- Joined
- Aug 17, 2012
- Messages
- 2,222
- Reaction score
- 2,816
What year and with how much money do you hope to retire?
Me; 2035 with about 7 mil.
Me; 2035 with about 7 mil.
whats your number?
- Thread starter caligas
- Start date
D
deleted126335
I keep moving the goal posts back on myself. I passed the number that I thought that I would need when I finished residency 20 plus years ago. There are just too many variables in predicting what might be a 25+ year retirement.
- Joined
- May 16, 2009
- Messages
- 1,145
- Reaction score
- 39
I'll probably retire (maybe go part time) in 2031 if I have at least 4 million in today's dollars plus home paid for. Most of that 4 million in Roth 401k makes it effectively 5 million or so.
- Joined
- Dec 15, 2005
- Messages
- 16,902
- Reaction score
- 26,431
On track for $2 million plus my .mil pension (worth $2 million or so) plus two paid off houses at age 55, at which point I will be able to retire and quit entirely, but probably won't since I like this job. But I don't know, a lot can and probably will change over the next 15 years.
$7 million in 2013 dollars is a lot, $280K/year at a 4% SWR. Much, much more if you get into principal as you age and stiff your ungrateful heirs.
$7 million in 2013 dollars is a lot, $280K/year at a 4% SWR. Much, much more if you get into principal as you age and stiff your ungrateful heirs.
- Joined
- Aug 17, 2012
- Messages
- 2,222
- Reaction score
- 2,816
- Joined
- May 16, 2009
- Messages
- 1,145
- Reaction score
- 39
- Joined
- Jul 16, 2003
- Messages
- 6,351
- Reaction score
- 4,662
Having another anesthesia MD as your partner w/ no kids and living in a less desireable location makes retirement with big numbers very doable. I don't want to post on an internet forum the numbers, but lets just say retirement is coming a lot faster than I ever thought possible. The problem is, I love what I do, and will likely work considerably longer than I need to... dare I say academics??? 🙄
- Joined
- Nov 24, 2007
- Messages
- 8,455
- Reaction score
- 9,790
Come on over Sevo. The water is great. And 1 call a month ain't so shabby either.👍
There are a good number of academic faculty that either made money elsewhere, or have money from other sources. I guess that's not a real surprise.
You can also negotiate no first or second call and 80% time as a condition of your joining the team. (With a pay cut of course.)
My target is >4m with 2m in property. This is separate from my wife's retirement and any inheritance which should be coming from both sides. You can't count on any of that though when it comes to your individual planning. Divorce, theft, greed, Madoff, devastating illness, etc. We should be more than fine. Having said that I'm very conservative with my planning. If I end up with twice that, all the better.😉
Last edited:
You guys are forgetting Obama has taken care of 1 of the 2 most important factors as people approach their late 50s and early 60s...healthcare costs.
Housing costs and healthcare costs are number 1 and 2 most important factors in retirement for MOST people.
I know many people with "pre existing" conditions in their late 50s or early 60s who pay a ridiculous $3000 a month just in premiums for his wife and himself PLUS a $10000 deductible. That's potentially $46000 a year in health care cost for older people. Obama has taken care of that if someone were to retire early, drive their income below 400% of poverty. Think about it. You can live very comfortably off early social security, have your AGI less than 60K a year and probably pay less than $500 a month for both yourself and your wife in health premiums.
With that math (assuming your home is paid for). I think 60K a year (remember you really only need about draw about 30K a year from your 401K cause social security (assuming it's there in some form even at 50% what you had expected). You can reasonable assume you should get 50% of the current payout at worst case.
So instead of a 40K a year payout (for husband and wife). Plus withdrawing 30K a year from 401K (or similar plans). You plan on being retired for 25 years. And assuming inflation.
Really this is all funky math but I project one only needs about 2 million (in 2013) money to retire comfortably. The ACA will allow many semi affluent people to take early social security at age 62 and retire cause their healthcare will be heavily subsidize.
So 4 million in 2030's money is my projection.
Housing costs and healthcare costs are number 1 and 2 most important factors in retirement for MOST people.
