In or Near Retirement with Only Six Figures?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Topic Author
GoneOnTilt
Posts: 1841
Joined: Fri Sep 28, 2018 4:59 pm

In or Near Retirement with Only Six Figures?

Post by GoneOnTilt »

I'm wondering how many Bogleheads are near or in retirement with only six figures in savings.

If so, how conservative or aggressive are you? Why? (this is the actionable part of the post).
2b2
Posts: 325
Joined: Sun Sep 28, 2008 7:21 am
Location: Location: Location:

Re: In or Near Retirement with Only Six Figures?

Post by 2b2 »

Depends on what the six figures are.
Depends on other income streams.
Depends on required income in retirement.
Depends,
Depends,
Depends.

2b2
Shallowpockets
Posts: 2533
Joined: Fri Nov 20, 2015 9:26 am

Re: In or Near Retirement with Only Six Figures?

Post by Shallowpockets »

If you have six figures and near retirement, what else can you do? What you have when you retire is what you have. Is the near retirement age enough time to make a difference until retirement? Is that difference significant?
Otherwise it is what it is.
I retired with 6 figures in 2015. Now over 7 figures.

Conservative or aggressive? I am at 70/30. That’s what I have more or less been all along.
Small Savanna
Posts: 427
Joined: Sat Feb 09, 2019 1:27 am

Re: In or Near Retirement with Only Six Figures?

Post by Small Savanna »

Not me, but lots of Americans do it. If you have a modest lifestyle, a paid off mortgage, maybe a pension, and delay retirement until Full Retirement Age then it seems doable. Under those circumstances, it's not clear that your asset allocation would be any different than someone with seven figures.
User avatar
Sandtrap
Posts: 19591
Joined: Sat Nov 26, 2016 5:32 pm
Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.

Re: In or Near Retirement with Only Six Figures?

Post by Sandtrap »

bck63 wrote: Sat Dec 21, 2019 8:07 am I'm wondering how many Bogleheads are near or in retirement with only six figures in savings.

If so, how conservative or aggressive are you? Why? (this is the actionable part of the post).
100,000 or 999,999 ???
Income stream ??
Pension??
SS ??
Debt??
Assets?
Age ??
Single vs. . . ??

Lot's of moving parts with a wide range of actionable financial strategies unique per person.

Would help to edit original post to make it more specific, perhaps as it applies to you?

j
Wiki Bogleheads Wiki: Everything You Need to Know
stoptothink
Posts: 15368
Joined: Fri Dec 31, 2010 8:53 am

Re: In or Near Retirement with Only Six Figures?

Post by stoptothink »

My parents and in-laws (both early 60's) have a combined $0 in retirement, both having health issues which may force them into retirement. There are a lot people who have nothing but SS and many of them will be fine (I think my parents will be, my in-laws are a different story).
smitcat
Posts: 13302
Joined: Mon Nov 07, 2016 9:51 am

Re: In or Near Retirement with Only Six Figures?

Post by smitcat »

2b2 wrote: Sat Dec 21, 2019 8:23 am Depends on what the six figures are.
Depends on other income streams.
Depends on required income in retirement.
Depends,
Depends,
Depends.

2b2
Exactly....
User avatar
Cubicle
Posts: 1027
Joined: Sun Sep 22, 2019 1:43 am

Re: In or Near Retirement with Only Six Figures?

Post by Cubicle »

Depends on expenses, spending. $100,000 or $999,999.
$1 saved = >$1 earned. ✓
awval999
Posts: 1318
Joined: Fri Apr 08, 2011 10:17 pm

Re: In or Near Retirement with Only Six Figures?

Post by awval999 »

My father will retire at 62. My mother has been a stay at home spouse for decades.
They will have approximately $400,000 to bridge them to 70 where they would take maxed out SS and spousal 1/2 SS.
Paid off house in LCOL as well as brand new automobile paid off. $36,000/year in expenses is luxurious for them, likely will be less.
It's all about expectations and how you've lived prior to retirement. They also have $250,000 in home equity that they could use to downsize or use for end of life care.
It's probably not good enough for the Boglehead that wants a 99.9% chance of success after two black swans and 10 years of dementia care in the most exclusive nursing home in the Bay Area, but it's enough for them.
rixer
Posts: 758
Joined: Tue Sep 11, 2012 4:18 pm

Re: In or Near Retirement with Only Six Figures?

