How much money do you need to retire?

Webbed · 08-13-2007, 02:16 PM

How much money do you think you will need if you were to retire now?

In other words, how would you spend your free time and what will it cost to do that (or more) for the rest of your lives?

I was surprised to see what I would need. If I lived to be 100 (which is 65 years from now), maintained my current standard of living (assume a 3% annual increase in spending), assumed a modest 5% return on investment (very modest), then I would need $6 million!

If I were to increase my annual spending by 4%, I need $8 million!

OK, I'd better start buying lottery tickets..... or keep working.

So, what would I do.... my wife and I are going on a cruise later this year, and I thought about what it would be like to spend a whole year on a cruise, seeing the world. I would like that.

last_dance_rodeo · 08-13-2007, 02:54 PM

How'd you calculate all this? Is there some calculator thing?

Veilingmeat · 08-19-2007, 01:20 PM

HAH...we no need no stinking calcultor thingmebobtypethingy! i'd say in order to live a life of complete and utter luxury, yeah £6mill would be chuffin grand, especially in this day & age, where you cant help but consider your tight budget when buying a measly pack of chewing gum these days...or a place on this earth where you cant even take a muzz on the sidewalk without some goon wanting money for it! in my own humble opinion i'd want £10mill its never gonna happen, i seriously doubt that i'll ever see double figures in thousands in my bank before i die

and theres no such thing as being greedy this day & age...we're in a money grabbing world!!!

Eibhlin · 08-19-2007, 06:21 PM

I have held $35,000 in my hand once...before we deposited in the bank and then it's amazing how fast it goes...

Webbed · 08-21-2007, 12:20 AM

Quote:

Originally Posted by last_dance_rodeo

How'd you calculate all this? Is there some calculator thing?

Being the accountant, I created an amortization schedule. I'll load it up after I make it user friendly for the non-Excel users.

last_dance_rodeo · 08-21-2007, 03:56 AM

I think I would hopefully only need like a couple million. Which I'll probably never see but I could live off of that.

Little Bird · 08-22-2007, 10:39 AM

I am not sure but I've been paying into my pension since I was 21. I'll have paid into my pension for 44 years when I retire. Every year the payments increase slightly so that by the time I will be a few years away from my retirement, most of my pay will go towards my pension. I won't be living a luxurious life but I should be relatively comfortable but who knows what the economy is going to be like then so the pension may not be enough but it's all I have to work with at the moment.

Winning the lottery is a great easy way out of it but what are the chances of that happening?

BUt I'm glad I've been looking out for my future and my families future.

kjm030584 · 08-26-2007, 06:08 PM

okay, I don't have a job, but I don't think I'd need any money to retire... I plan on living out my days as a hermit in the mountains eating tree bark and small insects to survive. I guess it would be nice to have enough money to move a dumpster up there so I have a safe place to sleep.

Webbed · 08-26-2007, 06:57 PM

OK... here is the spreadsheet. Go to http://www.shuweb.com/jewel.html to get the spreadsheet (save it on your computer to use it, or else the spreadsheet's menu bar may not come up). I tried to attach it here, but I couldn't do it.

There are 3 tabs (ages 25, 35 and 45), so select the one that you're closest to, and fill in the 3 cells in yellow (example numbers are put in there). Then, run the goal seek. The detailed instructions are shown as a cell in the spreadsheet (in green), so place your mouse and follow the instructions.

In case you want to mess with the spreadsheet, the password protect is: jewel

Have fun! I'm off to find that rich wife... oh wait, I can't do that, I'm married (happily, I might add).

Little Bird · 08-26-2007, 07:22 PM

Wow - according to that, I need $4.1 million. I'm assuming that's dollars so I'll have to convert that to Euro which is roughly EUR3 million (€3m)

Ah yeah... just need to win the lottery here once, maybe twice and I'll be set for life without needing to worry.

The attachment didn't work as .xls files are blocked. I have set that for security reasons as code to gain security access to the website can be trojan'ed in on Excel spreadsheets. Too dangerous sorry. I know you're file is genuine but I can't lift it for just one file.

Webbed · 08-26-2007, 07:58 PM

No worries, the link works fine. And it looks like the spreadsheet was easy enough to maneuver.

