[earlyretirement]

[quote=AN]ER, I totally agree with you that lifestyle makes a HUGE difference when coming up with the $ amount needed for retirement. Some people would say $500k would be more than enough for them to retire on and others will need $10M+. I know people who DON’t ENJOY going out to eat or go traveling. So, their retirement would be them staying home and working on their house/yard. Those people don’t need much to retire, as long as they have their house paid for. Others who travel all over the place and go out to eat constantly will probably need many millions to retire.

I also agree that rental property(ies) should be counted toward the net worth for retirement, since they can be liquidated if need be. I was only referring to primary resident, since we all need to live somewhere.

For me, when I can accumulate enough where I can live off the interest alone is when I think I’m ready to retire. That will compensate for different spending habits and have enough money to last you through your entire retirement. When I’m talking about interest, I’m talking about something very stable, like CD.[/quote]

Hi AN,

Yeah, I actually think “lifestyle” is the single most important factor in considering if $X is going to be enough. I constantly see people asking if $X million will be enough but there isn’t a one-size fits all answer.

I know people that took early retirement about 10 years ago with almost $4 million and they have little of that left due to poor choices, poor investments (and being in too volatile stocks for supposedly being “retired”). Also, they were living too high off the hog and spending more money than pre-retirement!

Before when they had to work they never had time to do anything. But they were finding themselves with tons of free time so they were going on all kinds of trips, bought expensive boats, visited their kids more that lived across the country, etc.

Yeah, they were stupid and foolish but unfortunately people do stupid things in retirement.

For us, we really enjoy traveling around the world and seeing new cities and going back to the cities that we enjoy. Fortunately we own a few properties in cities that we really enjoy outside of the USA. We rent them out when we don’t use them so they are income generating which is ideal for us.

Also, for those that don’t know about Home Exchanges or “home swapping” it’s GREAT if you are retired and want to see the world. It’s a GREAT and cost effective way to travel around the world. We currently travel about 100+ days a year around the world and we used to stay in hotels but the past 3 years we’ve done home exchanges via http://www.homeexchange.com and it’s amazing. Most of the properties we have stayed in have been really high end properties. You can do simultaneous or non-simultaneous exchanges.

I thought it sounded strange before I started doing them but I can’t think about any other way to travel or going back to small hotel rooms now that we discovered home exchanges. It allows us to “live like locals” when we travel and have always swapped for high end places. It’s simply the best way to travel in retirement or otherwise.

Definitely an ideal situation is if you can live off of interest income. But then again, you can have multiple year stretches like the past few years where interest rates plunged due to government interaction. Lots of retired folks never planned on getting close to 0% to 1% on money markets/CD’s so you also have to factor that into the mix.

Someone above talked about $2 million being enough as he planned on getting 5% interest income. That’s all fine and dandy unless interest rates are super low for extended periods of time. Forget what statistically they are. You could have a really bad stretch where you aren’t getting 5%. Plus once you are “retired” you will want to be in SUPER conservative investments and not the stock market. So factor all of that in too.

But I do agree with you AN that $100,000 in after tax net income per year will be enough for most people to retire comfortably. Even with a fair amount of travel, if you have your primary residence paid off, car paid off, no debt whatsoever…then a six figure per year retirement should allow for a really comfortable retirement.

Some retired people panic and just make horrible decisions. Like when the stock market was plunging they panic sold at the bottom. And now that CD’s are paying next to nothing…they feel forced into investing in more speculative investments and higher risk like the stock market, even though retired people shouldn’t be in high risk stocks.

Interest income used to be GREAT pre-recession but these days I’m really happy to be a landlord and having rental properties that are generating great cash-flow. Definitely being a landlord can be a pain in the butt ….however it’s been really great and I believe high end rental properties in desirable areas/neighborhoods/cities will continue to do well heading into the future.

Flu touched upon this a bit above in his post about the benefits of having rental properties. I totally agree and that has been a big part of my retirement strategy and focus. I’d much rather depend on stable rental income vs. trying to guess what CD’s are paying in the future. I also like having a tangible asset with no debt on it that spins off cash flow each year.

Also, I read some people talking about retiring in Italy or other countries. Definitely I think you should live where you really enjoy. But also you have to factor in exchange rates, what currency you hold your currency in, etc. Heading into the future, the value of the dollar can really depreciate against other currencies. Even with as many problems going on in Europe as there are…. the Euro has done well with the endless printing of Dollars by the government.

I’ve also lived abroad many years and it’s been great but you have to really look into everything including healthcare costs and availability as well as residency status and how easy it is to become permanent residents. Also, you have to be careful as some countries once you become permanent residents, you get taxed on worldwide assets. So you just have to investigate all of those types of things.

Something else ESSENTIAL is to know how much you actually spend each year on EVERY category including (but not limited to) dining out, entertainment, clothing, automobile expenses including gas/insurance/maintenance/etc, travel, groceries, charity, housing expenses, utilities, medical/heathcare costs, prescription drugs, and especially any bad habit activities.

I’m always amazed by just how many people have no clue how much they spend each year on every category. Something essential is using a program like Quicken where you can track every category for an extended period of time. I have tracked every dollar I’ve spent since graduating college 15 years ago. It’s been really helpful in helping me plan my retirement to know just how much I’m spending in every category.

Also, something VERY important is to make sure you are adequately insured for medical/health insurance as well as possibly long term care insurance. Also, if you have multi millions saved up, it’s always a good idea to have a comprehensive Umbrella insurance policy that will cover you against liability, lawsuits, etc. I have known people that have gotten totally wiped out in a bad lawsuit or accident where their insurance coverage wasn’t so great. So do yourself a favor and get an Umbrella policy. They are easy to get and not so expensive. (Heck, it’s always a good idea to get it before you retired. I think anyone with significant assets should definitely have an Umbrella policy in place).