I know many people with "pre existing" conditions in their late 50s or early 60s who pay a ridiculous $3000 a month just in premiums for his wife and himself PLUS a $10000 deductible. That's potentially $46000 a year in health care cost for older people. Obama has taken care of that if someone were to retire early, drive their income below 400% of poverty. Think about it. You can live very comfortably off early social security, have your AGI less than 60K a year and probably pay less than $500 a month for both yourself and your wife in health premiums.
With that math (assuming your home is paid for). I think 60K a year (remember you really only need about draw about 30K a year from your 401K cause social security (assuming it's there in some form even at 50% what you had expected). You can reasonable assume you should get 50% of the current payout at worst case.
So instead of a 40K a year payout (for husband and wife). Plus withdrawing 30K a year from 401K (or similar plans). You plan on being retired for 25 years. And assuming inflation.
Really this is all funky math but I project one only needs about 2 million (in 2013) money to retire comfortably. The ACA will allow many semi affluent people to take early social security at age 62 and retire cause their healthcare will be heavily subsidize.
So 4 million in 2030's money is my projection.
- Joined
- Dec 15, 2005
- Messages
- 16,902
- Reaction score
- 26,431
Maybe we ought to wait for the ACA dust to settle before declaring old-age health care a solved problem ...
- Joined
- May 16, 2009
- Messages
- 1,145
- Reaction score
- 39
- Joined
- Apr 22, 2007
- Messages
- 22,664
- Reaction score
- 9,755
I agree with you doze. We both know the amount needed for retirement is much higher than being stated in these threads.
- Joined
- May 3, 2007
- Messages
- 133
- Reaction score
- 9
I don't know about the rest of you guys but I have no interest in retirement. I do however look forward to the day when I can just be an employee that takes a pay check and takes no call and walks out the door at 3 and takes however much time off as I desire to travel. As for the number it changes as you age. At 35 it would have to be 10 mil. As time goes on it is much less as long as you work enough to keep some $ coming in to pay for the vacations you want to take 1st class. Blaz
- Joined
- Apr 22, 2007
- Messages
- 22,664
- Reaction score
- 9,755
As Sevo and Doze know there are 2 numbers: The slow down number and the retirement number.
- Joined
- Aug 12, 2004
- Messages
- 3,720
- Reaction score
- 7,284
I feel like some of you are just tossing out huge numbers without thinking too much about it, but I could be wrong. For those without children, who have no student loan debt, and who inherited a boat load, 7-10 mil is perhaps attainable, but the very large majority of physicians won't see anywhere near that number. Maybe I'm way off base, but most of the physicians I know don't meet the criteria above.
I'm in my mid-30s, fresh out of residency, married with 2 kids (wife stays home), I have a ton of student loan debt, and no inheritance to lean on. We'll be doing great if we slow down/retire with 2 million in retirement savings. And that's only if we continue to live a very financially conservative lifestyle.
I don't really have a lot of confidence we'll retire/slow down with that much, as I see the US/international markets going into a very prolonged recession at some point in the next decade. I hope I'm wrong though.
I'm in my mid-30s, fresh out of residency, married with 2 kids (wife stays home), I have a ton of student loan debt, and no inheritance to lean on. We'll be doing great if we slow down/retire with 2 million in retirement savings. And that's only if we continue to live a very financially conservative lifestyle.
I don't really have a lot of confidence we'll retire/slow down with that much, as I see the US/international markets going into a very prolonged recession at some point in the next decade. I hope I'm wrong though.
- Joined
- Apr 22, 2007
- Messages
- 22,664
- Reaction score
- 9,755
$2 million is insufficient. Sorry. But, you will need at least double that amount if not triple by the time you retire in 3 decades. The key is to start saving early and as much as possible. Let compounding be your friend.