Post by rixer »

I retired for almost 7 years now with a 6 figure portfolio. In California, no pension, just SS for the wife and I. The house is paid off, no car payments, we don't carry debt and we are invested conservatively in a lifestrategy fund 40/60. We have never lived so well.
:sharebeer
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: In or Near Retirement with Only Six Figures?

Post by dbr »

A general answer to your question is that asset allocation does not have a large effect on how well you can fund expenses once in retirement. The risks of high stock allocations while withdrawing money offset the gains from higher returns.

The important things are what are the other sources of income and being happy with what you can have. That part is the same at all levels of wealth.
User avatar
Watty
Posts: 28860
Joined: Wed Oct 10, 2007 3:55 pm

Re: In or Near Retirement with Only Six Figures?

Post by Watty »

bck63 wrote: Sat Dec 21, 2019 8:07 am I'm wondering how many Bogleheads are near or in retirement with only six figures in savings.
Lots of people "only" have a six figure portfolio when they retire so it is possible to do just fine.

"Six figure" is pretty vague but if you are talking mid six figures, a paid off house, and Social Security there are a lot of ways to make it work especially if you do not live in a high cost of living area.

This post is four years old but here is my "Can I retire?" thread where I outlined my situation.

viewtopic.php?f=1&t=167664

I did retire and the finances are doing well but I have to admit that part of that is luck since the "sequence of returns risk" has worked out in my favor since my investments have done will over the last four years.
bck63 wrote: Sat Dec 21, 2019 8:07 am If so, how conservative or aggressive are you? Why? (this is the actionable part of the post).
I have some money invested very conservatively to pay for expenses for the next few years until I get on Medicare and Social Security.

The rest I just have invested in a Target Date 2015 fund since I retired in 2015.

At least for me having a paid off house seems to be a key factor. With a paid off house it does not have to cost all that much to keep food on the table and a roof over our head.
User avatar
David Jay
Posts: 14586
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: In or Near Retirement with Only Six Figures?

Post by David Jay »

I retired early (age 62) with a high six-figure portfolio.

The question is not really how much money you have but your expenses. Our LCOL area will allow us to completely meet all our regular expenses from Social Security at age 70, so we need enough to cover expenses to age 70 and then a buffer to meet irregular expenses after age 70.

I was aggressive during my work years, went conservative (45/55) at retirement and my allocation is rising as I spend cash/bonds on living expenses. I expect to end up about 60/40 at age 70.

[p.s.] There are quite a few moderate income folks here, you just don’t hear from them because they don’t do humble-brag threads: “I only have 10 million, can I afford to retire?”. Check out this thread: viewtopic.php?t=215469
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
iamblessed
Posts: 1808
Joined: Sat Jun 09, 2018 11:52 am
Location: St. Louis

Re: In or Near Retirement with Only Six Figures?

Post by iamblessed »

2b2 wrote: Sat Dec 21, 2019 8:23 am Depends on what the six figures are.
Depends on other income streams.
Depends on required income in retirement.
Depends,
Depends,
Depends.

2b2

Very true some folks on this forum have a 5k a month pension. If I had that today I could retire without owning anything. I would have no need to save money.
Twinsfan10
Posts: 54
Joined: Wed Jun 26, 2019 12:22 pm

Re: In or Near Retirement with Only Six Figures?

Post by Twinsfan10 »

A $5,000 a month pension is approximately equal to 1.5 million in a IRA. A lot of us do not have pensions so you need to take that into account.
retire57
Posts: 735
Joined: Fri Oct 28, 2016 3:03 pm

Re: In or Near Retirement with Only Six Figures?

Post by retire57 »

Twinsfan10 wrote: Sat Dec 21, 2019 11:21 am A $5,000 a month pension is approximately equal to 1.5 million in a IRA. A lot of us do not have pensions so you need to take that into account.
How do you calculate that?
Nicolas
Posts: 4923
Joined: Wed Aug 22, 2012 7:41 am

Re: In or Near Retirement with Only Six Figures?

Post by Nicolas »

retire57 wrote: Sat Dec 21, 2019 11:43 am
Twinsfan10 wrote: Sat Dec 21, 2019 11:21 am A $5,000 a month pension is approximately equal to 1.5 million in a IRA. A lot of us do not have pensions so you need to take that into account.
How do you calculate that?
Multiply by 25 and use the 4% withdrawal rule.
Last edited by Nicolas on Sat Dec 21, 2019 11:59 am, edited 1 time in total.
Twinsfan10
Posts: 54
Joined: Wed Jun 26, 2019 12:22 pm

Re: In or Near Retirement with Only Six Figures?

