Why the 1x 2x etc calculations? Is it assuming one will have the same lifestyle in retirement? Because I have no intention of living in. HCOL area once my kids are out of the house...
Absolutely. We're planning on downsizing to a little cabin on a lake somewhere cheap. The grandkids can sleep in the bunkhouse when they come visit.
With that plan in mind, I think we're ok. At least we were the last time I checked. I have a pension and some 403B savings, DH has a 401K that he's been paying into forever. We have an appointment coming up with a financial planner to get an outside perspective.
Retirement planning was a big factor into deciding to stay in our current (very small) home. We're in a HCOL area, and although we'd love to upsize and change neighborhoods the reality is we don't want to take out another 30 yr mortgage for a house in a town that we'll be leaving in 10-15 years anyway. There's no guarantee anymore that housing prices will go up enough in that time to make it a solid investment. We also bought our current house at the height of the market ('03) and while we'd make a small profit it's not enough to put a substantial downpayment on a bigger, more expensive place.
I do worry sometimes because by "retirement", I envision DH and I living a modest but comfortable and healthy retirement until we both die in our sleep at age 78 after a day of kayaking, hiking, and drinking wine by the fireplace. I know that's not reality, and health care and extended life care can be a huge drain.
Post by CheeringCharm on Dec 7, 2017 12:31:49 GMT -5
No I'm not worried at the moment but if the GOP succeeds in dramatically cutting or even getting rid of Medicare all but the top ~1% will be f*cked. It's hard to fathom why but I suppose that's what they want.
Hmmm...this one says we're in good shape even if we don't increase our contributions (which we're planning to next year when the girls' tuition goes down a bit). I feel better lol. Thank you!
Why the 1x 2x etc calculations? Is it assuming one will have the same lifestyle in retirement? Because I have no intention of living in. HCOL area once my kids are out of the house...
Absolutely. We're planning on downsizing to a little cabin on a lake somewhere cheap. The grandkids can sleep in the bunkhouse when they come visit.
I like your plan!
We started late, but have caught up. We don't have kids, so that was a major factor. I feel pretty good at this point, but know that nothing is certain. We had some modest inheritance from FIL that helped pad our non-retirement savings so H can retire earlier. I will also have long-term income from family farm rents. Barring any health catastrophes, we should be okay.
Why the 1x 2x etc calculations? Is it assuming one will have the same lifestyle in retirement? Because I have no intention of living in. HCOL area once my kids are out of the house...
Yeah, this is why calculators are all over the place. They’re making all sorts of assumptions. They’re assuming that the stock market growth will average out to something like 8% of year; they’re assuming your house will be paid off; they may or may not be pricing in social security, and so on. I believe most calculators figure you’ll need about 75% of your current income (spending less on kids and housing but more on healthcare and leisure).
But it’s hard for them to account for specific circumstances.
Post by closertofine on Dec 7, 2017 13:06:04 GMT -5
According to the calculators posted here and my financial planner, I will be fine. But I have a huge worry about the fact that due to my divorce, I had to refinance my home, and am now not scheduled to pay it off until I am 68 years old. Prior to the divorce, I had 12 years left and would have had it paid off by the age of 52. Selling the house isn't an option right now for a variety of reasons, though I would love to.
I have more worry about my kids' college. I'm prioritizing my retirement like everyone says, but I really wish I could do more for them. That keeps me up at night, not retirement.