Author Topic: What is your target amount?  (Read 114531 times)

Northwestie

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Re: What is your target amount?
« Reply #100 on: November 30, 2015, 01:08:13 PM »
Useful discussion, thanks.   My goal was $1.1M and a paid off house.  We recently arrived at 58 yo.  We both really like our jobs so I think one or two more years of FT, then ease into retirement with part time.  Would like to travel more so looking forward to it. 

One mistake (IMO) is I see some folks just concentrating on wealth accumulation and not taking time to go DO stuff.  Don't mistake having a career for having a life.

boarder42

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Re: What is your target amount?
« Reply #101 on: November 30, 2015, 01:16:47 PM »
Useful discussion, thanks.   My goal was $1.1M and a paid off house.  We recently arrived at 58 yo.  We both really like our jobs so I think one or two more years of FT, then ease into retirement with part time.  Would like to travel more so looking forward to it. 

One mistake (IMO) is I see some folks just concentrating on wealth accumulation and not taking time to go DO stuff.  Don't mistake having a career for having a life.

i dont think there are many on this site that fall into this trap.  the goal of the entire thing is to reduce your lifestyle to what you're comfy with and then live that lifestyle in retirement. 

BTDretire

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Re: What is your target amount?
« Reply #102 on: November 30, 2015, 01:49:43 PM »
I don't know, we have enough, over $1.6M and a paid off house. Including SS when it comes, Firecalc says I can withdraw $70k and not have a failure. Don't think we'll ever spend that much.
  My wife has no interest in retireing. I'm in a bit of a bind in that my wife and I have small business with just the two of us working. You could say I'm an integral part of the team. But I can be replaced, I'm figuring out how now. 2016 will be a year of transition.
 
 

RecoveringCarClown

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Re: What is your target amount?
« Reply #103 on: November 30, 2015, 02:13:55 PM »
Is it just me, or are a lot of these FI numbers really high? Please keep in mind, MMM RE'd on only half a mil.

He retired w/ $720K, a profitable rental property, and a wife who was still working.  She retired when they hit $800K + profitable rental property.

http://www.mrmoneymustache.com/2011/09/15/a-brief-history-of-the-stash-how-we-saved-from-zero-to-retirement-in-ten-years/

Don't get me wrong, I agree that some people's numbers seem too cautious for my taste, but MMM definitely didn't call it quits at $500K.

this was also in 2006 when he had 800k plus a profitable rental worth around 300k(correct me if i'm wrong) and a paid off home.

so lets call that 1.1MM plus a paid off house in 2006 dollars.  in today dollars thats = 1.3MM in today's dollars.  so if you want to carry a mortgage and travel much more than MMM does and have another kid alot of these numbers really arent that insane. 

Or did he?  The rental had a big mortgage right?  So that $300k was a liability not an asset, you can't add it to the $800k.

I think to make sense of it you need to value the rental purely as an investment, so it would take X dollars in the market to generate whatever the net was between the mortgage and rent - expenses.

For example, say he cleared $200 a month and used the 4% rule he would need to have just $60k in the market for $860k total.

You need to plug in his real rental return, but I don't think you can claim he had a stash over $1M.

I welcome any criticism to this, it looks like a fair way to look at rentals as part of an overall stache, but perhaps I am missing something.

iamlindoro

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Re: What is your target amount?
« Reply #104 on: November 30, 2015, 02:27:15 PM »
Or did he?  The rental had a big mortgage right?  So that $300k was a liability not an asset, you can't add it to the $800k.

I think to make sense of it you need to value the rental purely as an investment, so it would take X dollars in the market to generate whatever the net was between the mortgage and rent - expenses.

For example, say he cleared $200 a month and used the 4% rule he would need to have just $60k in the market for $860k total.

You need to plug in his real rental return, but I don't think you can claim he had a stash over $1M.

I welcome any criticism to this, it looks like a fair way to look at rentals as part of an overall stache, but perhaps I am missing something.

The mortgage is a liability, but you still add in the value of the asset-- you can't just count the mortgage against yourself and ignore that you still possess the property itself.  Per MMM:

Quote
In addition, we move to a new town and buy a cheaper house, renting out the first house for a very high positive cashflow due to a low mortgage and its increased value.

