“Forget You” money, how much and at what age?

[SteveM]

Wealth, not income. For me, forget you money is the ability to work or not as you please, live as you want to live and not worry about running out of money.

Most of us will have some continuing incoming cash, SS or otherwise, but for most of us there’s both and age and a lump sum amount of wealth where we believe we can comfortably say, “ forget you” to pretty much anything or anyone for the rest of our time here.

It is obviously dependent on choice of lifestyle and spending habits after we ring the bell, but there’s a cross section of folks here getting to that age as well as folks squarely in the middle and a few still on the younger, long time to go end.

For me, the number is a lot more than I’ll ever see, about $4M at 65. The number drops dramatically if I’m willing to let principle erode while I’m alive, which is a personal choice.

Most advisors will tell you that 3-4% withdrawal rate each year will keep principle growing slightly and permit the annual draw to keep pace with inflation.

So where are your real or dream numbers?

[Bonk!]

Lots of variables here for sure: single versus married, post-retirement access to healthcare (especially long term care if needed), other fixed costs like property tax (which will vary widely amongst NESRers I suspect) and what if anything you want to leave behind. We don't have kids so (1) our ability to save has been relatively high, (2) we don't have expenses like college tuition to consider, and (3) my plan is to spend my last pennies on a pine box!

When we were young we aggressively avoided debt and saved our pennies. Over the last 30 years I have been actively managing our finances, especially our retirement accounts. I'm 55 and ready to stop work, but my wife is running a non-profit so I am working to avoid having her organization incur the cost of healthcare. It's likely she will want to keep working long past my interest in doing so!

I've been conservative with investments because I haven't had to put things at risk to ensure our future - aside from the stock market. In terms of numbers, I have 5 years worth of expenses in cash. This will the bridge to my 401(K) at age 60. Our combined retirement accounts will carry us to 70, at which time we will supplement things by tapping social security and pensions. Assuming we decide to move and downsize at some point we have enough equity in the house to pay cash for the next one and pocket a significant gain.

That's the plan anyways, but then Covid happens!

[union]

That is a tough question. When i think about although we don't have a ton of cash on hand at the rate we are going by the time retirement comes around which is another 24 years for us to 65 we will be fine. I'm lucky that my company provides a matching 401k and a pension for me. I can walk in 12 years from now with the max pension benefit. My wife also gets a pension. Our house is paid off in about 7 years.

I think if I managed to have about 2mil in the 401k plan by retirement we will be well off for those years. I'm putting 15% of my pay into now. I think combined with our pensions and no mortgage for 15+ years and the 401k even if it grows at a slower rate we will be good.

[RandyO]

Our house is paid off in about 7 years.

but, is that where you want to live out your retirement.

[SteveM]

Even pre covid thing we’re beginning to come into focus. We bought the condo in Maine and have no plans to sell the house we’ve had since 1993. Youngest is down with college this spring. My wife has several gigs, but only one requires her to be onsite and she’ll probably give that up in a year and a half.

Biggest changes in the next five years will be more time in Maine, then I’ll be 65 and we’ll see.

[breakdirt916]

*warning: financially illiterate post to follow*

3 mil with a house/toys paid off in Orange County SoCal

5 mil without

Post tax, non retirement cash at 4% per year boglehead portfolio for $120k/year pre tax...to me it’s just a race to get there; working takes awhile so houses/stocks seem to get there faster. Business can also get you there, but requires one to spend the cash assets they are saving up to buy the business. Oddly enough, even if I had it, I would prefer to continue working or I may go crazy. Don’t think I’d enjoy my hobbies unless I had the balance of a job.

[xrocket21]

I can't put a number on it. But I'd love a side business in something I love, a C7 zo6 fairly modded, a nice ass wakeboard boat, a personal trainer so I stay fit enough to shred, a low mile KTM RC8r, a can am renegade 1000, a Beta 300 dirtbike, house on a lake, viking kitchen..... that would a bout do it.

[tsorfas]

I legit can’t imagine not working. Having the choice would be amazing.
We have a kid. We want another. Talk about putting a dent on FIRE. Still wouldn’t trade him for anything.
I think the magic number was 2 mil few years back. With cost of living skyrocketing and not slowing down I think 4 is the minimum now. We both have 401k, she also has a pension, and we have 2 investment properties (soon to be 1).

[gixxer72]

$3M @ 55 would give me the warm and fuzzies to pull the pin in 7 years.

[nhbubba]

Ah, yes. FU money.



My current number is $3M. That's been ratcheting up in the last few years. Lifestyle creep is a bitch.

