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Retirement amount

skramer100

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2 with no kids? Now. Go do what you love and live where you want. You have no dependents. Enjoy life. With kids I’d wonder what you hope to do and what you want to leave. I’m 43 and want about 3 million in cash /stocks with everything owned.
Gonna inherit quite a bit but want to pass that to kids.
 

ChicagoFats

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What's the magic number for two with no kids?

I'm 27 & the wife is 30 with the house already paid off.

Probably a lot more than you think it is. You will lose a lot of purchasing power over the years due to inflation. Official inflation numbers (~2-3%) are bullshit, just look at how much the price of groceries has gone up over the last year or so.

Also, what kind of lifestyle do you want to live? Travelling etc costs money. Taxes and insurance on your house, health insurance. Stock market is at high and valuations are extremely high. Have to think going forward you will get less return than the long term average of ~8%. Life expectancy is growing, you could easily live to be 90.

Sorry to be debbie downer.

$3mm bare minimum is my thought without doing any actual math.
 

skramer100

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Probably a lot more than you think it is. You will lose a lot of purchasing power over the years due to inflation. Official inflation numbers (~2-3%) are bullshit, just look at how much the price of groceries has gone up over the last year or so.

Also, what kind of lifestyle do you want to live? Travelling etc costs money. Taxes and insurance on your house, health insurance. Stock market is at high and valuations are extremely high. Have to think going forward you will get less return than the long term average of ~8%. Life expectancy is growing, you could easily live to be 90.

Sorry to be debbie downer.

$3mm bare minimum is my thought without doing any actual math.
To go off this, working in healthcare and seeing the advancements, be prepared to live until 95-100. I’m 43 and plan on working until 70 with 25-30 years retirement. Probably a bit long but id lose it just sitting at home.
 

Croot_Overlord

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Probably a lot more than you think it is. You will lose a lot of purchasing power over the years due to inflation. Official inflation numbers (~2-3%) are bullshit, just look at how much the price of groceries has gone up over the last year or so.

Also, what kind of lifestyle do you want to live? Travelling etc costs money. Taxes and insurance on your house, health insurance. Stock market is at high and valuations are extremely high. Have to think going forward you will get less return than the long term average of ~8%. Life expectancy is growing, you could easily live to be 90.

Sorry to be debbie downer.

$3mm bare minimum is my thought without doing any actual math.
Yeah once you get realistic with inflation, its a real kick in the nuts
 

America 1st

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Yeah once you get realistic with inflation, its a real kick in the nuts
That's what I'm really trying to figure out. Seems traditional planning is worthless based on the last 15-20 years and want to make sure we are set.

So roughly a mil per person as a basic rule of thumb.
 

ChicagoFats

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To go off this, working in healthcare and seeing the advancements, be prepared to live until 95-100. I’m 43 and plan on working until 70 with 25-30 years retirement. Probably a bit long but id lose it just sitting at home.
I agree with you 100%

What line of healthcare are you in?
 

N. Pappagiorgio

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I think about this quite a bit as I am 58. It’s more about the income you can generate than the total dollar amount. Look to have various investments that generate $x00,000 to $x00,000 per year of income. It should be a combination of investments in mutual funds to self storage units to rental properties. Or other interests or skills you might have accumulated along the way that you can take advantage of.
 

Alpha_Cock

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It depends on how lavishly you plan on living in retirement. It is my goal to live off of 5% interest, so about 3 mil in today's dollars. I'm almost 50, so it will be about 4 mil, unless king hiden keeps giving away money he doesn't have and inflation jumps to 10%.
 

America 1st

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It depends on how lavishly you plan on living in retirement. It is my goal to live off of 5% interest, so about 3 mil in today's dollars. I'm almost 50, so it will be about 4 mil, unless king hiden keeps giving away money he doesn't have and inflation jumps to 10%.
Probably a lot of traveling while we are young then big health expenses later if we make it that far. Not big house people.

 

catfishpunter

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It depends on how lavishly you plan on living in retirement. It is my goal to live off of 5% interest, so about 3 mil in today's dollars. I'm almost 50, so it will be about 4 mil, unless king hiden keeps giving away money he doesn't have and inflation jumps to 10%.

Man, 5% is pretty aggressive. You've got a really good shot of outliving your money at that level, if you believe all those studies and simulations out there. I'm thinking 3.3-3.5% at most. You might be fine, but I'm seeing what long-term care costs these days, and it ain't cheap.

We could call it good at $4MM, but will probably shoot for $9-10MM. The poster above who said income generation > assets is right. We have just recently added cash-flowing real estate to the mix, and will probably continue down that route for the next 10 years, depending on tax laws.
 

America 1st

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Man, 5% is pretty aggressive. You've got a really good shot of outliving your money at that level, if you believe all those studies and simulations out there. I'm thinking 3.3-3.5% at most. You might be fine, but I'm seeing what long-term care costs these days, and it ain't cheap.

We could call it good at $4MM, but will probably shoot for $9-10MM. The poster above who said income generation > assets is right. We have just recently added cash-flowing real estate to the mix, and will probably continue down that route for the next 10 years, depending on tax laws.
I've always felt this was a solid play and would like to know more.
 

TheRealJohnCooper

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Seems like all of the rich people from tMB found their way over here.