Let's say he had a mortgage of $150K, and the property had a value of $300K, that's a net increase of $150K in net worth, plus whatever amount of cash flow.  Boarder42 is saying that MMM's equity in his rental(s) was approximately $300K, which should absolutely count towards their net worth.  MMM gives a breakdown at several points in the above post, and he does count equity towards the stash value.

boarder42

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Re: What is your target amount?
« Reply #105 on: November 30, 2015, 02:34:11 PM »
Is it just me, or are a lot of these FI numbers really high? Please keep in mind, MMM RE'd on only half a mil.

He retired w/ $720K, a profitable rental property, and a wife who was still working.  She retired when they hit $800K + profitable rental property.

http://www.mrmoneymustache.com/2011/09/15/a-brief-history-of-the-stash-how-we-saved-from-zero-to-retirement-in-ten-years/

Don't get me wrong, I agree that some people's numbers seem too cautious for my taste, but MMM definitely didn't call it quits at $500K.

this was also in 2006 when he had 800k plus a profitable rental worth around 300k(correct me if i'm wrong) and a paid off home.

so lets call that 1.1MM plus a paid off house in 2006 dollars.  in today dollars thats = 1.3MM in today's dollars.  so if you want to carry a mortgage and travel much more than MMM does and have another kid alot of these numbers really arent that insane. 

Or did he?  The rental had a big mortgage right?  So that $300k was a liability not an asset, you can't add it to the $800k.

I think to make sense of it you need to value the rental purely as an investment, so it would take X dollars in the market to generate whatever the net was between the mortgage and rent - expenses.

For example, say he cleared $200 a month and used the 4% rule he would need to have just $60k in the market for $860k total.

You need to plug in his real rental return, but I don't think you can claim he had a stash over $1M.

I welcome any criticism to this, it looks like a fair way to look at rentals as part of an overall stache, but perhaps I am missing something.

even IF we assume your 860k that is still a stash of over 1MM dollars in today's dollars. 

RecoveringCarClown

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Re: What is your target amount?
« Reply #106 on: November 30, 2015, 02:53:10 PM »
Sure, I'll agree that it would be a million today, the earlier post was saying it was 1.1M back then and 1.3M today.

Quoting the rest of his post, it appears his equity at that time was $100k and that was added into the final number of $800k or so.

Quote
In addition, we move to a new town and buy a cheaper house, renting out the first house for a very high positive cashflow due to a low mortgage and its increased value.  At this point in the accounting, we will add in the appreciation of this house – which is about $100,000 after subtracting for the cost of the materials I used to renovate it. About $50,000 of this was due to market appreciation, and 50k due to renovation appreciation.

But who cares, the title is what is YOUR target amount.  $800k is my number, + rental income added in calculated as I did above.  Please add your number too.

FIRE_Buckeye

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Re: What is your target amount?
« Reply #107 on: November 30, 2015, 03:00:54 PM »
I'm targeting 1.25M with a paid off house for FIRE, and honestly probably won't even need that much but would rather be on the conservative side. I love driving, and plan to drive for car dealerships as a single car transport driver once RE'd, so the above figure won't be the only source of income.

Northwestie

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Re: What is your target amount?
« Reply #108 on: November 30, 2015, 03:02:17 PM »
Useful discussion, thanks.   My goal was $1.1M and a paid off house.  We recently arrived at 58 yo.  We both really like our jobs so I think one or two more years of FT, then ease into retirement with part time.  Would like to travel more so looking forward to it. 

One mistake (IMO) is I see some folks just concentrating on wealth accumulation and not taking time to go DO stuff.  Don't mistake having a career for having a life.

i dont think there are many on this site that fall into this trap.  the goal of the entire thing is to reduce your lifestyle to what you're comfy with and then live that lifestyle in retirement.

