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The Trinity study says it’s safe to withdraw 4.5% if your retirement is tax free or 4.1% if it’s taxable and not outlive your retirement.
So that’s $45k or $41k per million in retirement a year. If you plan to use SSN that will factor into your maximum income before you effect SSN.

When to take SSN is a simple math problem. If you live to 85 you will get more payout total starting at 62 than you would waiting until 67.
 

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The Trinity study says it’s safe to withdraw 4.5% if your retirement is tax free or 4.1% if it’s taxable and not outlive your retirement.
So that’s $45k or $41k per million in retirement a year. If you plan to use SSN that will factor into your maximum income before you effect SSN.

When to take SSN is a simple math problem. If you live to 85 you will get more payout total starting at 62 than you would waiting until 67.
Formulas are dumb. If you have a million stashed away the looming wealth tax is going to take 20%. Gotta make payments on the nearly $30 trillion in debt. A 4% or whatever take out is assuming nothing will change over the rest of your life and you won't expire until you draw out the last buck. Dumb.
 

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Booja.... “It’s all some folks have.” This thread isn’t about those folks. We’re talking about those who plan for more and want a life beyond poverty.

UHMW cites good numbers. Being able to live off earning and not principal is for early retirement but eventually a person should dip into the bank and spend some of those savings. Tough to do when the mind set is hooked on saving not spending.
 

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DGB,
I haven’t seen a wealth tax proposal that starts under $50 million @ 2% and a trust eliminates most of that. So no idea where you are getting the 20% . Capital gains is 20% starting at $479k married filing jointly. Biden’s proposing 39% over $1 million.

How do you figure you will run out of money when most money managers are avg. 6% a year over a 10 year period.
The trinity study is a great place to start for the majority of people.
 

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Discussion Starter #25
God willin’ and the creek don’t rise we’ll have close to $3 million in 401(k) and IRA by the time we retire. I’m 60, looking to retire in 2 or 3 years. House will be paid off prior to the phone call, Zillow thinks she’s worth $700k or so.
SS.gov says that between me and my bride we’ll get $4200 per month in benefits if we start drawing at 62.
We don’t live large by any means. We’ll downsize and travel a bit, then figure where we want to land. Thinking about Panama.
 

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DGB,
I haven’t seen a wealth tax proposal that starts under $50 million @ 2% and a trust eliminates most of that. So no idea where you are getting the 20% . Capital gains is 20% starting at $479k married filing jointly. Biden’s proposing 39% over $1 million.

How do you figure you will run out of money when most money managers are avg. 6% a year over a 10 year period.
The trinity study is a great place to start for the majority of people.
Hold your breath. Didn't France enact a wealth tax before backing off? Just because it didn't go there doesn't mean it won't get done here. But if pulling 4% per year out of an investment account sounds good, then go for it. But have you noticed interest rates are up? Inflation follows interest rates - or is it visa versa? Debt service on that nearly $30 trillion is going up and rates will follow. Inflation is a coiled spring and that formula just might not work out the way it looks now.
 

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My window closed long, long ago. Just want to throw out there a lesson I learned the hard way. My wife was the one with all the income properties, and she urged me to retire early. I took my SS at 62. I thought our marriage was secure. That turned out not to be the case, and I ended up with a very small 401K and working part-time to supplement SS. The lesson here is to consider the possibility that a family structure that seems secure into retirement can turn to ash, as all things human eventually do.
Hence why I might need more than one girlfriend to support me....

Sent from my moto g(7) power using Tapatalk
 

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12 people 12 unique scenario’s & 12 different answers.

It all will vary with professional advice as well.
 

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After reading this, I understand PERS II, a part time retirement job and my other accounts are going to leave me way behind the pack. Oh well, as long as I can fish.
 

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After reading this, I understand PERS II, a part time retirement job and my other accounts are going to leave me way behind the pack. Oh well, as long as I can fish.
There is a quiet coastal town in Mexico....
 

