Author Topic: What is your target amount?  (Read 114530 times)

MsFrugal

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Re: What is your target amount?
« Reply #150 on: June 27, 2016, 05:13:54 PM »
wow these amounts are high...ive bought a house in a location i love so the need to travel is minimal..i've seen what i want to see and can no longer be bothered staying anywhere that doesn't offer me the same comforts of home. I no longer need a car as everything I need is within walking distance ,if I need to go any further afield an excellent bus service is available...I put more attention into buying the right house for me in the right area so that if needed i could survive on a minimal amount. The house is paid off, children are fine so I reckon I need about £50,000 tops to cover any house repairs in the future and maybe a few away days in cities around europe when the flights are cheap..after that a 3 day part time job will provide enough income to live a very happy mustachian lifestyle until government pension kicks in.

couponvan

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Re: What is your target amount?
« Reply #151 on: June 27, 2016, 05:15:15 PM »
$2.0 MM - lifestyle inflation is real.

Cyaphas

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Re: What is your target amount?
« Reply #152 on: June 27, 2016, 05:28:34 PM »
Roughly 1.2mm. With zero debt and the house and rentals paid off. I'm tihnking about including a summer home in that equation. I imagine things will change when the SO and I start having children.

pdxmonkey

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Re: What is your target amount?
« Reply #153 on: June 27, 2016, 08:08:32 PM »
I haven't really figured out what my target is yet. At present I am thinking about things in milestones. Somewhere around milestone 2-3 is where I'd likely consider cutting back to part time.

Milestone 0: Paid off house - all other milestones assume a paid off house.

Milestone 1: $100k in a taxable account. This will pay my property taxes. At this milestone I've got a place to live, but I can't heat it or feed myself without a massive garden and if it burns down
I'm SOL as this does not include money to pay for insurance.

Milestone 2: $325k taxable or split?. I feel like this money needs to be in a taxable account so I could use the returns now. This is not strictly true as I could just draw down the taxable account, then start drawing on the retirement account when the taxable hits 0.  I just figured out this # last night. This number includes house insurance/car insurance, utilities, a generous $250 monthly grocery allowance, $100 a month for eating out, paying someone for a haircut once a month (more often than I do now), paying someone to change the oil in my car and $99 a year for Amazon Prime, primarily so I can stream video. It also includes a couple hundred bucks of miscellaneous stuff. This doesn't really cover anything that breaks down, long term home maintenance or other fancy stuff. If my computer broke, I would have to do a side hustle or pull it out of the grocery budget to replace it... This level is probably doable long term if I did all my own maintenance and when I had to buy say a replacement furnace I was willing to survive on Ramen for a couple months to pay for it and then still install the damn thing myself. This is still a pretty crappy place to be IMO as I really don't get to travel anywhere and the gas budget for the car is for travel I do now within in the city while I work...which is to say almost zilch. I work from home.

Milestone 3: ??? split between taxable/retirement: I need to figure this one out. It's milestone 2 plus paying someone else to do the long term maintenance tasks. Ballpark it at $400k if you figure $3k in maintenance per year. I have no idea if 3k is a good #, but I could figure it out given that I've replaced the roof, furnace, water heater and A/C in this home since living here as they were beat to hell and it was a foreclosure. I have the historical price #'s for this specific house to estimate pretty well based on average life spans so I should be able to figure this out if I go through my files to find the #'s. Since I have replaced things recently some of the money for long term items could be in retirement accounts as I could most likely access those around the time stuff is expected to be replaced again. This milestone pretty much accounts for all the things I do now minus the mortgage that disappears in milestone 0, but right now I am living cheaper than I plan to live post-retirement as I find it emotionally painful to spend big $ on travel when I haven't yet bought my freedom. I do travel some, but only every couple of years right now and I would like it to be a couple times a year.

Milestone 4: $600k between taxable/retirement accounts: This would give me $2k a month. Given that I estimate milestone 3 to require about $1300-$1350 a month. Depending on if that's a good estimate or if I've lowballed milestone 3 costs this should give give me $5k to $8k per year for travel and whatever the hell else I want. Computer breaks..build/buy a new one. See an interesting book/video game, buy it. I feel like Milestone 4 is the earliest milestone at which I will consider full FIRE.

