have not caught up on reading, but it is a false equivalency. Seat belts will help you and benefit you in any wreck. The back up camera may only prevent a specific type of accident under specific types of circumstances. It is why early cars didn't have 25 air bags, but only 2. The 2 most likely to ever be used. There are two negatives to more safety equipment, extra cost, and extra weight. I'm not saying those aren't outweighed by the benefits, but they are two negative aspects to rear view cameras.
'18 Porsche Macan Turbo, '16 Audi TTS, Wife's '19 VW Tiguan SEL 4-Motion
Remember to consider that if you pull out investments or take dividends, over time the pool of those investments lose value meaning the dividends and interest will likely shrink over time. Also as someone noted I believe, the local cost of living plays into how far the money goes just like your life expectancy. I bring the point about the pool shrinking because if you are heavily weighted in stocks or mutual funds including bond funds, pulling out during down years can end up seriously impacting what is available down the road. The 4% is a fairly common rate used for pulling the money, but some advise adjusting the percentage up or down reflecting the markets and inflation. Also once you hit 70 yrs old you must start withdrawing minimum amounts of tax deferred investments each year (the IRS has a booklet on the percentage formulas). Technically you can wait another half year, but that often results in a double withdrawal whammy the next tax year.
So for you guys who are near or in retirement, how long will a million dollars last, if that includes travel, winters in the Caribbean, and developing a golfing habit?
You should ask the Social Security Administration for an estimate of your Social Security benefits. As for the one million dollars, nothing is paying much in the way of interest or dividends at this time so you'll probably be using some of the principal each year. But you do need an estimate of Social Security before you can estimate how long the one million will last.
Wells Fargo must be doing something right for my mother because my late Stepdad's 401k hasn't budged on principal balance and my mother pulls a draw every month. They even have told her she could draw more.
So for you guys who are near or in retirement, how long will a million dollars last, if that includes travel, winters in the Caribbean, and developing a golfing habit?
You should ask the Social Security Administration for an estimate of your Social Security benefits. As for the one million dollars, nothing is paying much in the way of interest or dividends at this time so you'll probably be using some of the principal each year. But you do need an estimate of Social Security before you can estimate how long the one million will last.
Even a modest SS check over a 15 year retirement could make up 1/3 of that million dollars.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
I think most of those financial target estimates like that 1million mentioned, are for saved assets. Not including the NPV of the annuities, which can be quite substantial (especially a decent pension).
If things work out, I would love it if I can not touch the IRA money until need to take the minimum distributions. Then it would be gravy money! Though that might require working part time too until 70...I hope my wife doesn't mind doing it!
Thank you all for commenting, especially carnaught, graphicguy, 28firefighter, stickguy, fintail, qbrozen, driver100, ab348, oldfarmer50, berri, thebean, houdini1, suydam, carnaught, and fordfool.
Houdini1, congrats on a long retirement and I wish you many more satisfying years ahead. And now back to my original question: how long will a million dollars last in retirement?
For the record, I just turned 69 a few weeks ago, and I hope to make it to 85 or an additional 16 years. Our family finances are not very complicated but here goes: Property owned jointly include real property—our primary residence with a small mortgage and large property tax bill, one rental townhouse with no debt, and a Caribbean villa also debt free. And reasonable cash savings earning practically nothing.
Individually, I have a $1 million plus tax-deferred retirement savings plan, a couple thousand shares of bank stock, a small emergency cash fund, and I collect the maximum social security benefits. I have no other pension benefits and no other debt.
My wife on the other hand receives a generous government pension, a terrific health care plan that includes a prescription drug and dental plan, most of it paid by the city retirement board. She also has a tax deferred 403(b) retirement plan that she must start withdrawing the minimum 4% soon. One caveat about my wife’s retirement plan; should she unfortunately pass on before I do, I would receive substantially less as a surviving spouse. That’s why I’d like my financial plan to exclude my wife’s contribution.
In terms of legacy, I would like to contribute $100K to my alma mater, and pay the first year’s tuition for each of my two grandchildren. One last thing, we do not live a fancy lifestyle nor buy fancy cars.
andres3 There are two negatives to more safety equipment, extra cost, and extra weight. I'm not saying those aren't outweighed by the benefits, but they are two negative aspects to rear view cameras.