What a uni

NoraLenderbee

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Re: What is your target amount?
« Reply #109 on: November 30, 2015, 03:59:19 PM »
$2m for two people, with paid-off house. We have no pensions and own no real estate, my husband's SS will be very small, and I absolutely will not put myself in a position where I need to work after I retire.

mancityfan

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Re: What is your target amount?
« Reply #110 on: November 30, 2015, 05:07:40 PM »
I am looking at 1.8M. I am over half way there and will receive a COLA pension of around 30k a year. House is paid off. No rental properties. Hoping for 5-7 years.

faramund

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Re: What is your target amount?
« Reply #111 on: December 01, 2015, 02:07:11 AM »
3.5M AUD. We could retire now, but my wife LOVES her work (she is a co-owner of a small business). So the only way I can tempt her to retire early is with a fairly large travel/fun budget (and <nervous twinge> its only another 7 years).

theadvicist

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Re: What is your target amount?
« Reply #112 on: December 01, 2015, 06:57:42 AM »


Milestone 1: Normal retirement funded.
Based on expected returns and what is in those retirement accounts at present they should be at about $600,000 in today's dollars by the time I hit 65 if I never add another cent. The percentage of failure scenarios is still higher than my liking though so I do need to add a bit more to them.


Do you project this on a spreadsheet, or is there an easy calculator to work this out? I'd like to know how much my current stash would be worth in today's terms years from now, but not sure how to do the maths. (hangs head in shame).

boarder42

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Re: What is your target amount?
« Reply #113 on: December 01, 2015, 07:35:00 AM »


Milestone 1: Normal retirement funded.
Based on expected returns and what is in those retirement accounts at present they should be at about $600,000 in today's dollars by the time I hit 65 if I never add another cent. The percentage of failure scenarios is still higher than my liking though so I do need to add a bit more to them.


Do you project this on a spreadsheet, or is there an easy calculator to work this out? I'd like to know how much my current stash would be worth in today's terms years from now, but not sure how to do the maths. (hangs head in shame).

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

theadvicist

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Re: What is your target amount?
« Reply #114 on: December 01, 2015, 07:45:27 AM »
Many thanks boarder42!

cawiau

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Re: What is your target amount?
« Reply #115 on: December 01, 2015, 07:49:04 AM »
4M in today's dollars. At 2% withdrawal rate gives us what we currently live on net (which is very comfortable) and at 4% we are at what we currently gross (extra cushion).

We are both very conservative and rather be safe than sorry. Once we FIRE working again is not part of our vocabulary.


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boarder42

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Re: What is your target amount?
« Reply #116 on: December 01, 2015, 08:34:55 AM »
2% SWR.  thats borderline insanely conservative.  at 3.29% you would historically never have to work again.  you're adding a decade or more getting to 2% vs a 3%.  and that doesnt accoutn for the free govt money.   

i urge you to re think your conservativism b/c its illogically conservative IMO.

Reynold

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Re: What is your target amount?
« Reply #117 on: December 01, 2015, 09:16:18 AM »
2% SWR.  thats borderline insanely conservative.  at 3.29% you would historically never have to work again. 

Unless you were invested in most stock markets outside the U.S.  Will their returns improve over time to match the historical U.S. return, or will the U.S. market return drop to match everyone else's in the world?  Stay tuned for exciting developments! 

Targeting $2M here, because we want to do a lot of traveling in retirement, it won't all be budget and I actually like my job, but due to a (sadly) expected inheritance in the next year or two, we will probably jump abruptly from about $1.5M to about $3.2M and FIRE then. 

mbl

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Re: What is your target amount?
« Reply #118 on: December 01, 2015, 09:51:34 AM »
Useful discussion, thanks.   My goal was $1.1M and a paid off house.  We recently arrived at 58 yo.  We both really like our jobs so I think one or two more years of FT, then ease into retirement with part time.  Would like to travel more so looking forward to it. 

One mistake (IMO) is I see some folks just concentrating on wealth accumulation and not taking time to go DO stuff.  Don't mistake having a career for having a life.

Northwestie....you're one of the rare few on MMM forum that I've found close to my age.

If I may ask....how much do you have invested now?   401(k), IRA,  taxable, and home value?

Just curious how others in our (DH and I) age group are doing it.

TIA

RecoveringCarClown

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Re: What is your target amount?
« Reply #119 on: December 01, 2015, 10:20:22 AM »
4M in today's dollars. At 2% withdrawal rate gives us what we currently live on net (which is very comfortable) and at 4% we are at what we currently gross (extra cushion).