I cannot even fathom being 55 and having 8mm in the bank. Sounds like bullshit to me, or maybe I only know poor people. What kind of job would one have to have to be able to save 8mm in 30 years?
 

CBradSmith

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I think about this quite a bit as I am 58. It’s more about the income you can generate than the total dollar amount. Look to have various investments that generate $x00,000 to $x00,000 per year of income. It should be a combination of investments in mutual funds to self storage units to rental properties. Or other interests or skills you might have accumulated along the way that you can take advantage of.
This.

You want passive income generators that are shielded from inflation as much as possible.
 

Carlscat

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Remember told my financial guy about 15 years ago 2mm should do it. Allow me everything I wanted. He came back with ok, so with inflation 6mm. That’s when I started cutting back on my wishes.
Have your advisor check out Retiree Income or LifeYield. It is a bolt on that a lot of advisors can use as a layover on Orion, Navi, eMoney, etc. that mathematically helps “decumulate” your withdrawals during retirement based on the best tax strategy, your expected tax bracket at retirement and about 18 other algorithms developed by folks with PhD’s in mathematics. It can often help your enhance your retirement by an additional 18-25% (sometimes more). And no I don’t work for either of them, they are actually competitors with each other.
 
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Carlscat

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Seems like all of the rich people from tMB found their way over here.

I cannot even fathom being 55 and having 8mm in the bank. Sounds like bullshit to me, or maybe I only know poor people. What kind of job would one have to have to be able to save 8mm in 30 years?
Looks like we found out who didn’t sell GME in time...😜
 

Coloradodawg6

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I’m 39 and considering the lifestyle I want to live 6 is the floor but I’m shooting for 10mm net worth. I own 50% of a company that should be worth at least 10mm so I just have to come up with the other 5. The plan for that is storage units, car wash, commercial and residential real estate. As others have stated your goal needs to be how much money per month do you want? I want 40k per month and that’s the plan I have to get me there.
 

America 1st

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I’m 39 and considering the lifestyle I want to live 6 is the floor but I’m shooting for 10mm net worth. I own 50% of a company that should be worth at least 10mm so I just have to come up with the other 5. The plan for that is storage units, car wash, commercial and residential real estate. As others have stated your goal needs to be how much money per month do you want? I want 40k per month and that’s the plan I have to get me there.
What's it cost to open a car wash?
 

America 1st

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There’s so many different types that it’s impossible to answer that without more details. I’m probably 5-7 years out from doing that so I don’t know exactly which direction I’ll go but around 2-3mm
Seems like these super primo washes are popping up everywhere around me. Full self service like we've all imagined for decades but with a full pull through and automated system as well in most.

Trying to understand because these often pay for an attendant now so I'm not sure how 'profitable' they are?
 
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Car washes are very profitable. It is one investment I want. I have several Mutli family properties. The automatic car washes with vacuum bays are close to 3mil depending on Real estate. I was in the middle of buying another restaurant and missed out on a piece of property that would have been perfect for one. Luckily, the person who purchased it thought the same. F*ck
 

Croot_Overlord

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Check out this article OP. I read it when I was just starting my early career and it has been incredibly beneficial to me:

 

Jayhacker

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Car washes are very profitable. It is one investment I want. I have several Mutli family properties. The automatic car washes with vacuum bays are close to 3mil depending on Real estate. I was in the middle of buying another restaurant and missed out on a piece of property that would have been perfect for one. Luckily, the person who purchased it thought the same. F*ck
A good friend of mine has the only hand wash in town. You could probably buy it for <$mil. He's owned it for as long as I can remember.
 

America 1st

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Car washes are very profitable. It is one investment I want. I have several Mutli family properties. The automatic car washes with vacuum bays are close to 3mil depending on Real estate. I was in the middle of buying another restaurant and missed out on a piece of property that would have been perfect for one. Luckily, the person who purchased it thought the same. F*ck
How much stream can one of these create compared to 2M in rentals or something else?
 
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How much stream can one of these create compared to 2M in rentals or something else?

obviously there are many variables. If you have a car wash in a high volume area I would tend to lean that way. 150 runs a day through the carwash at average run of $11 is $46,200 month gross. Assuming you have a 10k monthly bank payment, 3k water bill, 3k electric, 8k monthly payroll get to you to 24k. Maybe 20k gross. Again, I am not sure these numbers would be accurate for those utilities or payroll. I am just basing some of that from a business I own.

the game really changes when you get the average up to 1,200 visits and price per was up to say $13 avg. Takes you to 62k monthly revenue with not much of your fixed cost changing. Maybe a 15% increase in payroll. Then you are taking 34-35k gross a month. Payroll and other cost would depend on your loan payment and if you were wanting it as a passive investment with high payroll or operate it as a business and you be somewhat involved.

If you can buy 2mil with of small hotels or roadside motels like that you can make a lot of money. Find ones that are run down and come in and renovate. increase rent and operate for a few years. You can turn 2 mil into 3.5+ in few years on a sale or keep and churn out long term CF.
 

Coloradodawg6

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How much stream can one of these create compared to 2M in rentals or something else?

Rentals should be around 6k per million where the car wash should be around 9k per million. These are very rough numbers and obviously there’s a ton of variables to account for. This is just an idea of the difference.
 

America 1st

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Might be a dumb question but why not drop that 2M on a Chick-fil-A or something comparable?

The only one we have in town is always wrapped around the building twice (literally).
 

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