Milestone 5: You get everything in Milestone 4 plus ???. I have tried not to imagine this far out yet. I don't want to inflate my lifestyle before I even get there.

pdxmonkey

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Re: What is your target amount?
« Reply #154 on: June 27, 2016, 09:06:35 PM »
wow these amounts are high...ive bought a house in a location i love so the need to travel is minimal..i've seen what i want to see and can no longer be bothered staying anywhere that doesn't offer me the same comforts of home. I no longer need a car as everything I need is within walking distance ,if I need to go any further afield an excellent bus service is available...I put more attention into buying the right house for me in the right area so that if needed i could survive on a minimal amount. The house is paid off, children are fine so I reckon I need about £50,000 tops to cover any house repairs in the future and maybe a few away days in cities around europe when the flights are cheap..after that a 3 day part time job will provide enough income to live a very happy mustachian lifestyle until government pension kicks in.

The numbers are high because people are talking about having a 0 day job. If I wanted to live on a 3 day part time job my # would be $0. In fact working 3 days a week I could still pay down a lot of debt and fund a retirement account so my number for a 3 day job could technically be negative.

aceyou

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Re: What is your target amount?
« Reply #155 on: June 28, 2016, 05:15:49 AM »
Likely financial buckets at retirement:
 
Stashe: 1.5mm give or take in 403B, 457, and Roth IRA's
Pension #1: 45% of average of my highest 3 years earned
Pension #2: 45% of average of my wife's highest 3 years earned
Social Security: whatever that ends up being
House: Paid off
Life Insurance: 500k universal life policy on both myself and my wife
Fun Income: coaching salary


MVal

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Re: What is your target amount?
« Reply #156 on: June 28, 2016, 08:05:35 AM »
$400k will get me to FI in terms of utilities and food without depleting the reserves, but my end target is probably a multiple of that; I'll work it out when I get there, I guess.

Same for me. I'm shooting for $400K to just cover my basic expenses and then do other work that I actually want to do without worrying about what it pays. If it pays nothing, I'll be cool with just doing what I love and knowing my survival needs are already met.

runningthroughFIRE

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Re: What is your target amount?
« Reply #157 on: June 28, 2016, 03:32:32 PM »
I'm shooting for two commas in net worth.  Don't need it in the slightest, but for now I enjoy what I do and have no intention of stopping when I hit FI.  I like the idea of being a millionaire, even if I don't strictly need it, so why not?  My number for when I *could* retire if I wanted is around 400-500K, or barebones 250K with a paid-off house (since people seem to be basing their numbers off of that).

That's based on my numbers as a single guy, so this could easily change in the future.

clarkfan1979

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Re: What is your target amount?
« Reply #158 on: June 29, 2016, 02:03:21 PM »
If we are still paying rent/mortgage, 60K of passive income is the target. If there is no rent/mortgage, then 45K/year. Not as badass as MMM, but better than most. We are planning on more international travel in the near future. In the beginning, it will be expensive because we don't really know what we are doing. However, we will get better at it over time.

sun and sand

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Re: What is your target amount?
« Reply #159 on: June 29, 2016, 06:45:04 PM »
I need rentals to cashflow 30k annually. I will have 44k yearly of pension.  That will be enough.   If not, I will get a part time job.

Goldy

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Re: What is your target amount?
« Reply #160 on: June 29, 2016, 06:53:09 PM »
I'm shooting for 2.4M but could probably make it work at 1.4 if my house was paid off.  Right now I have 1.0 so looking to hit 2.4 in under 10 years.

Regular Guy

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Re: What is your target amount?
« Reply #161 on: September 03, 2016, 12:30:31 AM »
My target is paid off house and $1 mil in liquid assets.  That along with my military retirement that I'm a few years away from getting will be plenty for me to live comfortably on.