Post by Twinsfan10 »

60,000 dollar a year pension is approximately equal to 1.5 million IRA with 4% withdraw rate. 4% is what you can probably withdraw per year for 30 years and not run out of money. So if you have a 60,000 per year pension you could add 1.5 million dollars as a phantom entry into your net worth.
jmk
Posts: 643
Joined: Tue Nov 01, 2011 7:48 pm

Re: In or Near Retirement with Only Six Figures?

Post by jmk »

bck63 wrote: Sat Dec 21, 2019 8:07 am I'm wondering how many Bogleheads are near or in retirement with only six figures in savings.

If so, how conservative or aggressive are you? Why? (this is the actionable part of the post).
That's me. Well, actually going to retire with low seven figures but probability of that dropping to six figures after the next crash. The key is my net funding needs (beyond pension and social security) till I die are estimated to also be in the six figures.
jmk
Posts: 643
Joined: Tue Nov 01, 2011 7:48 pm

Re: In or Near Retirement with Only Six Figures?

Post by jmk »

retire57 wrote: Sat Dec 21, 2019 11:43 am
Twinsfan10 wrote: Sat Dec 21, 2019 11:21 am A $5,000 a month pension is approximately equal to 1.5 million in a IRA. A lot of us do not have pensions so you need to take that into account.
How do you calculate that?
=FV(0.5%/12, 25*12 ,$5000, 0, 0)
02nz
Posts: 10508
Joined: Wed Feb 21, 2018 2:17 pm

Re: In or Near Retirement with Only Six Figures?

Post by 02nz »

Nicolas wrote: Sat Dec 21, 2019 11:53 am
retire57 wrote: Sat Dec 21, 2019 11:43 am
Twinsfan10 wrote: Sat Dec 21, 2019 11:21 am A $5,000 a month pension is approximately equal to 1.5 million in a IRA. A lot of us do not have pensions so you need to take that into account.
How do you calculate that?
Multiply by 25 and use the 4% withdrawal rule.
Or use immediateannuities.com or similar to get a quote on an SPIA, which is more comparable as you're basically "buying a pension" with an SPIA. The 4% "safe" withdrawal rate is designed not to deplete the portfolio. Generally if you plug in a retirement age of 65 or so and the portfolio size, you'll get a much larger monthly payout from an SPIA than if you use 4%.
almostretired1965
Posts: 497
Joined: Mon Nov 13, 2017 1:02 pm

Re: In or Near Retirement with Only Six Figures?

Post by almostretired1965 »

My opinion, from observing my parents is that if you have total assets (including home, retirement assets, etc.) of around $400K or above and social security (and other pensions) annually of $30K or so per year, you can have a comfortable live style in retirement even in a HCOL (say metro DC or even Seattle) area. The key is that you need to be able to live independently or somewhat independently with help from family/friends. All bets are off if your health deteriorates and one or both need to move into a nursing home. That is what will kill your nest egg.

For my parents, my sister and I are the back stops if this scenario arises.
retire57
Posts: 735
Joined: Fri Oct 28, 2016 3:03 pm

Re: In or Near Retirement with Only Six Figures?

Post by retire57 »

Twinsfan10 wrote: Sat Dec 21, 2019 11:57 am 60,000 dollar a year pension is approximately equal to 1.5 million IRA with 4% withdraw rate. 4% is what you can probably withdraw per year for 30 years and not run out of money. So if you have a 60,000 per year pension you could add 1.5 million dollars as a phantom entry into your net worth.
Excellent! Thanks!
Ferdinand2014
Posts: 2390
Joined: Mon Dec 17, 2018 5:49 pm

Re: In or Near Retirement with Only Six Figures?

Post by Ferdinand2014 »

bck63 wrote: Sat Dec 21, 2019 8:07 am I'm wondering how many Bogleheads are near or in retirement with only six figures in savings.

If so, how conservative or aggressive are you? Why? (this is the actionable part of the post).
My in-laws had 129,000 saved at retirement. No debt. State pension and SS combined about 4,000/month. They are very frugal and live in a VLCOL area. Their life style is unchanged since retirement. They had sold out right at the bottom of the GFC and put everything into a stable value fund for the next 10 years. Kinda sad really. I helped them to manage the limited resources at retirement and opened a rollover IRA at Fidelity. 35% TSM and 65% intermediate treasury bond fund. They started at 129,000 a year ago, spent 11,000 and have 134,000 currently. The 11,000 was to purchase a vehicle. Their monthly expenses are met by SS/Pension. The IRA is for big expenses and fun money only.
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett
Trader Joe
Posts: 2697
Joined: Fri Apr 25, 2014 6:38 pm

Re: In or Near Retirement with Only Six Figures?

