Poll

What size stash did you RE on.. (Investable assets only.. pls don't include home equity)?

<$500k
25 (8.3%)
$500k to $1M
80 (26.7%)
$1 to $1.5M
77 (25.7%)
$1.5 to $2M
40 (13.3%)
>$2 Million
78 (26%)

Total Members Voted: 284

Author Topic: How big was your stash when you RE'd?  (Read 46398 times)

EscapeVelocity2020

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Re: How big was your stash when you RE'd?
« Reply #50 on: April 12, 2015, 05:33:46 AM »
Last time I checked, forum meant 'open discussion'.  I hope for these contributions when I post - stating what may be my own narrow observations as best I can, and then seeing who agrees with or challenges my observation, in order to make it a more broad and applicable understanding. 

There is a lot to be learned from the 'conservative ER' crowd.  Apparently, those that step into the breech (or the others that are plenty rich) get easy attention, but what about us that are a little less bold;  those of us stuck in the middle, maybe being too conservative...? 
« Last Edit: April 12, 2015, 05:36:36 AM by EscapeVelocity2020 »

arebelspy

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Re: How big was your stash when you RE'd?
« Reply #51 on: April 12, 2015, 09:11:40 AM »
I hope for these contributions when I post - stating what may be my own narrow observations as best I can, and then seeing who agrees with or challenges my observation, in order to make it a more broad and applicable understanding. 

Yup, cool!

There is a lot to be learned from the 'conservative ER' crowd.

Totally agree.  But pigeonholing people via a definition doesn't get us much, IMO.  I may be wrong.

I do learn lots from the E-R.org folks, who are way more conservative, and would balk at my ER plans (and also are quite anti-real estate as an acceptable form of "retirement"--lots of IRP there).  :)
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
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EscapeVelocity2020

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Re: How big was your stash when you RE'd?
« Reply #52 on: April 12, 2015, 12:18:42 PM »
Well, ultimately, people 'retiring' before 50 are still the 1% (or 1.5%, although I think at least 0.6% recently is attributable to rich kids and/or people who wanted to ER and will go back to work if the markets don't cooperate).

Livewell

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Re: How big was your stash when you RE'd?
« Reply #53 on: April 12, 2015, 09:26:19 PM »
So the best generalization I can come up with is that there are conservative folks who pad the stash for various reasons (like their job, good work/life balance, golden handcuffs/benefits, have kids and want to pay for college, nervous about a market downturn, etc.) and there are ER at 4% folks (hate their job, don't have kids, got laid off and 'giving it a shot', entrepreneurial endeavors are more rewarding, etc.).

You forgot those of us who love our jobs and are ERing above a 4% WR.  ;)

It certainly is individualized.

(That doesn't make each one necessarily equally admirable.)

I think escape nailed it, as one who falls into the more conservative description.

So even though Escape defined it fairly narrowly and for more conservative positions, since you fit that, he "nailed" the definition?

Got it!  :)



Ultimately this is all "custom" to the individual, this description, narrow in your view, just rang true for me.  May we all get to where we want to go, however the route may take us. 

LiveLean

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Re: How big was your stash when you RE'd?
« Reply #54 on: April 17, 2015, 01:42:01 PM »
Seems like the variable to all of this is whether or not you have or will have a pension, especially if it's one that includes medical (i.e. military folks).

Actually kind of surprised to see how many people here do have or will have a pension. I think of my career military officer friends who have retired recently after 25 years in mid-late 40s with pension. I would consider that FIRE with my existing stache. But I've never been in the military or any other pension-producing field. So I'm aiming for a bigger number -- 3M.


sequim

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Re: How big was your stash when you RE'd?
« Reply #55 on: April 18, 2015, 01:17:59 PM »
Does semi-RE count in this thread?

