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Author: alstroemeria Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 58812  
Subject: Poll: retirement income Date: 10/2/2012 7:37 AM
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I just read a comment on the Credit Card board that included a what-if scenario about sources of retirement income (when trying to decide whther to cash out some of an IRA to pay off debt). That made me curious about more peoples' sources of retirement income.

How much of your retirement income comes from Social Security and/or pension(s)/annuities? (The rest I presume comes from assets, royalties, rents, maybe even some sort of paid work.)

If you're close enough to retirement to be able to answer with sufficient accuracy, feel free to participate. If you're part of a couple, you get to decide whether to answer as yourself alone or for both of you (I'll answer as a couple as we completely pool our resources).
.
< 20% of my retirement income comes from SS, pensions, annuities
20-40%
40-60%
60-80%
> 80%

Click here to see results so far.

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Author: telegraph 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: 45692 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 9:30 AM
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I only worked 31 years (out of the 35 counted) for SS.....and I took my SS at age 62 since I figure Obama and the drones will make it somehow 'means tested' which means I won't get most of it....

and I get a teeny pension from GE, not inflation indexed...that started at age 60....for 13 years of service back in the 1970s......

the rest is what is spun off from my nest egg......dividends, cap gains, distributions, interest......

Obama has gone a long way to kill off most of that with zero interest rates, too.......my 6-7% CDs ended and now you get 1.3% on a five year CD and 0.02% on a MMF.....


t.

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Author: alstroemeria Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45693 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 10:15 AM
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The average retiree gets about 50% of their retirement income from SS and 10% from pensions for a total of 60%. Only 12% of retirement income comes from assets on average. The typical retiree is apt to get twice as much income from work as from assets!

Anyway, this poll was an interesting exercise for me. As a couple, we're in a higher bracket than I am alone because, while our assets are nearly identical, his SS benefit is bigger plus he has 2 pensions to my none. I often think his pensions are way small because even put together they're nowhere near livable, but they add up to a bit more than the median pension income so no complaints.

Early days, but so far we have 1 in the 40-60% bracket and 3 in the 60-80%. I confess to some surprise as I thought more of us were asset-heavy. I guess we also tend to be high on the SS income scale from good-paying jobs, and maybe more of us have pensions than I'm aware of. Or perhaps many of us realize less than 4% of assets as income.

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Author: ariechert 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: 45696 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 11:32 AM
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"How much of your retirement income comes from Social Security and/or pension(s)/annuities?" - alstromeria


100% will come from a mixture of social security, TCRS pension, and an IRA annuity. When I turn 62 in a couple of years a little less than half will be from social security.

The same will be true of my wife when she decides to retire.

Art

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Author: ariechert 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: 45697 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 11:39 AM
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Alstromeria, when I start social security in 2+ years I will be getting a total of about $1800/month income from my three sources.

If my wife keeps working till 66 which is sort of our plan she will be bringing home ~ $4,000/month, half of which will be social security and half from tax deferred investments.

Since our house and cars will be paid for we should be fine. Tennessee is a cheap state to live in. Neither one of us are big travelers anymore so it's not like we want to go to Europe or Asia or anything.

I am thinking about buying a new big screen TV for our living room. Maybe for Christmas. I want to be able to stream Netflix movies and shows to our living room TV. That will be my splurge for the year.

Art

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Author: alstroemeria Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45702 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 12:13 PM
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I only worked 31 years (out of the 35 counted) for SS

I worked even fewer, 25 I think, as I was a SAHM for almost 10 years plus retired at 55. But the hubster has worked since he was 19...will be 45 years when he retires (yikes!). Perhaps you & I are the slackers Mitt refers to, tele ;-)

I took my SS at age 62 since I figure Obama and the drones will make it somehow 'means tested' which means I won't get most of it

I think conservatives are at least as likely to want means-testing as liberals. Means-testing will cause SS to lose the support of many upper-middle class workers and even some middle class. That's apt to doom the program, I suspect.

Anyway, I believe my SS benefit is safer under Democratic Administrations/Senates/Congresses than under GOP.