Roots&Wings

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Re: What is your target amount?
« Reply #162 on: September 03, 2016, 07:08:22 AM »
3% WR and a paid off house. So 33x a conservative expense estimate that includes extra fluff that could be cut if needed.

mathjak107

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Re: What is your target amount?
« Reply #163 on: September 03, 2016, 07:17:19 AM »
we shot for 3 million but live in nyc .

ketchup

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Re: What is your target amount?
« Reply #164 on: September 03, 2016, 07:47:34 AM »
Still up in the air at this point but probably enough to bankroll about 40K/yr, less if no mortgage on primary residence upon retirement.

That'll come from a mix of RE and index funds.

begood

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Re: What is your target amount?
« Reply #165 on: September 03, 2016, 09:04:07 AM »
We'll know a lot more about our number in eight years. Though I know there are no guarantees, that would be when our only kid should graduate from college. I'll be 60, my husband 59.

We have 25x expenses in taxable/IRA/403(b) but no equity (living in provided housing; lost 20 years of equity in sale of home in 2009). So eventually we'll have to add in housing costs, either rent or mortgage, and we have four years of private high school and then college to go for our only.

So it feels like we'll be subtracting from instead of adding to the stash in these next high-cost eight years, and we'll just have to wait and see how it all shakes out after that.
« Last Edit: September 07, 2016, 03:47:32 PM by begood »

gerardc

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Re: What is your target amount?
« Reply #166 on: February 14, 2017, 09:13:02 PM »
$700k invested, no house.

- single, no kids
- want to live in LCOL countries for a bit (Mexico, SA)
- young & open to part-time work, hustling (business), temporary full-time stints in the future
- Canadian, can go back if shit hits the fan health-care wise

jessicat

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Re: What is your target amount?
« Reply #167 on: February 15, 2017, 02:34:59 PM »
So 3 million is me putting my foot down and dragging my husband off to retirement whether he wants to or not.  (I can see him saying one more year for more money)

2 million is the amount I would like to have.  We are a family of 8.  So with six kids I want the ability to visit any of them and any grandchildren I may have without ever having to say we can't afford that.  At the same time I have 9 siblings so I also want to be able to visit them as well because I really enjoy my time with them.  I also want to be able to be generous in helping others.

So far we have a paid for house and 359,000 in retirement money.  we are a one income family.  we are a little late to the party at 43 and 44.  But I would love it if we could retire in 10-15 years.  I want to free my husband.  And I want him home way more than I want stuff. 

FireHiker

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Re: What is your target amount?
« Reply #168 on: February 15, 2017, 02:56:27 PM »
My target is 1.25M, husband's is 2.5M, so I'm assuming "our" number will be 2.5M, which will include a very generous travel budget. Just counting 401K/Vanguard/cash, not including the home equity. We plan to move to a LowerCOL area, so the home equity will pay for a home outright and the two younger kids' college. If I can convince him to downsize the current house sooner, the numbers may change around. Our stats are 3 kids, very HCOL area currently. We will likely not leave the area until the youngest finishes high school (June 2030) but if savings and investments go well and we can downsize to a much smaller home in our area we may be able to retire in place before then.

soccerluvof4

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Re: What is your target amount?
« Reply #169 on: February 15, 2017, 03:25:31 PM »
Our number was 2.3 Million and a paid off house which we hit and fire'd it will be 2 years in  April. We still have 4 kids at home with one going off to college this summer then one the next then a 4 year gap before the next two go off 2 years apart. Since then after we fire'd our number after withdrawal is still higher than it was when we fire'd BUT my DW took a job a month ago with outstanding benefits just until the hoopla with all this healthcare comes to some kinda of settlement. If she didn't love what she was doing It would bug me but she loves it and they were ridiculously flexible with her hours. My point to all this is even though we hit our numbers and were fine you can always do something if you become cautious about the future. I wont say I will never go back to work but the plan is not to and she can quit anytime she wants. Right now its icing. Funny thing is she probably has it easier since I am dealing with the 4 kids more :-)

Much Fishing to Do

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Re: What is your target amount?
« Reply #170 on: February 15, 2017, 04:50:47 PM »
$2M invested.  Quicken tells me I actually hit NW of $2M today!  But that includes $300k of college savings for the 3 kids (I consider this fully funded now) and a $300k paid for house, so still a little ways to go....