Post by Trader Joe »

bck63 wrote: Sat Dec 21, 2019 8:07 am I'm wondering how many Bogleheads are near or in retirement with only six figures in savings.

If so, how conservative or aggressive are you? Why? (this is the actionable part of the post).
For myself, I am way, way beyond "six figures". I am 100% invested in either VFIAX or VTSAX - for my beneficiaries.

This is generational wealth transfer.
bradinsky
Posts: 2295
Joined: Sat Jul 21, 2018 6:32 am
Location: Ohio

Re: In or Near Retirement with Only Six Figures?

Post by bradinsky »

Trader Joe wrote: Sat Dec 21, 2019 7:13 pm
bck63 wrote: Sat Dec 21, 2019 8:07 am I'm wondering how many Bogleheads are near or in retirement with only six figures in savings.

If so, how conservative or aggressive are you? Why? (this is the actionable part of the post).
For myself, I am way, way beyond "six figures". I am 100% invested in either VFIAX or VTSAX - for my beneficiaries.

This is generational wealth transfer.
Bragging?
rockthisworld
Posts: 347
Joined: Wed Oct 17, 2018 9:37 am

Re: In or Near Retirement with Only Six Figures?

Post by rockthisworld »

I think for me it depends on the status of social security in terms of having a low to mid six figure retirement in today’s dollars. My retirement projection is that for my full retirement age will be probably around 70. Plug in numbers then revisit every year to see where you are on that path.
DorothyB
Posts: 113
Joined: Wed Oct 17, 2012 6:17 pm

Re: In or Near Retirement with Only Six Figures?

Post by DorothyB »

I retired a few months before turning 57, so no soc sec for me for a while.

My retirement savings was a little under $900K. (a little under $800K if you exclude the Roth IRA which I plan to use as Long Term Care waiting period and truck replacement, not technically retirement savings)

As others have said, a lot depends on expenses (mine are relatively high even though my house is paid off. I still have property taxes of over $5K in 2015. I also have horses.) and other sources of income. I received severance pay. I get a relatively small pension payment each month. In addition, beginning at age 60, I have been receiving survivor benefits from my ex-husband's soc sec (less than 1/4 of what I will receive on my own soc sec when I turn 70).

How conservative or aggressive am I? I think moderately aggressive. I have a pretty high threshold for market volatility. I keep what I think I will need to withdraw from my retirement by selling equity funds for the next four years (est expenses less pension less soc sec less retirement fund dividends which go to money market less interest income) in "safer" places (some is in the IRA in money market fund, some has been withdrawn and invested in I-bonds, etc). This will allow me to go through the first 4 years of a market down cycle without having to sell funds when they are down. The only bonds I have are those that are in my Wellington fund (30% of IRA).
Last edited by DorothyB on Sat Dec 21, 2019 9:53 pm, edited 1 time in total.
User avatar
Wiggums
Posts: 7051
Joined: Thu Jan 31, 2019 7:02 am

Re: In or Near Retirement with Only Six Figures?

Post by Wiggums »

Conservative or aggressive? I am at 70/30 with good cash flow. Normally 40/60 to 60/40 might be more acceptable. My wife is still working.

As mentioned earlier, your retirement expenses and sources of Retirement income are unknown to us.
"I started with nothing and I still have most of it left."
User avatar
LilyFleur
Posts: 3499
Joined: Fri Mar 02, 2018 9:36 pm

Re: In or Near Retirement with Only Six Figures?

Post by LilyFleur »

DorothyB wrote: Sat Dec 21, 2019 9:47 pm I retired a few months before turning 57, so no soc sec for me for a while.

My retirement savings was a little under $900K. (a little under $800K if you exclude the Roth IRA which I plan to use as Long Term Care waiting period and truck replacement, not technically retirement savings)

As others have said, a lot depends on expenses (mine are relatively high even though my house is paid off. I still have property taxes of over $5K in 2015. I also have horses.) and other sources of income. I received severance pay. I get a relatively small pension payment each month. In addition, beginning at age 60, I have been receiving survivor benefits from my ex-husband's soc sec (less than 1/4 of what I will receive on my own soc sec when I turn 70).