I'm still undecided about when to start collecting SS. I think we should apply next month if Gekko-Galt and GOP Congress & Senate are elected(!). Else sometime between turning 64 (next year) and 65.

and I get a teeny pension from GE, not inflation indexed...that started at age 60....for 13 years of service back in the 1970s

DH will also get a tiny pension from one of his corporate stints, and a larger but still small one from 10 years with the state. But the lege passed a law a few months ago restricting COLAs for state pensions to 1% a year.

the rest is what is spun off from my nest egg...Obama has gone a long way to kill off most of that with zero interest rates, too.......my 6-7% CDs ended and now you get 1.3% on a five year CD and 0.02% on a MMF

'Twas Bush who put Bernanke at the Fed in 2006. Just sayin' (yes, I know Obama reappointed him). Whoever's President next year can reappoint or get someone new. I expect Romney would want someone who'll maximize the benefit for the 0.01%. Anyway, I think it was good to keep rates low at the trough of the recession, but IMVHO rates should start to rise now or very soon. But maybe that's my interest income speaking.

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Author: alstroemeria Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45703 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 12:35 PM
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If my wife keeps working till 66 which is sort of our plan she will be bringing home ~ $4,000/month, half of which will be social security and half from tax deferred investments.

Won't she also have a pension or two from college teaching? And didn't she buy a rental property--or am I mixing Bonnie up with someone else's wife(!)? Anyway, you guys are gonna be sittin' pretty.

I am thinking about buying a new big screen TV... That will be my splurge for the year.

It's nice to have an annual splurge to look forward to, whether a special item like a great TV or a special experience like visiting Glacier Bay or Hanauma Bay, or seeing out of town friends & family like in NOrthern Michigan.

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Author: telegraph 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: 45704 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 12:46 PM
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" Perhaps you & I are the slackers Mitt refers to, tele ;-)"

Heck, no...I paid over $10,000 in income taxes last year.

---------


"I think conservatives are at least as likely to want means-testing as liberals. Means-testing will cause SS to lose the support of many upper-middle class workers and even some middle class. That's apt to doom the program, I suspect."


Reality is going to set in. No matter who is in power. You can't fund all the programs at 100% and borrow the money to do it!

It depends whether you have slow pain, or total collapse.....

I'd rather have Ryan on the job...than spendaholic Obama with Jarerett running the show.
--------

"Anyway, I believe my SS benefit is safer under Democratic Administrations/Senates/Congresses than under GOP."

I wouldn't. It's going to collapse unless major major reform is done. Well, SS is the best off but Medicare and the drug plan, plus all the welfare weenie programs will bankrupt the gov't in less than 20 years, and likely less than 10, and maybe only 3 years until folks don't want to loan us money at 1%. That's the end....

When interest rates go to 5%..and the fed has to pay 5% on 16 trillion......that's 800 billion in interest...alone.....1/4 of the budget.

At 20 trillion, which is what Obama plans to run it to.....it will be a trillion dollars in interest every year.....

1/3rd of the total income tax received.


-------



"I'm still undecided about when to start collecting SS. I think we should apply next month if Gekko-Galt and GOP Congress & Senate are elected(!). Else sometime between turning 64 (next year) and 65."


If you are retired, you are better off living off your income , not investing it....so you'll have less for them to confiscate.

------
" Anyway, I think it was good to keep rates low at the trough of the recession, but IMVHO rates should start to rise now or very soon. But maybe that's my interest income speaking. "

Duh...they don't plan to raise rates for 3 years...or likely the 4 years of Obama's new term if he can arrange it.

That way he can borrow and borrow at zero interest rates to put his' radical transformation' (ie, taking the saver's and retirees' wealth away by eroding the value of the dollar year after year...down 13% just this year alone. That runs up the cost of commodities, but why does he care? He'll just give 'em more food stamps at your expense!...

He'll borrow away and give away...so a dem gets elected in 2016.

But sooner or later the debt bomb will go off.....

The dollar is plummeting. Gold at near record high and 'skyrocketing' as folks realize their dollars are 'worth less'.


He's a disaster and so are his policies. THe middle east is coming undone. Fast and Furious killed hundreds and he shoveled the DOJ probe under the rug...white washed it....the economy is stalled.


t.


t.