Definitely I’m always interested and curious to hear about people’s retirement and how it is going and the planning that is involved. I’ve always been fascinated with that topic. So thanks all for sharing your stories.

[earlyretirement]

[quote=AN]ER, I totally agree with you that lifestyle makes a HUGE difference when coming up with the $ amount needed for retirement. Some people would say $500k would be more than enough for them to retire on and others will need $10M+. I know people who DON’t ENJOY going out to eat or go traveling. So, their retirement would be them staying home and working on their house/yard. Those people don’t need much to retire, as long as they have their house paid for. Others who travel all over the place and go out to eat constantly will probably need many millions to retire.

I also agree that rental property(ies) should be counted toward the net worth for retirement, since they can be liquidated if need be. I was only referring to primary resident, since we all need to live somewhere.

For me, when I can accumulate enough where I can live off the interest alone is when I think I’m ready to retire. That will compensate for different spending habits and have enough money to last you through your entire retirement. When I’m talking about interest, I’m talking about something very stable, like CD.[/quote]

Hi AN,

Yeah, I actually think “lifestyle” is the single most important factor in considering if $X is going to be enough. I constantly see people asking if $X million will be enough but there isn’t a one-size fits all answer.

I know people that took early retirement about 10 years ago with almost $4 million and they have little of that left due to poor choices, poor investments (and being in too volatile stocks for supposedly being “retired”). Also, they were living too high off the hog and spending more money than pre-retirement!

Before when they had to work they never had time to do anything. But they were finding themselves with tons of free time so they were going on all kinds of trips, bought expensive boats, visited their kids more that lived across the country, etc.

Yeah, they were stupid and foolish but unfortunately people do stupid things in retirement.

For us, we really enjoy traveling around the world and seeing new cities and going back to the cities that we enjoy. Fortunately we own a few properties in cities that we really enjoy outside of the USA. We rent them out when we don’t use them so they are income generating which is ideal for us.

Also, for those that don’t know about Home Exchanges or “home swapping” it’s GREAT if you are retired and want to see the world. It’s a GREAT and cost effective way to travel around the world. We currently travel about 100+ days a year around the world and we used to stay in hotels but the past 3 years we’ve done home exchanges via http://www.homeexchange.com and it’s amazing. Most of the properties we have stayed in have been really high end properties. You can do simultaneous or non-simultaneous exchanges.

I thought it sounded strange before I started doing them but I can’t think about any other way to travel or going back to small hotel rooms now that we discovered home exchanges. It allows us to “live like locals” when we travel and have always swapped for high end places. It’s simply the best way to travel in retirement or otherwise.

Definitely an ideal situation is if you can live off of interest income. But then again, you can have multiple year stretches like the past few years where interest rates plunged due to government interaction. Lots of retired folks never planned on getting close to 0% to 1% on money markets/CD’s so you also have to factor that into the mix.

Someone above talked about $2 million being enough as he planned on getting 5% interest income. That’s all fine and dandy unless interest rates are super low for extended periods of time. Forget what statistically they are. You could have a really bad stretch where you aren’t getting 5%. Plus once you are “retired” you will want to be in SUPER conservative investments and not the stock market. So factor all of that in too.

But I do agree with you AN that $100,000 in after tax net income per year will be enough for most people to retire comfortably. Even with a fair amount of travel, if you have your primary residence paid off, car paid off, no debt whatsoever…then a six figure per year retirement should allow for a really comfortable retirement.

Some retired people panic and just make horrible decisions. Like when the stock market was plunging they panic sold at the bottom. And now that CD’s are paying next to nothing…they feel forced into investing in more speculative investments and higher risk like the stock market, even though retired people shouldn’t be in high risk stocks.

Interest income used to be GREAT pre-recession but these days I’m really happy to be a landlord and having rental properties that are generating great cash-flow. Definitely being a landlord can be a pain in the butt ….however it’s been really great and I believe high end rental properties in desirable areas/neighborhoods/cities will continue to do well heading into the future.

Flu touched upon this a bit above in his post about the benefits of having rental properties. I totally agree and that has been a big part of my retirement strategy and focus. I’d much rather depend on stable rental income vs. trying to guess what CD’s are paying in the future. I also like having a tangible asset with no debt on it that spins off cash flow each year.

Also, I read some people talking about retiring in Italy or other countries. Definitely I think you should live where you really enjoy. But also you have to factor in exchange rates, what currency you hold your currency in, etc. Heading into the future, the value of the dollar can really depreciate against other currencies. Even with as many problems going on in Europe as there are…. the Euro has done well with the endless printing of Dollars by the government.

I’ve also lived abroad many years and it’s been great but you have to really look into everything including healthcare costs and availability as well as residency status and how easy it is to become permanent residents. Also, you have to be careful as some countries once you become permanent residents, you get taxed on worldwide assets. So you just have to investigate all of those types of things.

Something else ESSENTIAL is to know how much you actually spend each year on EVERY category including (but not limited to) dining out, entertainment, clothing, automobile expenses including gas/insurance/maintenance/etc, travel, groceries, charity, housing expenses, utilities, medical/heathcare costs, prescription drugs, and especially any bad habit activities.

I’m always amazed by just how many people have no clue how much they spend each year on every category. Something essential is using a program like Quicken where you can track every category for an extended period of time. I have tracked every dollar I’ve spent since graduating college 15 years ago. It’s been really helpful in helping me plan my retirement to know just how much I’m spending in every category.