How conservative or aggressive am I? I think moderately aggressive. I have a pretty high threshold for market volatility. I keep what I think I will need to withdraw from my retirement by selling equity funds for the next four years (est expenses less pension less soc sec less retirement fund dividends which go to money market less interest income) in "safer" places (some is in the IRA in money market fund, some has been withdrawn and invested in I-bonds, etc). This will allow me to go through the first 4 years of a market down cycle without having to sell funds when they are down. The only bonds I have are those that are in my Wellington fund (30% of IRA).
In a year that you have to pay long term care costs while waiting for your LTC insurance to kick in... a lot of Bogleheads suggest paying LTC costs with a regular (not Roth) IRA as your taxes will be likely quite low due to your high medical expenses that year.
3504PIR
Posts: 979
Joined: Mon Jul 26, 2010 2:46 am

Re: In or Near Retirement with Only Six Figures?

Post by 3504PIR »

Retired this past August at 56. Am at about 50/50.
dru808
Posts: 1662
Joined: Sat Oct 15, 2011 2:42 pm
Location: mid pac

Re: In or Near Retirement with Only Six Figures?

Post by dru808 »

6 figures is a wide range. I’d be just fine if I was 65 tomorrow with a $999,999 portfolio
1 fund
Topic Author
GoneOnTilt
Posts: 1841
Joined: Fri Sep 28, 2018 4:59 pm

Re: In or Near Retirement with Only Six Figures?

Post by GoneOnTilt »

OP here. I should have added more info. I if I retire at 65 I will have social security of about $24,000 a year. My wife will have the same, plus a pension of about $35,000/year. We are a second marriage and although what's mine is hers and vice-versa, I want to make sure I bring enough to the table to share expenses equally. Our current expenses are $66,000. We expect the house to easily be paid off by the time we retire. A conservative estimate is that I will have in the range of $650,000 at retirement. If returns are anything like the past (I don't plan on them being so), my nest egg will be larger.

I was just wondering if there were others on the Bogleheads site who are in that range (less than $1 million) at or near retirement.
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: In or Near Retirement with Only Six Figures?

Post by dbr »

bck63 wrote: Sun Dec 22, 2019 10:55 am OP here. I should have added more info. I if I retire at 65 I will have social security of about $24,000 a year. My wife will have the same, plus a pension of about $35,000/year. We are a second marriage and although what's mine is hers and vice-versa, I want to make sure I bring enough to the table to share expenses equally. Our current expenses are $66,000. We expect the house to easily be paid off by the time we retire. A conservative estimate is that I will have in the range of $650,000 at retirement. If returns are anything like the past (I don't plan on them being so), my nest egg will be larger.

I was just wondering if there were others on the Bogleheads site who are in that range (less than $1 million) at or near retirement.
Of course there are. But the actual answer to your question is should you expect to be able to fund your spending. Also you have a question whether you can contribute an amount equal to your wife. So, the question is how much can you spend from your portfolio. The standard approximate rule of thumb for this kind of estimating is 4% of the initial portfolio value increased each year by inflation and good for 30 years. So 4% of $650,000 is $26,300. Because you both have income of more than half of $66,000, you can each contribute equally and save the rest to grow and give to someone else.
User avatar
Wiggums
Posts: 7051
Joined: Thu Jan 31, 2019 7:02 am

Re: In or Near Retirement with Only Six Figures?

Post by Wiggums »

dbr wrote: Sun Dec 22, 2019 11:04 am
bck63 wrote: Sun Dec 22, 2019 10:55 am OP here. I should have added more info. I if I retire at 65 I will have social security of about $24,000 a year. My wife will have the same, plus a pension of about $35,000/year. We are a second marriage and although what's mine is hers and vice-versa, I want to make sure I bring enough to the table to share expenses equally. Our current expenses are $66,000. We expect the house to easily be paid off by the time we retire. A conservative estimate is that I will have in the range of $650,000 at retirement. If returns are anything like the past (I don't plan on them being so), my nest egg will be larger.

I was just wondering if there were others on the Bogleheads site who are in that range (less than $1 million) at or near retirement.
Of course there are. But the actual answer to your question is should you expect to be able to fund your spending. Also you have a question whether you can contribute an amount equal to your wife. So, the question is how much can you spend from your portfolio. The standard approximate rule of thumb for this kind of estimating is 4% of the initial portfolio value increased each year by inflation and good for 30 years. So 4% of $650,000 is $26,300. Because you both have income of more than half of $66,000, you can each contribute equally and save the rest to grow and give to someone else.
Thanks for the additional information. My immediate family has significantly less money and more marriages! It sounds like you have enough to meet your annual needs which is critical as well as contribute equally. I’ve never been divorced, but it’s nice to hear you say “what's mine is hers and vice-versa”. this is not a criticism of anyone who has been through a very difficult divorce.
"I started with nothing and I still have most of it left."
jsprag
Posts: 243
Joined: Sun Nov 26, 2017 10:25 am

Re: In or Near Retirement with Only Six Figures?