Remase · 08-30-2007, 05:57 PM

According to the calculator (what a great job btw) I am gonna need about 13.707.692 swedish crowns ..
no idea how much that is in dollars, but it should be like 1,5 million euro?
Is that correct? Am I that cheap?

Webbed · 08-30-2007, 07:53 PM

It all depends on how much more of an expensive taste you think you'll develop over time. I make 6 times what I used to make just 13 years ago, and yet I still can't seem to save much money.

It also depends on the country or region that you live in. For example, the national average income in the US (based on a report that came out this week) is around $44K; the average in Silicon Valley is $76K. And I can tell you that you can't buy a house in Silicon Valley for $76K, cuz a small 3 bedroom house costs $800K here. If you took the same $800K to another part of the country, you'd have a huge house with a lake view, in-law quarters, and land big enough that you wouldn't see your neighbors' houses.

Remase · 09-01-2007, 08:45 PM

So right, so right .. up here the livin' is easy *lol* Except ofcourse for the heating expenses in wintertime!!

last_dance_rodeo · 09-02-2007, 12:31 AM

an 800k home in south dakota would have the talk of the town

08-13-2007, 02:16 PM	#1
Webbed JKF Member Join Date: Feb 2007 Location: Bay Area, California Posts: 170 Rep Power: 224	How much money do you need to retire? How much money do you think you will need if you were to retire now? In other words, how would you spend your free time and what will it cost to do that (or more) for the rest of your lives? I was surprised to see what I would need. If I lived to be 100 (which is 65 years from now), maintained my current standard of living (assume a 3% annual increase in spending), assumed a modest 5% return on investment (very modest), then I would need $6 million! If I were to increase my annual spending by 4%, I need $8 million! OK, I'd better start buying lottery tickets..... or keep working. So, what would I do.... my wife and I are going on a cruise later this year, and I thought about what it would be like to spend a whole year on a cruise, seeing the world. I would like that.

08-13-2007, 02:54 PM	#2
last_dance_rodeo Temporarily Absent Mod Join Date: Aug 2005 Location: South Dakota Posts: 2,212 Rep Power: 262	How'd you calculate all this? Is there some calculator thing? __________________ Her face is moonworn and thin, she's been wishing on too many stars again.

08-19-2007, 01:20 PM	#3
Veilingmeat Veiling yet very Meaty Join Date: Jun 2005 Location: Dismal Euphonic Ol' Blighty! Posts: 885 Rep Power: 0	HAH...we no need no stinking calcultor thingmebobtypethingy! i'd say in order to live a life of complete and utter luxury, yeah £6mill would be chuffin grand, especially in this day & age, where you cant help but consider your tight budget when buying a measly pack of chewing gum these days...or a place on this earth where you cant even take a muzz on the sidewalk without some goon wanting money for it! in my own humble opinion i'd want £10mill its never gonna happen, i seriously doubt that i'll ever see double figures in thousands in my bank before i die and theres no such thing as being greedy this day & age...we're in a money grabbing world!!! __________________ Behold, my love, behold all that I simultaneously do: scandal, seduction, bad example, incest, adultery, sodomy! Oh, Satan! one and unique God of my soul, inspire thou in me something yet more, present further perversions to my smoking heart, and then shalt thou see how I shall plunge myself into them all! -Marquis De Sade-

08-19-2007, 06:21 PM	#4
Eibhlin Oscillating Fan Join Date: Feb 2005 Location: North Cackalacky Posts: 2,044 Rep Power: 266	I have held $35,000 in my hand once...before we deposited in the bank and then it's amazing how fast it goes... __________________ I'd like to call you my wild horse and feed you silver sage Andrea an eye for an eye makes the world blind

08-21-2007, 03:56 AM	#6
last_dance_rodeo Temporarily Absent Mod Join Date: Aug 2005 Location: South Dakota Posts: 2,212 Rep Power: 262	I think I would hopefully only need like a couple million. Which I'll probably never see but I could live off of that. __________________ Her face is moonworn and thin, she's been wishing on too many stars again.