Also, something VERY important is to make sure you are adequately insured for medical/health insurance as well as possibly long term care insurance. Also, if you have multi millions saved up, it’s always a good idea to have a comprehensive Umbrella insurance policy that will cover you against liability, lawsuits, etc. I have known people that have gotten totally wiped out in a bad lawsuit or accident where their insurance coverage wasn’t so great. So do yourself a favor and get an Umbrella policy. They are easy to get and not so expensive. (Heck, it’s always a good idea to get it before you retired. I think anyone with significant assets should definitely have an Umbrella policy in place).

Definitely I’m always interested and curious to hear about people’s retirement and how it is going and the planning that is involved. I’ve always been fascinated with that topic. So thanks all for sharing your stories.

[earlyretirement]

[quote=AN]ER, I totally agree with you that lifestyle makes a HUGE difference when coming up with the $ amount needed for retirement. Some people would say $500k would be more than enough for them to retire on and others will need $10M+. I know people who DON’t ENJOY going out to eat or go traveling. So, their retirement would be them staying home and working on their house/yard. Those people don’t need much to retire, as long as they have their house paid for. Others who travel all over the place and go out to eat constantly will probably need many millions to retire.

I also agree that rental property(ies) should be counted toward the net worth for retirement, since they can be liquidated if need be. I was only referring to primary resident, since we all need to live somewhere.

For me, when I can accumulate enough where I can live off the interest alone is when I think I’m ready to retire. That will compensate for different spending habits and have enough money to last you through your entire retirement. When I’m talking about interest, I’m talking about something very stable, like CD.[/quote]

Hi AN,

Yeah, I actually think “lifestyle” is the single most important factor in considering if $X is going to be enough. I constantly see people asking if $X million will be enough but there isn’t a one-size fits all answer.

I know people that took early retirement about 10 years ago with almost $4 million and they have little of that left due to poor choices, poor investments (and being in too volatile stocks for supposedly being “retired”). Also, they were living too high off the hog and spending more money than pre-retirement!

Before when they had to work they never had time to do anything. But they were finding themselves with tons of free time so they were going on all kinds of trips, bought expensive boats, visited their kids more that lived across the country, etc.

Yeah, they were stupid and foolish but unfortunately people do stupid things in retirement.

For us, we really enjoy traveling around the world and seeing new cities and going back to the cities that we enjoy. Fortunately we own a few properties in cities that we really enjoy outside of the USA. We rent them out when we don’t use them so they are income generating which is ideal for us.

Also, for those that don’t know about Home Exchanges or “home swapping” it’s GREAT if you are retired and want to see the world. It’s a GREAT and cost effective way to travel around the world. We currently travel about 100+ days a year around the world and we used to stay in hotels but the past 3 years we’ve done home exchanges via http://www.homeexchange.com and it’s amazing. Most of the properties we have stayed in have been really high end properties. You can do simultaneous or non-simultaneous exchanges.

I thought it sounded strange before I started doing them but I can’t think about any other way to travel or going back to small hotel rooms now that we discovered home exchanges. It allows us to “live like locals” when we travel and have always swapped for high end places. It’s simply the best way to travel in retirement or otherwise.

Definitely an ideal situation is if you can live off of interest income. But then again, you can have multiple year stretches like the past few years where interest rates plunged due to government interaction. Lots of retired folks never planned on getting close to 0% to 1% on money markets/CD’s so you also have to factor that into the mix.

Someone above talked about $2 million being enough as he planned on getting 5% interest income. That’s all fine and dandy unless interest rates are super low for extended periods of time. Forget what statistically they are. You could have a really bad stretch where you aren’t getting 5%. Plus once you are “retired” you will want to be in SUPER conservative investments and not the stock market. So factor all of that in too.

But I do agree with you AN that $100,000 in after tax net income per year will be enough for most people to retire comfortably. Even with a fair amount of travel, if you have your primary residence paid off, car paid off, no debt whatsoever…then a six figure per year retirement should allow for a really comfortable retirement.

Some retired people panic and just make horrible decisions. Like when the stock market was plunging they panic sold at the bottom. And now that CD’s are paying next to nothing…they feel forced into investing in more speculative investments and higher risk like the stock market, even though retired people shouldn’t be in high risk stocks.

Interest income used to be GREAT pre-recession but these days I’m really happy to be a landlord and having rental properties that are generating great cash-flow. Definitely being a landlord can be a pain in the butt ….however it’s been really great and I believe high end rental properties in desirable areas/neighborhoods/cities will continue to do well heading into the future.

Flu touched upon this a bit above in his post about the benefits of having rental properties. I totally agree and that has been a big part of my retirement strategy and focus. I’d much rather depend on stable rental income vs. trying to guess what CD’s are paying in the future. I also like having a tangible asset with no debt on it that spins off cash flow each year.

Also, I read some people talking about retiring in Italy or other countries. Definitely I think you should live where you really enjoy. But also you have to factor in exchange rates, what currency you hold your currency in, etc. Heading into the future, the value of the dollar can really depreciate against other currencies. Even with as many problems going on in Europe as there are…. the Euro has done well with the endless printing of Dollars by the government.

I’ve also lived abroad many years and it’s been great but you have to really look into everything including healthcare costs and availability as well as residency status and how easy it is to become permanent residents. Also, you have to be careful as some countries once you become permanent residents, you get taxed on worldwide assets. So you just have to investigate all of those types of things.

Something else ESSENTIAL is to know how much you actually spend each year on EVERY category including (but not limited to) dining out, entertainment, clothing, automobile expenses including gas/insurance/maintenance/etc, travel, groceries, charity, housing expenses, utilities, medical/heathcare costs, prescription drugs, and especially any bad habit activities.