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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45705 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 12:51 PM
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I had lunch with some of my classmates from engineering school on Friday (golf was rained out). It was interesting that all had million dollar plus retirement savings but couldn't imagine being able to retire on that plus Social Security. All but one expected to be working until age 70.

intercst

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Author: PSUEngineer Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45706 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 12:58 PM
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A million dollars is not a lot of money.

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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45707 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 1:04 PM
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telegraph laments,

Obama has gone a long way to kill off most of that with zero interest rates, too.......my 6-7% CDs ended and now you get 1.3% on a five year CD and 0.02% on a MMF.....

</snip>


I agree that's a problem for timid investors who hold mostly CDs. On the other hand, the stock market has nearly doubled under Obama's sure hand. For someone like me with an 85%-90% stock asset allocation, it's a welcome change from the Chickenhawk years of Bush and Cheney.

$hit baby, we be raking it in, I'm gettin' two Eldorados.

intercst

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Author: telegraph 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: 45708 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 1:07 PM
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"I had lunch with some of my classmates from engineering school on Friday (golf was rained out). It was interesting that all had million dollar plus retirement savings but couldn't imagine being able to retire on that plus Social Security. All but one expected to be working until age 70."


Depends...

if they are making 100K/yr and that is their lifestyle......


even with SS....and maybe a pension - but a lot of engineering companies did away with pensions in the 80s.....and gave folks 401Ks.....

It might be hard to retire on 2 million.....if you are only able these days to take about 2.3%a year from it......

For a single person, SS isn't all that much.....compared to 100K incomes...or more....heck, they could be blowing a 150K a year income.

Sounds like they like their work...a lot of engineers don't retire well......

I had no problem. My job sort of left me...... but I was ready.



t

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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45709 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 1:09 PM
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PSUEngineer writes,

A million dollars is not a lot of money.

A million dollar retirement account puts you in the Top 5% of savers. If you can't retire with more money than 95% of the population, then when can you retire?

intercst

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Author: akck Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45710 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 1:14 PM
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Early days, but so far we have 1 in the 40-60% bracket and 3 in the 60-80%. I confess to some surprise as I thought more of us were asset-heavy. I guess we also tend to be high on the SS income scale from good-paying jobs, and maybe more of us have pensions than I'm aware of. Or perhaps many of us realize less than 4% of assets as income.

According to my projections, we'll be similar to what you experienced. Lower percentage in the early years with it going up as SS and pensions kick in. Overall, we'll average >80% going out 35 years. In fact, some years we'll be >100% assuming my projections of expenses holds up.

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Author: telegraph 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: 45711 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 1:15 PM
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"I agree that's a problem for timid investors who hold mostly CDs. On the other hand, the stock market has nearly doubled under Obama's sure hand. For someone like me with an 85%-90% stock asset allocation, it's a welcome change from the Chickenhawk years of Bush and Cheney."

Actually, many pension plans have to hold a certain percentage (often large) in bonds and similar investment vehicles.

So, it is many investor classes being clobbered. TAxes in cities and towns are going up because the pension funds counted on 8 or9% return, and got 5 or 6% .......meaning hundreds of millions or billions of 'pension top offs' to fully fund the pension plans. Taxes up. Everywhere. And, of course, they are chopping benefits, eliminating COLAs...due to 'cheap money'.

----

Yeah..the stock market is up......but if you count what it has gained since 1999.....with inflation...it hasn't done all that well!.....

Your bonds would have beaten the total gains over those years, right? in fact, my bonds are up a whole bunch......

And, in true 'bend the facts' style......if you take the horrendous drop from the financial crisis as your 'low point', it's easy to be up. How about from BEFORE THE CRASH? That's a different story.


--------



intercst: $hit baby, we be raking it in, I'm gettin' two Eldorados.


Wait a year and Obama will promise to give you one for free.....



t.

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Author: telegraph 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: 45712 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 1:19 PM
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" Or perhaps many of us realize less than 4% of assets as income. "

if you have most of your savings stashed in IRAs and 401Ks, you can take out just what you need.

Or if you are rolling over 'tax free' income without taking it out.....it is not taxable income...(but used to reduce your exemption on SS tax).......and run up the cost of your Medicare to the higher income level price....

I'm only taking about 2.5% out of my nest egg each year.....well, it comes out whether I want it or not...and usually wind up re - investing 0.5% of it since I don't spend it.....



t.

