Can I retire yet?

[anonymous]

I also think $90K is a decent amount to have per year. Do I want more, yes. I would love 5 million when I retire.

I keep getting pushed by a friend to go into annuities, and I don't know much about them. Some on this thread have stated to stay away. She says--guaranteed. Can someone add some additional clarity to this?

Why is your friend so anxious to see you invested in annuities? Likely because it also benefits her financially. An annuity is only as viable as the solvency of the insurance company issuing it. There are no guarantees 20 years down the road. She will tell you that even if the original insurance company folds, another will buy the assets. This may or may not occur, there is no way of knowing for certain. Returns on invested principal are generally less than those on a diversified indexed fund because of the increased commissions and fees associated with an annuity.

Probably nothing wrong with purchasing an annuity with a portion of your assets (maybe 20% or less) to generate a separate income stream but I would never transfer everything I have saved into one. That would be an expensive mistake

 

[anonymous]

Why is your friend so anxious to see you invested in annuities? Likely because it also benefits her financially. An annuity is only as viable as the solvency of the insurance company issuing it. There are no guarantees 20 years down the road. She will tell you that even if the original insurance company folds, another will buy the assets. This may or may not occur, there is no way of knowing for certain. Returns on invested principal are generally less than those on a diversified indexed fund because of the increased commissions and fees associated with an annuity.

Probably nothing wrong with purchasing an annuity with a portion of your assets (maybe 20% or less) to generate a separate income stream but I would never transfer everything I have saved into one. That would be an expensive mistake

Great advice.
Any time you hear “guarantee” from a financial person, walk, no, run. No such thing.
Annuities are for suckers. The company gives you your money back after taking their cut.
Ask your friend whose retirement they’re concerned with, yours or theirs.

 

[anonymous]

Most people may not know about annuties or Whole life because they lack education. Just talk to an agent at say NY Life for free to become educated.

Very bad advice. BOTH losers.
Go to Fidelity, Vanguard, T.Rowe, etc and use their retirement calculators. Very real world and selling you nothing. YOU need to be in control of your money and future, not some thieving insurance company.

 

[anonymous]

Great advice.
Any time you hear “guarantee” from a financial person, walk, no, run. No such thing.
Annuities are for suckers. The company gives you your money back after taking their cut.
Ask your friend whose retirement they’re concerned with, yours or theirs.

The up front commission on just a $200k annuity can be over $14k. Then there are additional annual fees. No wonder her friend wants her in annuities. And in today’s bad interest rate environment that 200k annuity won’t even pay out $900 per month. I’d think long and hard about it, seems like a win win for the insurance company

 

[anonymous]

For those that have recently retired early (pre 62), what type of annual spend do you plan on...including taxes and health insurance if no retiree subsidy? My wife and I are just about ready to pull the plug and have been tracking our spending for the previous 7 years. We will not receive retiree health insurance and won't be Medicare eligible for another 8 years.

I know where you live has an awful lot to do with annual budgets, but I'm just curious where other recent retirees fall in terms of an annual spend. We live a nice life, have no debt, but don't go to Europe twice a year either. I guess I would call it a comfortable lifestyle, but certainly not excessive. We are active outdoors, like to travel regionally and do go to Europe every 3 years. We are planning to spend $90,000/year adjusted for inflation including taxes. Would appreciate hearing from others out there!

 

[anonymous]

For those that have recently retired early (pre 62), what type of annual spend do you plan on...including taxes and health insurance if no retiree subsidy? My wife and I are just about ready to pull the plug and have been tracking our spending for the previous 7 years. We will not receive retiree health insurance and won't be Medicare eligible for another 8 years.

I know where you live has an awful lot to do with annual budgets, but I'm just curious where other recent retirees fall in terms of an annual spend. We live a nice life, have no debt, but don't go to Europe twice a year either. I guess I would call it a comfortable lifestyle, but certainly not excessive. We are active outdoors, like to travel regionally and do go to Europe every 3 years. We are planning to spend $90,000/year adjusted for inflation including taxes. Would appreciate hearing from others out there!

I have about the same spend as you do. My main concern is the market correcting, but have been getting more conservative in my investment strategy. Haven’t drawn social security or on Medicare yet either. So far living comfortably...good luck

 

[anonymous]

I have about the same spend as you do. My main concern is the market correcting, but have been getting more conservative in my investment strategy. Haven’t drawn social security or on Medicare yet either. So far living comfortably...good luck

It’s all about the lifestyle you want to live.
Obviously, the more you want to spend, the more you wil need. First rule is to retire debt free; it’s easy after that.
The market always comes back. Don’t chase returns. Stay conservative and diversified. There are many objective tools for reference if you don’t feel you can go it alone or have an advisor you can fully trust.