I’m always amazed by just how many people have no clue how much they spend each year on every category. Something essential is using a program like Quicken where you can track every category for an extended period of time. I have tracked every dollar I’ve spent since graduating college 15 years ago. It’s been really helpful in helping me plan my retirement to know just how much I’m spending in every category.

Also, something VERY important is to make sure you are adequately insured for medical/health insurance as well as possibly long term care insurance. Also, if you have multi millions saved up, it’s always a good idea to have a comprehensive Umbrella insurance policy that will cover you against liability, lawsuits, etc. I have known people that have gotten totally wiped out in a bad lawsuit or accident where their insurance coverage wasn’t so great. So do yourself a favor and get an Umbrella policy. They are easy to get and not so expensive. (Heck, it’s always a good idea to get it before you retired. I think anyone with significant assets should definitely have an Umbrella policy in place).

Definitely I’m always interested and curious to hear about people’s retirement and how it is going and the planning that is involved. I’ve always been fascinated with that topic. So thanks all for sharing your stories.

[earlyretirement]

[quote=AN]ER, I totally agree with you that lifestyle makes a HUGE difference when coming up with the $ amount needed for retirement. Some people would say $500k would be more than enough for them to retire on and others will need $10M+. I know people who DON’t ENJOY going out to eat or go traveling. So, their retirement would be them staying home and working on their house/yard. Those people don’t need much to retire, as long as they have their house paid for. Others who travel all over the place and go out to eat constantly will probably need many millions to retire.

I also agree that rental property(ies) should be counted toward the net worth for retirement, since they can be liquidated if need be. I was only referring to primary resident, since we all need to live somewhere.

For me, when I can accumulate enough where I can live off the interest alone is when I think I’m ready to retire. That will compensate for different spending habits and have enough money to last you through your entire retirement. When I’m talking about interest, I’m talking about something very stable, like CD.[/quote]

Hi AN,

Yeah, I actually think “lifestyle” is the single most important factor in considering if $X is going to be enough. I constantly see people asking if $X million will be enough but there isn’t a one-size fits all answer.

I know people that took early retirement about 10 years ago with almost $4 million and they have little of that left due to poor choices, poor investments (and being in too volatile stocks for supposedly being “retired”). Also, they were living too high off the hog and spending more money than pre-retirement!

Before when they had to work they never had time to do anything. But they were finding themselves with tons of free time so they were going on all kinds of trips, bought expensive boats, visited their kids more that lived across the country, etc.

Yeah, they were stupid and foolish but unfortunately people do stupid things in retirement.

For us, we really enjoy traveling around the world and seeing new cities and going back to the cities that we enjoy. Fortunately we own a few properties in cities that we really enjoy outside of the USA. We rent them out when we don’t use them so they are income generating which is ideal for us.

Also, for those that don’t know about Home Exchanges or “home swapping” it’s GREAT if you are retired and want to see the world. It’s a GREAT and cost effective way to travel around the world. We currently travel about 100+ days a year around the world and we used to stay in hotels but the past 3 years we’ve done home exchanges via http://www.homeexchange.com and it’s amazing. Most of the properties we have stayed in have been really high end properties. You can do simultaneous or non-simultaneous exchanges.

I thought it sounded strange before I started doing them but I can’t think about any other way to travel or going back to small hotel rooms now that we discovered home exchanges. It allows us to “live like locals” when we travel and have always swapped for high end places. It’s simply the best way to travel in retirement or otherwise.

Definitely an ideal situation is if you can live off of interest income. But then again, you can have multiple year stretches like the past few years where interest rates plunged due to government interaction. Lots of retired folks never planned on getting close to 0% to 1% on money markets/CD’s so you also have to factor that into the mix.

Someone above talked about $2 million being enough as he planned on getting 5% interest income. That’s all fine and dandy unless interest rates are super low for extended periods of time. Forget what statistically they are. You could have a really bad stretch where you aren’t getting 5%. Plus once you are “retired” you will want to be in SUPER conservative investments and not the stock market. So factor all of that in too.

But I do agree with you AN that $100,000 in after tax net income per year will be enough for most people to retire comfortably. Even with a fair amount of travel, if you have your primary residence paid off, car paid off, no debt whatsoever…then a six figure per year retirement should allow for a really comfortable retirement.

Some retired people panic and just make horrible decisions. Like when the stock market was plunging they panic sold at the bottom. And now that CD’s are paying next to nothing…they feel forced into investing in more speculative investments and higher risk like the stock market, even though retired people shouldn’t be in high risk stocks.

Interest income used to be GREAT pre-recession but these days I’m really happy to be a landlord and having rental properties that are generating great cash-flow. Definitely being a landlord can be a pain in the butt ….however it’s been really great and I believe high end rental properties in desirable areas/neighborhoods/cities will continue to do well heading into the future.

Flu touched upon this a bit above in his post about the benefits of having rental properties. I totally agree and that has been a big part of my retirement strategy and focus. I’d much rather depend on stable rental income vs. trying to guess what CD’s are paying in the future. I also like having a tangible asset with no debt on it that spins off cash flow each year.

Also, I read some people talking about retiring in Italy or other countries. Definitely I think you should live where you really enjoy. But also you have to factor in exchange rates, what currency you hold your currency in, etc. Heading into the future, the value of the dollar can really depreciate against other currencies. Even with as many problems going on in Europe as there are…. the Euro has done well with the endless printing of Dollars by the government.

I’ve also lived abroad many years and it’s been great but you have to really look into everything including healthcare costs and availability as well as residency status and how easy it is to become permanent residents. Also, you have to be careful as some countries once you become permanent residents, you get taxed on worldwide assets. So you just have to investigate all of those types of things.