We are both very conservative and rather be safe than sorry. Once we FIRE working again is not part of our vocabulary.


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Why not make it 10M, 7 figures is so last decade. :)

mizzourah2006

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Re: What is your target amount?
« Reply #120 on: December 01, 2015, 11:39:21 AM »
2 million in today's dollars with a paid off house is our current goal. Assuming a real CAGR of 5% for the foreseeable future we should be there in 15ish years. This really won't be too bad, it will have involved me working full time for less than 20 years and my wife for about 20 years, while raising at least 1, possibly 2 children.

Lian

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Re: What is your target amount?
« Reply #121 on: December 01, 2015, 12:44:57 PM »
I am aiming for about $700k – just me, no family. At a 4% withdrawal rate, the $28,000 is larger than my current annual living expense of about $20,000 (my condo is paid off). My income is modest, but my lifestyle is pretty simple (my preference), so I can live well at MMM levels of income. I also expect to get a smallish SS that will provide buffer and travel funds, although I won’t have that until several years after I retire. My projected retirement expenses are larger than my current living expenses because I want to do more travel, although I’m aware that the buffer may be taken up by other unexpected things.
 
The big unknowns are healthcare expenses, Medicare, and ACA. I’m healthy, and my health insurance will be very low cost under ACA, but recent reading indicates that Medicare expenses may be shockingly high. I can see doing OMY or two to accommodate those concerns. And layoffs continue to be a possibility. I’ve already been through it, and can survive OK on what I have at ERE levels, but don’t really want to over the long term. A larger stash (obviously) means more options, but I don’t think I’ll need more than $700k. I want to be resilient because it’s a given that plenty of unknown factors (good and bad) will affect expenses, but I hope to accommodate resiliency through spending adjustments (no travel and eating out in years of high cost unexpected events) rather than a big stash.

afulldeck

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Re: What is your target amount?
« Reply #122 on: December 01, 2015, 12:50:52 PM »
2% SWR.  thats borderline insanely conservative.  at 3.29% you would historically never have to work again.  you're adding a decade or more getting to 2% vs a 3%.  and that doesnt accoutn for the free govt money.   

i urge you to re think your conservativism b/c its illogically conservative IMO.
Interest. Where did you get the 3.29% number?

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sol

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Re: What is your target amount?
« Reply #123 on: December 01, 2015, 01:03:37 PM »
Interest. Where did you get the 3.29% number?

3.29% is the no-fail SWR for the US market.  A SWR of 3.29% has never depleted a portfolio to zero in the history of the US markets.  Not even for 100+ year long periods.  Any withdrawal rate below that, regardless of when you retired, has resulted in a portfolio that has grown over time.  That includes annual inflation adjustments, and retiring at the height of every worst market bubble.  Still grew the portfolio.  So you can see why the claim that anyone would need a SWR even lower than that is somewhat concerning.

I suggest you go read the 4% thread and spend some quality time with the charts there.

You're not being conservative by targeting a 2% SWR, you're deliberately manifesting the worst case scenario of working for too long.  You're voluntarily giving away the best years of your life for no additional benefit whatsoever.

The whole point of retirement planning is to balance the risk of running out of money against the risk of working too long.  You don't want to die poor, but you also don't want to work until you're 75 and die on the job.  You need to find that happy medium that lets you live comfortably for as long as possible in retirement.  By targeting a 2% SWR, you've entirely avoided one bad scenario by forcing the opposite bad scenario to happen.
« Last Edit: December 01, 2015, 01:10:44 PM by sol »

afulldeck

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Re: What is your target amount?
« Reply #124 on: December 01, 2015, 01:10:19 PM »
Interest. Where did you get the 3.29% number?

3.29% is the no-fail SWR for the US market.  A SWR of 3.29% has never depleted a portfolio to zero in the history of the US markets.  Not even for 100+ year long periods.  Any withdrawal rate below that, regardless of when you retired, has resulted in a portfolio that has grown over time.  That includes annual inflation adjustments, and retiring at the height of every worst market bubble.  Still grew the portfolio.  So you can see why the claim that anyone would need a SWR even lower than that is somewhat concerning.

I suggest you go read the 4% thread and spend some quality time with the charts there.

