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Author: Danny312 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 30  
Subject: How much is enough? Date: 7/21/2013 9:11 PM
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I'm 61 and have around $700,000.00 in savings and in IRAs. I will be collecting $1600 in SSI at 62. What amount should I have saved up to live without worries? No one, not even my broker wants to give me an answer!
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Author: Howie52 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20 of 30
Subject: Re: How much is enough? Date: 3/9/2014 4:13 PM
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"What amount should I have saved up to live without worries? No one, not even my broker wants to give me an answer! "

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Well, what causes you to worry?

What do you plan to do during retirement?

What does your retirement budget look like?

Do you plan to move?

Do you plan to travel?

Do you want to buy this or that thing or the other?

Do you like to eat steak every day or does a peanut butter sandwich
seem like the cat's meow twice a day?

Want to go to concerts, sporting events?

Need to buy a car?

The problem is that other folks can't tell you what you want to do
unless you've told them.
Retirement is like every other part of life - nothing is easy.

So, set down and work up a budget.
Starting with what you spend currently and put an estimate of
inflation on the costs. You generally can figure that the outgo
will decrease since you will stop paying into SS and Medicare.
You will not need to put funds into retirement accounts.
Everything else will still hang around.

The general guidelines people bandy about is a "safe withdrawal"
percentage. Traditional folks say 4%. Recently, people say that
the miniscule return from bonds drops the percentage to 3% - some say
2.5%.

Try putting the question about what is needed to some of the other
retirement discussion boards -
Retired Fools
Retire Early Campfire
Retire Early Liberal Edition

There are a wide range of folks with quite different perspectives.

Good luck

Howie52

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Author: nick2302 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23 of 30
Subject: Re: How much is enough? Date: 2/26/2015 6:11 PM
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First thing you do is sit down and write down all your living expenses. Insurances, taxes, rent or house payment, food, medicine, everything you spend money on. Every time you write a check or spend cash or use your credit card(s) write down what you spent that day. Do it each day for at least 3 months. Then look it over and see if anything will go up or down when you stop working.

Will you get Part B and Part D or some supplemental insurance, you will dental and vision and that is not covered by any SSI plan or supplemental plan.

The think about what you want to do when you retire. GARDEN OR TRAVEL, volunteer at some organization or get a small part time job? Do you really think you should retire at 62? Think about waiting at least until your full retirement age.

Then decide how much you need.

Nick

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Author: CMFSoloFool Big red star, 1000 posts Ticker Guide Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 30 of 30
Subject: Re: How much is enough? Date: 3/30/2016 6:30 PM
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What amount should I have saved up to live without worries? No one, not even my broker wants to give me an answer!

Hi Danny312,

I think you get the idea from the other answers why it may be rather difficult to answer your question. I personally started seriously planning my retirement financial strategy about three years ago, but I keep changing and adjusting it as I go and I discover new sources of income and/or expenses. There are three really tough parts to address, the first is knowing exactly how much you will actually spend, the second is knowing how much you will make, and the third is knowing how long you will live.

How much you spend depends on where you will be living, what types of expenses you have, and what you plan to do when you are retired. Some of the key expenses you need to estimate are:
- Federal, state and local taxes (i.e. income tax, property tax, sales tax)
- Private or supplemental health insurance
- Rent and/or property maintenance
- Loan payments
- Food, utilities and entertainment
- Other personal expenses (medications, car maintenance, auto/life/homeowners insurance, cell phone, gifting, charitable donations, etc.)
- Dependents (if any)
- Travel
- Inheritance to wish to leave for your loved ones
- Will you be moving to a different country, state or county before or after your retire? And if so, adjust expenses accordingly.

Then you have to determine how much you will be earning.
- SS (defer or start drawing at 62?)
- Investment income
- Part time or full time employment
- Sale of property
- Annuities (if any)
- Inheritance from those who love you

Estimating how long you will live, or however long you intend to support yourself on your own savings, is an essential data point to help you determine when you will run out of money. Of course, you may also have someone support you as a dependent before you die. I've generally used 80 years as my target, that's longer than either of my parents lived, but about 15-18 years less than some of my father's relatives.

I may have missed a bunch of stuff here, but without some figures (or at least reasonable guesses) for these things no one can really answer your question but you.

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