Something else ESSENTIAL is to know how much you actually spend each year on EVERY category including (but not limited to) dining out, entertainment, clothing, automobile expenses including gas/insurance/maintenance/etc, travel, groceries, charity, housing expenses, utilities, medical/heathcare costs, prescription drugs, and especially any bad habit activities.

I’m always amazed by just how many people have no clue how much they spend each year on every category. Something essential is using a program like Quicken where you can track every category for an extended period of time. I have tracked every dollar I’ve spent since graduating college 15 years ago. It’s been really helpful in helping me plan my retirement to know just how much I’m spending in every category.

Also, something VERY important is to make sure you are adequately insured for medical/health insurance as well as possibly long term care insurance. Also, if you have multi millions saved up, it’s always a good idea to have a comprehensive Umbrella insurance policy that will cover you against liability, lawsuits, etc. I have known people that have gotten totally wiped out in a bad lawsuit or accident where their insurance coverage wasn’t so great. So do yourself a favor and get an Umbrella policy. They are easy to get and not so expensive. (Heck, it’s always a good idea to get it before you retired. I think anyone with significant assets should definitely have an Umbrella policy in place).

Definitely I’m always interested and curious to hear about people’s retirement and how it is going and the planning that is involved. I’ve always been fascinated with that topic. So thanks all for sharing your stories.

[earlyretirement]

[quote=AN]ER, I totally agree with you that lifestyle makes a HUGE difference when coming up with the $ amount needed for retirement. Some people would say $500k would be more than enough for them to retire on and others will need $10M+. I know people who DON’t ENJOY going out to eat or go traveling. So, their retirement would be them staying home and working on their house/yard. Those people don’t need much to retire, as long as they have their house paid for. Others who travel all over the place and go out to eat constantly will probably need many millions to retire.

I also agree that rental property(ies) should be counted toward the net worth for retirement, since they can be liquidated if need be. I was only referring to primary resident, since we all need to live somewhere.

For me, when I can accumulate enough where I can live off the interest alone is when I think I’m ready to retire. That will compensate for different spending habits and have enough money to last you through your entire retirement. When I’m talking about interest, I’m talking about something very stable, like CD.[/quote]

Hi AN,

Yeah, I actually think “lifestyle” is the single most important factor in considering if $X is going to be enough. I constantly see people asking if $X million will be enough but there isn’t a one-size fits all answer.

I know people that took early retirement about 10 years ago with almost $4 million and they have little of that left due to poor choices, poor investments (and being in too volatile stocks for supposedly being “retired”). Also, they were living too high off the hog and spending more money than pre-retirement!

Before when they had to work they never had time to do anything. But they were finding themselves with tons of free time so they were going on all kinds of trips, bought expensive boats, visited their kids more that lived across the country, etc.

Yeah, they were stupid and foolish but unfortunately people do stupid things in retirement.

For us, we really enjoy traveling around the world and seeing new cities and going back to the cities that we enjoy. Fortunately we own a few properties in cities that we really enjoy outside of the USA. We rent them out when we don’t use them so they are income generating which is ideal for us.

Also, for those that don’t know about Home Exchanges or “home swapping” it’s GREAT if you are retired and want to see the world. It’s a GREAT and cost effective way to travel around the world. We currently travel about 100+ days a year around the world and we used to stay in hotels but the past 3 years we’ve done home exchanges via http://www.homeexchange.com and it’s amazing. Most of the properties we have stayed in have been really high end properties. You can do simultaneous or non-simultaneous exchanges.

I thought it sounded strange before I started doing them but I can’t think about any other way to travel or going back to small hotel rooms now that we discovered home exchanges. It allows us to “live like locals” when we travel and have always swapped for high end places. It’s simply the best way to travel in retirement or otherwise.

Definitely an ideal situation is if you can live off of interest income. But then again, you can have multiple year stretches like the past few years where interest rates plunged due to government interaction. Lots of retired folks never planned on getting close to 0% to 1% on money markets/CD’s so you also have to factor that into the mix.

Someone above talked about $2 million being enough as he planned on getting 5% interest income. That’s all fine and dandy unless interest rates are super low for extended periods of time. Forget what statistically they are. You could have a really bad stretch where you aren’t getting 5%. Plus once you are “retired” you will want to be in SUPER conservative investments and not the stock market. So factor all of that in too.

But I do agree with you AN that $100,000 in after tax net income per year will be enough for most people to retire comfortably. Even with a fair amount of travel, if you have your primary residence paid off, car paid off, no debt whatsoever…then a six figure per year retirement should allow for a really comfortable retirement.

Some retired people panic and just make horrible decisions. Like when the stock market was plunging they panic sold at the bottom. And now that CD’s are paying next to nothing…they feel forced into investing in more speculative investments and higher risk like the stock market, even though retired people shouldn’t be in high risk stocks.

Interest income used to be GREAT pre-recession but these days I’m really happy to be a landlord and having rental properties that are generating great cash-flow. Definitely being a landlord can be a pain in the butt ….however it’s been really great and I believe high end rental properties in desirable areas/neighborhoods/cities will continue to do well heading into the future.

Flu touched upon this a bit above in his post about the benefits of having rental properties. I totally agree and that has been a big part of my retirement strategy and focus. I’d much rather depend on stable rental income vs. trying to guess what CD’s are paying in the future. I also like having a tangible asset with no debt on it that spins off cash flow each year.