- Joined
- Apr 22, 2007
- Messages
- 22,664
- Reaction score
- 9,755
Tapping the Power of Compound Interest
http://www.cato.org/publications/commentary/tapping-power-compound-interest
http://www.cato.org/publications/commentary/tapping-power-compound-interest
- Joined
- Aug 12, 2004
- Messages
- 3,720
- Reaction score
- 7,284
I have a good understanding. By living conservatively, meaning maxing my 401k (51k/year since I'm self employed), maxing IRA accounts for my wife and I, maxing our HSA, and maxing 529 accounts for my children, I still will get no where close to some of the numbers you guys are tossing around. Which brings me to my larger point. You'll either retire with a lower number, like I will, or you're making >$500k/year, with no children, no loans, and/or you inherited a ton.
I've inherited the Boglehead mindset and philosophy, but that in itself won't be enough to get me anywhere close to some of the numbers being mentioned in this thread. Nor will it for the large majority of physicians. But congrats to you all who retire with > $5 mil. I'm envious.
- Joined
- Nov 24, 2007
- Messages
- 8,455
- Reaction score
- 9,790
Putting as much as you can in tax advantaged retirement accounts is just part of the plan. My wife and I max out all of these, as best we can since neither of us are self employed. We also save a considerable amount of money each year for other investments, paying down mortgages, etc.
You will do great maximizing your tax advantaged opportunities, but you need to do more.
My biggest concern, other than significantly decreased income, is excessive property taxes. However that's easy enough to manage. You just downsize the retirement pad from ocean front to ocean view to river front to river view to shack on a lake in Alabama. Whatever it takes. Decreased income will just add a few more years of work.
Health care costs are a big question mark. However if things continue down the current path, there are only 2 options for 30 years down the road. Govt managed care or true govt run care +/- a private option.
We also got excessive luxury spending out of our system in our 30s. You can have plenty of really nice things without breaking the bank. That will pay off when the govt sales tax/vat type plan gets implemented. I see that as inevitable as well.
You will do great maximizing your tax advantaged opportunities, but you need to do more.
My biggest concern, other than significantly decreased income, is excessive property taxes. However that's easy enough to manage. You just downsize the retirement pad from ocean front to ocean view to river front to river view to shack on a lake in Alabama. Whatever it takes. Decreased income will just add a few more years of work.
Health care costs are a big question mark. However if things continue down the current path, there are only 2 options for 30 years down the road. Govt managed care or true govt run care +/- a private option.
We also got excessive luxury spending out of our system in our 30s. You can have plenty of really nice things without breaking the bank. That will pay off when the govt sales tax/vat type plan gets implemented. I see that as inevitable as well.
- Joined
- Dec 15, 2005
- Messages
- 16,902
- Reaction score
- 26,431
With respect, that's a silly thing to say. The amount "needed" to live a high-roller retirement in Manhattan is worlds different than the amount "needed" to live out your retirement hunting and fishing in Wyoming.
These threads are inherently imprecise because some people report goals while some people report what they're on track to do, some report future dollars, and some report current dollars, and some assume low inflation, and some assume high inflation, and some are planning to die broke, and some are planning to leave millions to heirs, and some think stock market gains of 11% real year over year are in the cards, and some don't.
And then we get off into the weeds of what's "needed" for retirement, as if everyone has the same retirement plans, family obligations, non-cash assets, geographic location, expectations of inheritance, etc.
It's an idle speculative thread with just about zero help-me-plan value, but it's sort of fun and interesting nonetheless.
Blade 2 million in today's money if you retire right now at age 60 is enough (assuming your home is paid off/reasonable property taxes cause Obama going to take care of your health insurance through subsidies).
2 million. 50K a year x 20 years is 2 million. I am not even counting social security one collects at age 62, 65, or 67.
So if one were to retire right now, October 5th 2013 and is 60 years old. Someone with 2 million in their retirement account and house paid off with reasonable property taxes should be able to retire and live comfortably.
If you can't live off 50K a year Plus social security, than you got excessive spending habits you need to cut.
Electricity/Food/property taxes/lawn maintenance/gasoline/cable/insurance . Basic stuff should be at most $3000 a month. Even if you need a car, car payments would be another $300-500/month. You still leave yourself with a lot of wiggle room.
I've calculated my expenses (even with young kids). And we spend $6000-7000 and month. But half of that money is for housing expenses. If you are 60 you should have paid off your house by than.