We will be drawing on a stash of about $900k for our living expenses once we sell our current home and a month ago bought a home for cash in a different city.  Moving to a less expensive city (Salt Lake vs Issaquah, a Seattle suburb) will help with living expenses.  My husband, who's been laid off from his job in Seattle, is a hobby photographer and intends to start a real estate photography business. I'm completely quitting work in the tech field.  It was a lucrative run for about 17 years, but now I'm thoroughly sick of it and the confinement to cubicle-life and hours, and as someone mentioned in another thread, the Sunday dreads.

I hope my husband's business brings in some income but our primary goal will be not to accumulate more money but to enjoy our lives which means skiing, mountain biking and travel.  Also we look forward to the pleasure of getting involved in whatever we have interests in, ie volunteer work (I'm interested in environmental/sustainability issues) or hobbies (love cooking and baking with a passion).  If we need extra money for ski passes or travel, we'll be finding work to support that.  We also have to keep in mind fluctuations in the market that could affect our invested stash.

I could qualify for early Social Security (my husband still has a ways to go before he can) but don't really want to go there unless we really needed the extra cash, plus don't want to pay taxes on it if we make too much income.  But being frugal, low on the consumerism scale, and DIY'ers I think we won't have need for too much.  Also, we don't have kids so won't be needing to support any others or leave an inheritance.




Cassie

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Re: How big was your stash when you RE'd?
« Reply #56 on: April 18, 2015, 01:44:26 PM »
We each have a pension so also had a smaller stash with a paid off house. WE are waiting to 70 to claim SS as it will be alot bigger then. We are also semi-retired by choice. I noticed in another thread someone saying that people they know that retired on SS only in their early 60's are now sick of the very frugal lifestyle they need to lead in their 70's. I sure would not want to be in that position.

OldPro

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Re: How big was your stash when you RE'd?
« Reply #57 on: April 20, 2015, 10:04:09 AM »
Not to rain on your poll but unless you have some way of adjusting it based on how long each respondent has been retired, it is pretty useless.

For example, I retired in 1989 on under $500k.  That is of no use to you if you are looking at how big a  stash someone might need today for the equivalent.  I didn't vote by the way.

I also agree with comments regarding it is not the stash that matters.  It is the income you believe you need that matters.  That again will vary a good deal by individual.  So even if you polled that, it would tell you nothing of much use either.

For what it is worth, I guesstimated the income I would need back in 1989 and it is nothing like the income I need today.  Any guess (and that is all anyone is doing) today is only relevant for a few short years at best.  Beyond that, it's all crystal ball time. 

Financial.Velociraptor

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Re: How big was your stash when you RE'd?
« Reply #58 on: April 20, 2015, 10:29:58 AM »
New category...I RE with sub 500k.  Seems I passed 500k liquid nw sometime last week.  I put in several hours research a week but it is paying off in fat options premiums that are allowing me to slowly increase my allocation to municipal bonds.

Cassie

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Re: How big was your stash when you RE'd?
« Reply #59 on: April 20, 2015, 01:30:24 PM »
Old pro, I am curious-how much more $ do you need now to live then when your first retired?

BBub

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Re: How big was your stash when you RE'd?
« Reply #60 on: April 20, 2015, 07:25:30 PM »
oldpro: I appreciate that - adjusting for today's dollars is not something I considered when creating the poll.   The size of stash is just one of many data points I was interested in seeing.  I agree that income is the most important factor. This poll isnt meant to be all encompassing or provide any definitive answers.  I was just curious, mostly.

I'd also be interested to hear about how your expenses have shifted over time.


DoNorth

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Re: How big was your stash when you RE'd?
« Reply #61 on: April 23, 2015, 07:33:41 AM »
REing 3 months from now, but about $500K in the stache', $60K/year in pension + paid off mortgage.  It really is hard to nail down the value because of all the variables.  The pension is a combination of VA/military so much of it is untaxed and it is inflation adjusted each year so it could be well north of $100k/year 30 years from now when I'm in my 60's.  Also because of the VA rating/retired military status, we don't pay prop. taxes, get very reasonable health care, get free tax prep, will/legal services, tax free shopping, free national parks passes, fishing/hunting licenses etc, free international/domestic space available fights, substantial contributions towards kids' education etc.  I couldn't even begin to put a value on it.

