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Silver Conversationalist

Re: How much do you need for a comfortable retirement?

2,703 Views
Message 11 of 158

ASTRAEA wrote:

@sggbrown - Are you sure you've got that calculation right? At 71 the IRA RMD divisor is 26.5, so you'd need to have about $2.38 million in an IRA, to have a $90K RMD. If your IRA is the $1.6 million you mention, the RMD at 71 would be just over $60,377.


I took a quick look at it and agree that @sggbrown used the wrong numbers.  I believe he/she used the wrong RMD table.  The Uniform Life Expectancy table is the correct one with the 26.5 divisor.  I believe what @sggbrown used was the Single Life Expectancy table which is used for inherited IRA's.  The age 71 factor for that table is 16.3 which would be $98K.  He needs to be looking at IRS Publication 590-B, Appendix B, Table III Uniform Life Expectancy.

https://www.irs.gov/publications/p590b#en_US_2016_publink1000231236

 

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Treasured Social Butterfly

Re: How much do you need for a comfortable retirement?

2,631 Views
Message 12 of 158

ASTRAEA wrote:
retiredtraveler wrote:

 

   No semantics won't change anything. Facts will. The average American gains about 25%-33%  in benefits over what is paid in. That is an entitlement. I'm on medicare, and happy to be so. But I'm perfectly aware that the odds are that I will be getting an entitlement, or welfare, if you like.


That's not really accurate, if you factor in the interest you would have earned, had you saved the amount paid in to SS all those years. In the years when we had high interest rates, it didn't take that long for savings to double in value .. so money that was paid in when I started working back in 1973, should have gained a lot more than 25 - 33% by now!

 

"The Rule of 72"


Thank you @ASTRAEA, I was just about to make that point.

 

 

"The key to success is to keep growing in all areas of life - mental, emotional, spiritual, as well as physical." Julius Erving
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Treasured Social Butterfly

Re: How much do you need for a comfortable retirement?

2,608 Views
Message 13 of 158

@sggbrown - Are you sure you've got that calculation right? At 71 the IRA RMD divisor is 26.5, so you'd need to have about $2.38 million in an IRA, to have a $90K RMD. If your IRA is the $1.6 million you mention, the RMD at 71 would be just over $60,377.


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Info Seeker

Re: How much do you need for a comfortable retirement?

2,645 Views
Message 14 of 158

I will retire in April 2018.  I figure i can maintain my lifestyle pretty comfortably on $68K a year - maybe less, that's pretty still including vacations, helping the kids, etc.  the 2 big 'annoyances' in retirement for me are - my Social Security will be taxable because of the amount of spend down i am taking from my investements and the fact that because i DID manage to save a good amount for retirement ($1.6 million before taxes) I will never be in a lower tax bracket - my min distribution will run about $90K annually at age 70 1/2 - so, hey, might as well take it the tax hits now and enjoy!

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Conversationalist

Re: How much do you need for a comfortable retirement?

6,797 Views
Message 15 of 158

I feel that retirement is not all it's cracked up to be. In my opinion, I strongly feel it depends on the wages earned by an individual. I've been retired for 4 years now and unable to find a part-time job that can utitilize my skills (I'm an expert typist). In this society being 71 years young, no college degree (only certificates) has its disadvantages. I'm a baby-boomer and I depend on my social security, though the present administration would like to kill it (among other things). My mortgage is killing me and my daughter (a breast cancer survivor) but we have to maintain it to keep a roof over our head and not become homeless.

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Info Seeker

Re: How much do you need for a comfortable retirement?

6,790 Views
Message 16 of 158
After 6 months of being retired, for sure my health has improved greatly. As I like to say "living the dream".
I also manage my investments and have avoided annuities.
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Info Seeker

Re: How much do you need for a comfortable retirement?

12,851 Views
Message 17 of 158

I live on the coast in S GA...low cost of living, and good health care is readily available. Granted, I have not retired yet, but the lower cost of living affords me great options.

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Info Seeker

Re: How much do you need for a comfortable retirement?

12,824 Views
Message 18 of 158

I need about $42,000 per year. My home is paid for, I owe nothing except the monthly

bills & credit card payment. I have been retired for 17 years. Bought a new motorhome

when I retired and spent 13 wonderful years traveling to every state, a lot of Canada

and all over Alaska, some 120,000 miles. Due to  a lot of luck, and research, in finance

and the stock market, I still have the funds I retired with. We pretty much stay close to home

now due to my wife's health.  Life is still good.

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Conversationalist

Re: How much do you need for a comfortable retirement?

12,223 Views
Message 19 of 158

I think it depends on the individual's financial situation. As for myself, I have a mortgage & it's taking a toll. While I was working, it was more manageable than it is now. I'm doing a lot of sacrificing just to keep the roof over my head.

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Info Seeker

Re: How much do you need for a comfortable retirement?

15,436 Views
Message 20 of 158

I retired in 2007. My pension was about 45% of my take home pay the last year I worked. I occasionally get cost of living adjustments to my pension.I had a 401K value of $260,000, which is disbursed monthly according to what it's worth at the end of the year and according to life expectancy tables. The principle has never been touched because of that. My job paid for half my health care premiums when I retired. I sold my house when I retired and bought a smaller one in 2010 and my mortgage payment is less than rent--$616 a month. I get Social Security, which turned out to be about $500 more a month than the annual SS summary told me I would get. Don't know why. I travel and do pretty much whatever I want.Instead of trying to maintain an expensive lifestyle I live simply. Financial advisors have an interest in getting people to stay working and use their services to keep amassing money they don't really need because the financial advisors get paid for managing money. I do my own managing and it has worked out quite well. Retire as soon as you can--your health will improve greatly.

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