Post by jsprag »

bradinsky wrote: Sat Dec 21, 2019 7:22 pm
Trader Joe wrote: Sat Dec 21, 2019 7:13 pm
bck63 wrote: Sat Dec 21, 2019 8:07 am I'm wondering how many Bogleheads are near or in retirement with only six figures in savings.

If so, how conservative or aggressive are you? Why? (this is the actionable part of the post).
For myself, I am way, way beyond "six figures". I am 100% invested in either VFIAX or VTSAX - for my beneficiaries.

This is generational wealth transfer.
Bragging?
I’m surprised there aren’t more people in his situation. I have two retirement accounts currently at six figures each. That’s a total of twelve figures right there!

After the new year, I plan on shifting things around to have four accounts of five figures each, bringing me up to twenty figures. I only have two children, so they’ll each stand to get ten figures. Needless to say, they’ll never have to work a day in their lives if they don’t want to.

My goal with a few more years of savings is to work up to ten accounts @ three figures each. With those 30 figures I could still leave 10 to each child, plus set up a very nice endowment with the remaining 10.

It was slow going at first, but things really took off once I also started counting the figures to the right of the decimal point.
radiowave
Posts: 3352
Joined: Thu Apr 30, 2015 5:01 pm

Re: In or Near Retirement with Only Six Figures?

Post by radiowave »

bck63 wrote: Sun Dec 22, 2019 10:55 am OP here. I should have added more info. I if I retire at 65 I will have social security of about $24,000 a year. My wife will have the same, plus a pension of about $35,000/year. We are a second marriage and although what's mine is hers and vice-versa, I want to make sure I bring enough to the table to share expenses equally. Our current expenses are $66,000. We expect the house to easily be paid off by the time we retire. A conservative estimate is that I will have in the range of $650,000 at retirement. If returns are anything like the past (I don't plan on them being so), my nest egg will be larger.

I was just wondering if there were others on the Bogleheads site who are in that range (less than $1 million) at or near retirement.
OP, you will have $83k income from all sources and $66k expenses or a surplus of $17k/yr. So your portfolio is primarily for discretionary, long term care, medical, or inheritance purposes. The market is not a major concern from an annual budget standpoint. You can be as aggressive as you feel comfortable without a direct impact on your quality of life if the market decreases. Think of your "nest egg" from a long term perspective over decades.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
smitcat
Posts: 13302
Joined: Mon Nov 07, 2016 9:51 am

Re: In or Near Retirement with Only Six Figures?

Post by smitcat »

bradinsky wrote: Sat Dec 21, 2019 7:22 pm
Trader Joe wrote: Sat Dec 21, 2019 7:13 pm
bck63 wrote: Sat Dec 21, 2019 8:07 am I'm wondering how many Bogleheads are near or in retirement with only six figures in savings.

If so, how conservative or aggressive are you? Why? (this is the actionable part of the post).
For myself, I am way, way beyond "six figures". I am 100% invested in either VFIAX or VTSAX - for my beneficiaries.

This is generational wealth transfer.
Bragging?
"Bragging?"
Sounds like someone sharing a potential valuable strategy to me.
Topic Author
GoneOnTilt
Posts: 1841
Joined: Fri Sep 28, 2018 4:59 pm

Re: In or Near Retirement with Only Six Figures?

Post by GoneOnTilt »

jsprag wrote: Sun Dec 22, 2019 11:24 am
bradinsky wrote: Sat Dec 21, 2019 7:22 pm
Trader Joe wrote: Sat Dec 21, 2019 7:13 pm
bck63 wrote: Sat Dec 21, 2019 8:07 am I'm wondering how many Bogleheads are near or in retirement with only six figures in savings.

If so, how conservative or aggressive are you? Why? (this is the actionable part of the post).
For myself, I am way, way beyond "six figures". I am 100% invested in either VFIAX or VTSAX - for my beneficiaries.

This is generational wealth transfer.
Bragging?
I’m surprised there aren’t more people in his situation. I have two retirement accounts currently at six figures each. That’s a total of twelve figures right there!