You think the extra cost and weight of a back up camera outweigh the advantages. I use my back up camera everyday...I have a curving driveway and back into my garage. I usually back into parking spaces too, when possible. I love my back up camera. The Florida car doesn't have one....and in a way it keeps me in practice to be able to manage without one....but, if given a choice I wouldn't be without it.
you sound to be in great shape to me. In your circumstances, I would ditch the big house with big property tax. Either move into the townhouse, or find a smaller place with much lower carrying costs to live in (which is what I hope to do soon). Having the public pension is a nice thing. Tell the wife to keep in shape!
Do you have survivorship rights to your wife's pension and benefits? I believe those pensions are like military pensions in having COLA which is a nice situation. If do have those rights, you probably want to check to see if she passes first what that benefit amount would be and whether that inherited benefit would have offsets against your social security. I think some years back the gov put offsets between older gov pension plans and SS to preclude double dipping, but I'm not personally knowledgeable about how it works. I think you are probably in better shape than you appear to believe. Besides clarifying any survivor benefits that may apply, you should also factor in rent from your rental property and the impact of remaining depreciation on your taxes/cash flow. If the rental is pretty much depreciated you may want to sell it and reinvest the money - but in that case be cognizant of any tax liabilities that sale may create.
Bwia, Stick and berri nailed it with good factual information. $1 million is pretty good, you should certainly have enough, plus all the extras you have, pensions etc. One of the biggest hurdle is mindset....no matter how much you save, you never think it is enough. In a way, that is understandable, since there is a lot of unknown things that can happen - but, usually don't (like extra care, extraordinary medical bills etc). It sounds like you should be able to have, a very satisfying retirement life. Another question though is....how do you expect to spend your time?
*One more thought.....just the $1 million alone would last 10 years if you spent $100000 a year without the money getting any interest. If you only needed $50k a year...it is going to last 20 years.
A big factor though, and sometimes people forget, at 7% interest, prices double every 10 years, so the $50k you have this year will only be worth about half in 10 years. That is why it is important to invest, and try to preserve as much of the nest egg as possible.....or at least draw on it slowly.
Thank you all for commenting, especially carnaught, graphicguy, 28firefighter, stickguy, fintail, qbrozen, driver100, ab348, oldfarmer50, berri, thebean, houdini1, suydam, carnaught, and fordfool.
Houdini1, congrats on a long retirement and I wish you many more satisfying years ahead. And now back to my original question: how long will a million dollars last in retirement?
For the record, I just turned 69 a few weeks ago, and I hope to make it to 85 or an additional 16 years. Our family finances are not very complicated but here goes: Property owned jointly include real property—our primary residence with a small mortgage and large property tax bill, one rental townhouse with no debt, and a Caribbean villa also debt free. And reasonable cash savings earning practically nothing.
Individually, I have a $1 million plus tax-deferred retirement savings plan, a couple thousand shares of bank stock, a small emergency cash fund, and I collect the maximum social security benefits. I have no other pension benefits and no other debt.
My wife on the other hand receives a generous government pension, a terrific health care plan that includes a prescription drug and dental plan, most of it paid by the city retirement board. She also has a tax deferred 403(b) retirement plan that she must start withdrawing the minimum 4% soon. One caveat about my wife’s retirement plan; should she unfortunately pass on before I do, I would receive substantially less as a surviving spouse. That’s why I’d like my financial plan to exclude my wife’s contribution.
In terms of legacy, I would like to contribute $100K to my alma mater, and pay the first year’s tuition for each of my two grandchildren. One last thing, we do not live a fancy lifestyle nor buy fancy cars.
Sounds great except for that last thing.
Try a 529 plan for the grand kids.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
Does anyone have ideas on getting a good "personal injury lawyer"? This is regarding our accident, that was one year ago. I have to file within 2 years, in order to recover if something shows up in the future.
The lawyer who did our wills said use the 1-800 guys. They will need lots of resources, medical specialists etc. He said the big guys that advertise a lot - that is what they do.
A friend who was in the insurance business says use a well known private local firm.
I have tried to find ratings or complaints.....I can find rate your doctor etc.....but, not a lawyer.
A firm that specializes might have better expertise. A larger firm might have the staff to handle details. Other than that just make sure you know fees. Here they usually get 1/3 of the settlement plus expenses ( which can be extensive). You shouldn't have any trouble winning a no brainer at fault case like that.
On a lighter side.
I forget which of you guys has a kid working in Albany who lives in the Buckingham Pond neighborhood. I hope he isn't indulging in recreational herbs which cause him to mistake a kitty cat for a mountain lion.