5 years ago I was single, no kids. I saw the end of the line on the horizon and was looking to buy land up north. Then build a small, energy efficient 2BR place with a massive attached garage. Every single guy's wet dream. Was going to quit my day job and never commute to metro Boston again. Had no idea wtf I was going to do with my days.

Life changed for me since then and so did my FU-money number and the timeline to get there.

I see FU-money as a spectrum. I remember when I was in my early 30's and finally bought a house. I was completely house-poor and honestly on a knife edge for a couple months there. I remember losing sleep anytime there was a rumor of layoffs, and those rumors are common in my business. Cash flow was so tight I couldn't deal with missing even one check. Fortunately I made it through and had a couple things break my way. I am now in great shape and do not sweat those layoff rumors anymore. That's half the battle for me. I'm to the point where if my boss fucks with me too much I really would say FU and walk, no regrets. That feels fucking awesome!

That said, I still have a ways to go to that goal. I recently paid a pro to look at my plan and tell me what they thought. He gave my plan only a 49% chance of succeeding.



Fortunately he did validate the mechanics of my plan. I'm pulling the right levers.

[breakdirt916]

You guys talk about life changing events like kids and I would also throw in medical expenses that can change the target figure - they keep creeping up

Ah fugit...don’t forget to enjoy some of the money/health now too

[RandyO]

I'm there,

my lifestyle, home maintenance, utilities easily covered by SS, still working a little bit, gets me outa the house, don't want to fall out of shape anymore than I already have

[maxim_X]

Today? 10 million and I would still work at some sort of small business that I would start or to do storm work.

At 65? If I make it that far, assuming that I make smart financial decisions and don't have an ridiculous debt, 4 million should do it.

[Chippertheripper]

13. It doesn’t matter how much money I have I’m retiring in 13yrs.
Then I might do some things I’ve always wanted to do, like go lobstering for a summer, or work on a tug, make a couple real fishing trips.
Until then, I’ll keep tossing a percent or two increase every year at my 457 till it maxes out without thinking about it, and try and live as stress and worry free as possible.

[maxim_X]

1
Then I might do some things I’ve always wanted to do, like go lobstering for a summer, or work on a tug, make a couple real fishing trips.

Working on a tug sounds dope, but not much about commercial fishing, other than the paycheck is too appealing to me. Is there something specifically that draws you to it?

[MUZ720]

Only a lottery win will bring FU money. Semi retired now working seasonal job. The mortgage is the biggest headache if that was gone it would be easier...

[Chippertheripper]

Working on a tug sounds dope, but not much about commercial fishing, other than the paycheck is too appealing to me. Is there something specifically that draws you to it?

I don’t know there’s anything really tangible that’s a draw. I spent my whole adult life up until a few years ago working on all those tubs, and I fell like I need to get it out of my system.

[Garandman]

You guys talk about life changing events like kids and I would also throw in medical expenses that can change the target figure - they keep creeping up

Ah fugit...don’t forget to enjoy some of the money/health now too

The government requires you to go on Medicare at age 65.

Long term care is the killer. Some elderly parents gift their assets to children while they are healthy. There is a “Look back” of five years.

I’m trying to figure out how to die gracefully before I get stuck in a long term care facility. If I keep riding the GSX-R750 that is probably handled....

[csmutty]

The government requires you to go on Medicare at age 65.

Long term care is the killer. Some elderly parents gift their assets to children while they are healthy. There is a “Look back” of five years.

I’m trying to figure out how to die gracefully before I get stuck in a long term care facility. If I keep riding the GSX-R750 that is probably handled....

My grandma did this via a trust to her kids. It worked out pretty well.

You should prolly just go gixxa 1k just to be sure.

[SteveM]

My grandma did this via a trust to her kids. It worked out pretty well.

You should prolly just go gixxa 1k just to be sure.

Busa

[Garandman]

Yeah, ‘busa was the plan. But having crashed the GSX-R twice, that may suffice.

If you stay in shape and take care of your heart, you’ll probably die of cancer, so I got that goin’ for me....

[SteveM]

Yeah, ‘busa was the plan. But having crashed the GSX-R twice, that may suffice.

If you stay in shape and take care of your heart, you’ll probably die of cancer, so I got that goin’ for me....

Or you’ll stay healthy and get dementia, aging is really a spin of the suck wheel.

[MUZ720]

When I need help with inputs and out takes its time to go... thinking sky driving.

[SteveM]

When I need help with inputs and out takes its time to go... thinking sky driving.

I don’t know whether that’s a typo or a Thelma and Louise reference, but it definitely works other way.

[MUZ720]

I don’t know whether that’s a typo or a Thelma and Louise reference, but it definitely works other way.

well I am not that clever.. it works either way lol .