After the new year, I plan on shifting things around to have four accounts of five figures each, bringing me up to twenty figures. I only have two children, so they’ll each stand to get ten figures. Needless to say, they’ll never have to work a day in their lives if they don’t want to.

My goal with a few more years of savings is to work up to ten accounts @ three figures each. With those 30 figures I could still leave 10 to each child, plus set up a very nice endowment with the remaining 10.

It was slow going at first, but things really took off once I also started counting the figures to the right of the decimal point.
HA!! That was a good laugh. Thank you. And don't get greedy. 20 figures is plenty. 30 really isn't necessary.
User avatar
MJS
Posts: 1312
Joined: Sat Aug 05, 2017 10:55 pm

Re: In or Near Retirement with Only Six Figures?

Post by MJS »

bck63 wrote: Sun Dec 22, 2019 10:55 am ... If I retire at 65 I will have social security of about $24,000 a year. My wife will have the same, plus a pension of about $35,000/year.
You two seem to be doing very well, so some next steps are:
1. Run Open Social Security (created by another Boglehead) together, https://opensocialsecurity.com/ , to maximize your family's best SS strategy. Check the Advanced Options box to get some interesting variations.
2. Investigate Roth conversions between retirement and Social Security.
3. Enjoy!
Ipsa scientia potestas est. Bacon F.
User avatar
HomerJ
Posts: 21281
Joined: Fri Jun 06, 2008 12:50 pm

Re: In or Near Retirement with Only Six Figures?

Post by HomerJ »

Watty wrote: Sat Dec 21, 2019 9:10 amAt least for me having a paid off house seems to be a key factor. With a paid off house it does not have to cost all that much to keep food on the table and a roof over our head.
This is the real key.

In most of the country, a paid-off house with low property taxes is huge.

Food and utilities just don't cost that much.

It's not that hard to live a decent life on $3000/month with a paid-off house.

Once you're old enough to get SS and Medicare, you may barely need to tap your retirement accounts at all. Pulling 4% from a $300,000 nest-egg is a nice extra $1000 a month for luxuries and fun... A thousand dollars a month, every month, just for fun, is nothing to sneeze at.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
teacher
Posts: 1165
Joined: Sun Oct 05, 2008 5:45 pm
Location: California

Re: In or Near Retirement with Only Six Figures?

Post by teacher »

My mother lived for 30+ years on Social Security ($12,500 annual) and a $197 mo. nurse's pension in California. She had $50,000 in savings which she never had to spend. BUT, her little house had no mortgage, she had no car, and she lived a block away from us, so we had daily contact to make sure every need was met. Her long term care needs during the last five years of her life were provided by her family. My perception is retired people can have a quality life on very little if their family has the resources and cares enough to be involved in their well-being.
ncbill
Posts: 2053
Joined: Sun Jul 06, 2008 4:03 pm
Location: Western NC

Re: In or Near Retirement with Only Six Figures?

Post by ncbill »

Pension & health coverage was the key for my father-in-law...now retired for over 25 years.

He was a skilled blue-collar worker which got him a COLA pension & free retiree health care...he complained when he & his wife had to start paying Medicare Part B premiums, though their retiree health care morphed into a free Medigap policy.

I doubt they had more than 5 figures (plus a paid-off home) in savings when they retired.
User avatar
dogagility
Posts: 3237
Joined: Fri Feb 24, 2017 5:41 am

Re: In or Near Retirement with Only Six Figures?

Post by dogagility »

awval999 wrote: Sat Dec 21, 2019 8:56 am My father will retire at 62. My mother has been a stay at home spouse for decades.
They will have approximately $400,000 to bridge them to 70 where they would take maxed out SS and spousal 1/2 SS.
Paid off house in LCOL as well as brand new automobile paid off. $36,000/year in expenses is luxurious for them, likely will be less.
It's all about expectations and how you've lived prior to retirement. They also have $250,000 in home equity that they could use to downsize or use for end of life care.
It's probably not good enough for the Boglehead that wants a 99.9% chance of success after two black swans and 10 years of dementia care in the most exclusive nursing home in the Bay Area, but it's enough for them.
Couldn't have said it better. :beer
Make sure you check out my list of certifications. The list is short, and there aren't any. - Eric 0. from SMA
metacritic
Posts: 413
Joined: Fri Oct 05, 2007 12:58 pm

Re: In or Near Retirement with Only Six Figures?

