Yeah the fire subreddit heading is something like "build the life you want, then save for it" but it's full of people who hated their job so much they would rather live under a bridge. Fatfire is really more like "comfortable/safe fire" these days, i think the technical guideline for that subreddit is like 100k in passive income

I'm 48 so definitely thinking more and more about retirement for my wife and I.

We both work and our household income is in the top 5-10 percentile, so definitely comfortable and very fortunate but not "rich". My only goal would be to maintain our lifestyle, we have what I consider a nice house but we bought 15 years ago and could afford quite a bit more - staying in what we have is part of the retirement plan.

I've always maintained a spreadsheet, since I was 23 and first out of college, that tracks my savings and estimates of retirement income needed, as well as latest social security estimates (and a hundred other things). I am very conservative in the rates of returns I use to estimate the future and in the growth of any current SS estimates (in fact, I assume like 70% of what is predicted by MYSSA). After this latest run up, it would appear both my wife and I could retire when we are 60 (she is three years younger). We'd then have two years of paying for my insurance prior to medicare and 5 years for her. Even if I put in a 20% drop in our 401K and other retirement savings, due to an upcoming bubble pop, we should be able to make this work. There are some conservatively estimated inheritances from parents also included in the estimate, which could prove to be a mistake. If either set of parents donated it all to charity it wouldn't bother me personally, but it would throw off my retirement estimate a bit. If we have around 2.3 saved when I hit 60, it would seem we will be good.

I am aware that I am ENTIRELY dependent on the stock market however - if my overall returns (including dividends, not considering inflation) are 6% before retirement and 5% after, we are no question good. 5 and 4 %, respectively, would be tight.

I estimate around $1700 a month for medical stuff in retirement - obviously if some massive health care cost cropped up when I was 61 it could blow things up. Always safest to work as long as possible I guess, trying to predict rates of return or inheritances or SS or medical costs or a dozen other variables could be a fool's game.

drill4oil78 said:

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I retired at 62 and one thing people seem to forget is medical insurance before Medicare kicks in. You better figure a big part of your budget on medical insurance for you, wife, and family. It is a big expense until you are 65. I pay over $12000 a year for my wife's insurance and it sucks. That does not count the deductibles I pay every year. I turn 65 this year and my Medicare cost + supplements is around $5000-$7500 a year. It can be more or less depending on what your income was the previous year, but a lot cheaper than what you pay for Obamacare.

Just remember one thing ... spend your kids inheritance ... If you don't they certainly will.

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Yep, good point. My parents (small business owners) paid about that for healthcare as well until they hit Medicare age. Lot of corporate types don't understand how expensive healthcare is outside those walls. Parent's paying $1,000 per month vs the $50 we pay is quite the sticker shock.

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I estimate around $1700 a month for medical stuff in retirement

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If that number includes health insurance until Medicare kicks in, it is significantly underestimated. Premiums can easily be $2,000 per month per person (depending on catastrophic only or full coverage), and you've got plenty of time for that to increase before you retire.

Medical Insurance is the main reason I'm still working at 61. My company allows you to stay on the employee insurance at employee rates if you make it to 62 before retiring. Iv'e always figured on $2,000 per month for med insurance for me and my wife from retirement until I'm 65 so based on that number it would save me over $1,500 a month to wait until I'm 62 to retire . One thing I haven't really worked out though is how much my wife's insurance will cost after I go on Medicare since she's 3-1/2 yrs younger than me.

SPF250 said:

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Quote:

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I estimate around $1700 a month for medical stuff in retirement

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If that number includes health insurance until Medicare kicks in, it is significantly underestimated. Premiums can easily be $2,000 per month per person (depending on catastrophic only or full coverage), and you've got plenty of time for that to increase before you retire.

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Appreciate the note - we will have 3 years of this cost for my wife. My $1700 a month is a monthly estimate for both of us combined from my age 63 through to age 100, to see if we ever would run out of money. The $1700 is an estimate in today's dollars and an inflation rate of 2% is estimated for our overall expenses per year - so it is more than $1700 for future calculations.

I'll bump that number of at least for those in between years for my wife.

Cyp0111 said:

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The rate at which healthcare is going and the likely continued shift left in this country has to put some form of universal healthcare up for a serious debate.

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Yes, but the tax bracket for folks on this thread are likely to be the ones who simply shift the cost burden from out of pocket to an insurance company to out of pocket to the government via taxes and then get inferior healthcare to boot.

Not sure if it will be direct cost savings or not until we see the plan.

I pretty much assume that I won't get social security since all my goals are centered around dates 10-25 years before I'll be eligible. I need to be self-sufficient to make it that far anyway.

I don't see the point of making specific plans for healthcare, tax structure, and welfare programs because it's all going to change several times over the next 20 years and it's out of my control. Obviously that changes for people who are in the "end game", eg much closer to retiring.

The levers I can control are savings and the return I get on my savings. How long I work depends on a bunch of things, including healthcare, tax regimes, and whether one of my hobbies turns into a money-making endeavor when I have more time to devote to it.