Retirement!
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Thread: Retirement!

  1. #1
    Registered User KimZ's Avatar
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    Default Retirement!

    So I just recieved a DR News letter... and boy does it have me thinking:

    So say I want to retire... um YES

    and I want to live on $55,000 a year and that is what you are currently making ( you can put what ever # you want)

    This is taking the following into consideration:

    No debt: Being and staying debt-free is the key to building wealth, and it will stretch your retirement dollars.

    Medical costs: The average couple retiring at age 65 will spend $285,000 in health care costs in retirement. You could end up spending significantly more or less.

    Long-term care needs: Folks who reach age 65 have a 60% chance of needing long-term care either in a nursing home or assisted-living facility. Long-term care insurance will protect your retirement savings, so factor those costs into your planning.



    Annual income you wish to retire on: $55,000
    Divide by: .08
    Retirement goal: $687,500
    That is what you would need put away to retire on what you are currently making... now depending on your age: you would do the following

    687,500 x .001698 ( my age is 45) = I would need to put away $1,167.38 a MONTH! Ekkkkkkkk I better start socking it away!

    Want to try yours?

    25 = .000286
    30 = .000436
    35 = .000671
    40 = .001051
    45 = .001698
    50 = .002890
    55 = .005466
    60 = .013610

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    Registered User forHISglory's Avatar
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    Thanks! I'm a retired person, and I'd say that Dave has it right. About the medical expenses: we are very healthy, but just the insurance costs alone eat up 1/3 of our pension. My advice is to save like crazy, and if you feel deprived, just keep those retirement years in mind!

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    Wow. That's weird.

    I once spent a few hours calculating a "dream" scenario. You know, I want to retire at 50 and have tons of money to spend, while covering the basics, figure that I'll live to 105, don't draw down principle, 7% investment returns, and 3% inflation - and figured I only needed to save $4500 a month. It was a really fun exercise.

    I did the above calculations, and came out with $1048 a month. Currently we're saving $1450 a month for retirement. That actually makes me feel better.

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    Registered User pollypurebred39's Avatar
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    We'd need to put away $4,335 a month if we went by DH's age and income before he was laid off.

    Serious belly laughs here. Not going to happen.We need to come up with another plan.

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    Registered User forHISglory's Avatar
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    Just did the calculations that you gave. If we were start right now preparing to retire, I'd have to put away over $10,000 a month! Sure glad we decided to do it slow and steady over the decades! Thanks for the info!

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    McD
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    Health care costs during retirement are the only reason why hubby will be re-enlisting in the Guard. It's going to make a huge difference in income for us when we get to the retirement age.

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    Time is on my side I guess, I only need to put away $299.75 a month!

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    Well, we are squruud for sure - but then we knew that!! Save early and often!! Plan!!

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    Registered User forHISglory's Avatar
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    McD, Health care costs are our biggest worry. We are blessed to have a pension (which by the way is not as big as a paycheck), but to fork over 1/3 of that a month hurts. When I was younger, I had no idea that our future would be impacted so heavily with that cost. We probably should have saved more just for that.

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    I honestly wonder if I will be able to retire. Don't get me wrong, I would like to and I am going to try to, but with health care and inflation, I just have my doubts.

    All that said, I'm guessing I am better off than most, so I shouldn't complain.
    ~Russ

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    Registered User krbshappy71's Avatar
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    I'll be eating cat food in my retirement years. Hopefully its on sale, and if its a really good sale I might splurge for canned!

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    YIKES!!

    I need to put away $503.25 a month!!

    Gues I need to get started on it.
    total debt: $23977.09 updated 04/02/11

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    Yikes, according to these calculations we need to save at least $1000 a month. Once I finish school and find employment, we'll need to amp up our savings.

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    Registered User arnie's Avatar
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    great information.
    thanks for sharing!

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    Our "retirement plan" is for me to get a job when the boys get older (like in a few years). We plan on living off one income and putting the other in retirement. I am hoping that we can live off the lower income and put the higher one into the retirement fund. It will probably be the other way around though.

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