FI4good

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Re: What is your target amount?
« Reply #171 on: February 15, 2017, 05:23:15 PM »
I don't have a particular number in mind, if i went to live in france spain or portugal i could probably get by on 5000 euros a year + housing.

At the moment in the UK all my expences are about £10,000 pa including renting half a house and running a car. 

so you do the maths .
« Last Edit: October 15, 2017, 01:15:46 AM by FI4good »

CheapScholar

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Re: What is your target amount?
« Reply #172 on: February 15, 2017, 05:42:55 PM »
I know it seems arbitrary, but my target really is 1M.  800K in total investments and 200K in paid off home value.  That's where I would feel very comfortable to provide for my wife and myself after our son is grown.

SEAK

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Re: What is your target amount?
« Reply #173 on: February 15, 2017, 05:57:53 PM »
We are a family of 4 (42 and 40 yo w/ kids 9 and 7 yo) living in a HCOL area. Hoping to FIRE when I'm 49, wife 47  (she may work a couple more years than me). Currently sitting at ~$650 k in investments.

FIRE#s
1.5 million in investments.
My pension paying 45% of the highest three years salary (~80k salary)
Wife's pension paying 20% "                                           " (~90k salary)
Social Security-both of us will have benefits
Kids 529- each should have about 100 k
Mortgage- Will probably have about 150 k in mortgage debt. Mother in law apartment currently pays half the mortgage. My guess is we'll move to a LCOL area and downsize houses once the kiddos are out of college and be free of a mortgage in retirement.

SwordGuy

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Re: What is your target amount?
« Reply #174 on: February 15, 2017, 06:01:00 PM »
I have a target income in mind, not a target portfolio size.  That's because we're diversified into stocks/bonds, rental property and farm income, plus SS as it comes on line.

$60,000 with a paid off house or $75,000 with the mortgage still around for 15 more years.

There's God's plenty of cut-back room with those numbers if things go wrong.


texxan1

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Re: What is your target amount?
« Reply #175 on: February 15, 2017, 11:30:18 PM »
I have a target of 1mm cash in mutual funds, 1 mil in 401k, and pensions. My house is paid for, and have no other debts

Im 3 years from my current goal of having the 1mm cash in mutual funds... That is based on no changes in lifestyle or earnings currently.....

FIRE day of jan 9, 2020.... at 49

looking forward to it




SpeedReader

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Re: What is your target amount?
« Reply #176 on: February 16, 2017, 11:13:47 PM »
My target is $1.2M cash and investments.  We'll have a small Federal pension and social security as well.  We think we'll move to a LCOL area when I pull the plug at 58, so I'm not focusing on paying off the house now.

marty998

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Re: What is your target amount?
« Reply #177 on: February 17, 2017, 12:02:17 AM »
This is hard to answer given how expensive housing is across all of Australia.


I don't actually feel any richer/wealthier as my NW has gone up because it's mostly been capital growth. Cash flow isn't there because... Aus property lol.


I have talked out loud about this before, that an exit strategy is comparatively more difficult here (no mega backdoor roth conversion ladders available etc).


But I've always known that the world belongs to people who have capital, so you might as well try and get as much as you can to give yourself choices.


So no ideal number, but there'll come a point in time (perhaps paid off house plus $1.2million) where I'll say that's enough and be able to live off savings + odd jobs here and there.


It just depends on what sort of house, and family.

NorthernBlitz

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Re: What is your target amount?
« Reply #178 on: February 17, 2017, 05:07:49 AM »
We're currently about $45-50k in spending, but I haven't done a detailed analysis about how much of that is work related. We also pay $12k in property taxes and we'd seriously consider leaving where we live now to get rid of that expense.

