I know that the common rec is to have X times your salary by X age. Since that amount will vary greatly based on your profession and salary, does anyone have a calculator that is more of a life expenses will be X at the age you want to retire calculator?
Post by minionkevin on Feb 7, 2019 10:23:42 GMT -5
I think most calculators state 70-80% of income replacement. If you have a large home, high property taxes, etc., and don’t plan to downsize, those taxes and utility bills will not change, even after the home is paid off, they will always be high. Retirement and/or college savings will be replaced by medical care costs, perhaps increased travel. If you purchase a second/vacation home in retirement, that is additional money you will spend. Also a person who has a high standard of living isn’t just going to suddenly stop once they retire, unless they are forced into retirement due to other circumstances, without having saved enough to maintain that lifestyle. My FIL drove luxury cars pre-retirement and still leases one every 3 years. He still eats out at fine restaurants, he still spends a shit ton on gourmet food to eat at home, wine, liquor, etc. However if retirement calculators say you should have like $100MM in retirement to do so “comfortably”, you can probably bring that down a few notches.
@minonkevin We are more like beer taste with a champagne budget people. Ha. I can't see us all of a sudden driving a maserati and carrying an Hermes bag in 3 colors once we retire.
We will probably be doing the same things we do now and putting our extra cash into accounts for our children or potential grand children.
@minonkevin We are more like beer taste with a champagne budget people. Ha. I can't see us all of a sudden driving a maserati and carrying an Hermes bag in 3 colors once we retire.
We will probably be doing the same things we do now and putting our extra cash into accounts for our children or potential grand children.
I'm the exact same. Except for I do want a Porsche and one Hermes (Birkin) as a reward for retiring/semi retiring.
minionkevin I can't see myself totally retiring either because I love my job. My boss and I talk about this. As long as we have our faculties about us, we will continue to work just not at a full time pace. Ideally, I'd work 1-3 days a week and definitely not full days.
@minonkevin We are more like beer taste with a champagne budget people. Ha. I can't see us all of a sudden driving a maserati and carrying an Hermes bag in 3 colors once we retire.
We will probably be doing the same things we do now and putting our extra cash into accounts for our children or potential grand children.
I'm the exact same. Except for I do want a Porsche and one Hermes (Birkin) as a reward for retiring/semi retiring (eta: I'm half joking).
minionkevin I can't see myself totally retiring either because I love my job. My boss and I talk about this. As long as we have our faculties about us, we will continue to work just not at a full time pace. Ideally, I'd work 1-3 days a week and definitely not full days.
@minonkevin We are more like beer taste with a champagne budget people. Ha. I can't see us all of a sudden driving a maserati and carrying an Hermes bag in 3 colors once we retire.
We will probably be doing the same things we do now and putting our extra cash into accounts for our children or potential grand children.
ditto. Our goal is to be able to provide for children and grandchildren, give more to charity, and travel more (but not necessarily high end).
Pdq: I’m 35 and dh is 36. We *poof details * we have ample retirement and I have a fed pension. Most of our money goes to mortgage, daycare, 529s, and my student loans. Dh drives a 2012 Honda Civic, I have a 2013 fusion. I would like to do a major house Reno and buy some new furniture. We’ve put off a lot of those upgrades to work on saving and debt repayment. All this to say, I don’t think we’ll need nearly as much income replacement in retirement. Esp since our hope is to live, in part, off dividends. But it’s a crapshoot - someone could get sick, life happens. We want to be prepared for any eventuality. So we’ll drive the civic forever, and stick with my grandmother matronly couch a bit longer. (We did get some new furniture last summer- treat yo self!)