There was quite a panic down there recently with people locking themselves in their homes and probably hiding under the bed.
Note: the Edmunds censor has an amusing standard. I originally described the cat using a word starting with "P". The censor said that was non permissible content. LOL.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
@bwia - from that description you sound like you'd be in good shape financially.
Retirement for me has not been what I expected. I really have done very little the last 3 years other than the home renos this past winter, largely due to my health situation. That was not a total surprise but the timing of it was sooner than I anticipated. The result is that I am spending far less than I thought I would, which has done good things for my finances, under-performing investments aside.
Thank you all for commenting, especially carnaught, graphicguy, 28firefighter, stickguy, fintail, qbrozen, driver100, ab348, oldfarmer50, berri, thebean, houdini1, suydam, carnaught, and fordfool.
Houdini1, congrats on a long retirement and I wish you many more satisfying years ahead. And now back to my original question: how long will a million dollars last in retirement?
For the record, I just turned 69 a few weeks ago, and I hope to make it to 85 or an additional 16 years. Our family finances are not very complicated but here goes: Property owned jointly include real property—our primary residence with a small mortgage and large property tax bill, one rental townhouse with no debt, and a Caribbean villa also debt free. And reasonable cash savings earning practically nothing.
Individually, I have a $1 million plus tax-deferred retirement savings plan, a couple thousand shares of bank stock, a small emergency cash fund, and I collect the maximum social security benefits. I have no other pension benefits and no other debt.
My wife on the other hand receives a generous government pension, a terrific health care plan that includes a prescription drug and dental plan, most of it paid by the city retirement board. She also has a tax deferred 403(b) retirement plan that she must start withdrawing the minimum 4% soon. One caveat about my wife’s retirement plan; should she unfortunately pass on before I do, I would receive substantially less as a surviving spouse. That’s why I’d like my financial plan to exclude my wife’s contribution.
In terms of legacy, I would like to contribute $100K to my alma mater, and pay the first year’s tuition for each of my two grandchildren. One last thing, we do not live a fancy lifestyle nor buy fancy cars.
You look to be in good shape. That $100,000. legacy gift to your alma mater would probably be used for a pay raise to an already overpaid professor, etc. whereas, it might be more meaningful to your remaining family members. Not second guessing, just my opinion.
A firm that specializes might have better expertise. A larger firm might have the staff to handle details. Other than that just make sure you know fees. Here they usually get 1/3 of the settlement plus expenses ( which can be extensive). You shouldn't have any trouble winning a no brainer at fault case like that.
On a lighter side.
I forget which of you guys has a kid working in Albany who lives in the Buckingham Pond neighborhood. I hope he isn't indulging in recreational herbs which cause him to mistake a kitty cat for a mountain lion.
There was quite a panic down there recently with people locking themselves in their homes and probably hiding under the bed.
Note: the Edmunds censor has an amusing standard. I originally described the cat using a word starting with "P". The censor said that was non permissible content. LOL.
What a ferocious looking critter !! No idea why they would censor "Putty cat". Somwhere, George Carlin is having a good laugh.
Thank you all for commenting, especially carnaught, graphicguy, 28firefighter, stickguy, fintail, qbrozen, driver100, ab348, oldfarmer50, berri, thebean, houdini1, suydam, carnaught, and fordfool.
Houdini1, congrats on a long retirement and I wish you many more satisfying years ahead. And now back to my original question: how long will a million dollars last in retirement?
For the record, I just turned 69 a few weeks ago, and I hope to make it to 85 or an additional 16 years. Our family finances are not very complicated but here goes: Property owned jointly include real property—our primary residence with a small mortgage and large property tax bill, one rental townhouse with no debt, and a Caribbean villa also debt free. And reasonable cash savings earning practically nothing.
Individually, I have a $1 million plus tax-deferred retirement savings plan, a couple thousand shares of bank stock, a small emergency cash fund, and I collect the maximum social security benefits. I have no other pension benefits and no other debt.
My wife on the other hand receives a generous government pension, a terrific health care plan that includes a prescription drug and dental plan, most of it paid by the city retirement board. She also has a tax deferred 403(b) retirement plan that she must start withdrawing the minimum 4% soon. One caveat about my wife’s retirement plan; should she unfortunately pass on before I do, I would receive substantially less as a surviving spouse. That’s why I’d like my financial plan to exclude my wife’s contribution.
