Your Retirement Number

[guru1000]

I don't make foolish decisions with my capital and invest well. But I really could care less about my retirement number. And the more I don't care, the more monies I accumulate. I do find there is certain self-imposed monetary restriction you bring upon yourself by constantly dwelling on your money paradigms.

On a different note, surprisingly, I don't care much about money. Though, I do enjoy the challenges that accompany a "score." I chase the "score," not the monetary byproduct.

 

[PrettyBoyAJ]

I'm a very competitive person. I always thrive to be the best at what I do. With that being said I don't personally know anyone making more money then me (as in all of my friends).

As far as a retirement number... I don't have one. I'd never be content with the amount of money I make. When I was in school I would have been happy with 60k a year. Once I graduated I made that my first year and then strove for 6 figures. Two years later I was making 6 figures. Now the goal is half a million. Once i hit that mark I'm going to want millions then tens of millions.

Life to me is a like a game and I want to master it. Whether it be with girls or money, I always try to become better. Trying to reach the next level.

 

[Tenacity]

I'm a very competitive person. I always thrive to be the best at what I do. With that being said I don't personally know anyone making more money then me (as in all of my friends).

As far as a retirement number... I don't have one. I'd never be content with the amount of money I make. When I was in school I would have been happy with 60k a year. Once I graduated I made that my first year and then strove for 6 figures. Two years later I was making 6 figures. Now the goal is half a million. Once i hit that mark I'm going to want millions then tens of millions.

Life to me is a like a game and I want to master it. Whether it be with girls or money, I always try to become better. Trying to reach the next level.

You guys hiring lol? I'm looking for a career change. I'm never going to make the money I should be making with my current position.

 

[SayWhat]

I'm a very competitive person. I always thrive to be the best at what I do. With that being said I don't personally know anyone making more money then me (as in all of my friends).

As far as a retirement number... I don't have one. I'd never be content with the amount of money I make. When I was in school I would have been happy with 60k a year. Once I graduated I made that my first year and then strove for 6 figures. Two years later I was making 6 figures. Now the goal is half a million. Once i hit that mark I'm going to want millions then tens of millions.

Life to me is a like a game and I want to master it. Whether it be with girls or money, I always try to become better. Trying to reach the next level.

Can you share what you do? If you already told somewhere in this thread, I apologize.

 

[Bible_Belt]

My retirement numbers:
15 chickens
1 German Shepherd to guard the chickens
2 goats to mow the yard
1 cat for rodent control
8 cows as a long-term investment that pays dividends
1 acre of garden, where all the poop goes

 

[PrettyBoyAJ]

Can you share what you do? If you already told somewhere in this thread, I apologize.

I work in Healthcare IT. Pretty much I train and support doctors on their IT software. I do it independently so work off contracts.

 

[AAAgent]

I'll probably be hustling the rest of my life unless I had banked $10m+. Everything I do in my life is very risky. Outside of selling drugs and anything else illegal at the moment, I hope to atleast hit $1m in the next 2 years and from there, we will see.

While my money is growing, I'd like to do what BibleBelt is doing as well. Have my own sustainable land.

 

[Colossus]

With student loans paid off in <10 years, I could realistically retire with ~1M in investments. And by "retire" I mean work 1-2 days per week, or do locums contracts for 3-4 months out of the year. And that's not factoring in my wife working.

Projecting retirement always involves some assumptions, so I think it's fine to ballpark it but dont get attached to some arbitrary retirement age. As other posters have mentioned there are some major potential bubbles looming. Those things are out of our control.

Some things that ARE in your control:

-Dont have kids (unless you really want them of course)
-Small house, one spouse (if you get married at all)
-Pay off all consumer debt ASAP, and keep it that way
-Live modestly and invest the surplus in the index.

This is the get rich slowly approach. It works and has been repeated many times over. Not for everyone, but surprisingly attainable with discipline. The problem is most people either live right at or above their means, dont invest wisely in themselves (make poor career choices or too little $$), or chase wealth as a pursuit rather than a discipline.

To me the most powerful thing money can do for you is facilitate freedom. I've never craved money for the sake of more money, I only want enough to be comfortably independent of employment, and do as I please.

 

[BeExcellent]

I'm a consultant in healthcare similar to @PrettyBoyAJ but not in IT, rather on the clinical side. I've made and continue to make great money but it requires my time and I can only sell so much time and only at what the market will pay. I am top 1% compensated in my field so not bad for just a bachelor's degree.

The trick is to roll the big income into passive investments that create free cash flow. That is how you buy back your freedom. You also must avoid debt and overspending.

Passive income creates wealth while you sleep. I bought investment properties instead of fancy cars or expensive vacations. I have management teams who I in turn manage and my consulting income now pays down the last of the mortgage debt, which is the ONLY debt I still have. My portfolio now purchases additional assets for cash when a good deal comes along. (And it better be a good deal, because my money is picky.)

I can retire and support my ex husband and children on an income of about 125K no sweat. So I just need a portfolio that can kick out that kind of money after expenses. I will reach that point in about another 18 months and it took about 10 years to get here from scratch. As @Colossus suggests it is a get rich slowly deal. Slowly but permanently. Once I reach my goal I will still take an occasional adhoc contract to keep sharp professionally. Then I may explore real estate development and some creative ventures that I've always wanted time to pursue.

