UnThreaded | Threaded | Whole Thread (28) | Ignore Thread Prev Thread | Next Thread
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: of 76418  
Subject: You may be saving too much for retirement Date: 2/3/2014 3:06 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
I don't know if I saved too much for retirement. But if I'd know how good my investment returns were going to be over the past 20 years, I would have retired a few years earlier.

http://finance.fortune.cnn.com/2014/01/06/jean-chatzky-retir...

The folks at Morningstar Investment Management, specifically head of retirement research David Blanchett, asked it first. He found that for many people the answer is yes -- by an average of 20%. That, as Blanchett acknowledges, is a big deal. "Retirement is, by and large, the most expensive purchase of anyone's lifetime," he says. "For people who think they need $1 million but find they only need $800,000, it is a big difference."

</snip>


intercst
Print the post Back To Top
Author: CABob Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74160 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/3/2014 3:36 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 21
"For people who think they need $1 million but find they only need $800,000, it is a big difference."

But, probably not as much of an impact as the person who thinks they need 800K and find out they needed 1 mil.

Bob

Print the post Back To Top
Author: RetiredVermonter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74161 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/3/2014 4:01 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Or they might like $1 million but end up with $50,000 - $100,000 in their IRA.

If they can juggle those investments to keep the money flowing anyway, it may be okay! ;)

Vermonter

Print the post Back To Top
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74164 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/3/2014 4:37 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I think we all look forward to another dot com era boom. Then some high class problems can arise.

But it does not look like we are in for that for while yet. But maybe in a few years down the pike.

Print the post Back To Top
Author: StockGoddess 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: 74165 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/3/2014 10:16 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 4
I actually think I need two million. I want to travel and eat well..

Print the post Back To Top
Author: StockGoddess 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: 74167 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/3/2014 10:24 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
You know I recently made a spreadsheet. One column laid out all current expenses. In the next I eliminated those that were unnecessary. In the third I listed current and added anything extra I might need in retirement and eliminated those things that would go away. Then totaled all three columns. Illuminating...and yeah I still needed more than a 1M for the life I want. Money stress isn't something I want in retirement...life o Riley ...

Print the post Back To Top
Author: Watty Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74168 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/3/2014 11:44 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 4
In trying to figure out how much to save for my retirement I one thing that I have seen is that people tend set up a retirement budget based on what they expect to spend when they are 65 and still very active and that may be overestimating how much they will need.

I have seen relatives who really slowed down once they reached their mid 70’s and since they were still in relatively good health and lived in a paid off house they ended up having many months where they didn’t even spend their entire social security check even though they could have afforded a to have spent a lot more. One they reached that age then doing things like traveling, shopping, or even eating out were of a lot less interest to them.

Print the post Back To Top
Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74169 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 9:50 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 4
In trying to figure out how much to save for my retirement I one thing that I have seen is that people tend set up a retirement budget based on what they expect to spend when they are 65 and still very active and that may be overestimating how much they will need.

I have seen relatives who really slowed down once they reached their mid 70’s and since they were still in relatively good health and lived in a paid off house they ended up having many months where they didn’t even spend their entire social security check even though they could have afforded a to have spent a lot more. One they reached that age then doing things like traveling, shopping, or even eating out were of a lot less interest to them.


I'd rather save and have too much money than have too little to live the life style I want.

I do realize that people tend to slow down with age, but that is really based on the individual. My dad is 93 and is still going strong with no signs of slowing down anytime soon. His parents lived well into their 90's, and so if I have his genes, I will be active for a very long time. DH had a cousin who played tennis well into his 80's, and I can remember him lying about his age to the doctor so that he could get rotator cuff surgery and keep playing tennis. He had it, and continued to lead that active lifestyle for a few more years before he died.

I have a spreadsheet that tracks our current expenses, our projected expenses if we stay in this house, and projected expenses if we downsize. We plan to the conservative number, which is staying in this house, knowing that we will most likely have more money than we need. I also note that we have actually planned to spend more money in retirement than we spend now because of what we want to do.

I'm happy with our plans, and like to see how other folks are approaching their savings, and the sorts of assumptions that they are making to see if there are any tweaks I should make to our plans. We are also starting to spend more in preparation for retirement to see how this will work for us once we have reached that point. I think that will also be a good exercise, and will help me to decide when I am really ready to pull the trigger.

And it helps that DH is not panicking now that I have actually picked my target retirement date, and seems to be OK with it.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74170 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 12:06 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
may be overestimating how much they will need

That can indeed be the case, but the unexpected can also happen. Medical expenses can be greater than planned. As people age, some need extra care. That can mean visiting nurses or additional housekeeping assistance etc.

These things can be difficult to plan for. Insurance can cover some of them, but often not routine expenses.

Reserves are a good idea. If you over estimate the need one place it can allow funds for something unexpected.

Keep in mind, your retirement plan is a mental model of the future. Accurate predictions are rare. A bit of flexibility is a good idea.