You're not being conservative by targeting a 2% SWR, you're deliberately manifesting the worst case scenario of working for too long.  You're voluntarily giving away the best years of your life for no additional benefit whatsoever.
Thank you I will. Do you know if there is a similar number for the Canadian market?

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boarder42

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Re: What is your target amount?
« Reply #125 on: December 01, 2015, 01:13:01 PM »
Interest. Where did you get the 3.29% number?

3.29% is the no-fail SWR for the US market.  A SWR of 3.29% has never depleted a portfolio to zero in the history of the US markets.  Not even for 100+ year long periods.  Any withdrawal rate below that, regardless of when you retired, has resulted in a portfolio that has grown over time.  That includes annual inflation adjustments, and retiring at the height of every worst market bubble.  Still grew the portfolio.  So you can see why the claim that anyone would need a SWR even lower than that is somewhat concerning.

I suggest you go read the 4% thread and spend some quality time with the charts there.

You're not being conservative by targeting a 2% SWR, you're deliberately manifesting the worst case scenario of working for too long.  You're voluntarily giving away the best years of your life for no additional benefit whatsoever.

The whole point of retirement planning is to balance the risk of running out of money against the risk of working too long.  You don't want to die poor, but you also don't want to work until you're 75 and die on the job.  You need to find that happy medium that lets you live comfortably for as long as possible in retirement.  By targeting a 2% SWR, you've entirely avoided one bad scenario by forcing the opposite bad scenario to happen.

yes and this also assumes that SSA fails as well if you're in america and you get nothing from that...

IF a 2% SWR is needed your money doesnt matter anymore and you probably should have invested in guns b/c the world will be anarchy.

2Birds1Stone

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Re: What is your target amount?
« Reply #126 on: December 01, 2015, 01:14:13 PM »
A cool million for myself to be FIRE'd

I'll feel FI @ ~$750k

andy85

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Re: What is your target amount?
« Reply #127 on: December 01, 2015, 01:22:07 PM »
A cool million for myself to be FIRE'd

I'll feel FI @ ~$750k
About this...but more like 750k to FIRE, 500k would probably put me at FI.

But who knows how i'll feel in 10 years. If work isnt just the worst then i'd prefer to be closer to 35k-40k withdrawals, so over 875k.

lifejoy

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Re: What is your target amount?
« Reply #128 on: December 01, 2015, 01:29:51 PM »
My number is paid-off house + $800,000.

My DH's number is paid-off house + 2 million.

We'll have to see how it goes!

lomic

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Re: What is your target amount?
« Reply #129 on: December 01, 2015, 01:59:44 PM »
Currently spend ~$60k/year in high COL area, but also high earnings. Planning to save to $~2m after-tax and $600k pre-tax. Take $500k of the after-tax to buy a house in a lower COL area, which should reduce necessary spending down to the $20k range. This will leave around $50k/year for travel and hobbies while not touching pre-tax money, which I'll be converting via Roth ladder. Between most of the money being post-tax, and Roth conversion ladder, I hope to not have to pay pretty much any tax, so that $70k/year should all be spendable.

The high discretionary spending will also allow us to cut back significantly in years where the market is down, to preserve long-term equity value.

RecoveringCarClown

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Re: What is your target amount?
« Reply #130 on: December 02, 2015, 10:54:51 AM »
Currently spend ~$60k/year in high COL area, but also high earnings. Planning to save to $~2m after-tax and $600k pre-tax. Take $500k of the after-tax to buy a house in a lower COL area, which should reduce necessary spending down to the $20k range. This will leave around $50k/year for travel and hobbies while not touching pre-tax money, which I'll be converting via Roth ladder. Between most of the money being post-tax, and Roth conversion ladder, I hope to not have to pay pretty much any tax, so that $70k/year should all be spendable.

The high discretionary spending will also allow us to cut back significantly in years where the market is down, to preserve long-term equity value.

$500k to buy a house in a LCOL is a metric-shit-ton!   I do enjoy a nice house though, so I probably shouldn't throw stones. :)

Livingthedream55

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Re: What is your target amount?
« Reply #131 on: December 02, 2015, 11:35:53 AM »
In four years I will be 60, have a pension from state govt worth $30,000 (state tax free) annually plus I will have $300,000 in IRAs from which I will draw 3% and a paid off home so for me it's $300k.