I don't know what 2 million will be in 2030.
I don't know what inflation will be in the future. We've had deflation the past 3-4 years. Home prices have gone down. Gas prices have gone down. Yes food prices have gone up. But just eat less. That's how you combat inflation of food cost. Movie tickets prices have stayed flat.
- Joined
- May 16, 2009
- Messages
- 1,145
- Reaction score
- 39
$2,000,000 paying an average 3.5% dividend yields $70,000 per year plus $20k social security provides comfortable retirement in my mind.
$4,000,000 yielding $140,000 per year would yield a pretty cush retirement even if social security isn't available if the house is paid for and kids aren't taking money anymore.
$4,000,000 yielding $140,000 per year would yield a pretty cush retirement even if social security isn't available if the house is paid for and kids aren't taking money anymore.
Last edited:
That's why I don't understand why people can't just cut expenses. My friends are still spending 10-15K a month easily.
It's not what you make. It's what you keep at the end of the day.
Some people just have bad spending habits. Really bad spending habits.
I tell every new grad. If you are 1099/self employed. Take 1/3 of the money and sock it away. Take 1/3 of the other money to set aside for taxes. Use the other 1/3 to live off. It's not that hard and you can still drive fancy cars and have nice vacations.
W2 people should set aside 20% since most of their income is exposed to higher taxes.
D
deleted126335
An article on sustainable portfolio withdrawl rates.
http://www.cbsnews.com/8301-505123_162-57604976/safe-withdrawal-rate-is-3-percent-the-new-4-percent/
- Joined
- Nov 24, 2007
- Messages
- 8,455
- Reaction score
- 9,790
The lease on that Quattroporte is over $2k a month you know. It's not going to just pay for itself.
My wife has a very good job in the business world. We live entirely on my income and save all of hers. That's how it's done. I could be driving an S class, have a stable of $20k+ watches and a pile of bills. We like $$ instead.😉
Living well below your means is the key to future financial freedom.
Of course it's a lot easier on 3-400k than 70k.😉
Last edited:
- Joined
- Jul 16, 2003
- Messages
- 6,351
- Reaction score
- 4,662
I tell people this.
I've managed to save (in both retirement and taxable accounts) over 1 million my 9 years I've been out of residency.
And I've never made anywhere close to 500K. I've probably averaged about 325-350K income the past 9 years. Plus I lived in a high state income tax (tax rate close to 9%) for half that time PLUS lost 250K in housing real cash lost. My current house I've gotten close to 50% equity since I put a sizable down payment and paying it off faster. That equity is outside of my net worth as well.
This is with a non working spouse and 2 kids folks.
And we've gone through our fair share of luxury cars (all paid with cash). Audis, BMW, and Hummers plus take at least 2 huge vacations each year plus quite a few mini vacations throughout the year.
Again, very simple: My goal has been the 1/3 rule. I've managed to save 1/3 of my self employed income almost every year. That's why I am over 1 million.
I've paid off my student loans (over 120K as well).
My pace, I'm seriously going to consider retirement as I get to about age 55 when both my kids will be well into college or close to being done. Age 60 is my target goal
My dad retired at age 65, died at age 67 of cancer. I want to enjoy my retirement years for a while.
I've managed to save (in both retirement and taxable accounts) over 1 million my 9 years I've been out of residency.
And I've never made anywhere close to 500K. I've probably averaged about 325-350K income the past 9 years. Plus I lived in a high state income tax (tax rate close to 9%) for half that time PLUS lost 250K in housing real cash lost. My current house I've gotten close to 50% equity since I put a sizable down payment and paying it off faster. That equity is outside of my net worth as well.
This is with a non working spouse and 2 kids folks.
And we've gone through our fair share of luxury cars (all paid with cash). Audis, BMW, and Hummers plus take at least 2 huge vacations each year plus quite a few mini vacations throughout the year.
Again, very simple: My goal has been the 1/3 rule. I've managed to save 1/3 of my self employed income almost every year. That's why I am over 1 million.
I've paid off my student loans (over 120K as well).
