I thought that you moved to DE to retire?
What should I have to comfortably retire at 55?
- Thread starter Vern_in_IL
- Start date
You need a nice pension from and LE or FD and a couple M in IRA and Brokerage if upper median incomed citizen.
Know that when collecting social security in your 60's if you are withdrawing substantial monies from a non-Roth IRA - or generally have other substantial sources of taxable income that a large portion of SS payout will now be subjected to Fed tax.
Here is a great tool I found from AARP to estimate FED taxes in retirement -
1040 Calculator Estimates Your Federal Taxes
Use this calculator to estimate your total taxes as well as your tax refund or the amount you will owe in taxes.
www.aarp.org
We moved to DE to our retirement home. Just have not gotten around to retiring. Wife (a little younger than me) is retired.
I think when one retires (if still healthy) then you should have the next chapter in your life thought out. Basically retire with a purpose.
Not sure it's a good idea to just retire at 65 and see what happens.
Doing real work, or will I see you at the Lewes Home Depot or someplace similar?
You should have lots and lots of money.
I work for a hotel chain doing IT work, you have probably heard of them. No Lowes or Home Depot after I retire.
While working full time in IT I did work part time (for hobby money) at Lowes (to get in shape) and at Sears (to buy tools at a discount).
Once I retire I do not plan on doing any more work for a paycheck.
But volunteer at Cape Henlopen, that's a possibility.
$120k is 5% of 2.4M, just fyi in case you were about to put your 2 weeks in soon.
Not if you have a sub 4% fixed. Let the money work for you.
But if it makes you nauseous pay it off; you need good mental health to maintain a good physical heath.
Be objective, run then numbers - perform an analysis to see if you can make do without 300K +/- invested and earning for you- be it in a CD, EFT, or Annuity Insurance. Seven years ago you woudl have made a MAJOR mistake paying off a substantial mortgage moving into retirement - or whilst working.
True.
But the up and coming generation had better more than dream about it. Inflation. My parent's dream of $1M being enough became my dream of $3M being enough will become $???M being enough for Gen Z.
Just like ammo. Stack it high and deep, and when you think you have enough... it's time start stacking some more.
A good 40 year career at a modest savings rate should yield a good nest egg. Assuming one avoids 40 year's worth of pitfalls along the way.
Not enough to retire in Caligulan Splendor!
401K + IRA + brokerage account can be $3M in 40 years but it takes discipline.
But looking forward to RMD's at age 72,
If you have ~1M in 401K you will be required to draw down almost 40K per year.
Start doing Roth conversions in early years when you have a tax advantage i.e; that unused STD DED of $27-29K (MFJ)
Or spend some of that $$ down when you can enjoy it - if that's your thing.
Alternatively many family's wish to leave $$ in a trust for their children or grandkids.
- Ken
Thank you , but I have a plan .
4WD
$50 site donor 2024
401k/IRA RMDs start at age 73 now based upon legislation signed in December, effective 1 January 2023. Gives me one more year for Roth conversions.
Never understood why RMD’s are feared? For most people*, if they have a high 401k value, they may be in the income level where SS payments are not the 40% replacement, thus they have to lean more heavily on their savings instead. Plus, they were likely higher income, and thus, “needing” that higher distribution, in order to maintain their lifestyle of choice.
[*Yes I get it, there are some super savers out there who will get the full 40% due to low income, yet will have stashed away millions due to their sheer frugality. I just don’t think they are a very large group of people!]
I understand there is a tax implication, but still. If the RMD ”makes you” take out more than you want to, take the overage and drop into an index fund or target fund. It doesn’t have to chase the S&P 500, it could target a lower / safer return if desired, but otherwise attempt to make up for any lost money.
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