Retirement planning

[SamuraiCO]

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.

I have the same numbers in mind but may continue to work but not in pharmacy. Would love to be a teacher and hope to be able to make a transition from pharmacist to something else in a few years. Tired of evenings until 10pm and every other weekend work.

Home will easily be paid off by 65 if not sooner with some additional principle payments. But Murphy has a way to screw things up.

[RCCrawler]

I put 22% into a 401a and have for the last 20 years, I also started a Roth IRA a few years ago and everytime I get a raise I bump that up a bit working towards maxing that out each year. Of note I do not pay into social security, and have not paid into it long enough to ever receive the benefits should they suprise everyone and still be there when I'm ready to retire.

Crazy I've been at this job for 20 years, half my life, and I've still got another 25 years to go...

[Irving]

Post-tax is never profitable in the long run, if the money you pay on taxes would have otherwise been invested. It's far, far more economical to invest into a 401k and invest the money you would have spent in taxes in the same. Of course, a lot of people don't do that, they do fixed percentages.

If the money a person pays on the taxes for a Roth account would have otherwise been spent on hookers and blow or something equally frivolous, then the Roth is more effective down the road.

Do you have examples that support this? I mostly feel the same way, but I'd like to see the numbers comparing post tax contributions when one is younger and in a lower tax bracket, compared to the tax rate of one's withdrawls 40 years from now when they will likely be in a higher tax bracket and taxes have (likely) gone up.

[20X11]

This is true. I'm already planning and I have 30 years until retirement age. I'm looking into Ireland. Buy a house there. Have a management company manage it and rent it out while I'm not visiting. Help pay off the mortgage. Then sell my house here and love there.

Ireland is great as long as you want to give up your firearm rights.

[Madeinhb]

Ireland is great as long as you want to give up your firearm rights.

Well moving outside of US, kind of expecting it. It had it's pluses and minuses when moving away.

[Irving]

I've read all his blogs so am familiar. I'm find it and review.

[hatidua]

Ireland is great as long as you want to give up your firearm rights.

Different places can change some people's focus a bit. As an example, I used to get paid to spend a whole lot of time on the most perfect beaches in the world (Aitutaki, Seychelles, Maldives, Bora Bora, -the list filled multiple passports) and I can't think of a single one of those destinations where I sat there thinking "boy, I sure wish I could put up some paper plates and back off a thousand yards with a .308". Conversely, I don't think many people that live in Compton worry about tides and how that would affect tomorrows fish harvest. Those are extreme examples, but there are some places in the world I could move and completely forget about what a case of ammo cost. Unfortunately, my wife isn't as keen on living under a palm tree as I am.

As far as retirement planning, I have sadly been witness to people that had great plans and the calendar of their lives didn't last long enough. Some have had the best financial situation imaginable and didn't make it to 45, others had great plans and dreams for what they were going to do in retirement and expired at the dinner table at 50.

If you have a goal to do something, putting it off until "someday" isn't always the best plan.

[Madeinhb]

If you have a goal to do something, putting it off until "someday" isn't always the best plan.

I tell my buddy this all the time. He is one of those work a holics and doesn't take time off. Always says I can do it later in life.

My wife and I took all of July off and went to Europe. 2 week cruise. Few days in some cities and then a week in Ireland. We travel and do what we want. But we are planning for retirement, not to go and do things but to be able to sit around and not work.

[tmckay2]

Retirement planning is tricky. On the one hand you don't want to be working til you die, on the other I don't want to die working constantly because I'm banking every cent instead of enjoying some of it at 30 years old. There needs to be a balance. I expect to WAY downsize my life when I retire. I put in the 6 percent that my company matches and I have a good salary so it's decent, then I am putting a decent amount into the house. The plan is to pay it off and when I retire sell it and way downsize, putting the profit in the bank then living off around the equivalent of 35k in today's dollars. With no housing cost that is more than doable. I'm not extravagant and don't go on crazy trips or burn money on completely idiotic expensive things. I want to enjoy some of the money now so I have a nice house and big property but feel that is still somewhat an investment. Things like fancy cars and stuff I don't get into, they just burn the money.

But I hear some people banking crazy amounts in retirement and you have to verify careful. For one you don't want to be so frugal and never enjoy any money then die at 40. Second, that money still goes into the market. It isn't guaranteed. You could lose a lot though it isn't likely historically. I believe you need to put away a decent amount but also put a little money in some other investments like a bit of precious metals, a bit of common ammo and of course a residence.

[tmckay2]

I tell my buddy this all the time. He is one of those work a holics and doesn't take time off. Always says I can do it later in life.

My wife and I took all of July off and went to Europe. 2 week cruise. Few days in some cities and then a week in Ireland. We travel and do what we want. But we are planning for retirement, not to go and do things but to be able to sit around and not work.

Haha yeah it's funny a financial adviser was like "well when you retire you want the same level of life right"? I was like, are you insane? With a decent roof over my head, a warm bed and not having to work shit let me shoot a few days a week and sit in my rocking chair the others and I'm happy. I think the problem is a lot of people today view retirement is living the life with a boat, vacation homes, travelling the world, etc. And yes, for that you need some serious dough.