My pace, I'm seriously going to consider retirement as I get to about age 55 when both my kids will be well into college or close to being done. Age 60 is my target goal
My dad retired at age 65, died at age 67 of cancer. I want to enjoy my retirement years for a while.
- Joined
- Dec 26, 2008
- Messages
- 5,436
- Reaction score
- 4,042
Is that before or after taxes? Because putting away 1/3 of one's gross income seems almost impossible.
It's right now 60% pretax /40% post tax money ratio. My effective tax paid is usually in the 15-18% range as a self employed person.
It's not impossible. I have been putting 49-50k plus 20k for my non working wife in safe harbor IRA the past 4 years. So 70k pretax plus easily 30k post tax money ratio. Prior to that I put whatever the max SEP Ira. (45-49k) plus saving cash.
Starting Jan 1st I am switching to W2 (from 1099). But I get great benefits where I can still put 34k away pretax plus the institution will immediately vest $22500 into my retirement account each year and I can take it with me if I don't stay. So I can still save a butt load in pretax almost the same as I was self employed. Plus whatever cash I have left.
D
deleted126335
Saw this quote today on the Bogleheads forum. I agree completely.
"The future is unknown, both the markets and your personal needs. I feel it pointless running more and more and more numbers through more and more complicated black boxes, as if the resulting conclusions will be more exact.
Save as much as you can, not the minimum some advisor tells you. Takes rational withdrawals in retirement, and adjust as the world turns. Nothing is promised as a certainty."
"The future is unknown, both the markets and your personal needs. I feel it pointless running more and more and more numbers through more and more complicated black boxes, as if the resulting conclusions will be more exact.
Save as much as you can, not the minimum some advisor tells you. Takes rational withdrawals in retirement, and adjust as the world turns. Nothing is promised as a certainty."
- Joined
- Jul 16, 2003
- Messages
- 6,351
- Reaction score
- 4,662
+1 Doze.
Last year I spent 7% of my gross. The rest went into long and short term investments.
@ almost 40 Years old I'm yet to buy a brand-new car.
My last truck went to 255,000 miles. My expenses in BFE are negligible.
Last year I spent 7% of my gross. The rest went into long and short term investments.
@ almost 40 Years old I'm yet to buy a brand-new car.
My last truck went to 255,000 miles. My expenses in BFE are negligible.
- Joined
- Apr 22, 2007
- Messages
- 22,664
- Reaction score
- 9,755
Great advice.
D
deleted126335
I have driven only Accords and Camrys. Keep em for about a decade each. Owned three houses. Each of which cost less than one years income.
- Joined
- May 15, 2005
- Messages
- 1,565
- Reaction score
- 1,860
What do you guys recommend for the new generation of ultra high debt graduates (other than not to go into medicine/anesthesia, which is too late for us)? My wife (internist) and I will be done in June and unfortunately have a combined 780k of medical school debt @ 7.3% average (no other liabilities). Looking at W2 jobs with a combined income of 570-600k in a state with 8% income tax.
My plan was for each of us to take out our 51,000 tax deferred for each of our 401k's off the top and then basically live like we have been as residents (rent <2k/mo, minimal vacations, cheap cars-paid off) and funnel everything to the loans after putting away at least 50k in an emergency savings account. Even with this strategy it will still take us 4-5 years to pay off the debt by my math but at that point we will at least have a healthy start to our retirement and be debt free. Thoughts?
Wish I would have had the foresight to pick the cheapest possible medical school but I wouldn't have met my wife that way. At least we are young (both 29 when we are done), but it sucks to be that deep in debt.
My plan was for each of us to take out our 51,000 tax deferred for each of our 401k's off the top and then basically live like we have been as residents (rent <2k/mo, minimal vacations, cheap cars-paid off) and funnel everything to the loans after putting away at least 50k in an emergency savings account. Even with this strategy it will still take us 4-5 years to pay off the debt by my math but at that point we will at least have a healthy start to our retirement and be debt free. Thoughts?
Wish I would have had the foresight to pick the cheapest possible medical school but I wouldn't have met my wife that way. At least we are young (both 29 when we are done), but it sucks to be that deep in debt.