So, we're probably looking at $1.25-1.5M (being conservative with 3.5% WR). Still a while away though, so we'll get a better idea of what that looks like as we get closer.

ducky19

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Re: What is your target amount?
« Reply #179 on: February 17, 2017, 06:23:12 AM »
I will be 50 when my youngest leaves the nest. I've promised each of my kids that I will pay for their associates at the local community college, after that they will be mostly on their own (will likely still help out). I should have around $600k between 401k, Roth, and savings/non-tax sheltered accounts at this point, but will still have mortgages on our home and rental. Those will disappear by the time I'm 53 and should have right around $1M stashed by then. At that point, it will depend on how the job is going as to whether I pull the plug completely, work OMY, or go part time somewhere like UPS for the health insurance. My wife is 4 years younger than me, so I'd expect she will probably work a few more years after I retire.

Short answer, $1M and a paid off home + rental should cover everything and allow me to never earn another penny if I so choose (which, let's face it, is not going to happen).

brute

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Re: What is your target amount?
« Reply #180 on: February 17, 2017, 06:43:27 AM »
$2.5M in liquid assets. I'll probably go part time around $1.5M but I want to be able to easily spend $100k a year if I want to for traveling the world, getting gear for a new hobby, or whatever else strikes our fancy. Then again, there are probably only 2-3 years I would ever spend that much.

FiguringItOut

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Re: What is your target amount?
« Reply #181 on: February 17, 2017, 07:17:48 AM »
I don't have a well worked out number, but if I had to just spit one out right now I'd say $650K to cut back from corporate life.

Right now my plan is to safe as much as I can while my kids are still living with me.  Once they are in college and I have more flexibility, I want to move to a LCOL area, or lower COL area, cut back to something part time and less stressful and live on that income while my savings grow.

I have about 5-6 years to figure out specifics and logistics of this plan and a lot can change in those 5-6 years.

I am also thinking about getting a rental property for passive income, but right now it is still just a thought process.

Longwaytogo

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Re: What is your target amount?
« Reply #182 on: February 17, 2017, 07:29:12 AM »
We are shooting for around $1M. Most likely to include ~$600-$650K investments and a paid off $350-$400K house.

We will also have my wife's pension which should be around 50-60% of her top 3 earning years. Not shooting for really early though. Got a late start and found MMM with 6 figure consumer debt. So shooting for 50 (or a bit sooner) for me, 53 for wife (for her to capture full pension and cash flow potential college costs)

dude

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Re: What is your target amount?
« Reply #183 on: February 17, 2017, 07:58:27 AM »
I'd planned for @$800k when I retire in 2 years, and I'd get there with 5% returns, but I'm skeptical this bull run can continue, and frankly, I don't want it to.  I'd rather see it correct significantly in the next 6-12 months, so I can buy up cheap stocks for the next two years. At this point, whether I hit $800k or not, I think I'm retiring regardless. I have a pretty sizeable pension coming to me when I retire, which should more than cover basic living expenses. Might have to cut down on the vacation spending a bit if investments are down, but will ramp it back up when it recovers. Wife plans to work another 7 years or so after me, and by that time, we should be in the $1.5mil invested neighborhood (currently at $940k), plus my pension, plus SS when we get there. Should be golden (or at worse, silvery!).

golden1

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Re: What is your target amount?
« Reply #184 on: February 17, 2017, 08:24:31 AM »
My net worth is currently about $650K and I am shooting for a minimum $1M which I should achieve in about 5-6 years conservatively, or sooner if some investments pay off.  I will be older than 50 when I FI so I have less retirement time I need to budget for.  I should have around 1.5mil if we both keep working until age 55 which is the scenario with which I am most comfortable.  However, I know a lot of people in tech who get aged out of the work force, so I am prepared for a scenario where that happens to one of us.   

moof

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Re: What is your target amount?
« Reply #185 on: February 17, 2017, 12:42:05 PM »
$1.6M, and we are 0.6M there so far.  I will still have a little over 100k on a mortgage at that point (3%, so no sense paying it early).

We are early in ratcheting down lifestyle, so the number is likely to drop as time goes on.  Healthcare is quite the wild card.  Some of the stash is earmarked for helping the kiddo with college.

BTDretire

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Re: What is your target amount?
« Reply #186 on: February 18, 2017, 08:34:57 AM »
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.