Print the post Back To Top
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74171 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 12:14 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
And it helps that DH is not panicking now that I have actually picked my target retirement date, and seems to be OK with it.

Good for you 2gifts.

Another thought to keep in mind is there can be outside influences on your decision. Once you have the income sources in place to allow retirement, many wait for a signal event to actually make the decision. That can be an employer who offers incentives to take early retirement. Or getting laid off and finding it hard to find a suitable position.

In my case, I retired in the dot com boom. My investments reached double my retirement number, the job was not so exciting anymore, so I decided to take an early retirement package and retire.

It can be difficult to take the big plunge and actually quit a job you like, but reserves give you the flexibility to pick your time.

Print the post Back To Top
Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74172 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 12:16 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Another thought to keep in mind is there can be outside influences on your decision. Once you have the income sources in place to allow retirement, many wait for a signal event to actually make the decision.

True, and I have already taken some of that into consideration. M

Print the post Back To Top
Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74173 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 12:22 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
I hit 'submit' before I'd actually typed out my response :-)

True, and I have already taken some of that into consideration. I should be able to retire at the end of 2016, but will actually work through til the end of April because more of my options vest in mid-April, and I don't do much over the winter, so working a few more months for some extra income makes sense.

It can be difficult to take the big plunge and actually quit a job you like, but reserves give you the flexibility to pick your time.

I am so ready to pull the trigger, but I do want a bit more savings and so will work another couple of years. Although I do like what I do, I am more than ready to move on to another phase of my life.

It has taken DH much longer to get comfortable with this, but that's because he is self-employed, and has effectively been semi-retired for several years now. As he can pick and choose his jobs, and he can decide when he wants to work, it is hard for him to understand that people actually expect me to be at work 5 days a week, and I cannot just come and go as I please. For me, it will be a hard stop. For him, he will continue on as he is for a bunch of years into my retirement.

We're actually meeting with the financial planner in the next couple of weeks to have a second opinion on the plan, and see if I have missed anything. We both sort of expect him to say we can retire now, but I'm not comfortable with that, so it is another 3 years for me.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: PSUEngineer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74174 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 12:53 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 4
It can be difficult to take the big plunge and actually quit a job you like

You lost me.

PSU

Print the post Back To Top
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: 74176 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 3:05 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
It can be difficult to take the big plunge and actually quit a job you like.

How many people really like their jobs? I think I've met about 3.

intercst

Print the post Back To Top
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74178 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 3:23 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 4
It can be difficult to take the big plunge and actually quit a job you like

You lost me.


Are your retired?

It can be difficult to actually sign on the line and resign from a job to retire. It is a major decision, which many agonize over.

It is a major financial decision. It is also life changing decision. It usually means a change of life style. Plus for many a job is a social experience where people you work with are almost family. Some find their jobs personally rewarding and satisfying. People feel good about being productive, creating something of value, etc.

These considerations often mean that people keep working even when they are financially able to retire. So you build reserves until finally the numbers become compelling.

Some are so involved in their jobs they fear being without one. Others have a long list of things they have always wanted to do.

Psych factors can be such that people sit on their porch, feel useless, and waste away.

One size does not fit all. Pick what works for you. Be prepared for the other aspects beyond just the financial.

Print the post Back To Top
Author: joelxwil Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74180 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 3:30 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
Well, I certainly liked my job before I retired. I am always surprised at how many malcontents there are on these retirement pages.

If you don't like your job, get some training or something and find one you do like. And if there is nothing you can do that you like, then there is something really wrong with you.

Be useful.

Print the post Back To Top
Author: whafa 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: 74183 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 3:52 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
And if there is nothing you can do that you like, then there is something really wrong with you.


I like running on the beach, laying out in the sun, working in my garden, playing piano and cooking. I am pretty good at all of these. I'd go so far as to say I'm an expert at some of them.

A friend of mine on these boards, after I lamented that having a job really puts a crimp in my social life, said, "Not as much as not having a job does!" He is right.

Print the post Back To Top
Author: PSUEngineer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74187 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 4:36 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
It is a major financial decision. It is also life changing decision. It usually means a change of life style. Plus for many a job is a social experience where people you work with are almost family. Some find their jobs personally rewarding and satisfying. People feel good about being productive, creating something of value, etc.

You lost me again.

Personally, I'm not going to having any problem leaving my job once I have determined I am financially set for retirement. That's why I made my little joke on your first post. I don't see any job out there that keep me working because it is fun.

PSU

Print the post Back To Top
Author: PSUEngineer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74188 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 4:40 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
If you don't like your job, get some training or something and find one you do like. And if there is nothing you can do that you like, then there is something really wrong with you.

Why does a person who doesn't like job-related work mean there is something wrong with them? There is a lot of things I like to do but once I turn that activity or hobby into a job, then it doesn't feel much like fun. For example, I like fishing. Now if I decided to run a charter fishing boat, I would likely not find that to be fun.