Also, I read some people talking about retiring in Italy or other countries. Definitely I think you should live where you really enjoy. But also you have to factor in exchange rates, what currency you hold your currency in, etc. Heading into the future, the value of the dollar can really depreciate against other currencies. Even with as many problems going on in Europe as there are…. the Euro has done well with the endless printing of Dollars by the government.

I’ve also lived abroad many years and it’s been great but you have to really look into everything including healthcare costs and availability as well as residency status and how easy it is to become permanent residents. Also, you have to be careful as some countries once you become permanent residents, you get taxed on worldwide assets. So you just have to investigate all of those types of things.

Something else ESSENTIAL is to know how much you actually spend each year on EVERY category including (but not limited to) dining out, entertainment, clothing, automobile expenses including gas/insurance/maintenance/etc, travel, groceries, charity, housing expenses, utilities, medical/heathcare costs, prescription drugs, and especially any bad habit activities.

I’m always amazed by just how many people have no clue how much they spend each year on every category. Something essential is using a program like Quicken where you can track every category for an extended period of time. I have tracked every dollar I’ve spent since graduating college 15 years ago. It’s been really helpful in helping me plan my retirement to know just how much I’m spending in every category.

Also, something VERY important is to make sure you are adequately insured for medical/health insurance as well as possibly long term care insurance. Also, if you have multi millions saved up, it’s always a good idea to have a comprehensive Umbrella insurance policy that will cover you against liability, lawsuits, etc. I have known people that have gotten totally wiped out in a bad lawsuit or accident where their insurance coverage wasn’t so great. So do yourself a favor and get an Umbrella policy. They are easy to get and not so expensive. (Heck, it’s always a good idea to get it before you retired. I think anyone with significant assets should definitely have an Umbrella policy in place).

Definitely I’m always interested and curious to hear about people’s retirement and how it is going and the planning that is involved. I’ve always been fascinated with that topic. So thanks all for sharing your stories.

[earlyretirement]

I think there are some excellent posts on this thread. Retirement is something that I’ve thought about quite a bit from a younger age ever since I graduated college.

Some people above posted about being almost obsessive about it. I’m not sure I’d say obsessed but it’s always been a goal of mine to be able to retire if I wanted by the time I hit 40.

Like some mentioned above, it all depends on the quality of life you will have in retirement. I know some friends that retired that don’t do anything. They don’t go out to eat to fancy restaurants, they don’t travel on vacations, and they live really low cost living lifestyles. Then we have other friends that travel all around the world very often, dine out quite a bit, etc.

So it all depends on the lifestyle you plan to live. Judging by what many of the mainstream newspapers and magazines write, not many people think about their retirement picture and the end game which surprises me. I always get scared thinking about being older and not having enough to live on or get by.

I always say I will take early retirement but not sure I could do it. I do enjoy working and can’t see myself stop working at this stage in my life. My wife thinks I’ll never be able to stop working as she thinks I’d get bored of not working on “deals”.

I agree with the others that say to discount and not factor in the equity you have in your house. I have my house paid off but I’m still not factoring that in my retirement picture as I’ll always have to have a place to stay after I stop working. Even though we will most likely sell our 5 bedroom house and move into something smaller when the kids get out of the house, we will still buy something else.

I would however count in the retirement picture any additional properties you might own and can liquidate being careful to accurately budget what it’s actually worth and also the time frame it might take to sell it. I have some friends that are dreaming when they value in their heads what they can get for their properties.

I’m in my late 30’s and I don’t factor in Social Security at all, even though I’ve contributed a TON. Frankly I don’t think there will be anything left when I hit eligibility (or they end up extending where you can’t take it until you are 75 or 80!) and factoring in the worst case scenario.

Unfortunately these days, $1 million isn’t much money or at least not what it used to be. But I think the important thing is to really be honest with yourself and think about what kind of lifestyle you will live in retirement.

I agree with the advice to work as long as you can to avoid starting to tap into your nest egg. I’m not sure about 70 but definitely if you enjoy what you do (and even if you don’t) it’s good to keep working and adding to the nest egg.

[earlyretirement]

I think there are some excellent posts on this thread. Retirement is something that I’ve thought about quite a bit from a younger age ever since I graduated college.

Some people above posted about being almost obsessive about it. I’m not sure I’d say obsessed but it’s always been a goal of mine to be able to retire if I wanted by the time I hit 40.

Like some mentioned above, it all depends on the quality of life you will have in retirement. I know some friends that retired that don’t do anything. They don’t go out to eat to fancy restaurants, they don’t travel on vacations, and they live really low cost living lifestyles. Then we have other friends that travel all around the world very often, dine out quite a bit, etc.

So it all depends on the lifestyle you plan to live. Judging by what many of the mainstream newspapers and magazines write, not many people think about their retirement picture and the end game which surprises me. I always get scared thinking about being older and not having enough to live on or get by.

I always say I will take early retirement but not sure I could do it. I do enjoy working and can’t see myself stop working at this stage in my life. My wife thinks I’ll never be able to stop working as she thinks I’d get bored of not working on “deals”.

I agree with the others that say to discount and not factor in the equity you have in your house. I have my house paid off but I’m still not factoring that in my retirement picture as I’ll always have to have a place to stay after I stop working. Even though we will most likely sell our 5 bedroom house and move into something smaller when the kids get out of the house, we will still buy something else.

I would however count in the retirement picture any additional properties you might own and can liquidate being careful to accurately budget what it’s actually worth and also the time frame it might take to sell it. I have some friends that are dreaming when they value in their heads what they can get for their properties.

I’m in my late 30’s and I don’t factor in Social Security at all, even though I’ve contributed a TON. Frankly I don’t think there will be anything left when I hit eligibility (or they end up extending where you can’t take it until you are 75 or 80!) and factoring in the worst case scenario.