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Author: akck Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45713 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 1:23 PM
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Anyway, I believe my SS benefit is safer under Democratic Administrations/Senates/Congresses than under GOP.

IMHO, SS is safer under a mixed Congress, assuming they are forced to fix it. That way, no one group will be favored at the expense of the others. In other words, a shared sacrifice with everyone losing something.

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Author: PSUEngineer Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45714 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 1:56 PM
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A million dollar retirement account puts you in the Top 5% of savers. If you can't retire with more money than 95% of the population, then when can you retire?

At a SWR of 4%, it'll barely cover the county club fees.

PSU

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Author: FCorelli Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45715 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 2:29 PM
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I agree that's a problem for timid investors who hold mostly CDs. On the other hand, the stock market has nearly doubled under Obama's sure hand.

I hate to sound like I'm agreeing with Mr Disagreeable but the stock market has barely broken even for over 10 yrs. If you timed it right, yeah, mo' munna. If you buy'd-and-holded and spent on food along the way, not so good. I don't know how well a Zero stock portfolio actually did though

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Author: FCorelli Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45716 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 2:32 PM
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A million dollar retirement account puts you in the Top 5% of savers. If you can't retire with more money than 95% of the population, then when can you retire?

intercst


This wouldn't tell the whole story. What's the overall wealth distribution in the society being used as a specimen?

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Author: telegraph 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: 45717 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 2:40 PM
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"A million dollar retirement account puts you in the Top 5% of savers. If you can't retire with more money than 95% of the population, then when can you retire?"


all those government workers don't need to save. Heck, toll collectors on the NY city bridges make nearly $100,000 a year in retirement. Same for the garbage collectors and sanitation workers.

The librarians in SF retire with nice 60K/yr pensions. Add in SS...and you are in 'fat city'....

Heck, all those public sector workers will do fine....and likely get free health care too.....paid for by other tax payers.

Same for those with big corporate pensions. Work 30-40 years for IBM or GE....and you retire at 60 with a nice fat pension.....plus other savings.


It all 'depends'


t

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Author: telegraph 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: 45718 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 2:43 PM
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"A million dollar retirement account puts you in the Top 5% of savers. If you can't retire with more money than 95% of the population, then when can you retire?"


heh heh...

without the rest of the details.....

I assume a a lot of 25 year olds don't have 100K in savings. Are you counting them?

Or 30 or 40 year olds?


You only approach those kinds of figures after 30-40 years of savings for many folks......or those with high income who can stash the cash year after year.

Only 2 or 3 wake up one morning, and decide that is the day they will win the lottery (and do) to have that big a nest egg..


t.

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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45719 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 3:12 PM
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telegraph asks,

"A million dollar retirement account puts you in the Top 5% of savers. If you can't retire with more money than 95% of the population, then when can you retire?"


heh heh...

without the rest of the details.....

I assume a a lot of 25 year olds don't have 100K in savings. Are you counting them?

Of course not. I'm counting the percentage of the population with $1 million or more in "investable assets". The vast majority of whom are 55 and older.

intercst


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Author: salaryguru Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45724 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 7:00 PM
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I had lunch with some of my classmates from engineering school on Friday (golf was rained out). It was interesting that all had million dollar plus retirement savings but couldn't imagine being able to retire on that plus Social Security. All but one expected to be working until age 70.

I think a lot of people are relatively content to work and don't give too much thought about retirement . . . until something happens to make them experience prolonged discontent. Sometimes the event that changes their perspective is health related. Sometimes they get the job or the boss from h3ll. Sometimes, but rarely, they get an overwhelming interest is doing something other than go to work each day.

I didn't have any health issues, but work was always getting in the way of lots of things I wanted to do. Still, I might have worked 20 more years if I hadn't gotten a job working for Satan. The experience made me examine options and "not working" seemed like the best one. After I made the decision I ended up spending about 5 or 6 years learning what I needed to know and securing the resources I needed to live before I actually did retire. It was a good choice for me, but I can see that most of my old engineering colleagues are not ready to retire. I think most of them would be miserable without their job.

