Retirement planning

Going along with Irving's financial tracking, I thought it would be interesting to see people's thought on retirement.

What percentage of your current salary do you think you would need to live comfortably once you retire?

How much to have in savings when you retire compared to your salary?

Would you prefer a lump sum of money to live off of, or a monthly check until the end?

I'm work I towards having 100% salary when I retire, along with having at least 2x my salary in savings. I don't think I would mind having a part time job, but I would rather not be forced too.

I still have 19 years to go to retire at 55, but I have been saving and work in towards it for the last 14 years. I know life throws curve balls pretty often, and now with three kids under 4, I probably will have some coming.

It's like having insurance-it's a crap shoot. I never planned on living this long haha. I'm living on my SS retirement alone. It's a strech but can be done by living within your means. Problem I'm running into is the ever growing cost of living. I may be forced into PT work.

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Originally Posted by foxtrot

Not often discussed - I strongly suggest properly setting up irrevocable trusts and doing so early - like when you are in your 40's. Imagine a situation where you are living in an owned home, but get to deduct "rent" to yourself, are immune from loss of assets in the event of any creditor, lawsuit, or government issue, medicaid cannot touch your assets, and likely qualify for things like Colorado Indigent Care Program, and your kids are guaranteed to inherit it all without the government's involvement (no probate!) This is an irrevocable trust; but it cannot be setup days before you *really* have a need for it. If you guys want further discussion, I can elaborate.

*This post does not constitute legal advice - hire an attorney for legal advice*

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I'm interested in your ideas and would like to subscribe to your newsletter. Please elaborate!

I'm 36. I put 20% into my 401k. Have been for 6 years now.

My FIL took a lump sum when he retired. Now he regrets it. Market collapses in 2001 and 2008-9 hurt. He wishes he would have taken the "annuity" (monthly payments for life).

I have always advocated taking advantage of "employer match" programs. My employer matches $ for $ up to 6% of pre-tax. I have always contributed the max allowable, which is currently 18% + 6% match.
I can't understand why people wouldn't at least go for the 6% to get the full match. Too many people focused on pennies, pushing dollars out of the way to see them.

How much will I, or anyone else need? You can drive yourself crazy trying to weigh all the factors, but my goal is to minimize/eliminate all debt, and have as much cash reserve as I can accumulate.

Foxtrot, any further info you care to contribute on irrevocable trusts would likely be appreciated by most of us here.

sent from me

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Originally Posted by CavSct1983

I'm interested in your ideas and would like to subscribe to your newsletter. Please elaborate!

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As am i. perhaps a new thread for this discussion. With the understanding ANYTHING you post DOES NOT CONSTITUTE LEGAL ADVICE ;)

Buy some silver dollars when you can find them at a decent price. Make them the last thing you sell. SHTF money.

It used to be having 1 million dollars put away at retirement would get you through to the end. I heard recently that the bar has moved to $2MM due to inflation. It's tough saving enough when you're paying for SS that likely won't be much help when you retire and putting enough away to be comfortable on your own. I did setup a trust in my 40s to make sure my wife is taken care of, but I'll likely be working until the day I die.