Unfortunately these days, $1 million isn’t much money or at least not what it used to be. But I think the important thing is to really be honest with yourself and think about what kind of lifestyle you will live in retirement.

I agree with the advice to work as long as you can to avoid starting to tap into your nest egg. I’m not sure about 70 but definitely if you enjoy what you do (and even if you don’t) it’s good to keep working and adding to the nest egg.

[earlyretirement]

I think there are some excellent posts on this thread. Retirement is something that I’ve thought about quite a bit from a younger age ever since I graduated college.

Some people above posted about being almost obsessive about it. I’m not sure I’d say obsessed but it’s always been a goal of mine to be able to retire if I wanted by the time I hit 40.

Like some mentioned above, it all depends on the quality of life you will have in retirement. I know some friends that retired that don’t do anything. They don’t go out to eat to fancy restaurants, they don’t travel on vacations, and they live really low cost living lifestyles. Then we have other friends that travel all around the world very often, dine out quite a bit, etc.

So it all depends on the lifestyle you plan to live. Judging by what many of the mainstream newspapers and magazines write, not many people think about their retirement picture and the end game which surprises me. I always get scared thinking about being older and not having enough to live on or get by.

I always say I will take early retirement but not sure I could do it. I do enjoy working and can’t see myself stop working at this stage in my life. My wife thinks I’ll never be able to stop working as she thinks I’d get bored of not working on “deals”.

I agree with the others that say to discount and not factor in the equity you have in your house. I have my house paid off but I’m still not factoring that in my retirement picture as I’ll always have to have a place to stay after I stop working. Even though we will most likely sell our 5 bedroom house and move into something smaller when the kids get out of the house, we will still buy something else.

I would however count in the retirement picture any additional properties you might own and can liquidate being careful to accurately budget what it’s actually worth and also the time frame it might take to sell it. I have some friends that are dreaming when they value in their heads what they can get for their properties.

I’m in my late 30’s and I don’t factor in Social Security at all, even though I’ve contributed a TON. Frankly I don’t think there will be anything left when I hit eligibility (or they end up extending where you can’t take it until you are 75 or 80!) and factoring in the worst case scenario.

Unfortunately these days, $1 million isn’t much money or at least not what it used to be. But I think the important thing is to really be honest with yourself and think about what kind of lifestyle you will live in retirement.

I agree with the advice to work as long as you can to avoid starting to tap into your nest egg. I’m not sure about 70 but definitely if you enjoy what you do (and even if you don’t) it’s good to keep working and adding to the nest egg.

[earlyretirement]

I think there are some excellent posts on this thread. Retirement is something that I’ve thought about quite a bit from a younger age ever since I graduated college.

Some people above posted about being almost obsessive about it. I’m not sure I’d say obsessed but it’s always been a goal of mine to be able to retire if I wanted by the time I hit 40.

Like some mentioned above, it all depends on the quality of life you will have in retirement. I know some friends that retired that don’t do anything. They don’t go out to eat to fancy restaurants, they don’t travel on vacations, and they live really low cost living lifestyles. Then we have other friends that travel all around the world very often, dine out quite a bit, etc.

So it all depends on the lifestyle you plan to live. Judging by what many of the mainstream newspapers and magazines write, not many people think about their retirement picture and the end game which surprises me. I always get scared thinking about being older and not having enough to live on or get by.

I always say I will take early retirement but not sure I could do it. I do enjoy working and can’t see myself stop working at this stage in my life. My wife thinks I’ll never be able to stop working as she thinks I’d get bored of not working on “deals”.

I agree with the others that say to discount and not factor in the equity you have in your house. I have my house paid off but I’m still not factoring that in my retirement picture as I’ll always have to have a place to stay after I stop working. Even though we will most likely sell our 5 bedroom house and move into something smaller when the kids get out of the house, we will still buy something else.

I would however count in the retirement picture any additional properties you might own and can liquidate being careful to accurately budget what it’s actually worth and also the time frame it might take to sell it. I have some friends that are dreaming when they value in their heads what they can get for their properties.

I’m in my late 30’s and I don’t factor in Social Security at all, even though I’ve contributed a TON. Frankly I don’t think there will be anything left when I hit eligibility (or they end up extending where you can’t take it until you are 75 or 80!) and factoring in the worst case scenario.

Unfortunately these days, $1 million isn’t much money or at least not what it used to be. But I think the important thing is to really be honest with yourself and think about what kind of lifestyle you will live in retirement.

I agree with the advice to work as long as you can to avoid starting to tap into your nest egg. I’m not sure about 70 but definitely if you enjoy what you do (and even if you don’t) it’s good to keep working and adding to the nest egg.

[earlyretirement]

I think there are some excellent posts on this thread. Retirement is something that I’ve thought about quite a bit from a younger age ever since I graduated college.

Some people above posted about being almost obsessive about it. I’m not sure I’d say obsessed but it’s always been a goal of mine to be able to retire if I wanted by the time I hit 40.

Like some mentioned above, it all depends on the quality of life you will have in retirement. I know some friends that retired that don’t do anything. They don’t go out to eat to fancy restaurants, they don’t travel on vacations, and they live really low cost living lifestyles. Then we have other friends that travel all around the world very often, dine out quite a bit, etc.

So it all depends on the lifestyle you plan to live. Judging by what many of the mainstream newspapers and magazines write, not many people think about their retirement picture and the end game which surprises me. I always get scared thinking about being older and not having enough to live on or get by.

I always say I will take early retirement but not sure I could do it. I do enjoy working and can’t see myself stop working at this stage in my life. My wife thinks I’ll never be able to stop working as she thinks I’d get bored of not working on “deals”.