- Joined
- Jul 11, 2001
- Messages
- 2,896
- Reaction score
- 1,893
Must be nice to live in BFE! I'm a W-2 academic in a high (the highest) tax state, living in a city with a real estate boom/bubble that is INTENSE. A 1500 sq ft condo in a good neighborhood can be 1.5 mil, so we rent. I manage to max out the 401K and on top of that take 20% of my gross and take it off my net into a handful of tax-advantaged investment strategies (I have an advisor). I don't have a target number in mind, but I'm going to keep doing the 20% for 20 years, keep driving the Mazda, and hope for the best. Probably have to retire somewhere else.
D
deleted126335
Your plan is a good one. I might quibble, that with debt @ 7.3% and you and wife in top tax brackets that you should only fund the 401ks upto the company match. Put everything else to the loans.
- Joined
- Sep 25, 2008
- Messages
- 676
- Reaction score
- 80
Treat your student loan debt as part of a mortgage. Your goal should be to have your mortgage paid off in 30 years and right now you've got an 800k mortgage to pay off. Most guru's say a reasonable estimate for a mortgage for a house is 2x your gross income. In your case, you need to adjust the formula slighty and say a reasonable mortgage for your house is (2x your gross income - your student loans). So assuming no loan forgiveness option I wouldn't take on anything bigger than 400k making your total 1.2 debt load 1.2 mil which is high but not unreasonable to pay off.
That 7.3% interest rate is very high so you might want talk to the bank and see if you can get a loan at a better interest rate to pay off some of that debt
- Joined
- Oct 29, 2006
- Messages
- 1,208
- Reaction score
- 1,089
Your plan is good, however, if you chose a practice where you can work your butt off and get paid accordingly you should be able to knock that debt out faster and have a little more change in your pocket. I am 2 years out, married, wife at home with 2 kids, working very hard, but have 1/2 as much as what some of these people are talking about needing for retirement invested already. My personal plan is work as hard as I can reasonably tolerate x5 years, live minimally, invest every penny I can into diversified areas, then gradually ramp up my lifestyle.
To me it is laughable that there are guys on here that after practicing for 30+ years dont have more than 2 million bucks in a retirement account. Curb your expenses, dont buy the 130,000 wakeboard boat, the Porsche, the huge place in an expensive city, the $100+ meals multiple times a week...
To me it is laughable that there are guys on here that after practicing for 30+ years dont have more than 2 million bucks in a retirement account. Curb your expenses, dont buy the 130,000 wakeboard boat, the Porsche, the huge place in an expensive city, the $100+ meals multiple times a week...
- Joined
- Jul 16, 2003
- Messages
- 6,351
- Reaction score
- 4,662
I wouldn't say nice...😉 There is a reason it's called BFE. The lack of culture and things to do can be depressing. Funny how many 50 y/o I see in electric wheel chairs outfitted with O2 tanks and nasal cannulas pulling up to gas stations puffing away on their cancer sticks. I presume to get a new carton of Marlboro's. The gloomy days during the winter def. give me a taste of seasonal affective disorder. I need to drive 1.5 hours to hit the indoor tennis courts (45 min. each way). Walmart and Mccdonalds and friends are big hits here. Wholefoods will never make it. 🙁 It's not all peachy my friend.
I take 12-13 weeks off a year... 90% of those trips, I go to my investment property in Colorado... it keeps me from going insane.
I hear you though. My parents live in Los Altos, CA and own one of those 1500 sq. ft. homes. They pay 20k+ in property taxes every year. Must be hard.
I've said it before and I'll say it again.
Work in BFE, get that FU account up and running, set yourself up, and move to the beach or the mountains when the time is right.
I think it's a good strategy... Sacrifice early and reap the benefits later in life. You only need 6-10 years to set yourself up nicely....unless you have kids and want them to grow up in a better schooling system.
- Joined
- May 16, 2009
- Messages
- 1,145
- Reaction score
- 39
Beat me to it. I'd love to be able to save 30% of my income, but I want my kids to go to good schools and I don't want to die of boredom either.
I live in a very desirable city where housing gets expensive in the best school districts, and I can only save 12-14% per year + 6-7% 'savings' in home equity each year.