smoghat

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Re: How big was your stash when you RE'd?
« Reply #62 on: April 30, 2015, 06:58:17 AM »
I'm retiring now, at 47. My wife retired in 2008 (we're the same age). We have a house, fully paid for, worth at least $1M (bought it in 2010 for $900,000 and invested at least $100,000K in renovations), we have $900,000 in my mom's accounts (she's not well and 87 and I'm the only heir, she has full time care in her own house, she lives abroad, her costs are essentially paid for by SS and my dad's pension, still going at almost 40 years), about $400,000 in ours, and we are selling a family property that I have managed for 17 years for $4.5 million this year. I was going to take the property and do a 1031 exchange, but I'm not sure anymore. Maybe I should just stick it in index funds plus a little gambling (on specific stocks and sectors in the market). I've gotten lucky, although also done things well too. My father wanted me to sell that building when it was worth $1.5 million. That was only a decade ago. There's a lesson with my building btw, which is that private real estate funds pay crazy money that makes no sense according to traditional real estate metrics.

We aren't full MMM types by any means, but I'm pretty sure that with a $200,000 draw, we will be fine into our 90s.   

There's one thing that I don't see in any of these posts and that's kids. I want to leave something to my kids, ideally about the same amount of cash, divided by two. They don't need to get most of it until their 40s, when we are in our 80s, but I think of this as dynasty building. We don't want to die broke. So if you're going to leave cash for your kids, you need to have quite a bit more.

McDuffy

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Re: How big was your stash when you RE'd?
« Reply #63 on: May 01, 2015, 01:50:42 PM »
Is this for individual or half the household or total household?

smoghat

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Re: How big was your stash when you RE'd?
« Reply #64 on: May 01, 2015, 08:27:10 PM »
Total household (of 4).

SJS

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Re: How big was your stash when you RE'd?
« Reply #65 on: May 10, 2015, 07:32:18 AM »
We were at $3M back five years ago, but now are at about $4.5M with a monthly income of $18K (pension + deferred comp).  Spouse will inherit ~$1.5M+ upon death of his parents (they lived like they were poor all their life yet have over $5M in investments - so sad).  Anyways, we do NOT have kids, which is why we were ahead of most of our friends/family. 

Fuman

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Re: How big was your stash when you RE'd?
« Reply #66 on: May 10, 2015, 09:20:53 PM »
I voted $500K - 1MM...
'Stache is at about $650K now, paid off house is at $600K.  But I'm planning to go back to work after I take this summer off.  I just want a few months to think about things...

dude

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Re: How big was your stash when you RE'd?
« Reply #67 on: May 11, 2015, 10:35:46 AM »
We were at $3M back five years ago, but now are at about $4.5M with a monthly income of $18K (pension + deferred comp).  Spouse will inherit ~$1.5M+ upon death of his parents (they lived like they were poor all their life yet have over $5M in investments - so sad).  Anyways, we do NOT have kids, which is why we were ahead of most of our friends/family.

MONTHLY income of $18K?!  Holy shit. $216,000/year in retirement, before ever touching your huge portfolio?  Not too shabby.  So why are you lurking on MMM?

sequim

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Re: How big was your stash when you RE'd?
« Reply #68 on: May 11, 2015, 10:51:56 AM »
These people are why I become stache-insecure.  :)

Just remember, you can't take it with you!!!

cynmac

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Re: How big was your stash when you RE'd?
« Reply #69 on: May 13, 2015, 03:00:12 AM »
I also included paid off home and other assets as well as investment accounts.  And I still work PT some - consulting when it's a project I like.

Workinghard

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Re: How big was your stash when you RE'd?
« Reply #70 on: May 13, 2015, 04:02:42 AM »
We each have a pension so also had a smaller stash with a paid off house. WE are waiting to 70 to claim SS as it will be alot bigger then. We are also semi-retired by choice. I noticed in another thread someone saying that people they know that retired on SS only in their early 60's are now sick of the very frugal lifestyle they need to lead in their 70's. I sure would not want to be in that position.

