[quote=bearishgurl][quote=flyer]That’s good to know that some believe Boomers as a whole are better prepared than they have been in the past, but, imo, those numbers are still dismal for a comfortable retirement long term (depending on how you want to live) and, based on the small percentage of those with a high net worth, (stats reveal only about 8% of US households–of all ages, not just Boomers–have over a million in net worth, excluding primary residence) they are hardly predictive of a huge transfer of wealth among generations across the board.
Granted, as I mentioned before, 10% of us will do extremely well in retirement across all generations, but there is still concern, as a society, about the 90% who won’t.[/quote]
flyer, do you think an individual or couple needs $1M in investable assets (not incl equity in principal residence) in order to retire? And would they need less than $1M if one or both of them had DB pensions?
With a paid-off residence with a $3-$5K annual tax bill and no HOA dues, what do you think is an adequate monthly income for a retired couple in SD county? How about a single retiree? Assume that the oldest member of the household or the single retiree is wishing to retire at 62 years old.[/quote]
BG, my general comments were made based upon the analysis of experts and the stats they provided, and they, of course, are analyzing the status of all Boomers across the board, and that information does not paint a rosy picture.
To get specific–I will start by saying the comments I am about to make are strictly my opinion.
Although my comfort zone requires a much higher figure (lifestyle also has a lot to do with the funds you will need in retirement) I do believe that (based upon many factors) most Boomers will need at least $1M in investable assets (not including equity in the primary residence) or the equivalent in pensions, etc., as you mentioned, to retire comfortably, from approximately age 65 forward. This assumes they are no longer generating income from any other sources, passive or otherwise, and is another reason we plan to keep our investment properties for most of our lives.
With the state of Social Security and Medicare, I believe younger generations may need to double that figure.
Many people make a lot of money between 25-45, or even into their 50’s, but, in many cases that gravy train dries up for one reason or another–job loss, illness, divorce, etc.–that’s why I also think it’s very important to carefully plan at a young age exactly how you and your family plan to survive financially for the duration. Believe it or not, many just let the mega-bucks slip through their fingers during the “flush” years, which never ceases to amaze me. Making the money is one thing, keeping it for the duration is what will make or break you.
Again, these last comments are just my opinions based upon lots of research, as well as our personal goals, and I respect that everyone is free to plan as they choose.
FIH, I agree there may also be a healthcare crisis, but I’ll let you fill us in on that one.
