All this talk about stocks and investing has me questioning my retirement plan. I know everyone is different, but how did you determine how much money you needed to have before you pulled the ripcord?
Answering as someone in their late-40's...If SS is still available when I turn 65 or whatever age it kicks in, sure I'd apply for it. But I am also not willing to trust that SS will be there when I'm eligible. I'd rather have my own nest egg money secured and anything that SS kicks in is just an extra bonus.Why would you not apply for Social Security? Only reason I can see, is if your family history shows you will live to a hundred. I think you have to live to 79-81 now to be behind on SS money if you start collecting at 62. I look at the money I paid in to SS and the employer and employee portions are above a third of a million dollars. I get about $2300 a month from that. I retired at almost 60. I liked working as an engineer, but the local to me company screwed up and pretty much folded. Bioengineering. And did not want to spend 3 hours a day commuting back to the Silicon Valley. I always lived within my means, so saved at least 15% each year. My income now is higher than when I retired in 2002, but the purchase power is probably the same. With the new Congress talking about lots more stimulus, I worry we are going to have Carter type inflation.
All good stuff mentioned. The nature of your investments is somewhat more important that the total dollar amount. Some investments actually provide useful income while others fall miserably short. Annuities and certificates of deposit are the worst. Social Security should never be relied on for retirement, think of it as play money. Avoid applying for it.
Setting yourself up for retirement makes the money go lots farther. You don’t want to be paying interest on anything, that’s money down the toilet. Debt is the enemy. A cash existence should start long before your last day of work.