Stock Market is the bottom in?

[yoderjac]

Good points
Which brings into question; How much is enough to retire the way you want?

500K
1M?
2M?
5M ?

Do you want to live off the interest or live off the actual money saved?
How long do you really think you will live? And after a certain age what can/could you even spend it on?
Is leaving a bunch of money to family in your plan?

For me, the next egg is a gap filler. Predicting future cost is problematic for me. The big question is "What is the cost of boredom?" That is not too tough for me as I've got hunting and the farm to manage that I've been doing for years. But my wife, who is younger and working, it is another story. She likes to travel and stuff and her weekend warrior activities revolve around sports. She played basketball a few times in the senior Olympics, but after knee surgery and with age, contact sports are not in the cards for the long term. I myself had to give up basketball in my mid-50s due to knees.

So, the amount of money she spends has been limited by her time available to spend it as she is working full-time plus and travels for work fairly often. So, once she has time in retirement, what will it cost to stay off boredom?

At any rate, I made an estimate of what I think our annual outlay will be. From there, I started with our fixed income. We both have small pensions and social security will kick in as well. That leaves a gap between my annual guestimate and our annual fixed income that the nest egg needs to fill. I'm figuring, if I balance cash and stocks in the long run and the stock market continues to earn at long-term averages, I hope to be able to live on the earnings. This would allow the money to last in perpetuity. That is my goal, but I doubt I'll reach it. Things need to go well with our current house sale and retirement home build.

I don't have kids of my own. We decided rent versus buy in that arena. Beyond that, large sums of money can really screw up young folks, so if I was worried about it, I'll look into a trust.

So, if everything goes right, my nest egg should be preserved we we pass away, but if there are issues, at some point, we will start eating into it.

Thanks,

Jack

 

[roymunson]

Good points
Which brings into question; How much is enough to retire the way you want?

500K
1M?
2M?
5M ?

Do you want to live off the interest or live off the actual money saved?
How long do you really think you will live? And after a certain age what can/could you even spend it on?
Is leaving a bunch of money to family in your plan?

Good questions. I'd like to think i can live on not very much if I had everything paid off. But I'm probbably delusional

 

[H20fwler]

For me, the next egg is a gap filler. Predicting future cost is problematic for me. The big question is "What is the cost of boredom?" That is not too tough for me as I've got hunting and the farm to manage that I've been doing for years. But my wife, who is younger and working, it is another story. She likes to travel and stuff and her weekend warrior activities revolve around sports. She played basketball a few times in the senior Olympics, but after knee surgery and with age, contact sports are not in the cards for the long term. I myself had to give up basketball in my mid-50s due to knees.

So, the amount of money she spends has been limited by her time available to spend it as she is working full-time plus and travels for work fairly often. So, once she has time in retirement, what will it cost to stay off boredom?

At any rate, I made an estimate of what I think our annual outlay will be. From there, I started with our fixed income. We both have small pensions and social security will kick in as well. That leaves a gap between my annual guestimate and our annual fixed income that the nest egg needs to fill. I'm figuring, if I balance cash and stocks in the long run and the stock market continues to earn at long-term averages, I hope to be able to live on the earnings. This would allow the money to last in perpetuity. That is my goal, but I doubt I'll reach it. Things need to go well with our current house sale and retirement home build.

I don't have kids of my own. We decided rent versus buy in that arena. Beyond that, large sums of money can really screw up young folks, so if I was worried about it, I'll look into a trust.

So, if everything goes right, my nest egg should be preserved we we pass away, but if there are issues, at some point, we will start eating into it.

Thanks,

Jack

We have similar goals Jack!
The staving off boredom is funny but true. Thank god we have hunting/fishing and habitat work to help distract us. My wife is also younger than me and likes her job so I don't know when she will retire, we do plan on doing some serious traveling while we are still healthy enough to do it right. With the wife's job she will be able to take off some extended periods of time to travel. We too are looking at building in the next couple of years, I don't know if I'm really ready for that stress. In a perfect world I would get the pond dug in the next few months then she would find a house in the country she likes within five miles of our farms and I can avoid the building headache and only have a few renovations with her chosen dream house.
Our children are all grown and have good careers so leaving them any more than properties and possessions would just be a bonus for them....my plan is for the wife and I to slowly use our savings for us! We should retire and be getting the same if not more income than we have now.

 

[chummer]

My guy says at our current lifestyle we need 4 million. Subtract from there what we do now that we won’t be doing retired.

 

[yoderjac]

We have similar goals Jack!
The staving off boredom is funny but true. Thank god we have hunting/fishing and habitat work to help distract us. My wife is also younger than me and likes her job so I don't know when she will retire, we do plan on doing some serious traveling while we are still healthy enough to do it right. With the wife's job she will be able to take off some extended periods of time to travel. We too are looking at building in the next couple of years, I don't know if I'm really ready for that stress. In a perfect world I would get the pond dug in the next few months then she would find a house in the country she likes within five miles of our farms and I can avoid the building headache and only have a few renovations with her chosen dream house.
Our children are all grown and have good careers so leaving them any more than properties and possessions would just be a bonus for them....my plan is for the wife and I to slowly use our savings for us! We should retire and be getting the same if not more income than we have now.