Hmm, first time to quote myself, but this is an old thread.
I did retire (semi) at the begining of 2017, semi because
my wife still runs the business and I spend about 1 day a week
working so she can have the day off.
 Since the business is still going for at least 5 more years,
it should generate enough income that we won't need to touch
our NW for that five years. We have two kids in college so,
about 1/2 our income will be going to that. I don't expect to
have any savings these 5 years, but I hope to see our NW grow,
from market increases and dividend income.
  It's a little funny, when I work, it is easier than what I do
when I'm not at work, and when she is at home she works
harder then when at work. She works her garden and lawn.
« Last Edit: February 18, 2017, 03:20:59 PM by BTDretire »

itchyfeet

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Re: What is your target amount?
« Reply #187 on: February 18, 2017, 09:14:00 AM »
We're shooting for $2.5m USD, of which $500K will be for a house.

PhysicianOnFIRE

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Re: What is your target amount?
« Reply #188 on: February 18, 2017, 06:26:49 PM »
We're shooting for $2.5m USD, of which $500K will be for a house.

I've got a time target now (summer of 2019) but plan to have $2.5M or more in retirement assets by then. Additional goals include $200,000 in two 529 plans, $250,000 in donor advised funds, and paid off homes (done).

Kaminoge

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Re: What is your target amount?
« Reply #189 on: February 19, 2017, 09:04:00 AM »
I wish I knew!

I was happy to come across this thread - it makes interesting reading seeing the wide variety of answers.

My rough number (for 2 of us) is 1.3 million BUT (it's a big but) I struggle with how to calculate it. Theoretically right now I have about $600,000 equity in property and about $100,000 in other investments. My husband has about $250,000 (we've only been married a year and everything is completely separate because everything is in different countries including our incomes). So I could roughly say we're at $950,000. The problem is that the property only generates a few thousand dollars a year of income (rest goes on interest, bills etc). I can't sell it without a big tax hit (it's in Australia, I'm not a resident). So do I think of it as having only $350,000 and ignore the property?

Our other issue is where to live. Neither of us can move to the other ones country (US/Australia) without expense and hassle.

It all gives me a headache! So we keep living, keep saving and keep thinking we should figure out a plan!

SpareChange

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Re: What is your target amount?
« Reply #190 on: February 19, 2017, 11:50:24 AM »
Plan is certainly subject to revision, but here's the current gloss. Work FT until I hit the 300k-400k range, then either shift to PT or PRN at about 16 hours a week indefinitely. I can live very comfortably on 16 hours. I should easily hit at least 1500/mon at 70 in SS.

Cassie

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Re: What is your target amount?
« Reply #191 on: February 19, 2017, 03:18:55 PM »
Our biggest expense has been our health insurance. We pay 10k/ year and and in July it will go up to 11.5k/year for retiree employer insurance. Ugh!  WE are looking at switching to the PPO for half the price but they pay less overall so more out of pocket. So I will track for a year and see what is our best choice. Some will be unpredictable because we don't know what will happen health wise.  Sure wish we would go to one payer system.  When we retired we had 40k income/year and a paid off house. In 5 years we have worked p.t. and earned anywhere from an additional 20k-70k/year.

Miss Piggy

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Re: What is your target amount?
« Reply #192 on: February 19, 2017, 04:11:43 PM »
Our biggest expense has been our health insurance. We pay 10k/ year and and in July it will go up to 11.5k/year for retiree employer insurance. Ugh!  WE are looking at switching to the PPO for half the price but they pay less overall so more out of pocket. So I will track for a year and see what is our best choice. Some will be unpredictable because we don't know what will happen health wise.  Sure wish we would go to one payer system.  When we retired we had 40k income/year and a paid off house. In 5 years we have worked p.t. and earned anywhere from an additional 20k-70k/year.

I anticipate health insurance being our biggest expense in retirement. We are about to start a COBRA plan for $1200/month for the two of us, and the coverage is so good, I would gladly pay that price monthly for life for the same coverage. (We both have pre-existing conditions, and my husband's condition is very high-maintenance, so the excellent coverage is a must-have.)

I wish I had a crystal ball to see what will happen with health insurance over the next 20 years.