Post by metacritic »

Post of the decade. What a decade it has been -- and you win with just 10 days left. Amazing.
jsprag wrote: Sun Dec 22, 2019 11:24 am
bradinsky wrote: Sat Dec 21, 2019 7:22 pm
Trader Joe wrote: Sat Dec 21, 2019 7:13 pm
bck63 wrote: Sat Dec 21, 2019 8:07 am I'm wondering how many Bogleheads are near or in retirement with only six figures in savings.

If so, how conservative or aggressive are you? Why? (this is the actionable part of the post).
For myself, I am way, way beyond "six figures". I am 100% invested in either VFIAX or VTSAX - for my beneficiaries.

This is generational wealth transfer.
Bragging?
I’m surprised there aren’t more people in his situation. I have two retirement accounts currently at six figures each. That’s a total of twelve figures right there!

After the new year, I plan on shifting things around to have four accounts of five figures each, bringing me up to twenty figures. I only have two children, so they’ll each stand to get ten figures. Needless to say, they’ll never have to work a day in their lives if they don’t want to.

My goal with a few more years of savings is to work up to ten accounts @ three figures each. With those 30 figures I could still leave 10 to each child, plus set up a very nice endowment with the remaining 10.

It was slow going at first, but things really took off once I also started counting the figures to the right of the decimal point.
User avatar
mhadden1
Posts: 958
Joined: Tue Mar 25, 2014 8:14 pm
Location: North Alabama

Re: In or Near Retirement with Only Six Figures?

Post by mhadden1 »

Shallowpockets wrote: Sat Dec 21, 2019 8:29 am I retired with 6 figures in 2015. Now over 7 figures.

Conservative or aggressive? I am at 70/30. That’s what I have more or less been all along.
Virtually the same script for me.
Retired 12/31/2015
User avatar
Watty
Posts: 28860
Joined: Wed Oct 10, 2007 3:55 pm

Re: In or Near Retirement with Only Six Figures?

Post by Watty »

bradinsky wrote: Sat Dec 21, 2019 7:22 pm
Trader Joe wrote: Sat Dec 21, 2019 7:13 pm
bck63 wrote: Sat Dec 21, 2019 8:07 am I'm wondering how many Bogleheads are near or in retirement with only six figures in savings.

If so, how conservative or aggressive are you? Why? (this is the actionable part of the post).
For myself, I am way, way beyond "six figures". I am 100% invested in either VFIAX or VTSAX - for my beneficiaries.

This is generational wealth transfer.
Bragging?
My condolences, you could have likely retired ten or more years ago.

Unless you have a difficult situation like with a disabled child then paying more than to get a kid through college without any debt and getting them launched can be counterproductive.

It has been a while since I read it but in the book "The Millionaire Next Door" the author referred to this as Economic Outpatient Care.

https://en.wikipedia.org/wiki/The_Milli ... tient_Care

A likely outcome is that instead of you retiring early and enjoying your time is that your kids will retire early once they receive their inheritance.

Generational wealth rarely lasts more than a generation or two so you may also want to have the money tightly controlled by a trust if you want it to last a long time.

You might want to read that book.
retire57
Posts: 735
Joined: Fri Oct 28, 2016 3:03 pm

Re: In or Near Retirement with Only Six Figures?

Post by retire57 »

bck63 wrote: Sun Dec 22, 2019 10:55 am OP here. I should have added more info. I if I retire at 65 I will have social security of about $24,000 a year. My wife will have the same, plus a pension of about $35,000/year. We are a second marriage and although what's mine is hers and vice-versa, I want to make sure I bring enough to the table to share expenses equally. Our current expenses are $66,000. We expect the house to easily be paid off by the time we retire. A conservative estimate is that I will have in the range of $650,000 at retirement. If returns are anything like the past (I don't plan on them being so), my nest egg will be larger.

I was just wondering if there were others on the Bogleheads site who are in that range (less than $1 million) at or near retirement.
We were very close to where you are now upon retirement 4 years ago. The key is no mortgage (or any other debt for that matter). We are now in low 7 figure territory, withdrawing 1%, and very comfortable at 50/50 AA.
jhawktx
Posts: 442
Joined: Thu May 19, 2011 8:15 am

Re: In or Near Retirement with Only Six Figures?

Post by jhawktx »

Huge difference between having $100,00 and having $999,999
02nz
Posts: 10508
Joined: Wed Feb 21, 2018 2:17 pm

Re: In or Near Retirement with Only Six Figures?

Post by 02nz »

jhawktx wrote: Sun Dec 22, 2019 3:52 pm Huge difference between having $100,00 and having $999,999
Pretty significant difference between 10,000 and 100,000, too. :P
Post Reply