We will have significantly less income in retirement, bur right now, we are squirreling away as much as possible for retirement with makeup contributions and such. I must be nuts. We built the barn with a 540 sq foot living space. (https://habitat-talk.com/index.php?search/70330/&q=barn&c[title_only]=1&c[users]=yoderjac&o=date) Our marriage will not only be tested by building, but by living in that tiny space during construction!

 

[Telemark]

Good points
Which brings into question; How much is enough to retire the way you want?

500K
1M?
2M?
5M ?

Do you want to live off the interest or live off the actual money saved?
How long do you really think you will live? And after a certain age what can/could you even spend it on?
Is leaving a bunch of money to family in your plan?

2 million. Living mostly off dividends.

 

[H20fwler]

We will have significantly less income in retirement, bur right now, we are squirreling away as much as possible for retirement with makeup contributions and such. I must be nuts. We built the barn with a 540 sq foot living space. (https://habitat-talk.com/index.php?search/70330/&q=barn&c[title_only]=1&c[users]=yoderjac&o=date) Our marriage will not only be tested by building, but by living in that tiny space during construction!

My wife has talked about the exact same thing, building a studio apartment on one end of our barn/shed live in it a year or two then build the house!
Later after the house is built she said it can be my man cave. So far in our planning we have the shed/barn furthest north (wind block) then attached to garage and house one day so it's kind of in a big L shape looking out over the pond with the Little Woods as backdrop. Going from a four bedroom house to a studio apartment is fine with me but I don't think she would like it very long.

 

[yoderjac]

My wife has talked about the exact same thing, building a studio apartment on one end of our barn/shed live in it a year or two then build the house!
Later after the house is built she said it can be my man cave. So far in our planning we have the shed/barn furthest north (wind block) then attached to garage and house one day so it's kind of in a big L shape looking out over the pond with the Little Woods as backdrop. Going from a four bedroom house to a studio apartment is fine with me but I don't think she would like it very long.

Yep, we will see how it goes. We will be storing our possessions in the barn while we live in the tiny house. We did it for a couple reasons. My oritinal intent was to improve the lot with power and septic and to simply build a barn. The county put the kibosh on that idea. The permit for a dwelling is the gateway to permits for septic and well. The local power coop will give you the first quarter mile of wire free, but only for a dwelling. If you don't make progress on the building permit in 1 year, they don't renew it and you have to start over. So, putting the living quarters in the barn so it counts as a dwelling, was the way to get around it. On the upside, we can sell before buying so we don't need a bridge loan. Without the high interest bridge loan, delays in building are less impactful. Time will tell how well this all works.

Thanks,

Jack

 

[Tree Spud]

My wife has talked about the exact same thing, building a studio apartment on one end of our barn/shed live in it a year or two then build the house!
Later after the house is built she said it can be my man cave. So far in our planning we have the shed/barn furthest north (wind block) then attached to garage and house one day so it's kind of in a big L shape looking out over the pond with the Little Woods as backdrop. Going from a four bedroom house to a studio apartment is fine with me but I don't think she would like it very long.

Years ago my wife and I did our 1st remodeling project of our kitchen. It started out as replacing cabinets, countertops, & appliances.

We moved our kitchen/dining area/etc down to our furnace room in the basement and there was a " farmer fruit canning" sink, counter, etc down there and we moved our frig & an electric stove down there. Our dining table was a folding card table & we had a 14" B&W TV hooked up to rabbit ears antenna. The room was ~12'-13' and thought we could tough out the 3 months the project was supposed to take.

The project took over 10 months and involved issues with the roof, heating system, sub-flooring, etc. etc. Many nights were Mac n Cheese, frozen pizza, & pot pies. When we would walk into the house at night, we were walking over loose sheets of plywood over floor joists in our kitchen and could see the basement floor and the sky. One night when the roofing was open, and no flooring, we had a torrential rain with 6" of rain that fell in 2.5 hours. Our house was flooded and we spent 6-7 hours trying to bail out the basement with every trash can, bucket, towel, etc. There was 2-3 inches of water in the house.

We survived and laugh about it today ... it was a good test for us.

 

[homerj1]

My guy says at our current lifestyle we need 4 million. Subtract from there what we do now that we won’t be doing retired.

Holy cats

 

[yoderjac]

Years ago my wife and I did our 1st remodeling project of our kitchen. It started out as replacing cabinets, countertops, & appliances.

We moved our kitchen/dining area/etc down to our furnace room in the basement and there was a " farmer fruit canning" sink, counter, etc down there and we moved our frig & an electric stove down there. Our dining table was a folding card table & we had a 14" B&W TV hooked up to rabbit ears antenna. The room was ~12'-13' and thought we could tough out the 3 months the project was supposed to take.

The project took over 10 months and involved issues with the roof, heating system, sub-flooring, etc. etc. Many nights were Mac n Cheese, frozen pizza, & pot pies. When we would walk into the house at night, we were walking over loose sheets of plywood over floor joists in our kitchen and could see the basement floor and the sky. One night when the roofing was open, and no flooring, we had a torrential rain with 6" of rain that fell in 2.5 hours. Our house was flooded and we spent 6-7 hours trying to bail out the basement with every trash can, bucket, towel, etc. There was 2-3 inches of water in the house.