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Author: salaryguru Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45725 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 10:27 PM
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I didn't answer the survey because I'm not sure which answer to give. I did a lot of planning calculations including pension and SS estimates about 10 years ago just before we retired, but your survey made me wonder how we're really doing. And since the IRS has closed up the loop hole that allowed you to start taking SS then give it back and start over, We are planning to do it differently. SGSpouse has two small pensions and I have one. None of them include COLA. I'm a year older than her so my pensions and SS eligibility trigger a year before hers do. In the absence of the old SS loophole I mentioned, we plan on starting to collect her SS benefits when she is 62, then hold off on mine until age 65 to 70 depending on how our investments and health go. I've used a income requirement model that assumes my spending keeps up with inflation and assumed an inflation rate of 3.2% (because that seems to match up fairly well to how I've spent during retirement).

So . .

First 6 years of retirement - 0% of retirement income from pensions and SS
Next year ramp up one pension - ~7% of retirement income from pension
Next 7 years add two pensions - ~12% of retirement income from pensions
Next 3 to 8 years add one SS benefit - ~23% of retirement income
Once we add the final SS benefit - ~40% ramping down to about 33%.

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Author: ariechert 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: 45730 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 11:16 PM
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"Won't she also have a pension or two from college teaching? And didn't she buy a rental property--or am I mixing Bonnie up with someone else's wife(!)? Anyway, you guys are gonna be sittin' pretty." Alstromeria


No pension as such. TIAA-Cref, 401K, IRA, and social Security. She'll be fine. When we started at Uni. of TN they ask you TCRS or TIAA-Cref. At that time I didn't know what the hell they were talking about. I chose TCRS and Bonnie chose TIAA-Cref.

We'll both get social security but since she's always made a whole lot more money than me she'll get a lot more than me, plus she plans to keep working till 66 and I plan on starting at 62. I don't plan on living as long as Bonnie does. Our family are famous for dying early. If I make it my mid 70's I'll be doing good.

Our little wooden house is paid for.

Art

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Author: ariechert 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: 45731 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 11:18 PM
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"I had lunch with some of my classmates from engineering school on Friday (golf was rained out). It was interesting that all had million dollar plus retirement savings but couldn't imagine being able to retire on that plus Social Security. All but one expected to be working until age 70." - intercst


I hope you gave them the URL to your homepage? Otherwise they'll work till they are 66+ years old, live a few more years, and kick the bucket. Seen it happen a million times. Well maybe not a million but numerous times.

Artie

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Author: ariechert 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: 45732 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 11:21 PM
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"A million dollars is not a lot of money." - PSUengineer


Depends on where you life. In a rural county in the South it is. It also depends on how you want to live. How your picture your retirement. If you picture vacations in Europe, golfing in Miami, driving a Mercedes, then no, a million dollars isn't a lot of money.

But if you picture yourself living in a decent small modest house, driving a Nissan, vacations in Panama City Beach, Florida, while not living in a big expensive city, a million dollars can generate that kind of lifestyle.

Artie

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Author: ariechert 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: 45733 of 58812
Subject: Re: Poll: retirement income Date: 10/2/2012 11:25 PM
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"A million dollar retirement account puts you in the Top 5% of savers. If you can't retire with more money than 95% of the population, then when can you retire?" intercst


I can't remember who posted it but I seem to recall a post that said something to the effect that a large number of retirees living in Florida were living pretty much on social security? Maybe they meant like married couples with two social security checks?

I saw a fairly nice modest mobile home in Florida in a retirement village for like $20,000 plus a $450/month lot fee. If you got a swimming pool, game room, other old folks to talk to, it might not be so bad.

Artie

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Author: BlueGrits Big gold star, 5000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45739 of 58812
Subject: Re: Poll: retirement income Date: 10/3/2012 12:43 AM
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I said about half in the poll but now that I think about it, maybe not...

DW & I are both 58, she as a full-time tenured prof who intends to remain with her current employer until full retirement at age 66. I adjunct teach, collect my modest corporate pension, and pick up a little consulting here and there.

Going into retirement, our incomes will be:

- SS for both DW & I (we'll both be up near the max benefit)
- My corporate pension
- Roth IRAs from both of us
- Traditional IRA for me
- 403b from two of DW's employers

We will live relatively well if SS doesn't change, but also have our financial planner run scenarios for means testing where we keep only the highest SS benefit and another where we get no SS benefit. We still remain "okay" in each one, but obviously less so as income declines.