Social security will be another funding stream but I plan to take it starting at age 62 but I don't anticipate that I would need it to live off.

ash7962

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Re: What is your target amount?
« Reply #132 on: December 02, 2015, 12:29:08 PM »
Currently spend ~$60k/year in high COL area, but also high earnings. Planning to save to $~2m after-tax and $600k pre-tax. Take $500k of the after-tax to buy a house in a lower COL area, which should reduce necessary spending down to the $20k range. This will leave around $50k/year for travel and hobbies while not touching pre-tax money, which I'll be converting via Roth ladder. Between most of the money being post-tax, and Roth conversion ladder, I hope to not have to pay pretty much any tax, so that $70k/year should all be spendable.

The high discretionary spending will also allow us to cut back significantly in years where the market is down, to preserve long-term equity value.

$500k to buy a house in a LCOL is a metric-shit-ton!   I do enjoy a nice house though, so I probably shouldn't throw stones. :)

Agreed that 500k sounds like a metric shit ton for a house in a LCOL area.  Also 70k/year spending is about double what I spend living in Chicago (including on rent).  Not judging 'cause I don't know RecoveringCarClown's situation, but I can't imagine being able to spend 70k/year in a LCOL area especially if my house was paid off.

RecoveringCarClown

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Re: What is your target amount?
« Reply #133 on: December 02, 2015, 02:09:03 PM »
Currently spend ~$60k/year in high COL area, but also high earnings. Planning to save to $~2m after-tax and $600k pre-tax. Take $500k of the after-tax to buy a house in a lower COL area, which should reduce necessary spending down to the $20k range. This will leave around $50k/year for travel and hobbies while not touching pre-tax money, which I'll be converting via Roth ladder. Between most of the money being post-tax, and Roth conversion ladder, I hope to not have to pay pretty much any tax, so that $70k/year should all be spendable.

The high discretionary spending will also allow us to cut back significantly in years where the market is down, to preserve long-term equity value.

$500k to buy a house in a LCOL is a metric-shit-ton!   I do enjoy a nice house though, so I probably shouldn't throw stones. :)

Agreed that 500k sounds like a metric shit ton for a house in a LCOL area.  Also 70k/year spending is about double what I spend living in Chicago (including on rent).  Not judging 'cause I don't know RecoveringCarClown's situation, but I can't imagine being able to spend 70k/year in a LCOL area especially if my house was paid off.

Whoa, hold your horses, that is not me spending $500k for a house and $70k to live, that was my comment to Iomic.  Mostly I just wanted to say metric-shit-ton, because I think I need to use that once a day.
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SirFrugal

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Re: What is your target amount?
« Reply #134 on: December 02, 2015, 05:15:24 PM »
My goal is 2m by 45.

Of course those numbers will shrink if I decide to work part time in retirement or find a way to monetize a hobby, or if I'm going to spend time living abroad where I can live off much less.  Between now and then I'll just keep hording money and hopefully get a more clear picture of what I'm going to do as my stash grows and I get a little older.

ash7962

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Re: What is your target amount?
« Reply #135 on: December 03, 2015, 06:13:06 AM »
Currently spend ~$60k/year in high COL area, but also high earnings. Planning to save to $~2m after-tax and $600k pre-tax. Take $500k of the after-tax to buy a house in a lower COL area, which should reduce necessary spending down to the $20k range. This will leave around $50k/year for travel and hobbies while not touching pre-tax money, which I'll be converting via Roth ladder. Between most of the money being post-tax, and Roth conversion ladder, I hope to not have to pay pretty much any tax, so that $70k/year should all be spendable.

The high discretionary spending will also allow us to cut back significantly in years where the market is down, to preserve long-term equity value.

$500k to buy a house in a LCOL is a metric-shit-ton!   I do enjoy a nice house though, so I probably shouldn't throw stones. :)

Agreed that 500k sounds like a metric shit ton for a house in a LCOL area.  Also 70k/year spending is about double what I spend living in Chicago (including on rent).  Not judging 'cause I don't know lomic's situation, but I can't imagine being able to spend 70k/year in a LCOL area especially if my house was paid off.