We survived and laugh about it today ... it was a good test for us.

The parallels are uncanny! Years ago, we had a new pastor staying in one of our guest rooms for a few month until he could sell his house and move his family into the area. Our washer and dryer are on the 2nd floor of our colonial. One morning I heard the water running but thought nothing of it and went to work. I thought nothing of it and just assumed he was doing laundry upstairs. Well, what happened was that the hose feeding the washer burst. Lint from the dryer had accumulated under the washer and dryer. It clogged the drain in the cement pan and we had a flood. The kitchen is directly under the washer dryer and we have a fished basement below that.

It was a real challenge to our marriage. As an engineer, I'm asking her to inventory all her stuff, figure out where it will all go, how many steps is it from fridge to sink and what design makes for the most efficiency in movement. Her brain doesn't work like that. She is more of the "go look at things" person. She will see a kitchen in a show room and say "I like that one". I ask "Why?" and she says "I don't know, I just like it". It was like going to the dentist with me focused on efficiency and functionality and her focused on esthetics. Eventually, we ended up with something she loves, but it took forever and it was painful getting there.

We too look back and laugh, but at the same time, we ore moving into this house building with caution.

Thanks,

Jack

 

[chummer]

Holy cats

It's really not that hard, I just have to work to 103.

Sent from my SM-G981U using Tapatalk

 

[roymunson]

It's really not that hard, I just have to work to 103.

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Other issue for me is that 4 million in 2021 will be a very different amount in terms of buying power 35 years from now when I really need it.

Seeing the generation before me at work here, you can live a good lifestyle when you're working because work is the "action" you crave. When you're not working, to recreate that "action" generally takes money.

 

[Hoytvectrix]

Other issue for me is that 4 million in 2021 will be a very different amount in terms of buying power 35 years from now when I really need it.

And now we've come full circle to the benefits of investing in non-fiat based investments (gold, silver, bitcoin).

 

[Tree Spud]

It's really not that hard, I just have to work to 103.

Sent from my SM-G981U using Tapatalk

Maybe you should lay-off on the hookers and blow

 

[H20fwler]

Yep, we will see how it goes. We will be storing our possessions in the barn while we live in the tiny house. We did it for a couple reasons. My oritinal intent was to improve the lot with power and septic and to simply build a barn. The county put the kibosh on that idea. The permit for a dwelling is the gateway to permits for septic and well. The local power coop will give you the first quarter mile of wire free, but only for a dwelling. If you don't make progress on the building permit in 1 year, they don't renew it and you have to start over. So, putting the living quarters in the barn so it counts as a dwelling, was the way to get around it. On the upside, we can sell before buying so we don't need a bridge loan. Without the high interest bridge loan, delays in building are less impactful. Time will tell how well this all works.

Thanks,

Jack

It sounds like our next few years are going to be very similar Jack. Same thing sell the house live in the barn with our belongings. I don't know how it is in VA but here last year they changed the septic tank leach bed rules/regs for new country builds and the price tripled. I so hope my wife finds a house in the next year or so that will work for her as our last home instead of building a new one! I would be happy with just putting a nice pond in at the other place and letting the rest of the property turn into habitat projects.

 

[roymunson]

Maybe you should lay-off on the hookers and blow

I've read some horrible advice online, and this is probably the worst.

 

[SD51555]

It's really not that hard, I just have to work to 103.

Sent from my SM-G981U using Tapatalk

What kind of draw rate is he projecting you need? That's $130,000/year if you earn zero and draw it down to zero in 30 years.

I can't get over the obvious conflict of interests between advisors and clients. Advisors win when their clients lose. This environment of nobody being able to earn income is a massive windfall for asset managers. People are going to shovel as much money as they can at these guys, and the worse they do generating income, the more money the advisors make. What if those income rates drop from 1.0% to 0.5%. What does that top line number change to? What if it drops to zero?

Not picking on you Chummer, I just can't stand the position they put guys in.

 

[chummer]

What kind of draw rate is he projecting you need? That's $130,000/year if you earn zero and draw it down to zero in 30 years.

I can't get over the obvious conflict of interests between advisors and clients. Advisors win when their clients lose. This environment of nobody being able to earn income is a massive windfall for asset managers. People are going to shovel as much money as they can at these guys, and the worse they do generating income, the more money the advisors make. What if those income rates drop from 1.0% to 0.5%. What does that top line number change to? What if it drops to zero?

Not picking on you Chummer, I just can't stand the position they put guys in.

I think he off by a lot. My have spent a lot of money since we have been with him on family vacations, camp, land, kids, but I see my expenses going way down in retirement. I think they also plan on you dying with most of your money. I do want to leave a lot to my kids but I also don't see myself making it past 80. I take everything he says with a grain of salt. I work with him so he doesn't charge me for his service but I over rule him about half the time.

Sent from my SM-G981U using Tapatalk

 

[bwoods11]

Anyone else have a goal to live off dividends and other income/social security instead of selling off assets?