? For the TBHers that are retired

[ntxshooter]

I’ve heard this as well. Don’t you factor out known monthly benefit & supplement the difference? For example you figure you need 60k/yr to live on & let’s say you draw 40k per year from SS & a pension or TRS so difference is 20k x 25 leaves a lump of 500k to make the difference

I don't factor that in when I look to calculate as I cant be sure of what SS will be there when it's time to retire. Therefore anything else would be like a bonus. Personally, I am doing all I can to keep a high savings rate relative to my income.

[rut-ro]

I wonder about that every day.
My home is paid for but the taxes are $1000.oo a month so I still have to pay rent to the county.

I don’t know if I will ever be brave enough to retire.

I got a buddy in the same boat. 15k a year in taxes even though his house is paid off. Right now they are doing it for the education. Once his kids are off to college, they will downsize big time and move out of town

[HogHunter34]

I don't factor that in when I look to calculate as I cant be sure of what SS will be there when it's time to retire. Therefore anything else would be like a bonus. Personally, I am doing all I can to keep a high savings rate relative to my income.

You can go to SS website & they provide an estimated monthly benefit. I was told to assume 77% of that to compensate for the predicted decrease in benefit by 2034. I did this for the purpose of a wellness score built in to our 401k plan site that allows you to customize more on how well you are doing. It asks for extra known income at retirement. I chose to include my estimated SS benefit at the reduced rate but I excluded my wife’s estimated TRS benefit

[HogHunter34]

I don't factor that in when I look to calculate as I cant be sure of what SS will be there when it's time to retire. Therefore anything else would be like a bonus. Personally, I am doing all I can to keep a high savings rate relative to my income.

Just curious when you say high savings rate is that a retirement type account like IRA, 401k, 403B?

[ntxshooter]

You can go to SS website & they provide an estimated monthly benefit. I was told to assume 77% of that to compensate for the predicted decrease in benefit by 2034. I did this for the purpose of a wellness score built in to our 401k plan site that allows you to customize more on how well you are doing. It asks for extra known income at retirement. I chose to include my estimated SS benefit at the reduced rate but I excluded my wife’s estimated TRS benefit

Yeah I know of the calculation for reduced benefits, just saying there are no guarantees and the amount could go down if I chose to take a job for less money or something else pops up that cuts into the potential payout. Therefore for planning purpose I leave it out all together and when retirement comes I'll have a little extra money every month. I feel that gives me options - draw down less from retirement accounts, pay for trips, additional healthcare saving, etc...


No harm in using it as part of your calculation though.

[ntxshooter]

Just curious when you say high savings rate is that a retirement type account like IRA, 401k, 403B?

1 - I max my 401k at work. Unfortunately our plan is capped and I cannot meet the max allowed by IRS
2 - I max ROTH IRA contribution
3 - I max an HSA account (or did until this month when I am no longer eligible due to new Healthcare plan through work)
4 - I contribute whatever excess I can to a taxable investment account after maintaining emergency fund and other saving goals (save for getting house painted, gutters, etc..). This has been a sizeable (for me) contribution the last couple years due to pay/bonus increases at work. Coupled with the fact that the only debt I carry is my mortgage.

[Beleg]

It’s all fun and games until you reach 40. If you haven’t been saving by the time you reach your 40s then you only have 20-25 years to save the money you will need for retirement. Find a good and honest financial advisor. Not one of the bank or insurance companies that front as financial advisors. They will try to sell you insurance, annuities, high fee IRAs, and whatever else they can think of to make as much as they can from you. I would recommend an independent financial advisor that you have vetted. A good financial advisor also makes money off you but is more likely to have your best interest in mind.

[tps7742]

It’s all fun and games until you reach 40. If you haven’t been saving by the time you reach your 40s then you only have 20-25 years to save the money you will need for retirement. Find a good and honest financial advisor. Not one of the bank or insurance companies that front as financial advisors. They will try to sell you insurance, annuities, high fee IRAs, and whatever else they can think of to make as much as they can from you. I would recommend an independent financial advisor that you have vetted. A good financial advisor also makes money off you but is more likely to have your best interest in mind.

Very sound advice!

[TexanDuke]

It’s all fun and games until you reach 40. If you haven’t been saving by the time you reach your 40s then you only have 20-25 years to save the money you will need for retirement. Find a good and honest financial advisor. Not one of the bank or insurance companies that front as financial advisors. They will try to sell you insurance, annuities, high fee IRAs, and whatever else they can think of to make as much as they can from you. I would recommend an independent financial advisor that you have vetted. A good financial advisor also makes money off you but is more likely to have your best interest in mind.

Cannot stress this enough

[argel55]

One thing when you retire and set up your Medicare, you need to set up everything from the start. Medical,vision,prescription, and dental. I did not need the prescription when I turned 65 and need it now so tried to sign up for it. you are charged an 11.20 late charge from now on.

[lmartin5]

Rather than x times your salary by age, I fall in line with those who recommend having at least 25x you annual expenses at retirement. Much better metric.

This

[M16]

Be debt free and have 10+million in cash and assets.

[Chunky]

I was forced to retire at age 56 because of the age limit for Air Traffic Controllers. I get about 55 % of my previous pay. It was good pay as after 30 plus years I had made it to the federal pay cap.

That was 5 years ago, most every thing was paid off, and I am not buying many large items. I have plenty to cover my living expenses with some fun money left. I work some part time and that money goes straight to adventure and travel.

Now the bad side, because I went through a divorce about the same time as retirement, I gave her all the saving to keep the ranch and my full retirement. So, no emergency fund or backup cash. When I lost the roof in Harvey, I just got a zero percent for the first year credit card and paid the 16K off over the year....not ideal, but you can find a way.

[Mudslinger]

Looking at retiring n Dec of this year or May of 2020. House will by paid for along with my truck. Will need to get my wife a vehicle, but with over 1 million in retirement accounts, SS for her and a little SS for me (self employed a long time) plus a little teacher retirement I hope we have enough to live comfortably. Meeting with a retirement planner nx weekend to hopefully fgure things out.

[tps7742]

Be debt free and have 10+million in cash and assets.

I understand the debt free but the 10 million number isn’t achievable for most people I know. Congratulations. I have been retired four years and have nothing near that number. I am in trouble. Lol