This is so hard for me to understand. When we start joint SS, 5 yrs after my dh retires, it will be more than what we currently live on. We're frugal but not excessively so and are expenses are higher than many others here. Even without joint SS, I would do just fine on his SS (not mine). I'm guessing those people didn't lead a frugal lifestyle prior to SS and thus it truly is a transition time for them. We're looking forward to having more money in retirement!

SJS

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Re: How big was your stash when you RE'd?
« Reply #71 on: May 16, 2015, 05:56:47 PM »
We were at $3M back five years ago, but now are at about $4.5M with a monthly income of $18K (pension + deferred comp).  Spouse will inherit ~$1.5M+ upon death of his parents (they lived like they were poor all their life yet have over $5M in investments - so sad).  Anyways, we do NOT have kids, which is why we were ahead of most of our friends/family.

MONTHLY income of $18K?!  Holy shit. $216,000/year in retirement, before ever touching your huge portfolio?  Not too shabby.  So why are you lurking on MMM?

We actually lived on 1/2 of hubby's paycheck for many years since his employer offered "deferred compensation" plan - it now pays out $10K/month for 15 years straight.  We still have 10 years left.  His pension will remain the same forever.   We don't nearly spend the $18K/mo we bring in - so we send about $10K back to Schwaab. 

I enjoy "lurking" here and on other financial blogs to see how people are either blowing their hard earned money or saving it!  I've always been on the frugal side, and just enjoy reading/talking about finances. 

cazaubon

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Re: How big was your stash when you RE'd?
« Reply #72 on: May 18, 2015, 08:51:47 PM »
I replied 500k - 1M but that doesn't include my spouse. Together we have $1.35M.

dude

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Re: How big was your stash when you RE'd?
« Reply #73 on: May 20, 2015, 07:49:20 AM »
Surprised folks can make it on <$500k.  That would be hard long-term.

I'm surprised there are so many on these boards that waited until they were over $2MM!  That's $80k/year by the 4% rule and $60k at a super safe 3%.

I figured most would be in the $500k to $1.0MM range.  I believe MMM himself was in the $500k to $1MM category so I figured most other fans of his would be similar.

When I factor in the value of my pension, my projected stash at planned retirement is essentially $2mil.  I would/could go on less than that if it were not for the fact that we have a long way to go on our mortgage.  So my stash has to cover the mortgage payment.  When the mortgage payment goes away (which it's likely to do w/in 10 years of retiring), then I'll be flush with cash; once SS kicks in, I'll have a stupid amount of money.  Hopefully I'll find a way to put it to good use.   

Sojourner

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Re: How big was your stash when you RE'd?
« Reply #74 on: May 24, 2015, 02:55:57 PM »
When I factor in the value of my pension, my projected stash at planned retirement is essentially $2mil.  I would/could go on less than that if it were not for the fact that we have a long way to go on our mortgage.  So my stash has to cover the mortgage payment.  When the mortgage payment goes away (which it's likely to do w/in 10 years of retiring), then I'll be flush with cash; once SS kicks in, I'll have a stupid amount of money.  Hopefully I'll find a way to put it to good use.

dude...can you describe how you valued your pension?

arebelspy

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Re: How big was your stash when you RE'd?
« Reply #75 on: May 26, 2015, 10:31:58 AM »
dude...can you describe how you valued your pension?

Typically one would do one of these two things:
1) Take the NPV of the payment stream based on life expectancy
2) Price an annuity - what lump sum would it cost to buy you that annual payout?

More discussion on this:
http://forum.mrmoneymustache.com/investor-alley/accounting-question-pension-as-an-asset/
http://forum.mrmoneymustache.com/welcome-to-the-forum/value-of-a-pension/
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Retired To Win

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Re: How big was your stash when you RE'd?
« Reply #76 on: June 06, 2015, 06:16:37 AM »
We were at $3M back five years ago, but now are at about $4.5M with a monthly income of $18K (pension + deferred comp).  Spouse will inherit ~$1.5M+ upon death of his parents (they lived like they were poor all their life yet have over $5M in investments - so sad).  Anyways, we do NOT have kids, which is why we were ahead of most of our friends/family.