Nangirl17

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Re: What is your target amount?
« Reply #193 on: February 19, 2017, 04:28:42 PM »
Could FIRE at $1.25M (at current expenses), but one of us will probably continue to work as long as we have a child living at home. So realistically we will likely end up with a stash of 1.5 - 1.8.

Hotstreak

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Re: What is your target amount?
« Reply #194 on: February 19, 2017, 05:29:07 PM »
$750k would cover my current expenses, including rent.  With a paid off house $625k should work.  Both of these #'s are still quite a ways off for me & may change based on family situation.

facepalm

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Re: What is your target amount?
« Reply #195 on: February 19, 2017, 06:29:56 PM »
My target is $850K, but I'll have a pension of $4700 per month plus an additional $1,000 for 5 years. I could do it with $500K, given the pension.

gerardc

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Re: What is your target amount?
« Reply #196 on: February 19, 2017, 06:48:40 PM »
I feel lame with my 700k poverty stash compared to the average in this thread. I'm probably younger though. Why do you all need so much?

TheAnonOne

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Re: What is your target amount?
« Reply #197 on: February 19, 2017, 07:04:23 PM »
I feel lame with my 700k poverty stash compared to the average in this thread. I'm probably younger though. Why do you all need so much?

Our number is somewhere in the 1mil +- 100k range, maybe a BIT higher(1.25-1.5m) depending on what the "me/us" in '3 to 4' years wants to do. I am 26, and I should be around that 1m zone by 30 (likely a bit under).

I am not sure exactly what motivates people on THIS board specifically to quote numbers like 6 MILLION. Is your yearly budget really $240,000? (or a bit less for 2-3% WR) More power to you, but this board would have had set many people free long before those numbers.

I am not sure how, even making 200k, I would have any motivation at work beyond 1-1.5 mil. I could see striving at the end to shore up a few wants, buy a nice sports car, replace a bunch of appliances, or whatever before hitting the "off switch" but by the time I started crossing 5 MIL? HA no way!

TheAnonOne

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Re: What is your target amount?
« Reply #198 on: February 19, 2017, 07:17:37 PM »
I feel lame with my 700k poverty stash compared to the average in this thread. I'm probably younger though. Why do you all need so much?

Our number is somewhere in the 1mil +- 100k range, maybe a BIT higher(1.25-1.5m) depending on what the "me/us" in '3 to 4' years wants to do. I am 26, and I should be around that 1m zone by 30 (likely a bit under).

I am not sure exactly what motivates people on THIS board specifically to quote numbers like 6 MILLION. Is your yearly budget really $240,000? (or a bit less for 2-3% WR) More power to you, but this board would have had set many people free long before those numbers.

I am not sure how, even making 200k, I would have any motivation at work beyond 1-1.5 mil. I could see striving at the end to shore up a few wants, buy a nice sports car, replace a bunch of appliances, or whatever before hitting the "off switch" but by the time I started crossing 5 MIL? HA no way!

I'd like to add a 2nd(3rd?) point, that applies to a lot of us here.

At a certain point, work becomes non-effective for NW changes. When your stash becomes so large that the average market returns match, or even dwarf your job income, what's the point of working? Beyond some intangible reason (you like your job for XYZ reasons)

If you take person X who saves 100k after tax a year and has 200k saved up, next year he will jump 50% just from job savings. Beyond that it will start to quickly drop, going from 300k to 400k is only 33%, 4->5 is only 25% and so on.

When you hit 1.5m, a whole YEAR of work, 12 months, 4 weeks a month, 5 days a week. Jumps his NW up a pitiful 6%. The market did more work than he did at that point.

In this case, if he kept working for 5m, it's unlikely he reached that number MUCH faster by working than just leaving the money alone.

***excluding that you'd be drawing on the account instead of adding to it, it does give SOME extra power to the "keep working" side of things <--and it isn't lost on me that this is a huge exclusion

sol

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Re: What is your target amount?
« Reply #199 on: February 19, 2017, 07:24:23 PM »
Why do you all need so much?

Because we are weak and pathetic.