I agree with the others that say to discount and not factor in the equity you have in your house. I have my house paid off but I’m still not factoring that in my retirement picture as I’ll always have to have a place to stay after I stop working. Even though we will most likely sell our 5 bedroom house and move into something smaller when the kids get out of the house, we will still buy something else.

I would however count in the retirement picture any additional properties you might own and can liquidate being careful to accurately budget what it’s actually worth and also the time frame it might take to sell it. I have some friends that are dreaming when they value in their heads what they can get for their properties.

I’m in my late 30’s and I don’t factor in Social Security at all, even though I’ve contributed a TON. Frankly I don’t think there will be anything left when I hit eligibility (or they end up extending where you can’t take it until you are 75 or 80!) and factoring in the worst case scenario.

Unfortunately these days, $1 million isn’t much money or at least not what it used to be. But I think the important thing is to really be honest with yourself and think about what kind of lifestyle you will live in retirement.

I agree with the advice to work as long as you can to avoid starting to tap into your nest egg. I’m not sure about 70 but definitely if you enjoy what you do (and even if you don’t) it’s good to keep working and adding to the nest egg.

[earlyretirement]

[quote=AN]ER, funny that you said the mac is faster, yet you also said it’s more expensive. For comparable priced PC, pc will more likely be faster. I used mac for work and pc for home and my mac crashes more than my pc.[/quote]

No doubt AN that Macs are more expensive but I find the cost well worth it. Again, I was one of those guys for years that thought Mac people were nuts and it would be too difficult to switch over. I really wish I would have switched sooner.

When I was a PC guy…I’d get top of the line laptops with high end configurations. My last Sony Laptop I think I spent $4,500 on. And it crashed all the time. I’ll simply never go back to a PC again.

A decked out Macbook Pro 15′ is about as good as it gets for me. I travel quite a bit as well (over 100+ days a year) and the Mac is so durable, lightweight and battery life is amazing.

Heading into the future I wouldn’t be surprised if Mac someday has more users than PC. Apple is becoming a powerhouse.

[earlyretirement]

[quote=AN]ER, funny that you said the mac is faster, yet you also said it’s more expensive. For comparable priced PC, pc will more likely be faster. I used mac for work and pc for home and my mac crashes more than my pc.[/quote]

No doubt AN that Macs are more expensive but I find the cost well worth it. Again, I was one of those guys for years that thought Mac people were nuts and it would be too difficult to switch over. I really wish I would have switched sooner.

When I was a PC guy…I’d get top of the line laptops with high end configurations. My last Sony Laptop I think I spent $4,500 on. And it crashed all the time. I’ll simply never go back to a PC again.

A decked out Macbook Pro 15′ is about as good as it gets for me. I travel quite a bit as well (over 100+ days a year) and the Mac is so durable, lightweight and battery life is amazing.

Heading into the future I wouldn’t be surprised if Mac someday has more users than PC. Apple is becoming a powerhouse.

[earlyretirement]

[quote=AN]ER, funny that you said the mac is faster, yet you also said it’s more expensive. For comparable priced PC, pc will more likely be faster. I used mac for work and pc for home and my mac crashes more than my pc.[/quote]

No doubt AN that Macs are more expensive but I find the cost well worth it. Again, I was one of those guys for years that thought Mac people were nuts and it would be too difficult to switch over. I really wish I would have switched sooner.

When I was a PC guy…I’d get top of the line laptops with high end configurations. My last Sony Laptop I think I spent $4,500 on. And it crashed all the time. I’ll simply never go back to a PC again.

A decked out Macbook Pro 15′ is about as good as it gets for me. I travel quite a bit as well (over 100+ days a year) and the Mac is so durable, lightweight and battery life is amazing.

Heading into the future I wouldn’t be surprised if Mac someday has more users than PC. Apple is becoming a powerhouse.

[earlyretirement]

[quote=AN]ER, funny that you said the mac is faster, yet you also said it’s more expensive. For comparable priced PC, pc will more likely be faster. I used mac for work and pc for home and my mac crashes more than my pc.[/quote]

No doubt AN that Macs are more expensive but I find the cost well worth it. Again, I was one of those guys for years that thought Mac people were nuts and it would be too difficult to switch over. I really wish I would have switched sooner.

When I was a PC guy…I’d get top of the line laptops with high end configurations. My last Sony Laptop I think I spent $4,500 on. And it crashed all the time. I’ll simply never go back to a PC again.

A decked out Macbook Pro 15′ is about as good as it gets for me. I travel quite a bit as well (over 100+ days a year) and the Mac is so durable, lightweight and battery life is amazing.

Heading into the future I wouldn’t be surprised if Mac someday has more users than PC. Apple is becoming a powerhouse.

[earlyretirement]

[quote=AN]ER, funny that you said the mac is faster, yet you also said it’s more expensive. For comparable priced PC, pc will more likely be faster. I used mac for work and pc for home and my mac crashes more than my pc.[/quote]

No doubt AN that Macs are more expensive but I find the cost well worth it. Again, I was one of those guys for years that thought Mac people were nuts and it would be too difficult to switch over. I really wish I would have switched sooner.

When I was a PC guy…I’d get top of the line laptops with high end configurations. My last Sony Laptop I think I spent $4,500 on. And it crashed all the time. I’ll simply never go back to a PC again.

A decked out Macbook Pro 15′ is about as good as it gets for me. I travel quite a bit as well (over 100+ days a year) and the Mac is so durable, lightweight and battery life is amazing.

Heading into the future I wouldn’t be surprised if Mac someday has more users than PC. Apple is becoming a powerhouse.

[Author]

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