Are you wealthy?

Discussion in 'The VIP Lounj' started by pillatier, Jul 21, 2020.

  1. CJ

    CJ Bronze Member Admin Top Poster

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    With something specific like a pension you need to take a risk-based approach. How secure is it really, how is it funded, etc. Then it comes down to "for what purpose are you calculating wealth"? If it is for your own retirement vs. the value of your theoretical estate, then those are two different things.
     
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  2. Barry_NJ

    Barry_NJ Well-Known Member

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    A 2 million dollar nest egg, isn't the same in Midtown Manhattan, as it is in Des Moines...
     
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  3. Mike B

    Mike B Bronze Member Donor Top Poster

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    Oh yeah, your expenses are just as important as your wealth and income. If your income from SS and pension cover your expenses you don't need as much of a nest egg.
     
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  4. pillatier

    pillatier Bronze Member

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    Very true. Likely the same for SF, LA or any other similar high cost of living area.
     
  5. Rick C

    Rick C Well-Known Member

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    So true my retirement started in Upstate NY. LA County and upstate NY are worlds apart most notably with Housing, entertainment and automotive expenses. Surprisingly food, taxes and insurance are not that much of a change.
     
  6. DYohn

    DYohn Bronze Member Donor Top Poster

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    Lower cost of retirement living = why I left the SF Bay Area for Arizona. Well, plus I like the weather down here. It sure as hell wasn't for the politics. :)
     
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  7. Mike B

    Mike B Bronze Member Donor Top Poster

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    Not to mention you already owned the place. That always helps. We like it here. Not to far to drive to really nice spots and the central valley is not too expensive. Little Tracy is gonna be 100,000 people soon.
     
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  8. DYohn

    DYohn Bronze Member Donor Top Poster

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    My San Jose place was paid for too, but selling it added a bit to the “pension fund.”
     
  9. Rick C

    Rick C Well-Known Member

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  10. Chris Slade

    Chris Slade Well-Known Member Top Poster

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  11. claud

    claud Well-Known Member Donor

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    I am retiring on 9/1 at 72 years old. Have State retirement pension, Social Security and rental and once a year payment for sale of commercial real estate. I think I am fixed and ready for retirement.
     
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  12. Carl V

    Carl V Bronze Member Donor Top Poster

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    Congratulations Claud.
     
    Last edited: Jul 24, 2020
  13. CJ

    CJ Bronze Member Admin Top Poster

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    The first thing that jumped out at me is no mention of family. I presume they have no children and don't plan to have any. That's fine. But do they have no other dependents in the world? Do they have no intention of providing any financial support as their parents age and need expensive end of live care? Maybe they're both orphans? Who knows.
     
  14. pillatier

    pillatier Bronze Member

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    The worst thing one can do is to retire (early) with no plans or ideas what to do to keep them mentally and physically occupied. I have a few friends of my age who can retire comfortably, but they have no hobbies, no interests or activities or ideas how to keep their brain boxes and muscles working. I keep telling them DO NOT retire until you know what to do.
     
  15. Rick C

    Rick C Well-Known Member

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    From the article they do have kids:

    “But after two years of experimenting, I developed a daily routine that kept me productive, engaged and happy. Diving deep into my writing on Financial Samurai (my finance website), for example, not only generated a surprising amount of supplemental income, but it was also a cathartic way of relieving any uncertainties on my mind.

    Then we were blessed with a son in 2017, and a daughter in 2019. As full-time parents, we no longer have the luxury of boredom.“

    Perhaps the kids will not go to college. :)

    Bottom line is there are many ways to deal with retirement conundrum. The equation is not just about money because health, stress and aspirations on how you choose to spend your remaining time on earth grow exponentially more important as you get closer to the end of your ride.
     
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  16. CJ

    CJ Bronze Member Admin Top Poster

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    It does all come down to choices. I personally find it difficult to imagine adjusting my lifestyle. Right now I don't WANT to. My wife and I are planning on paying for our kids' college and right now they all want to go out of state. That's probably $200K plus right there. We will likely pay the majority of their wedding costs or give them a similar financial gift if they choose not to marry. We had a very inexpensive wedding (not like eloping but in the grand scheme, inexpensive) and have kind of ingrained that mentality in our children already. But you're still probably talking $30K at a minimum for three girls.

    Yeah, see if he's making a decent chunk of money off running a website then he's not retired, he's self employed. Maybe he doesn't work 40 hours a week but I often find these kinds of people work MORE than they did in an office job, its just non-traditional hours.
     
  17. Mike B

    Mike B Bronze Member Donor Top Poster

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    Retired in 2014, age 59. Never lacked for anything to do and turned down every consulting job I was offered. After these home improvements are done (getting close) I'll be floating a boat in the Delta again.
     
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  18. John Celardo

    John Celardo Bronze Member Donor

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    I retired at 57 in 2005 after 37 years with the National Archives. I made a good enough salary, but not enough to brag about, What I didn't appreciate over the years was the value of a pre Ronald Reagan Federal pension with cost of living adjustments. The Reagan plan relied on a very small pension, Social Security and a government retirement savings. I was able to contribute to the savings plan a which is a nice cushion. After retiring I kept myself busy with a part-time job as archivist for my NJ County, which I gave up about a year ago. We're nowhere near wealthy, but we own a house and we're comfortable.
     
  19. pillatier

    pillatier Bronze Member

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    Key word we're comfortable. That's was my goal to reach as well.

    So you were in CSRS that in fact was more generous than FERS.
     
  20. John Celardo

    John Celardo Bronze Member Donor

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    Yes I am. There was a push to get us to change to FERS when it was introduced, but it seemed like a bad deal back then. The hook was the governments contribution to the Thrift Savings Plan. Most of us didn't see that as enough of an incentive. Are you or were you a Fed too?
     

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