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Subject:  Re: Retirement Sob Story Date:  2/8/2005  9:10 PM
Author:  intercst Number:  44420 of 96819

JimA759s writes,

<<"By my calculations, to live 'comfortably' (not extravagantly) during retirement, costs anywhere from $3600-$4500/month, including taxes.">>

I would have to disagree with this. My father retired 20 years ago, gets somewhat less than $15,000 per year in SS and a small pension, owns his own home and lives very comfortably, and saves most of his income each year. When he retired he had about $20,000 in savings; he now has about $70,000 in savings - He wants for nothing and does what he wants, when he wants.

I'll be lucky to have half of the resources of the sob story guy when I retire - probably less than $150,000 in assets, no home, and SS & 401K of about $24,000 per year - but I expect to live comfortably as well - I have no idea how this guy ended up with such a loss, but he was probably not paying attention for seven years.

Here's an interesting quote from Paul Farrell's The Lazy Person's Guide to Investing

The sixth chapter "Frugal Savings Wins" demonstrates that managing your living expenses is as important as maximizing your investment returns. Farrell recounts an illustrative story from one of the attendees at Berkshire Hathaway's annual shareholder's meeting, perhaps the largest gathering of multi-millionaires in America.

Most people with money ain't talking. They don't drive flashy cars or live in big houses, but they're very comfortable. And they don't need a six-figure income to survive. They live very comfortably on $15,000 to $30,000 per year and still save lots of money. [even though they're already millionaires]



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