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Have enough gas money
What should I have to comfortably retire at 55?
- Thread starter Vern_in_IL
- Start date
There is no one right answer and I retired two years ago at 58. The only thing that I can add is that everything in retirement is easier without debt.
My wife and I spent a month in Europe this past fall and it was possible because we have zero debt.
ETA: One other thing. 15 year mortgages were instrumental in my wife and I accumulating assets.
My wife and I spent a month in Europe this past fall and it was possible because we have zero debt.
ETA: One other thing. 15 year mortgages were instrumental in my wife and I accumulating assets.
Exactly.
Lowest possible GUESS is $2meg
I really don't think you need $5meg plus, but for the little information you posted, you could have have a raging heroin and cocaine addiction and be done in 6 months or less. Of course this is crazy, but health problems at 60-65 start counting a LOT more for most people.
First thing to do is get out of IL.
Maybe to FL, TX, etc.
gathermewool
Site Donor 2023
I was wrong for wording my response so aggressively. I agree that the posts are all helpful in a general sense, and it’s fun to talk about these kinds of things. Maybe it’s me being picky, but the OP asked a personal question with not nearly enough info. It would be more appropriate to ask something like, “what would you have to do to retire at 55.” I’m sure most of us would just post the following, though:
My answer is a plan. Plan to be debt free at the time you retire. Have your biggest expense paid off, and know what it will cost you every month to remain there. Pay off your plastic. Keep it for emergency's only. Fight the urge now that you have the time, to spend money. Buying a newer car before you retire and have it paid off beforehand, will save you alot these day's. Don't plan on going on 4 vacations a year. Find low cost trips to take to places you've always wanted to go, without flying there, and renting a car. If your health is good, keep doing what you've been doing. Keep going for checkups and dental visits. Keep in touch with old friends, and go out to lunch with them at least once a month. I guess if your single with no kids, that can give you more room to spend . But I'm proof you don't need millions of dollars socked away for retirement. Not that that there's anything wrong with that, I feel if everyone waited until the did, retirement would only be a dream.,,
gathermewool
Site Donor 2023
I don't know how anyone can pick a dollar amount--OP had a goal of travel, but no explanation of how much that would cost (per year) to actually pull off. I outlined a rough plan based on working from what he thought he would need to spend per year, then come up with how much of a pile he would have to have saved up, what multiple of that expected yearly expense.
Come to think of it, might be better to hedge my bets a bit and round up to 30x, since inflation is a bit rampant right now.
I guess if I were to pick the dollar amount game, a decent lifestyle at $100k/year (minus taxes etc is going to mean a lot less actually spending, but you get the idea) would mean between $2M and $3M, if I had to guess. Hmm, maybe you guys are closer than I'm giving you credit for.
I do know that for me to pull up my stakes today would be if I won the lottery (that I don't play) and had a lump sum of $5M (after taxes). At that level I'm not thinking twice, I'm not even going to go into the office to pick my stuff up. $3M and I'd give it serious thought, but probably would work odd jobs and live a somewhat frugal lifestyle. Loosing SS and having to pay for healthcare out of pocket would be major hurdles for me to overcome, I'd think. Anything less and I'm still working another 10-20 years (just more comfortably).
Come to think of it, might be better to hedge my bets a bit and round up to 30x, since inflation is a bit rampant right now.
I guess if I were to pick the dollar amount game, a decent lifestyle at $100k/year (minus taxes etc is going to mean a lot less actually spending, but you get the idea) would mean between $2M and $3M, if I had to guess. Hmm, maybe you guys are closer than I'm giving you credit for.
I do know that for me to pull up my stakes today would be if I won the lottery (that I don't play) and had a lump sum of $5M (after taxes). At that level I'm not thinking twice, I'm not even going to go into the office to pick my stuff up. $3M and I'd give it serious thought, but probably would work odd jobs and live a somewhat frugal lifestyle. Loosing SS and having to pay for healthcare out of pocket would be major hurdles for me to overcome, I'd think. Anything less and I'm still working another 10-20 years (just more comfortably).
I could have only fully retired @ 55 if I had had a terminal condition that was going to do me in at age 56
But I was able to semi-retire at 50, taking overseas consulting projects for weeks to months at a time. As my employer paid all of my expenses, I was able to save my entire compensation. I did this on and off to age 65. Delayed Social Security to age 70.
