Mai72
Lifer
http://www.investopedia.com/articles/personal-finance/011216/average-retirement-savings-age-2016.asp
I had a talk with this guy and we got on the subject of retirement. Now, this guy is in his mid-late 40's. He told me that he has $200k put away and that he could leave work for good. I don't know if he realizes that if he leaved the workforce at 50, he could possible live for the next 30-40 years. How the hell do you live for the next 30 years on $200k? That's $6,666 a year! Even with social security it's not enough.
Even the link I posted has it all wrong. They claim that if you're able to save $360k by the time you're 60, you are doing awesome. But, if you were to live for another 30 years (60-90), you're going to be living on $12k a year! Even with social security you're going to be eating dog food.
What About:
1) The high cost of living.
2) Illnesses like Parkinson's disease
3) Major Events.
1) The cost of living continues to creep upward. Now, imagine drawing on a savings account with no more money coming in. Imagine the cost of milk, eggs, and other daily products skyrocketing when you have no more income. For 30 years? That's not a good scenario.
2) I received a valuable lesson when I took care of my uncle during the last few years of his life. When I cared for my uncle, he was just beginning to develop Parkinson's disease. It robbed him of his independence. As the years progressed, he became dependent on his caregivers. He was lucky though because he was a multi-millionaire. He had the money for care around the clock. He always had someone at the house 24/7. He had a maid. He had someone to cook meals for him. The quality of his life was much more improved because he had the financial resources. You can't do that if you only have $100k in savings. That's when you become totally dependent on the state and/or family and that's never good.
3) Major events could be in the form of hurricanes, tornadoes, etc. Maybe even a house fire. You're going to be able to absorb these disasters and move on if you have a nice money cushion to fall back on. For most people, their life savings could easily be wiped out with one major event.
What are you doing to make sure that you don't become a burden on your family when you get older. For me, that's saving money and investing in real estate. IMO, the magic number that people should strive for before they retire is $1 million. That's in-addition to some form of passive income. I like multi-family apartments. I'd love to have 30-50 doors all cranking out paychecks for me per month. That's with my property already paid in full.
I had a talk with this guy and we got on the subject of retirement. Now, this guy is in his mid-late 40's. He told me that he has $200k put away and that he could leave work for good. I don't know if he realizes that if he leaved the workforce at 50, he could possible live for the next 30-40 years. How the hell do you live for the next 30 years on $200k? That's $6,666 a year! Even with social security it's not enough.
Even the link I posted has it all wrong. They claim that if you're able to save $360k by the time you're 60, you are doing awesome. But, if you were to live for another 30 years (60-90), you're going to be living on $12k a year! Even with social security you're going to be eating dog food.
What About:
1) The high cost of living.
2) Illnesses like Parkinson's disease
3) Major Events.
1) The cost of living continues to creep upward. Now, imagine drawing on a savings account with no more money coming in. Imagine the cost of milk, eggs, and other daily products skyrocketing when you have no more income. For 30 years? That's not a good scenario.
2) I received a valuable lesson when I took care of my uncle during the last few years of his life. When I cared for my uncle, he was just beginning to develop Parkinson's disease. It robbed him of his independence. As the years progressed, he became dependent on his caregivers. He was lucky though because he was a multi-millionaire. He had the money for care around the clock. He always had someone at the house 24/7. He had a maid. He had someone to cook meals for him. The quality of his life was much more improved because he had the financial resources. You can't do that if you only have $100k in savings. That's when you become totally dependent on the state and/or family and that's never good.
3) Major events could be in the form of hurricanes, tornadoes, etc. Maybe even a house fire. You're going to be able to absorb these disasters and move on if you have a nice money cushion to fall back on. For most people, their life savings could easily be wiped out with one major event.
What are you doing to make sure that you don't become a burden on your family when you get older. For me, that's saving money and investing in real estate. IMO, the magic number that people should strive for before they retire is $1 million. That's in-addition to some form of passive income. I like multi-family apartments. I'd love to have 30-50 doors all cranking out paychecks for me per month. That's with my property already paid in full.
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