08-22-2007, 10:39 AM	#7
Little Bird Administrator Join Date: Jan 2005 Location: Wicklow, Ireland Posts: 6,178 Rep Power: 10	I am not sure but I've been paying into my pension since I was 21. I'll have paid into my pension for 44 years when I retire. Every year the payments increase slightly so that by the time I will be a few years away from my retirement, most of my pay will go towards my pension. I won't be living a luxurious life but I should be relatively comfortable but who knows what the economy is going to be like then so the pension may not be enough but it's all I have to work with at the moment. Winning the lottery is a great easy way out of it but what are the chances of that happening? BUt I'm glad I've been looking out for my future and my families future.

08-26-2007, 06:08 PM	#8
kjm030584 Moderator Join Date: Feb 2005 Location: Pennsylvania, USA Posts: 1,843 Rep Power: 265	okay, I don't have a job, but I don't think I'd need any money to retire... I plan on living out my days as a hermit in the mountains eating tree bark and small insects to survive. I guess it would be nice to have enough money to move a dumpster up there so I have a safe place to sleep. __________________

08-26-2007, 06:57 PM	#9
Webbed JKF Member Join Date: Feb 2007 Location: Bay Area, California Posts: 170 Rep Power: 224	OK... here is the spreadsheet. Go to http://www.shuweb.com/jewel.html to get the spreadsheet (save it on your computer to use it, or else the spreadsheet's menu bar may not come up). I tried to attach it here, but I couldn't do it. There are 3 tabs (ages 25, 35 and 45), so select the one that you're closest to, and fill in the 3 cells in yellow (example numbers are put in there). Then, run the goal seek. The detailed instructions are shown as a cell in the spreadsheet (in green), so place your mouse and follow the instructions. In case you want to mess with the spreadsheet, the password protect is: jewel Have fun! I'm off to find that rich wife... oh wait, I can't do that, I'm married (happily, I might add). Last edited by Webbed; 08-26-2007 at 07:08 PM.

08-26-2007, 07:22 PM	#10
Little Bird Administrator Join Date: Jan 2005 Location: Wicklow, Ireland Posts: 6,178 Rep Power: 10	Wow - according to that, I need $4.1 million. I'm assuming that's dollars so I'll have to convert that to Euro which is roughly EUR3 million (€3m) Ah yeah... just need to win the lottery here once, maybe twice and I'll be set for life without needing to worry. The attachment didn't work as .xls files are blocked. I have set that for security reasons as code to gain security access to the website can be trojan'ed in on Excel spreadsheets. Too dangerous sorry. I know you're file is genuine but I can't lift it for just one file.

08-26-2007, 07:58 PM	#11
Webbed JKF Member Join Date: Feb 2007 Location: Bay Area, California Posts: 170 Rep Power: 224	No worries, the link works fine. And it looks like the spreadsheet was easy enough to maneuver.

08-30-2007, 05:57 PM	#12
Remase Regina Join Date: Aug 2007 Location: Sweden Posts: 57 Rep Power: 215	According to the calculator (what a great job btw) I am gonna need about 13.707.692 swedish crowns .. no idea how much that is in dollars, but it should be like 1,5 million euro? Is that correct? Am I that cheap? __________________ "Ignorance is bliss"

08-30-2007, 07:53 PM	#13
Webbed JKF Member Join Date: Feb 2007 Location: Bay Area, California Posts: 170 Rep Power: 224	It all depends on how much more of an expensive taste you think you'll develop over time. I make 6 times what I used to make just 13 years ago, and yet I still can't seem to save much money. It also depends on the country or region that you live in. For example, the national average income in the US (based on a report that came out this week) is around $44K; the average in Silicon Valley is $76K. And I can tell you that you can't buy a house in Silicon Valley for $76K, cuz a small 3 bedroom house costs $800K here. If you took the same $800K to another part of the country, you'd have a huge house with a lake view, in-law quarters, and land big enough that you wouldn't see your neighbors' houses.

09-01-2007, 08:45 PM	#14
Remase Regina Join Date: Aug 2007 Location: Sweden Posts: 57 Rep Power: 215	So right, so right .. up here the livin' is easy lol Except ofcourse for the heating expenses in wintertime!! __________________ "Ignorance is bliss"

09-02-2007, 12:31 AM	#15
last_dance_rodeo Temporarily Absent Mod Join Date: Aug 2005 Location: South Dakota Posts: 2,212 Rep Power: 262	an 800k home in south dakota would have the talk of the town __________________ Her face is moonworn and thin, she's been wishing on too many stars again.