Author Topic: $3M+ necessary to retire?  (Read 5323 times)

NestEggChick (formerly PFgal)

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$3M+ necessary to retire?
« on: November 20, 2012, 07:35:39 PM »
I usually try to give people the benefit of the doubt, but this just blows my mind.  I admit that I don't know anything about this web site - I just followed a link - but I'm amazed at not only the "article" but also the comments.  Apparently most of these people find that a measly $2M wouldn't be enough to retire.  How much could they possibly be spending right now?  Or maybe they don't understand the concepts of interest, capital gains, etc.?  Maybe they're predicting doomsday scenarios?  I don't know, but I just can't understand how someone feels that they need to have $3M or more in order to retire.

http://www.freemoneyfinance.com/2012/11/whats-your-retirement-number.html
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Nords

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Re: $3M+ necessary to retire?
« Reply #1 on: November 20, 2012, 07:46:37 PM »
We encounter this on Early-Retirement.org a couple times a year.

Usually the protesting "What's my number?" poster insists that Manhattan is the only place on earth where they could possibly retire, since they require culture and stimulating entertainment.  Another poster didn't want his kids to grow up "poor", so he sent them to private (elementary) schools-- and they had to wear designer clothes so that the other (rich) kids wouldn't pick on them. 

One or two other (masochistic?) posters have insisted that E-R.org posters are living lives of quiet desperation, rinsing out plastic bags and washing used dental floss.  After reading that post, I decided not to share my tip about showering at the beach with my used plastic bags & dental floss...
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Peter

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Re: $3M+ necessary to retire?
« Reply #2 on: November 20, 2012, 08:55:05 PM »
I actually think this is pretty normal and standard. Indeed my original plan was to the work for 30-35 years, save 20-25% of my income, and retire with 3-4m. Then of course I discovered Jacob at ERE and everything changed...

For the uninitiated, it's at least a reasonable goal for savings/retirement. Go talk to some lawyers and surgeons about retirement and watch that 3m figure jump to "10-15 million to not have to worry". Talk about delusional!

arebelspy

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Re: $3M+ necessary to retire?
« Reply #3 on: November 21, 2012, 07:39:54 AM »
One look at the URL tells me everything I need to know.

Freemoneyfinance is an idiot who I wouldn't listen to if I were paid to do so.

Ever since he post whored the comments on GRS (to first post every.single.blog.post to pimp his blog) I've had no respect for the guy, and the fact that he has nothing intelligent to say just adds on.

Probably my least favorite blogger out there, period.

That rant aside, as to the topic of what's your magic number, 3MM is the number if you're ERing, and a 3% SWR, and spend 90k/yr.
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tooqk4u22

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Re: $3M+ necessary to retire?
« Reply #4 on: November 21, 2012, 09:45:42 AM »
That rant aside, as to the topic of what's your magic number, 3MM is the number if you're ERing, and a 3% SWR, and spend 90k/yr.

Agree with this.  Can you retire on less - sure, do some people need more than that - sure.  It is all about what your spending and desired lifestyle is - whether you or others agree with those choices doesn't matter more than the math does. 

Personally I want a higher number than many on this board and MMM - partly because I live in a higher cost area, partly because I want to have a margin of error, partly because I actually enjoy a few luxuries in life that involve spending some money, and partly because of a bunch of other reasons.....but I also know if need be I can do it with less if I had to, which is why I keep two budgets in mind (the survival/FU budget and the live desired family lifestyle budget).

Jamesqf

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Re: $3M+ necessary to retire?
« Reply #5 on: November 21, 2012, 11:46:59 AM »
Usually the protesting "What's my number?" poster insists that Manhattan is the only place on earth where they could possibly retire, since they require culture and stimulating entertainment.

Of course their belief that Manhattan (even the one in Kansas!) offers culture and stimulating entertainment marks them out as suffering from a severe reality disconnect :-)

NestEggChick (formerly PFgal)

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Re: $3M+ necessary to retire?
« Reply #6 on: November 21, 2012, 02:13:46 PM »
I guess this seems outrageous to me because I can't imagine earning $90k, much less spending that much.  I live in a high COL area, but I've just never spent that kind of money.  It's hard for me to imagine how anyone could spend that much, unless they're constantly buying new cars, never paying off the mortgage, etc.  I guess to some $90k isn't that much money, but to me, that seems like a huge amount.
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