 

[anonymous]

Why is your friend so anxious to see you invested in annuities? Likely because it also benefits her financially. An annuity is only as viable as the solvency of the insurance company issuing it. There are no guarantees 20 years down the road. She will tell you that even if the original insurance company folds, another will buy the assets. This may or may not occur, there is no way of knowing for certain. Returns on invested principal are generally less than those on a diversified indexed fund because of the increased commissions and fees associated with an annuity.

Probably nothing wrong with purchasing an annuity with a portion of your assets (maybe 20% or less) to generate a separate income stream but I would never transfer everything I have saved into one. That would be an expensive mistake

My friend doesn't sell annuities, but she buys them from some guy she absolutely thinks is fabulous. She keeps telling me they are guaranteed, etc. My husband is far too conservative and won't bite. I am also conservative.

 

[anonymous]

I have about the same spend as you do. My main concern is the market correcting, but have been getting more conservative in my investment strategy. Haven’t drawn social security or on Medicare yet either. So far living comfortably...good luck

We feel the same way. We are late 50's and very conservative as we are concerned about market corrections. I think we will stay conservative.

 

[anonymous]

Don't let them talk you into an annuity, it is a sucker's bet. Put your lump mainly in an S&P index fund. Keep enough in cash to last you one year. You will make out fine.

Thanks. I think I'll stay conservative in the stock market due to having 2 years left to work. I'm not making much at all, but at least it won't tank.

 

[anonymous]

Thanks. I think I'll stay conservative in the stock market due to having 2 years left to work. I'm not making much at all, but at least it won't tank.

 

[anonymous]

I’m very conservative. Have an S&P fund and 3 Target funds and, as of today, I’m up 11% for the year. Not great, but very good in today’s market. Same investments last year were up 18%.
Where do you have your money, savings bonds? You may be too conservative for your own good.
Next year may be another story if the Dems control congress and kill the economy.

 

[anonymous]

I’m very conservative. Have an S&P fund and 3 Target funds and, as of today, I’m up 11% for the year. Not great, but very good in today’s market. Same investments last year were up 18%.
Where do you have your money, savings bonds? You may be too conservative for your own good.
Next year may be another story if the Dems control congress and kill the economy.

Agree about the Dems-ugggh. I can't stand Trump but he's better than the other for our money. I'm down 15K this week and I"m in very conservative S & P.

 

[anonymous]

Agree about the Dems-ugggh. I can't stand Trump but he's better than the other for our money. I'm down 15K this week and I"m in very conservative S & P.

I'm down a lot too. It's so volatile now. I have no idea when I can retire.

 

[anonymous]

I'm down a lot too. It's so volatile now. I have no idea when I can retire.

I'm very conservative now, but my money, of course, isn't doing anything now. It's up a bit down a bit, etc. I have 2 or 3 years left of Pharma. Then need to think of plan be as won't even be 62.

 

[anonymous]

I'm very conservative now, but my money, of course, isn't doing anything now. It's up a bit down a bit, etc. I have 2 or 3 years left of Pharma. Then need to think of plan be as won't even be 62.

5M is the absolute minimum. Susie Orman agrees.

When Paula Pant, the host, asked what level of wealth would be necessary to comfortably reach FIRE, Orman threw out some big numbers.

“You need at least $5 million, or $6 million... Really, you might need $10 million,” she said — short of that, it’s just not going to be enough for most people.

 

[anonymous]

5M is the absolute minimum. Susie Orman agrees.

When Paula Pant, the host, asked what level of wealth would be necessary to comfortably reach FIRE, Orman threw out some big numbers.

“You need at least $5 million, or $6 million... Really, you might need $10 million,” she said — short of that, it’s just not going to be enough for most people.

Suze is full of shit much of the time. Most people don’t come close to even making 5 mil on two lifetimes, much less have that at retirement.
If you want the life of luxury, yes. If you want a comfortable life no way you need 5 mil.

 

[anonymous]

Suze is full of shit much of the time. Most people don’t come close to even making 5 mil on two lifetimes, much less have that at retirement.
If you want the life of luxury, yes. If you want a comfortable life no way you need 5 mil.

That 5M guy was right after all. I think I’ll listen to suzie.

 

[anonymous]

That 5M guy was right after all. I think I’ll listen to suzie.

You’ll be working the rest of your life. Your kids will enjoy the money you leave them.
Have you ever run the numbers on your own instead of listening to these clowns?

Good luck! You’ll be needing it.

 

[anonymous]

Suze wants everyone to work until at least 70. FIRE believes that people can retire at 30 and scrimp the rest of their lives on 40 or 50k a year. Stop listening to all of them. Like the person above says, run the numbers for yourself.