In terms of legacy, I would like to contribute $100K to my alma mater, and pay the first year’s tuition for each of my two grandchildren. One last thing, we do not live a fancy lifestyle nor buy fancy cars.
You look to be in good shape. That $100,000. legacy gift to your alma mater would probably be used for a pay raise to an already overpaid professor, etc. whereas, it might be more meaningful to your remaining family members. Not second guessing, just my opinion.
It can be designated for scholarships, for research, any way you choose. I'm pretty grateful to the "overpaid" professors who are doing groundbreaking work in research into some of the medical issues that have been discussed in these pages. I'm designating money for scholarships for first generation college students.
I think you are better prepared than 99.8% of the populace. It is alarming how many out there have little or nothing. I know decently paid people who have put away very little in traditional retirement venues, as they have chosen to put all their eggs in the housing basket (and I think are counting on inheritance, because bootstraps and stuff). In this speculative market, housing has created returns in excess of most normal investments, and when you can get a subsidized (in so many ways) loan for your nest egg and live in it, maybe why not. The key is hoping the market is still alive when you hang 'em up and want to move.
It's going to be an interesting future, both for those with big savings and without, and public vs private sector issues. I think there will be some unsustainable promises.
Thank you all for commenting, especially carnaught, graphicguy, 28firefighter, stickguy, fintail, qbrozen, driver100, ab348, oldfarmer50, berri, thebean, houdini1, suydam, carnaught, and fordfool. In terms of legacy, I would like to contribute $100K to my alma mater, and pay the first year’s tuition for each of my two grandchildren. One last thing, we do not live a fancy lifestyle nor buy fancy cars.
The Mrs. and I just saw the total eclipse of the sun in Kansas City. We drove north into the city and stopped and parked in Country Club Plaza. Kinda cool - the Mrs. and I took turns looking up at the sun through the "safe" eclipse shielders. Things got eerily dark. Those glasses really block out the sun...you barely see the blocked sun through them. But I wouldn't want the alternative!
Thanks, that is the only view I had of the eclipse today. I chipped a tooth and was in the dentists chair while it was going on. There was a window, but, it didn't get dark.
One of our tennis guys went to Nashville to see it. That is dedication.
A front moved in about 1PM here and I was ready to be frustrated, but the clouds started to have gaps so I got some shots using the clouds as a filter
I have not caught up on reading, but it is a false equivalency. Seat belts will help you and benefit you in any wreck. The back up camera may only prevent a specific type of accident under specific types of circumstances. It is why early cars didn't have 25 air bags, but only 2. The 2 most likely to ever be used. There are two negatives to more safety equipment, extra cost, and extra weight. I'm not saying those aren't outweighed by the benefits, but they are two negative aspects to rear view cameras.
Driver, not sure why a big firm would want your case. You are not suing for anything now, right? This is just to be on record, in case of future issues? Though maybe they would take that if just a basic filing, they put your file away. A normal attorney would likely do same thing but charge you up front (1-800 guts are usually contingent, but don't take on cases they don't think will have a quick or large payout).
Farmer, that was my son. He moved a year back to a rental house with some friends over on van something avenue (schoiken?). And unless beer or expensive whiskey does that to you, wasn't him.
Driver, not sure why a big firm would want your case. You are not suing for anything now, right? This is just to be on record, in case of future issues? Though maybe they would take that if just a basic filing, they put your file away. A normal attorney would likely do same thing but charge you up front (1-800 guts are usually contingent, but don't take on cases they don't think will have a quick or large payout).
Farmer, that was my son. He moved a year back to a rental house with some friends over on van something avenue (schoiken?). And unless beer or expensive whiskey does that to you, wasn't him.
Around this old Dutch area saying Van something is meaningless. Every other street is Van something. You should hear the out of state new local newscasters stumble over the names. My street was an old Dutch portage route between the Hudson and Mohawk rivers. Nobody can spell it.
Glad your son was away from the danger area but he should be careful. To the north some jogger got chewed by a rabid coyote and had to jump in the river. The whole state is reverting to nature as all the humans move out.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
You think the extra cost and weight of a back up camera outweigh the advantages. I use my back up camera everyday...I have a curving driveway and back into my garage. I usually back into parking spaces too, when possible. I love my back up camera. The Florida car doesn't have one....and in a way it keeps me in practice to be able to manage without one....but, if given a choice I wouldn't be without it.