Whoa, hold your horses, that is not me spending $500k for a house and $70k to live, that was my comment to Iomic.  Mostly I just wanted to say metric-shit-ton, because I think I need to use that once a day.
-RCC

Oops!  My bad, dunno how I screwed that up but I totally meant to agree with you about Iomic's comment.  Sorry for the mixup :)

Polish_Hammer

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Re: What is your target amount?
« Reply #136 on: December 03, 2015, 12:20:25 PM »
48 year old with a Family of (5) currently 812000k in retirement income. 302,000k mortgage debt. 
FI at 1Million in retirement and no mortgage debt (or additional savings=remaining mortage debt)
Estimating 50 months when Youngest will be in Junior year of college. Part-time work until 62.

Secretly trying to find a way to shrink that 50 months to 24

steveo

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Re: What is your target amount?
« Reply #137 on: December 03, 2015, 01:29:35 PM »
Is it just me, or are a lot of these FI numbers really high? Please keep in mind, MMM RE'd on only half a mil.

He retired w/ $720K, a profitable rental property, and a wife who was still working.  She retired when they hit $800K + profitable rental property.

http://www.mrmoneymustache.com/2011/09/15/a-brief-history-of-the-stash-how-we-saved-from-zero-to-retirement-in-ten-years/

Don't get me wrong, I agree that some people's numbers seem too cautious for my taste, but MMM definitely didn't call it quits at $500K.

I think he includes though his residential property. Are many people including that in their net worth ? I'm not considering it as FI assets.
« Last Edit: December 03, 2015, 01:32:36 PM by steveo »

Pooperman

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Re: What is your target amount?
« Reply #138 on: December 03, 2015, 02:51:44 PM »
1.2 million with a paid off house, so about 1.4 million.

CheapskateWife

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Re: What is your target amount?
« Reply #139 on: December 03, 2015, 03:10:14 PM »
We started our FIRE journey thinking that $1.0M+ DH's military pension was our number...but a year on the forums has helped me to see that we will be just fine with $600K.

What is truly amazing is that we can live comfortably off the pension, the extra money is for his silly car project hobbies and our spendy travel habits.  Knowing we are FI now, and continue to work now to earn a truly luxurious RE in two years is just amazing.  I'll be 42, he will be 49.

Villanelle

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Re: What is your target amount?
« Reply #140 on: December 03, 2015, 03:50:28 PM »
Is it just me, or are a lot of these FI numbers really high? Please keep in mind, MMM RE'd on only half a mil.

He retired w/ $720K, a profitable rental property, and a wife who was still working.  She retired when they hit $800K + profitable rental property.

http://www.mrmoneymustache.com/2011/09/15/a-brief-history-of-the-stash-how-we-saved-from-zero-to-retirement-in-ten-years/

Don't get me wrong, I agree that some people's numbers seem too cautious for my taste, but MMM definitely didn't call it quits at $500K.

I think he includes though his residential property. Are many people including that in their net worth ? I'm not considering it as FI assets.

When I calculate, I don't count the value of any rentals, but I will subtract any rental income from the FIRE number with a 4%  SWR in mind.  So if the target is $1M and I have 10,000/yr in rental income (profit), then in effect I'd only need $750k in my 'stache, as that gets me the same annual income of $40k.  But I'd still consider that $1M as a target number, which substitutions acceptable!

stlbrah

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Re: What is your target amount?
« Reply #141 on: December 03, 2015, 04:04:17 PM »
I still think of earning income to be part of a life long journey.

I want to hit a minimum 500k before quitting corporate working... unless I enjoy corporate work at that time, it seems like the higher up I get, the more I like it. I am taking it slowly 100k at a time.
« Last Edit: December 03, 2015, 04:06:15 PM by stlbrah »

mr_orange

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Re: What is your target amount?
« Reply #142 on: December 05, 2015, 09:21:11 AM »
Our current number is $2.5M, but I will probably leave my W2 and run our business "full-time" (or whatever suits me) before we get there. 

cawiau

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What is your target amount?
« Reply #143 on: December 05, 2015, 09:22:26 AM »
Is it just me, or are a lot of these FI numbers really high? Please keep in mind, MMM RE'd on only half a mil.

