Retirement Funds

[CountValentine]

Did you make your kids put their babysitting money into a roth IRA?

I use to caddy. My Mom would be waiting at the door when I got home to collect what I made. She would give me a small portion of it to spend and put the rest away for me. I thought at the time that was mean but that turned into gratefulness later on. Another thing she did was once I was out of high school and started working she charged me room and board. When I got married many years later she gave it all back to me besides a wedding gift. So if your kids have a hard time saving there is things you can do.

[CountValentine]

No. You homeschool your kids?

No but schools should not be the end all.

[ushdadude]

I use to caddy. My Mom would be waiting at the door when I got home to collect what I made. She would give me a small portion of it to spend and put the rest away for me. I thought at the time that was mean but that turned into gratefulness later on. Another thing she did was once I was out of high school and started working she charged me room and board. When I got married many years later she gave it all back to me besides a wedding gift. So if your kids have a hard time saving there is things you can do.

Nice, not very common at all

[Fish Tank]

No but schools should not be the end all.

I understand. That doesn't change what I said.

[CountValentine]

Is it common for both spouses to have full time jobs when they get married in the Jewish community. My understanding is it isn't so that is a big disadvantage.

[ushdadude]

BTW just to put a number out there, if you want 10k a month to live, you need to save 3mm for retirement (assuming a 4% draw which is what is usually recommended to make sure you don't run out of money)

[CountValentine]

BTW just to put a number out there, if you want 10k a month to live, you need to save 3mm for retirement (assuming a 4% draw which is what is usually recommended to make sure you don't run out of money)

So that 10k would be reduced by things like SS, pension, annuities and other things?

[skyguy918]

BTW just to put a number out there, if you want 10k a month to live, you need to save 3mm for retirement (assuming a 4% draw which is what is usually recommended to make sure you don't run out of money)

That number is way too high. You can buy a lifetime income annuity at age 65 paying 10k a month for $2m.

[ushdadude]

So that 10k would be reduced by things like SS, pension, annuities and other things?

yes...I made a very broad statement.

[ushdadude]

That number is way too high. You can buy a lifetime income annuity at age 65 paying 10k a month for $2m.

for a married couple? and not sure you can directly compare an annuity to a retirement account

[ushdadude]

also keep in mind that if you want to retire early, a lot of other sources won't kick in eg SS.

[CountValentine]

That number is way too high. You can buy a lifetime income annuity at age 65 paying 10k a month for $2m.

That even seems high. A few years back at age 62 10k would have cost 1.8m with 50% to spouse.

[AsherO]

BTW just to put a number out there, if you want 10k a month to live, you need to save 3mm for retirement (assuming a 4% draw which is what is usually recommended to make sure you don't run out of money)

What percentage of people retire with enough assets to live comfortably off the interest for perpetuity?

Assuming the same 4% average ROI and same $120k/year in expenses (not accounting for inflation, decreased expenses over time, other income, etc. approx. half your $3m income figure should account for 15+ years of retirement, and $2m should provide for ~28 years of retirement.

[CountValentine]

also keep in mind that if you want to retire early, a lot of other sources won't kick in eg SS.

What is your thought on SS? Take ASAP?

[ushdadude]

What percentage of people retire with enough assets to live comfortably off the interest for perpetuity?

Assuming the same 4% average ROI and same $120k/year in expenses (not accounting for inflation, decreased expenses over time, other income, etc. approx. half your $3m income figure should account for 15+ years of retirement, and $2m should provide for ~28 years of retirement.

not enough lol

[skyguy918]

for a married couple?

I hear, didn't think of that. So $2.5m. And keep in mind, that's not necessarily the best way to do it. I'm just saying you can absolutely guarantee that amount easily for less.

That even seems high. A few years back at age 62 10k would have cost 1.8m with 50% to spouse.

You can't compare rates from a few years back. Annuities get repriced as often as weekly to reflect prevailing rates. Also, I'm just picking 1 quote I have access to, not necessarily finding the best price.

[ushdadude]

What is your thought on SS? Take ASAP?

don't know enough about it yet. I do know that every situation is different though and there are a lot of factors, especially for a married couple.

[AsherO]

That number is way too high. You can buy a lifetime income annuity at age 65 paying 10k a month for $2m.

See what I wrote about depleting the principal. $3m would plan for leaving that entire sum available “after-120”. $2m would plan for leaving $0 after 16/17 years.

[CountValentine]

don't know enough about it yet. I do know that every situation is different though and there are a lot of factors, especially for a married couple.

Major factor for me was you get ZERO once you die.
SHOW ME THE MONEY! 

[AsherO]

not enough lol

It’s a lifestyle/demographics thing. Those people who finished grad school near the top of their class in their early to mid twenties (later for some professions like medicine) and immediately get a well paying job and a high-earning career trajectory, have no issue hitting the $3m mark and the mindset to retire at 62-65.

Many/most people don’t go that route and don’t necessarily expect in their 50s to retire by 65.