I too use mine all the time, but I would be incredibly disappointed in myself if the first time I spotted an object in the way was on the backup camera. I make every effort to back into parking spaces, that way I can visually confirm the coast is clear before parking and on the way out I am looking forward and can again confirm that nothing is in the way.
There are times where this is not possible, so I try to approach from behind my truck so I can visually confirm nobody is there as backing out using the camera is awkward given the screen is forward, yet I always look over my shoulder while backing up.
As a pedestrian I always give a very wide berth to folks zeroed in on the screen (backup camera and/or phone!) as they are backing, I am certain they can't/don't see me walking.
You think the extra cost and weight of a back up camera outweigh the advantages. I use my back up camera everyday...I have a curving driveway and back into my garage. I usually back into parking spaces too, when possible. I love my back up camera. The Florida car doesn't have one....and in a way it keeps me in practice to be able to manage without one....but, if given a choice I wouldn't be without it.
I too use mine all the time, but I would be incredibly disappointed in myself if the first time I spotted an object in the way was on the backup camera. I make every effort to back into parking spaces, that way I can visually confirm the coast is clear before parking and on the way out I am looking forward and can again confirm that nothing is in the way.
There are times where this is not possible, so I try to approach from behind my truck so I can visually confirm nobody is there as backing out using the camera is awkward given the screen is forward, yet I always look over my shoulder while backing up.
As a pedestrian I always give a very wide berth to folks zeroed in on the screen (backup camera and/or phone!) as they are backing, I am certain they can't/don't see me walking.
Most of the places I frequent have "pull thru" parking spaces. You can pull thru one, and then be facing out in the opposite one. I always do this when possible, even if it means walking a few extra steps. Wife insists on this ever since I backed her car into a light pole 10 years ago. She still brings it up up every time I have to back up.
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Driver100 say your age in bonds but that might not be the best move in a rising interest rate environment. I put some money into dividend mutual funds that generate some growth and around 4% interest.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
We'll sell our house and buy a smaller place with cash with low property taxes. Expenses would be minimal. I would likely even try to buy a vacation home before retirement.
Same here mostly. My plan in the next year is to sell this place and land somewhere at least slightly cheaper, with vastly lower property taxes, and have a more modest house free and clear by retirement age. Then maybe $500/month for taxes and insurance, plus normal utilities. With housing costs low like that, don't need all that much income to live just fine. Plus, I am really cheap!
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
2021 Kia Soul LX 6-speed stick
Also, you may need some dividend paying stocks, and a few high paying bonds....some of those run at about 5%.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
2017 Cadillac ATS Performance Premium 3.6
2013 LX 570 2016 LS 460
'24 Chevy Blazer EV 2LT
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
One of our tennis guys went to Nashville to see it. That is dedication.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
My property and house was paid for the day we moved in and as you know my hooptie collection doesn't cost much. We both get DB pensions and social security which just about equals our pre retirement income.
Our only enemy now is legacy planning.
Speaking of SS, they sent me a letter today asking how much more I plan on making from work this year. Hello! I'm retired! What part about that don't you get? Then they want me to tell them how much I will make from my job NEXT year. Huh? How are you supose to report income you don't have from a job you may or may not ever have?
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
But, you can add replacement expenses for travel and leisure mostly, and eventually, the specter of medical care or retirement housing.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
They are moving right along and framed the entire floor today. Contractor told me interior demo begins next week....
The footings and foundation was certainly the easy part.
2025 Ram 1500 Laramie 4x4 / 2023 Mercedes EQE 350 4Matic
2025 Ram 1500 Laramie 4x4 / 2023 Mercedes EQE 350 4Matic
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
If things work out, I would love it if I can not touch the IRA money until need to take the minimum distributions. Then it would be gravy money! Though that might require working part time too until 70...I hope my wife doesn't mind doing it!
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Houdini1, congrats on a long retirement and I wish you many more satisfying years ahead. And now back to my original question: how long will a million dollars last in retirement?
For the record, I just turned 69 a few weeks ago, and I hope to make it to 85 or an additional 16 years. Our family finances are not very complicated but here goes:
Property owned jointly include real property—our primary residence with a small mortgage and large property tax bill, one rental townhouse with no debt, and a Caribbean villa also debt free. And reasonable cash savings earning practically nothing.
