How much monthly income to retire?

we have done well on 1600 to 1800 a month and our health insurances are between $600 and $700 a month..sometimes it can be pretty tight..esp when taxes and repairs are due..and when we have to buy things like propane or firewood..

it depends a lot on where you live..we live in Michigan and we have winter here so we have a heavy heating season.

we could keep food costs down a lot more if my husband wasn't so into his goodies..but he is metally disabled and wants what he wants..and i can't change that..so we probably spend about $50 more a week than we would have to.

maybe more

we don't do extravagances..and my son does most of our car mtce and repairs.

we can't buy any extras and we have to save to get anything ..

remember things like taxes and insurances and annual extras as well as medical..a lot of times people forget about those things.

and there are always emergencies.

but also offset with things you can do to save or create money or things you need while you aren't working as well.

your garden time will be more so you can put more into the garden..but remember you'll have to have seed or plants..feed for animals..etc.

it always costs more than you think it will and you always spend more than you really have to

The US government will collapse by the time I reach retirement. Everyone's savings will be gone.

Retire? If I'm too crippled up to work..... send flowers.

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Do not meddle in the affairs of Dragons, for you are crunchy and good with ketchup........

That doesn't make sense. Let's say that million dollars didn't earn any interest at all. Your million dollars would last you 20 years.

If you could earn just 5% on that million, you would have $50k per year forever and never touch the million dollars. There are corporate bonds paying over 5%.

I think they are basing the $50K on an annuity only paying about 3%

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Rich

The people who sell stocks and write these articles always factor inflation into it along with paying one's own medical costs.

Interesting thread!!!!!

I have quite a while before I retire, but I'm nervous already. Our retirement savings so far is really, really small in comparison to many people.

Since I've been self employed most of my life, I wont have a pension, just a measly SSI. I doubt that I will ever see SSI. I think I have to be 70 years old to collect it.

I'm not sure that there is a day that goes by that I haven't thought about our awful retirement savings.

At the same time, I agree that how much you need in retirement depends on your spending habits, as well as fate/luck.

They were writing in very general terms. Of the few hundred factors that must be considered when figuring what you would need to maintain- inflation, taxes and devaluation are key. They were comparing what someone who is used to spending $250k vs $100k vs $50 a year. Stressing that $1,000,000 isnt near what it used to be.

The article was looking at the life expectancy of a newly retired person- which is only 7 years if you are 62.

My point is this. Though I have the money invested, it wont be worth tomorrow what it is today and the rate of gain may well not keep the pace. My long time friend who is 64 just lost over %70 of his nest egg this last year. He went back to work for a low hourly wage.

His big regret is that his home and land were not paid off- if it had been he could have made it without going back to work. As it stands right now he will never own his house or land and will leave nothing to his children. And he is only making enough to pay for food.

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Where some fear to tread I call home. A good cabin, a good rifle, a good fishing rig and a few great books is all I need.

Very true!

I kinda laugh when the experts say a person needs 80% of their pre-retirement income in retirement. Not at all true (obviously) for those who are currently "spending" 50-60% of their income on savings, charity (assuming that will drop when income drops) and higher marginal taxes.

It is true if you are spending everything you make and think you'll have trouble cutting back in retirement.

I am currently reading the Nearing's book "The Good Life". The Nearings, and many of the good folks here, are teaching me I have a lot to learn about getting by (nicely) on much less.

One thing I definitely learned years ago: There is always someone with less money than you, who feels they are doing just fine....and someone with more money than you who feels they are broke!



Tim

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Taxes, in excess of what are needed to fulfill the constitutionally authorized activity of government, are theft

I guess I'm retired, haven't worked(well, haven't gotten paid for working) in over 5 years. There are 2 of us here. My biggest expenses, broke down by month are property tax(about 100) light bill(same) phone, DSL, and satellite TV (140) insurance, homeowners and 2 vehicles (60)groceries (100). Total $500 a month. I could knock $60 off my phone bill by discontinuing regular phone service and using Skype or Magicjack. I could just have one vehicle on the road, and knock off $20 more.

We are presently fortifying our garden so we get more than the varments do next year. This will save half our grocery bill. In 2-3 years, we will save even more because our fruit trees should be producing. (Spending less all depends on creating more on the homestead; and this is a learning experience in progress.)

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I am what I am! Acknowledging this is the beginning; and my growth is yet to end. http://motdaugrnds.com/farmsales ~~~~~ http://motdaugrnds.com

Get yourself in a position where you are not depending on the government for your retirement and it will work.

At a boat docked in a tiny village. An American tourist complimented the local fisherman on the quality of his fish and asked how long it took him to catch them.

"Not very long," answered the man.

"But then, why didn't you stay out longer and catch more?" asked the American.

The man explained that his small catch was sufficient to meet his needs and those of his family.

The American asked, "But what do you do with the rest of your time?"

"I sleep late, fish a little, play with my children, and take a siesta with my wife. In the evenings, I go into the village to see my friends, have a few drinks, play the guitar, and sing a few songs. I have a full life."

The American interrupted, "I have an MBA from Harvard and I can help you! You should start by fishing longer every day. You can then sell the extra fish you catch. With the extra revenue, you can buy a bigger boat."

"And after that?" asked the man.

"With the extra money the larger boat will bring, you can buy a second one and a third one and so on until you have an entire fleet of trawlers. Instead of selling your fish to a middle man, you can then negotiate directly with the processing plants and maybe even open your own plant. You can then leave this little village and move to Mexico City, Los Angeles, or even New York City! From there you can direct your huge new enterprise."

"How long would that take?" asked the man.

"Twenty, perhaps twenty-five years," replied the American.

"And after that?" asked the man.

"Afterwards? Well my friend, that's when it gets really interesting," answered the American, laughing. "When your business gets really big, you can start buying and selling stocks and make millions!"

"Millions? Really? And after that?" asked the man.

"After that you'll be able to retire, live in a tiny village near the coast, sleep late, play with your children, catch a few fish, take a siesta with your wife and spend your evenings drinking and enjoying your friends."

And the moral of this story is:
......... Know where you're going in life... you may already be there.

I did.

Long story, I am sending you a PM.

With this Recession/depression we have lost our Multi-Family-Residence.

How much income is needed basically depends upon "felt" needs. What you can be content with and what you can become accustomed to.

It would be neat if more people could put the details of the individual cost of everything. I know some are till dreaming, and others are on there way to self suficiency. I am about to take a buy out from work myself. I will fill out my detailed estamate later.

Excellent story CrashTest!

You are my hero! No phone/cell phone bill. No internet bill. No cable/sateliite TV bill. And best of all, you live in Texas and don't have an electricity bill! I am very impressed...Way to go!

How much?

$10 should do it. That is as long as the $10 is $10 more than one spends in retirement. The rest of the money that we handle is just passin' through.

Ah, crud. I knew I was leaving some other information out.

Electricity/phone/internet adds another 165.00 mo /$2000.00 year to the above figures. And no, I don't have a cell phone. I wondered why I didn't have as much $$ left each month as that list would indicate.

Retire? What's that? From what? Sounds lethal.

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