PSU

Print the post Back To Top
Author: rainphakir Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74191 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/4/2014 6:48 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
How many people really like their jobs?

Meet me :-)
Seriously. I really like my job, overall. There ARE some aspects I don't like.

That said, I don't think that would keep me from retiring at the time I feel is 'right'.

ralph :-)

Print the post Back To Top
Author: Grue Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74194 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/5/2014 12:40 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
How many people really like their jobs? I think I've met about 3.
----------------------

I loved my job until they made me a manager. After that, I was miserable enough to move up my retirement date.

Now, I only do the fun part, working about quarter time as a consultant. I'm having a ball!

Grue

Print the post Back To Top
Author: whafa 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: 74195 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/5/2014 6:19 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
I loved my job until they made me a manager. After that, I was miserable enough to move up my retirement date.


Anyone who complains about management should immediately be put in charge.

Print the post Back To Top
Author: Rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74196 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/5/2014 11:36 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Well, if you indeed have saved much to much, there are always things like this email I just received from my very favorite and very best bargain travel agent. http://links.travelleaders.mkt5763.com/servlet/MailView?ms=N...

" our 56-night/58-day “World Cruise” segment from Hong Kong to Fort Lauderdale. your flight from Seattle to Hong Kong, flying in BUSINESS CLASS! Upon your arrival in Hong Kong, you will be met by your driver, who will be waiting for you as you come out of Customs. You will then be escorted to your awaiting limousine, for your transfer to the pier, where you will board your ship, Holland America Line’s ms Amsterdam. You will have a special VIP check-in at the pier and then escorted to your DELUXE NEPTUNE SUITE! "
"Upon your arrival in Fort Lauderdale, you will again be met by a limousine and chauffeur, who will whisk you off to the Fort Lauderdale airport, where you will check in for your first class air seats, back to Seattle."
"Although the price of this is much higher than the average Travel With Alan cruise or tour, I can assure you that the pricing for this 56-night/58-tour, with some of the ship’s top accommodations and business and first-class air, is a fraction of the regular price. The total package price of $22,500 per person"

Alas, Madge has a hair & nails appointment that conflicts with the dates so we have to pass this up. ;-)

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: Rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74197 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/5/2014 11:48 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 15
It can be difficult to take the big plunge and actually quit a job you like.

You lost me.

PSU


What he said.


I loved my job, it was an "all this and they pay us too!" job. But when our numbers hit our threshold, I went to my boss and told him that if there was a layoff coming, I wanted to volunteer. When it finally came, they had the Unemployment Insurance people come in to give their presentation. 200+ people in the audience--198 with sad, shocked faces and 2 of us sitting in the very back of the room with sh*t eating grins on our faces.

Print the post Back To Top
Author: Gingko100 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74199 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/5/2014 2:58 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
How many people really like their jobs? I think I've met about 3.
I like mine! When I do work it's irregular. But I LOVE it.

But like 2gift's DH, I am self-employed so it comes and goes. Right now I am taking +/- a year off to travel and do fun stuff. I may get back to working again in a year. I would like to be semi-retired.

Print the post Back To Top
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: 74200 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/5/2014 3:50 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
Well, I certainly liked my job before I retired. I am always surprised at how many malcontents there are on these retirement pages.

If you don't like your job, get some training or something and find one you do like. And if there is nothing you can do that you like, then there is something really wrong with you.

Be useful.


There have been various aspects of my jobs that I likes, however, not one of them would be on my top 10 list of things I like. Heck, they wouldn't even make the top 25.

Also, I've never went into a job that I hated or thought I might hate. What usually happened was a change in management that caused things to go downhill. I will agree with you that when you don't like your job, you should look at changing it. I did it 3 times over my working career.

Print the post Back To Top
Author: RetiredVermonter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74250 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/13/2014 7:52 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
pauleckler:

It can be difficult to actually sign on the line and resign from a job to retire. It is a major decision, which many agonize over.

Yes, but there are some of us who, for reasons they may never know, are laid off or terminated from their jobs later in their careers. THAT is unexpected, and you have to live with it. I did. I did consulting for a year or two and then finally started my SS at 62. My wife did, too, because we had to care for her mother.

Life (or s***) happens and you deal with it.

Thankfully, our SS incomes have provided much of what we need, and I have been able to withdraw chunks from my own IRA to supplement. However, if anyone knew how SMALL my IRA was, their jaws would drop and they'd say "What!? You CAN'T be retired! Impossible!"

As I have said, I have been able to keep my small IRA alive by carefully balancing dividend-paying stocks with some that grew a lot, but it's tricky.

Vermonter

Print the post Back To Top
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74256 of 76418
Subject: Re: You may be saving too much for retirement Date: 2/13/2014 3:36 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Agreed Vermonter. Its great to have the IRA and other savings in reserve. Then if the unexpected happens you have more options to decide between.

To some its a luxury they can never achieve, but its always good to have some reserves for the unexpected.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (28) | Ignore Thread Prev Thread | Next Thread
Advertisement