But I was able to semi-retire at 50, taking overseas consulting projects for weeks to months at a time. As my employer paid all of my expenses, I was able to save my entire compensation. I did this on and off to age 65. Delayed Social Security to age 70.
Which nets you about $150,000/year cash flow (preserving principle, accounting for market variation, etc.).
Is that enough for the lifestyle the OP envisions? No idea. No idea what his RV life costs.
Probably enough for most folks - since we are talking about double what the average family of four in the US lives on.
gathermewool
Site Donor 2023
Genetics also comes into play. I’d want to retire young too if I was genetically pre-disposed to serious illness later in life. If every single one of your relatives dies before 60 of heart attacks, two things would come into play:
1. Less overall money needed due to shorter life
2. Potentially significantly more money required if you become ill and require expensive treatment and don’t die as early as expected. Not everyone just drops dead like the olden days.
1. Less overall money needed due to shorter life
2. Potentially significantly more money required if you become ill and require expensive treatment and don’t die as early as expected. Not everyone just drops dead like the olden days.
Like an account with a
ton of money in it - next question.
OP, those that retired in the past with less money, really does not correlate if you are 45 years old and have 10 years to plan.
I just had 3 crowns installed due to old man teeth problems. That was SIX GRAND, for an expected 10 year tooth life extension. Implants are coming next. They are currently $8K each. I promise this kind of stuff is coming. If not teeth, then it will be something else. A non covered prescription, you name it.
In aviation, hangar renting follows FAA rules and GOV requirements, Pricing is tied to REAL INFLATION, not CPI. Last year, 21 to 22, the increase was over 15.3%, based on government documents. The year inflation was under 3%, our government managers were able to accurately show us why rent was going up 8%. This year, 22 to 23, the rent increase was 40%. And I still have no heat in my hangar office in NY. (insert swear words here)
MY POINT, if you think inflation is not a factor, consider my examples and how quickly it becomes a tax on savings.
EDIT: Another thought, there is a push to abolish the IRS and implement a national sales tax. This is double taxation on savings. As your income was taxed, then saved, then taxed again when the rules changed. This may happen, because it is a windfall for the .gov.
I just had 3 crowns installed due to old man teeth problems. That was SIX GRAND, for an expected 10 year tooth life extension. Implants are coming next. They are currently $8K each. I promise this kind of stuff is coming. If not teeth, then it will be something else. A non covered prescription, you name it.
In aviation, hangar renting follows FAA rules and GOV requirements, Pricing is tied to REAL INFLATION, not CPI. Last year, 21 to 22, the increase was over 15.3%, based on government documents. The year inflation was under 3%, our government managers were able to accurately show us why rent was going up 8%. This year, 22 to 23, the rent increase was 40%. And I still have no heat in my hangar office in NY. (insert swear words here)
MY POINT, if you think inflation is not a factor, consider my examples and how quickly it becomes a tax on savings.
EDIT: Another thought, there is a push to abolish the IRS and implement a national sales tax. This is double taxation on savings. As your income was taxed, then saved, then taxed again when the rules changed. This may happen, because it is a windfall for the .gov.
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keep yourself in good health with proper nutrition and daily exercise.
cut the cable tv cord and get a library card.
max out annual ira and 401k contributions.
put small amounts of “found money” into a flexible annuity that is “untouchable.”
live within your means, avoid stupid debt.
ensure that your wife and kids are on the same page.
carry your homemade lunch and a coffee thermos to work or on road trips.
no granite countertops.
work hard.
cut the cable tv cord and get a library card.
max out annual ira and 401k contributions.
put small amounts of “found money” into a flexible annuity that is “untouchable.”
live within your means, avoid stupid debt.
ensure that your wife and kids are on the same page.
carry your homemade lunch and a coffee thermos to work or on road trips.
no granite countertops.
work hard.
I get my full pension plus health and dental at 57. My wife however has no pension. But my pension if I was 57 and retired today would be roughly half of what I'm earning now.
Sincerely hope you're doing well! I've read many of your postings. In my legal practice I've seen what you went thru. Very sorry but glad you're still on board here!
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