7 ms·

Idk how anyone in the lower 95% can expect to retire unless they have a pension of some sort. 3m retirement is just not practical for most

mixmastamyk 2y ago
Shitsky, that's $120k a year, $10k a month at 4% withdrawal. Plus you'd get SS too? That's nice, but more income than I made over most of my career and hard to get enough work to break that level this year, even after all the inflation.
- tw8345 2y ago
  I think most people would be hard pressed to come up with a mil for 2, so that's only 40k. For 2 people that would not be anywhere close to enough even in the boonies. 120k isnt really that much, assisted living is something like 5-6k here so you need 1.5m to just cover that without other expenses.
  - grecy 2y ago
    I’ve been living on less than $40k a year my entire life. I’ve spent years driving around the world, snowboarding, hiking, camping. I work the least amount possible to make it happen. When my parents were getting close to retirement Dad an I ran the numbers a hundred different ways. I think the experts said they’d need $100k a year, and no matter what we did we couldn’t get it over $60k. Now in retirement it’s less than $50k. I don’t know how people spend so much
    - mixmastamyk 2y ago
      Yeah there’s two different subjects here. Retirement vs. nursing home, the second being a lot more expensive. Difference between a high and low cost county is important as well. Own a home, etc.
    - nothercastle 2y ago
      40k a year does not even cover cost of basic housing in high cost of living areas.
      - mixmastamyk 2y ago
        People don't retire to such areas, and only would stay if they owned a home bought decades ago.
  - yzydserd 2y ago
    > assisted living is something like 5-6k here so you need 1.5m to just cover that without other expenses. For what it is worth, the average person in the US spends about $7,300 per person over a lifetime on nursing homes. Only 32% spend anything. The 95th percentile is $47,000. The median person spent just a week or so in a nursing home. 5% of the population spend more than 4 years in a nursing home. You seem to have costed 20 years. Possibly I don't understand the nature of 'assisted living'. Source: https://www.pnas.org/doi/full/10.1073/pnas.1700618114 https://www.pnas.org/doi/full/10.1073/pnas.1700618114 How much to save for the potential eventuality comes down to your risk profile and appetite. I'm always intrigued by those who on one hand have a very risk-hungry investing approach yet also have a very risk-averse outlook on end of life care. I have a family member who has been in a nursing home for 4 years. I hope they'll last another 4. Essentially, the person was able to trade in their home for this care, and more. I'd say that's a fairly common transaction.
missedthecue 2y ago
you may be out of touch. My parents just retired with $1.6m, zero pensions, and they're still paying a mortgage. They are comfortable and when they get social security in a few years they'll have more than they know what to do with. They saved it all on one income.

mixmastamyk 2y ago

Shitsky, that's $120k a year, $10k a month at 4% withdrawal. Plus you'd get SS too? That's nice, but more income than I made over most of my career and hard to get enough work to break that level this year, even after all the inflation.

tw8345 2y ago
I think most people would be hard pressed to come up with a mil for 2, so that's only 40k. For 2 people that would not be anywhere close to enough even in the boonies. 120k isnt really that much, assisted living is something like 5-6k here so you need 1.5m to just cover that without other expenses.
- grecy 2y ago
  I’ve been living on less than $40k a year my entire life. I’ve spent years driving around the world, snowboarding, hiking, camping. I work the least amount possible to make it happen. When my parents were getting close to retirement Dad an I ran the numbers a hundred different ways. I think the experts said they’d need $100k a year, and no matter what we did we couldn’t get it over $60k. Now in retirement it’s less than $50k. I don’t know how people spend so much
  - mixmastamyk 2y ago
    Yeah there’s two different subjects here. Retirement vs. nursing home, the second being a lot more expensive. Difference between a high and low cost county is important as well. Own a home, etc.
  - nothercastle 2y ago
    40k a year does not even cover cost of basic housing in high cost of living areas.
    - mixmastamyk 2y ago
      People don't retire to such areas, and only would stay if they owned a home bought decades ago.
- yzydserd 2y ago
  > assisted living is something like 5-6k here so you need 1.5m to just cover that without other expenses. For what it is worth, the average person in the US spends about $7,300 per person over a lifetime on nursing homes. Only 32% spend anything. The 95th percentile is $47,000. The median person spent just a week or so in a nursing home. 5% of the population spend more than 4 years in a nursing home. You seem to have costed 20 years. Possibly I don't understand the nature of 'assisted living'. Source: https://www.pnas.org/doi/full/10.1073/pnas.1700618114 https://www.pnas.org/doi/full/10.1073/pnas.1700618114 How much to save for the potential eventuality comes down to your risk profile and appetite. I'm always intrigued by those who on one hand have a very risk-hungry investing approach yet also have a very risk-averse outlook on end of life care. I have a family member who has been in a nursing home for 4 years. I hope they'll last another 4. Essentially, the person was able to trade in their home for this care, and more. I'd say that's a fairly common transaction.

missedthecue 2y ago

you may be out of touch. My parents just retired with $1.6m, zero pensions, and they're still paying a mortgage. They are comfortable and when they get social security in a few years they'll have more than they know what to do with. They saved it all on one income.