Even at my savings rate I should be able to retire after 20 years, while enjoying those years and letting my kids get well prepared for college.
I'm somewhat jealous of those who can save more, but also not that jealous. The BFE route isn't a bad idea for some, but people living in cities get to retire too.
- Joined
- Jul 16, 2003
- Messages
- 6,351
- Reaction score
- 4,662
- Joined
- Feb 22, 2011
- Messages
- 1,010
- Reaction score
- 99
What do you people need, butt-wipers and servants to feed caviar when you retire?
- Joined
- Aug 17, 2012
- Messages
- 2,222
- Reaction score
- 2,816
D
deleted126335
Why don't you tell us what you think that you will need to finance a 25 year retirement?
Being old used to mean being poor and just scraping by. The crashing of the entitlement house of cards, (whenever it comes) will mean that again for lots of folks. Most people cannot expect the same comfortable retirement that many retirees have enjoyed over the last 20 or so years. It will get harder and more expensive for all.
TIming is everything. Just ask a fresh grad as opposed to one that finished about 5 years ago. Let alone one that finished 25 years ago.
- Joined
- Jul 16, 2003
- Messages
- 6,351
- Reaction score
- 4,662
Very true.
I would like to add that retirement expectations and reality frequently diverge... even after entering retirement. Some people go back to work because they have to. Some people continue to work because they like it. Preparing for the worst possible scenario early is key.
Save early, diversify, live under your means.
My senior partner has done this very well. He is worth around 10 million (I've seen his accounts). Guess what? He lives in a modest home (although he owns property in Chicago, Florida and abroad), he doesn't take call, he goes to the surgery center, does easy cases and takes 1 month at a time off. He's done it right.
No one needs 10 mil, but if you can do it while being content... Then go for it.
- Joined
- Sep 18, 2006
- Messages
- 363
- Reaction score
- 212
Fiancée is a doc w/o debt we plan on retiring in 31 yrs w 8.3m combined (ira/ps/401k/hsa/whole life )
D
deleted162650
I think balance is key. I considered the BFE route, but at the end of the day decided that I'd already spent the last 8 years in delayed gratification mode and I didn't want to spend another 5-10 years doing the same thing. Plus I know plenty of people who went the BFE route and got stuck there (either bc they met a nice girl or got their practice established, etc.)
Also remember, there's no guarantee that your gonna have a 25yr retirement or even make it to retirement in the first place. Remember UTSW. :cry:
Don't get me wrong, I'm not advocating being stupid with your money. I just think you have to make sure you are enjoying your life and not simply waiting to enjoy your life once you retire. Personally, I almost think I'd rather take more time for my family now while my kids are young, and I'm young. I'll happily spend more time in the OR once my kids are in college/moved out and my knees and back hurt to bad to surf/snowboard anymore.
I think as long as you have:
ONE good job
ONE wife
ONE mortgage
only ONE expensive hobby
and MAXIMALLY fund your 401K/IRA/etc.
you will come out OK.
Also remember, there's no guarantee that your gonna have a 25yr retirement or even make it to retirement in the first place. Remember UTSW. :cry:
Don't get me wrong, I'm not advocating being stupid with your money. I just think you have to make sure you are enjoying your life and not simply waiting to enjoy your life once you retire. Personally, I almost think I'd rather take more time for my family now while my kids are young, and I'm young. I'll happily spend more time in the OR once my kids are in college/moved out and my knees and back hurt to bad to surf/snowboard anymore.
I think as long as you have:
ONE good job
ONE wife
ONE mortgage
only ONE expensive hobby
and MAXIMALLY fund your 401K/IRA/etc.
you will come out OK.
Kevin agrees with you. We cannot assume SS and medicare will be intact when we retire.
[YOUTUBE]http://www.youtube.com/watch?v=UG9FWRbD9ac[/YOUTUBE]
- Joined
- Nov 29, 2004
- Messages
- 4,720
- Reaction score
- 19
Great post, I agree totally about spending time with the kids while they're young and impressionable...seems like the whole system is backwards from what it should be!
