Conundrum - When to retire? How much money is enough?

[wamberal]

I agree with the poster who suggested that it is a good idea to work for as long as you reasonably can. A male in good health at the age of 60 can expect to live into his late eighties.

Maybe it is because I grew up in a relatively poor household, but I have always had an absolute horror of not having enough money. My wife and I now have a share portfolio which earns more in dividends than we can spend every year, and that includes an occasional overseas trip at the pointy end, and a new car every few years - the latest is a Benz C250 Coupe.

We are probably at the high end of the bell curve, but frankly, I worked hard to be where we are, and I would not like to be anywhere else, in monetary terms, that is.

Make sure you have growth investments, that would be the single best piece of advice I could give anybody. Fixed interest is a hopeless long term strategy.

[IsaanUSA]

First, I did some calculations and approximately up to age 85 or so, it's a bit of a wash as to whether to take SSI at 62 or 67 (based on drawing on pension and 401k). It's close enough that the risk would be worth it to me to draw at 62. I'm risking I won't make it to 90. If I wait to 67, and tap my 401k instead of SSI at 62, I come out a little behind if I waited to 67 and drew SSI to 85.

Retiring at 56...

However, at 59...

In fact, waiting to 59...

I suppose I'm suffering from a bit of a mid-life crisis and I need to get over it and accept where I am in life.

First you say you don't think you'll make it to 90, and then you say you suppose you will live to 100+. Confusing.

In your situation, it sounds like saving up for a couple more years would really help, but set a date and stick with it. Don't get stuck in the "just a few more years" rut. Scary as it seems, eventually you will need to take the plunge.

[donniereadit]

First, I did some calculations and approximately up to age 85 or so, it's a bit of a wash as to whether to take SSI at 62 or 67 (based on drawing on pension and 401k). It's close enough that the risk would be worth it to me to draw at 62. I'm risking I won't make it to 90. If I wait to 67, and tap my 401k instead of SSI at 62, I come out a little behind if I waited to 67 and drew SSI to 85.

Retiring at 56...

However, at 59...

In fact, waiting to 59...

I suppose I'm suffering from a bit of a mid-life crisis and I need to get over it and accept where I am in life.

First you say you don't think you'll make it to 90, and then you say you suppose you will live to 100+. Confusing.

In your situation, it sounds like saving up for a couple more years would really help, but set a date and stick with it. Don't get stuck in the "just a few more years" rut. Scary as it seems, eventually you will need to take the plunge.

Personally, I would not want to be in Thailand over 60. 75 or 80 forget it. This country is not as easy to get along in as say the US.

Riding a motorbike and using non-existent sidewalks would seem ardious at that age.

Not sure how the libido would be, but assuming I was half the man I once was, I may actually prefer to retire back in the US.

[thailiketoo]

First, I did some calculations and approximately up to age 85 or so, it's a bit of a wash as to whether to take SSI at 62 or 67 (based on drawing on pension and 401k). It's close enough that the risk would be worth it to me to draw at 62. I'm risking I won't make it to 90. If I wait to 67, and tap my 401k instead of SSI at 62, I come out a little behind if I waited to 67 and drew SSI to 85.

Retiring at 56...

However, at 59...

In fact, waiting to 59...

I suppose I'm suffering from a bit of a mid-life crisis and I need to get over it and accept where I am in life.

First you say you don't think you'll make it to 90, and then you say you suppose you will live to 100+. Confusing.

In your situation, it sounds like saving up for a couple more years would really help, but set a date and stick with it. Don't get stuck in the "just a few more years" rut. Scary as it seems, eventually you will need to take the plunge.

Personally, I would not want to be in Thailand over 60. 75 or 80 forget it. This country is not as easy to get along in as say the US.

Riding a motorbike and using non-existent sidewalks would seem ardious at that age.

Not sure how the libido would be, but assuming I was half the man I once was, I may actually prefer to retire back in the US.

Visit a nursing home that accepts medicaid patients in the USA. You won't believe it. Better in Thailand.

Edited November 14, 2013 by thailiketoo

[umbanda]

What about if your are lucky and live to be 96? Can you afford to provide yourself and your significant other with a good life for forty more years? That's a long time. Or maybe you're not as lucky and live to 86. That's still thirty years of supporting yourself without a job..

And don't forget the the two things that most people either don't think about ... or don't give realistic attention to:

1- You are most likely going to lose or have to spend significant money along the way that you did not plan on ... and there are dozens of possible scenarios of how that can happen.

2- As the years roll by ... ten years ... and esp. twenty years ... and esp. esp. thirty years from now ... you money will absolutely not have as much buying power as it does today. Think about bread costing $12 or $15 a loaf. Don't believe it? Then spend some time in Goole and see what bread, or milk, or gasoline, etc. cost thirty years ago.

So when you sit down and plan how much money you'll need in the years ahead ... do so with the value of your money in the future and not just with today's money.

When it comes to retirement remember one of Murphy's Laws: It's going to require money than you think it will.

And my advice ... FWIW ... is if you don't hate your job, hang in there for a few more years. Or figure out how to semi-retire and still make some money. And if you're an American, don't take your social security until you're 70 so that you get 100% of what your qualified for.

70???? If you like maths..do this. Look how much is the monthly difference between retiring at 62 or 70. Calculate the total money you will miss receiving from SS during those 8 years. Look in how many years you will need to recovers that money with the difference you will get...and...if you will still alive and healthy to enjoy that difference after....75?.....and more....At 62..and retired...you can live in a cheaper country..or just another country to start a new life....may be.... a lot better life. How many people have that opportunity at 62?.....At 70??...Hummmm..perhaps a better nursing home???