He retired w/ $720K, a profitable rental property, and a wife who was still working.  She retired when they hit $800K + profitable rental property.

http://www.mrmoneymustache.com/2011/09/15/a-brief-history-of-the-stash-how-we-saved-from-zero-to-retirement-in-ten-years/

Don't get me wrong, I agree that some people's numbers seem too cautious for my taste, but MMM definitely didn't call it quits at $500K.
Quote
I think he includes though his residential property. Are many people including that in their net worth ? I'm not considering it as FI assets.

Not only that they also both work on a very part time or when they feel like occasion: selling real estate (for her), building/reconstruction (for him) and speaking engagements (for him).

We probably will do some volunteer work when we retire but nothing that will earn an income per day and no real estate investments for both of us.


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market timer

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Re: What is your target amount?
« Reply #144 on: December 06, 2015, 09:37:15 PM »
When I reached $700K, that was enough for me to leave the work force in my mid-30s with no specific plans. Wife owns a paid off condo and has a stable career, and with my passive income, we could easily afford a MMM-style life. However, that got boring after a while.

Now I'm working again in a career I enjoy and we are going from an MMM-style life to a typical upper middle class life: private school tuition, luxury condo, new car, etc. Having a career I enjoy means I don't look at retirement as an end goal anymore. We can spend $100K/year and still save $100K/year, and I'm cool with that balance. However, it would take a much larger nest egg than we have to sustain this lifestyle. I still consider us FI since we have the option to downsize.

Rather than think in terms of a net worth target, like $700K, now I just think that each extra year I work should add roughly $6K/year to our retirement spending and provide us with a nicer lifestyle today than we could afford otherwise. If I'm still enjoying my career in the next few years, we'll probably increase our spending. In short, I think it's good to have the perspective once you reach FI that everything on top of that is gravy.

Cassie

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Re: What is your target amount?
« Reply #145 on: December 07, 2015, 02:28:58 PM »
Glad you found a career you enjoy. That is so important. All that $ you saved definitely gives you choices which is great. WE worked longer to in order to have a better retirement then many want to live on here.

AZDude

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Re: What is your target amount?
« Reply #146 on: December 07, 2015, 02:37:59 PM »
My checklist:
Kid in public school(no preschool tuition)
mortgage paid off
No other debt
$200K+ in retirement/taxable/savings accounts

When I hit that point, I'm quitting full time, salaried work. Looking at probably 3-4 years. So close, yet so far away....

Maurits28

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Re: What is your target amount?
« Reply #147 on: June 24, 2016, 04:11:52 PM »
My target amount is € 624.000 which I should reach in December 2020 and I can retire with 38. Have a wife and we plan to have one or two kids. We will move to low cost living in Argentina (stash and annual returns in euro's, living with pesos), as my wife is from Argentina.

I take into consideration a € 15K pension from 67 years onwards, and a rental property that should start generating a cash flow of around € 25K as of 2039 (when I'm 57). Right now all rent goes into mortgage payments and paying off mortgage asap.

When I'm FIRE, I actually want to continue to work part time or start my own business. So reaching the FIRE is a first step. Safety nets are going back to work as well as the wife can work. We have a small paid off house in Argentina where we will start living. If we want to move into a bigger house, I probably go back to work for two years to buy a bigger house.


pdxmonkey

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Re: What is your target amount?
« Reply #148 on: June 24, 2016, 10:56:28 PM »
My checklist:
Kid in public school(no preschool tuition)
mortgage paid off
No other debt
$200K+ in retirement/taxable/savings accounts

When I hit that point, I'm quitting full time, salaried work. Looking at probably 3-4 years. So close, yet so far away....

What are your property taxes/insurance and utilities like? Using the 4% rule in my area for a middle class home I would need around $100k just to cover the taxes and around another $100k to cover insurance/utilities. That wouldn't get me any food unless I walked to the food bank as those #'s assume I don't own any car as I wouldn't even have money to pay liability insurance which is required in Oregon.

PhysicianOnFIRE

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Re: What is your target amount?
« Reply #149 on: June 24, 2016, 11:20:27 PM »
40x expenses.

I hit FI before I was ready to consider retirement. If I would have found this site in 2011, I might be retired by now :)