Retirement
- Thread starter DoWhat
- Start date
It depends on how you want to live. Currently my IRA is generating an average $2-3k per month, which is enough for me to live on easily. If your investments continue to generate income, I can't see how someone would need millions in order to retire.
Where am I going astray with my thought process?
Also, I'm interested in how everyone imagines their retirement. Do you see yourself napping a lot? Luxury traveling? Developing a gambling habit?
PeoplesElbow
Well-Known Member
Going at 57 or hanging on to 62?
With a good FERS pension 500k in TSP will provide a comfortable life. You also have the added benefit of FHEB.
I've done the numbers 1k a month more if I wait to 62 and should have approx 3m in TSP.
With a good FERS pension 500k in TSP will provide a comfortable life. You also have the added benefit of FHEB.
I've done the numbers 1k a month more if I wait to 62 and should have approx 3m in TSP.
TPD
the poor dad
The debt number is key in my opinion. When I hear of a 30 something year old family taking out a 35 year mortgage and a 7 year car loan, I cringe. At 24 we built a new house after living in a trailer for less than a year. Refinanced 8 years later to take out money to complete unfinished space in the house once the kid was born. Still paid off the mortgage in less than 25 years total. My goal is to retire by 55 with $2mil in liquid assets. I am 2 years away from the age part. I think I will have the $ part as well unless Biden screws things up.
TPD
the poor dad
I would hope that as well but I know many who can’t or won’t.
I refinanced in April. Locked in at 2% in January from a 5.25% and dropped from a 30 to 15 year. I hope to pay off sooner, but as a single person and salary, it'll be tough.
black dog
Free America
It depends on where you will end up a few more years down the road. A two bedroom in Ginger Cove in Annapolis will cost 7 grand plus a month and 400 to 600 grand in escrow depending on apt size for two to live there.
It depends on the lifestyle you want to live.
Especially going out early. Those with good healthcare and retiring early could outlive there bank account.
Where the hell can I find a smart women like you ?
frequentflier
happy to be living
We attended a retirement workshop a couple months ago and the advisor said to not pay your house off. Guess what- we paid it off earlier in the day! Though we will have to plan ahead for insurance and property taxes, there is no longer a monthly mortgage payment! When we go to sell and move elsewhere, there will be a huge chunk of change to purchase another home that will likely be less expensive and pay cash.
He also advised that I wait until 70 to start collecting SS but I think I am going to disregard that advice as well. It's not that I "need" the money to live on day to day, but who knows what my life will be like 8 years from now. I'd rather have less now than to wait 8 years for more and then drop dead after a year or two. Though longevity runs on both sides of my family (my Dad recently passed as 90), I have never thought I would live past my early 70's.
He also advised that I wait until 70 to start collecting SS but I think I am going to disregard that advice as well. It's not that I "need" the money to live on day to day, but who knows what my life will be like 8 years from now. I'd rather have less now than to wait 8 years for more and then drop dead after a year or two. Though longevity runs on both sides of my family (my Dad recently passed as 90), I have never thought I would live past my early 70's.
Hiding from loser riff raff.
I am not riff raff!Hiding from loser riff raff.
I didn't point anyone out.I am not riff raff!
What was his reasoning behind this?
frequentflier
happy to be living
I believe he said you can write off some of of the interest on your taxes. However I think the amount has shrunk and we didn't feel it was worth it. Not having a mortgage payment is very liberating especially since I am not working and my husband wants to retire in a couple of years.