Individually, I have a $1 million plus tax-deferred retirement savings plan, a couple thousand shares of bank stock, a small emergency cash fund, and I collect the maximum social security benefits. I have no other pension benefits and no other debt.
My wife on the other hand receives a generous government pension, a terrific health care plan that includes a prescription drug and dental plan, most of it paid by the city retirement board. She also has a tax deferred 403(b) retirement plan that she must start withdrawing the minimum 4% soon. One caveat about my wife’s retirement plan; should she unfortunately pass on before I do, I would receive substantially less as a surviving spouse. That’s why I’d like my financial plan to exclude my wife’s contribution.
In terms of legacy, I would like to contribute $100K to my alma mater, and pay the first year’s tuition for each of my two grandchildren. One last thing, we do not live a fancy lifestyle nor buy fancy cars.
There are two negatives to more safety equipment, extra cost, and extra weight. I'm not saying those aren't outweighed by the benefits, but they are two negative aspects to rear view cameras.
You think the extra cost and weight of a back up camera outweigh the advantages. I use my back up camera everyday...I have a curving driveway and back into my garage. I usually back into parking spaces too, when possible. I love my back up camera. The Florida car doesn't have one....and in a way it keeps me in practice to be able to manage without one....but, if given a choice I wouldn't be without it.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
One of the biggest hurdle is mindset....no matter how much you save, you never think it is enough.
In a way, that is understandable, since there is a lot of unknown things that can happen - but, usually don't (like extra care, extraordinary medical bills etc).
It sounds like you should be able to have, a very satisfying retirement life. Another question though is....how do you expect to spend your time?
*One more thought.....just the $1 million alone would last 10 years if you spent $100000 a year without the money getting any interest. If you only needed $50k a year...it is going to last 20 years.
A big factor though, and sometimes people forget, at 7% interest, prices double every 10 years, so the $50k you have this year will only be worth about half in 10 years. That is why it is important to invest, and try to preserve as much of the nest egg as possible.....or at least draw on it slowly.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Try a 529 plan for the grand kids.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
The lawyer who did our wills said use the 1-800 guys. They will need lots of resources, medical specialists etc. He said the big guys that advertise a lot - that is what they do.
A friend who was in the insurance business says use a well known private local firm.
I have tried to find ratings or complaints.....I can find rate your doctor etc.....but, not a lawyer.
Any thoughts or experiences?
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
On a lighter side.
I forget which of you guys has a kid working in Albany who lives in the Buckingham Pond neighborhood. I hope he isn't indulging in recreational herbs which cause him to mistake a kitty cat for a mountain lion.
There was quite a panic down there recently with people locking themselves in their homes and probably hiding under the bed.
http://cbs6albany.com/news/local/possible-wild-animal-sighting-could-be-pet-cat
Note: the Edmunds censor has an amusing standard. I originally described the cat using a word starting with "P". The censor said that was non permissible content. LOL.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
Retirement for me has not been what I expected. I really have done very little the last 3 years other than the home renos this past winter, largely due to my health situation. That was not a total surprise but the timing of it was sooner than I anticipated. The result is that I am spending far less than I thought I would, which has done good things for my finances, under-performing investments aside.
2017 Cadillac ATS Performance Premium 3.6
2013 LX 570 2016 LS 460
2013 LX 570 2016 LS 460
'24 Chevy Blazer EV 2LT
It's going to be an interesting future, both for those with big savings and without, and public vs private sector issues. I think there will be some unsustainable promises.
2013 LX 570 2016 LS 460
Airbag numbers also increased because of more research and tech, rather than actually being used. There were cars with side airbags over 20 years ago.
Farmer, that was my son. He moved a year back to a rental house with some friends over on van something avenue (schoiken?). And unless beer or expensive whiskey does that to you, wasn't him.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Glad your son was away from the danger area but he should be careful. To the north some jogger got chewed by a rabid coyote and had to jump in the river. The whole state is reverting to nature as all the humans move out.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
There are times where this is not possible, so I try to approach from behind my truck so I can visually confirm nobody is there as backing out using the camera is awkward given the screen is forward, yet I always look over my shoulder while backing up.
As a pedestrian I always give a very wide berth to folks zeroed in on the screen (backup camera and/or phone!) as they are backing, I am certain they can't/don't see me walking.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
2001 Prelude Type SH, 2022 Highlander XLE AWD, 2023 Toyota Tacoma SR 4WD, 2025 Toyota Camry SE AWD
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
2013 LX 570 2016 LS 460