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Author: telegraph 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: 45742 of 58812
Subject: Re: Poll: retirement income Date: 10/3/2012 10:30 AM
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"I can't remember who posted it but I seem to recall a post that said something to the effect that a large number of retirees living in Florida were living pretty much on social security? Maybe they meant like married couples with two social security checks?

I saw a fairly nice modest mobile home in Florida in a retirement village for like $20,000 plus a $450/month lot fee. If you got a swimming pool, game room, other old folks to talk to, it might not be so bad. "

---

My parents had a 800 sq foot manufactured home in Briny Breezes. IT sold for 40K in 2000 after my mom died. At the time it was about 12 years old in nice shape.

IT costs about $6500 a year to live there....3500 to the 'park' to maintain all the roads and they cut the trees down and cleaned up ...the had a heated pool.....rec center /auditorium, 3 club buildings with big wood shop, an 'ocean house' right on the atlantic, you could rent a boat slip if you wanted a boat - they were between the ocean and the intercoastal. the $3500 included police protection, taxes, etc.

Add it about 2000 a year for insurance (home and flood insurance).....

Utlities in the fall/winter/spring were low.....

you really didn't need a car other than for grocery shopping or doc appointments.my mom drove 600 miles a winter......

the cable was included in your 3500 a year park fee.

You could, and some did, live there year round. Hot in summer...

Many escaped north to similar type places.....for six months.....

Yes, a lot of folks live in FL for 25,000 or 30,000 a year.....comfy...

they had a five minute walk to the ocean.....

had shuffle board courts and tennis courts, and had arrangements for those who wanted to play golf to use an exclusive course a few times a week at reasonable price..

there were boating and fishing clubs, drama clubs, garden clubs, wood shop, etc. Exercise classes in the pool - aerobics......

over 55 and the kids and grandkids arrived for thanksgiving, xmas, new years.....





t

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Author: workwayless Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45750 of 58812
Subject: Re: Poll: retirement income Date: 10/3/2012 5:29 PM
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I'm not retired at present and not eligible for SS yet. So I answered the poll as if I were retired, age 62 and decided to draw SS.



I anticipate that approx. 45% of my expenses will be covered by SS/defined benefit pension income. I've worked 40+ years and will draw near the max for SS. In addition my expenses are pretty low.

I figure that SS will probably go bust sometime during my lifetime. So I plan to be positioned to draw more heavily from investments and rental income just in case.

I do have a SO, but answering as a couple would have been waaay to complicated.

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Author: Donna405 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45752 of 58812
Subject: Re: Poll: retirement income Date: 10/3/2012 11:00 PM
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Right now, SS is 70% of my monthly income. However, I have not touched my ROTH or SEP (except to convert the stocks in my SEP to my ROTH). I may have to take some cash out of my ROTH to pay for rehabbing the FL house; however, I will not have to sell any stocks, which mostly are good dividend payers right now. I am just reinvesting the dividends and when I need the income, I will stop reinvesting and just collect the dividends in cash when needed. Since I have earned income, I will deposit my 2011 tax refunds back into my ROTH (which gives me a SC tax break when filing SC taxes for 2012. Due to the identity theft relative to the 2011 tax return, I must snail-mail it along with an Affidavit, so who knows when I'll receive the refund. Same for SC, although no one filed a fraudulent SC return.)

I have one stock in my SEP, and will just convert it when I turn 70-1/2, the time I have to take RMD's.

Several years ago, I made it a point to learn to live on $1500 per month, and have been very successful. My income is more than that, but with the additional income, I save some and some I spend frivously (like to wonderful trip planned to Mt. Pleasant.)

Donna

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Author: StockGoddess Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45950 of 58812
Subject: Re: Poll: retirement income Date: 10/25/2012 12:35 PM
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A million dollar retirement account puts you in the Top 5% of savers. If you can't retire with more money than 95% of the population, then when can you retire?

intercst




Or in other words, if 95% of the population has less than this saved for retirement, can ANYONE truly afford to retire? (Other than the 1%)


SG

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