MONTHLY income of $18K?!  Holy shit. $216,000/year in retirement, before ever touching your huge portfolio?  Not too shabby.  So why are you lurking on MMM?
Ha Ha - my thoughts too. I'm always impressed (astonished!) at the income levels of the people here and wonder why they don't FIRE when it's so high. Not judging, just questioning...

Could be another typical case of OMY (One More Year) Syndrome.  It's always gonna be "safer" with one more year on the job.  Of course, it's also going to result in one LESS year of living free because doing OMY does not somehow extend the length of your life.  :(

Cougar

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Re: How big was your stash when you RE'd?
« Reply #77 on: June 06, 2015, 11:40:31 AM »
We were at $3M back five years ago, but now are at about $4.5M with a monthly income of $18K (pension + deferred comp).  Spouse will inherit ~$1.5M+ upon death of his parents (they lived like they were poor all their life yet have over $5M in investments - so sad).  Anyways, we do NOT have kids, which is why we were ahead of most of our friends/family.

MONTHLY income of $18K?!  Holy shit. $216,000/year in retirement, before ever touching your huge portfolio?  Not too shabby.  So why are you lurking on MMM?
Ha Ha - my thoughts too. I'm always impressed (astonished!) at the income levels of the people here and wonder why they don't FIRE when it's so high. Not judging, just questioning...

Could be another typical case of OMY (One More Year) Syndrome.  It's always gonna be "safer" with one more year on the job.  Of course, it's also going to result in one LESS year of living free because doing OMY does not somehow extend the length of your life.  :(

second. i've got omy syndrone in spades.

i could go fire now if i lived like retired to win, on around 15k yearly and i can do that; but i justify it with things like i need a bigger cushion; need more just in case my sister and her husband have to move in because they're always broke and will likely need somewhere to live in their 60s after theyre no longer employable anymore, etc., etc.

Retired To Win

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Re: How big was your stash when you RE'd?
« Reply #78 on: June 07, 2015, 11:31:51 AM »
I always like to contrast what an expense reduction translates to in terms of needing less of a stash.  At a 4% SWR, every $1000 cut from living expenses results in a $25,000 reduction in one's required stash.  Do a few of those and it will quickly turn into real money... and most importantly, into real reductions in the time required to get to FIRE.

Just a thought!

arebelspy

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Re: How big was your stash when you RE'd?
« Reply #79 on: June 11, 2015, 10:12:59 AM »
I always like to contrast what an expense reduction translates to in terms of needing less of a stash.  At a 4% SWR, every $1000 cut from living expenses results in a $25,000 reduction in one's required stash.  Do a few of those and it will quickly turn into real money... and most importantly, into real reductions in the time required to get to FIRE.

Just a thought!

That always had the opposite effect on me.

You mean I can spend an extra 1k/year, forever, just by saving up a merely 25k?  Awesome!
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Exflyboy

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Re: How big was your stash when you RE'd?
« Reply #80 on: June 11, 2015, 02:14:36 PM »
So my pension was offered to be bought out yesterday for a little over $400k.

So I guess I can add that to my NW right?

That put me just under $2M.. in addition my Wife's pension kicks in in 8 years... and not counting the house.

Now I did say I would buy a new Dodge Charger at liquid NW of $2M.. Hmmmmm...:)

arebelspy

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Re: How big was your stash when you RE'd?
« Reply #81 on: June 11, 2015, 06:12:44 PM »
at liquid NW

Does that mean you chose the cash out option?
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
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I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.

Exflyboy

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Re: How big was your stash when you RE'd?
« Reply #82 on: June 11, 2015, 07:33:22 PM »
Actually no.. or not yet anyway.

I think the fees are too high and the pension is fairly well protected by the UK Government.

I'll poke around at it a bit more.. Maybe I can set up my own scheme without paying these advisors 1.5%.