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So many variables. To consider. I am 47 and just now getting set up with financial guy, who has been good for my wife's grandma and her folks. He has built his reputation with the family over the past 20 years. He is going to go thru my numbers in 3 weeks with me, so I can gauge if retirement at 55 is a realistic goal.
I figured in todays dollars I need 5k per month to live on, + any taxes. Approx. 75k income if I have to pay taxes on all the income. This number varies greatly, were are going to live, house paid off, drive old cars, new cars, toys, vacations.
At 55 hopefully wife's home business is still doing well, this will be supplemental income.
So So many variables that impact the quote magic number. Some of those variables you have no control over. How long are you going to live. Are you going to leave a chunk of cash to someone, or do you want to draw it down.

One item for me is being debt free in retirement. One thing I am now looking at is later in life when you have to slow down you will spend less, so yes inflation will catch up with you, but your expenses will drop other than health care costs for insurance.
So much to consider, I have been pondering what's my magic number now for several years and how do I reach that goal.
 

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I'm a proponent of being debt free at retirement. Own your home, vehicles, boats etc. before you retire. In other words, have all the toys you think you'll need or want before you pull the trigger. )
Thats the best advice to follow and throw in the credit card debit to paying off that before you charge again. I make those cards work for me better than what meager amount I have in bank savings. I pay everything I can with the card. And last year we pocketed $353 in cash returns on one card and a little over $100 on the other. I then buy discounted gift cards when offered by card company to places like Home Depot at usually 10 to 15% discount. So as an example I bought an LED light last week for $99.95 which was discounted with my VA card by 10% to $89.95. But in cash it only cost me $80. I find it's fun to see how to stretch the buck.
 

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I decided to retire at 60 after close to 30 years with one agency. We decided that we could make it if we pulled the belt a little tighter. Wife kept working at the Hospital and planned on retiring in 2 more years. After she retired it was tight but we still traveled and have had a great time. Right now we just refinanced the house, cars are old but paid off, we have a Granddaughter that lives with us since the age of 6 months, my step-daughter and my grandson moved in with us, bills are high, but I have more money now than I did when I first retired. I started my wife out on an allowance but that went to the side very fast. Girls love to buy things, pretty themselves and all the other places money seems to slip through her fingers. My Granddaughter only likes $100 pants and shoes to keep up with her friends. Plus phones and now she is turning 15 she is talking car. When I first retired I got to take her to swim lessons, been with her for every class of school, would not give that up for anything.

My bottom line is I wanted to retire, we made it work, I may not have all the money I could have had but I have enough. I have really good medical insurance and I have now been in and out of the Hospital and I relax every time I get my bill. Before it was a stretch to pay the medical insurance. Its been 10 years since I retired and my health is slipping so for me these years have been the best.
 

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Thats the best advice to follow and throw in the credit card debit to paying off that before you charge again. I make those cards work for me better than what meager amount I have in bank savings. I pay everything I can with the card. And last year we pocketed $353 in cash returns on one card and a little over $100 on the other. I then buy discounted gift cards when offered by card company to places like Home Depot at usually 10 to 15% discount. So as an example I bought an LED light last week for $99.95 which was discounted with my VA card by 10% to $89.95. But in cash it only cost me $80. I find it's fun to see how to stretch the buck.
Yes, yes, and yes. Home D and Lowes both offer vets discounts as do a number of other retailers. And/or senior discounts. Everything is paid credit card that's possible and paid in full when the bill arrives. Buy up discounted gift cards for place you buy stuff with your rewards credit card. Wilco at times has a Father's Day 20% discount on their gift cards. Think of how much you can save for other other important purchases - like tackle and such. Or - put it in your IRA or 401 and let it grow. If you aren't ready to get serious about stretching your purchasing power, you aren't ready to focus on retirement.
 

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The kids think pop cans go in the garbage. That's $.10 per. Got an account at Bottle Drop. After 10 years I have got bored and went to work for a friend. Working on his Christmas Tree farm gets me out side and a little change in my pocket.
 
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