The further I get the more I think "well gee, I did THAT...let's do THIS", and life becomes great fun. The more successful you become the fewer limits you will impose on yourself. I'm doing pretty well by most standards but it's what I can wrap my brain around the more I accomplish that is REALLY exciting. It is ALL about belief, your mindset and your willingness to manifest. Until I got part of the way on faith I couldn't quite grasp this. Now I do and so I'm always trying to encourage others. I'm still the rate limiting factor in my own life. The more I embrace that the easier it is to burst the barriers. Maybe I sound nuts, but I have the record now to back it up. It's a great thing.

 

[PrettyBoyAJ]

@BeExcellent Very interesting. I think it would be very beneficial if you go into details about your properties/investments. I'm at a point now where I have a couple of years of expenses saved up and now I'm gonna be comfortable investing.

 

[playa99]

I don't have a retirement number per se, I have goals that I want to achieve.

My 5 year aim is to have an 8 figure net worth. This will be a mixture of cash, company ownership & passive investments.

I see myself scaling things back when my focuses in life turn to enjoying the fruits of my labour as opposed to developing my worth.

I currently have a 6 figure net worth made up of the value of the company I own, cash & equity in my property.

The business I own now is forecast to net profit £100,000 in the next year. I am currently exploring other business opportunities which will enable to move closer to my goal.

 

[BeExcellent]

@PrettyBoyAJ I will see about starting a thread on investment properties this weekend or next week. I meant to do that a few months ago but have been fairly busy (too busy to go into the detail I think it needs.) I've got to travel for a client and work with a colleague in the meantime. I will tell you that my strategy is simple but not easy. Don't let that put you off...it IS doable, but you have to have a level of commitment. From what I see about you for example, you travel a fair bit like I do. Travelling on client business is a fantastic way to maximize your exposure to various markets in various parts of the country or world. And you can do that while your client picks up the tab since you have to be there anyway.

I'll mention you and a few others I know dabble in property when I do the post. I think there is a fair bit of knowledge here that can help others.

 

[BeTheChange]

I don't have a retirement number per se, I have goals that I want to achieve.

My 5 year aim is to have an 8 figure net worth. This will be a mixture of cash, company ownership & passive investments.

I see myself scaling things back when my focuses in life turn to enjoying the fruits of my labour as opposed to developing my worth.

I currently have a 6 figure net worth made up of the value of the company I own, cash & equity in my property.

The business I own now is forecast to net profit £100,000 in the next year. I am currently exploring other business opportunities which will enable to move closer to my goal.

On what basis have you valued your company and what do you do?

 

[playa99]

@BeTheChange I haven't valued the company myself. We had it valued a few months back when we looked at selling it.

The method used is a multiplier of the EBIDTA based on the demand of the business.

My business is a construction consultancy with a variety of clients ranging from one man bands right through to national companies.

We have since decided to keep the business and develop it into a much larger business to obtain the best possible price down the road.

 

[imported]

I know inflation will be higher and all of that nonsense, but when you look at inflation, EVERYTHING isn't increasing consistently....inflation is the average of all categories.

Inflation isn't nonsense, it's the biggest PITA for most people when you look at the big picture. Also, true inflation is far worse than it seems because it's an average on a basket of goods as you said.

A basket of goods or bigmacindex inflation of 4% might not seem like much but because it includes things that actually can get cheaper (like food, tech, energy) it hides the fact that rent/mortgage can be rise 10-20%. That's why you can end up with less weekly disposable income even with a 5% raise, and how wagyu beef can seem affordable but a 2-bedroom apartment doesn't.

I'd be fine with 1M euros, but I probably wouldn't reach it before 40-50. That's way too late.

Sorry guys, but I'm not busting my a** 12 hours every day for 15 years while my life withers away before my eyes.

The problem with retirement is that it gives you 3-4x the free time. You will need things to do and things cost money, also as humans we have natural urge to spend money when we are bored or retired. Even with €1m today it wouldn't be enough because you would spend it really quickly when you have 3x the free time. That's why lottery winners end up broke, and why so many retired folks end up going back to work.

This is the get rich slowly approach. It works and has been repeated many times over. Not for everyone, but surprisingly attainable with discipline. The problem is most people either live right at or above their means, dont invest wisely in themselves (make poor career choices or too little $$), or chase wealth as a pursuit rather than a discipline.

To me the most powerful thing money can do for you is facilitate freedom. I've never craved money for the sake of more money, I only want enough to be comfortably independent of employment, and do as I please.

Many people have done this, they have a kid (or kids), that kid does the "chase wealth as a pursuit" and then suddenly you are back into a life of stress because of the needs of your offspring. Either that or you turn into an angry socialist as you see a guy half your age driving a car that costs 10x of yours as he cuts you off.

 

[Tenacity]

Even with €1m today it wouldn't be enough because you would spend it really quickly when you have 3x the free time. That's why lottery winners end up broke, and why so many retired folks end up going back to work.

Man I find this argument so weird.

I've had people tell me that $1 million USD in retirement in 30 years won't be "hardly anything" due to inflation....okay but $1 million is going to be more than what 95% of other people have. If I'm going to be eating "dog food" then what are 95% of the rest of the population who have NO WHERE NEAR my $1 million going to be doing?

Then they say, "Tenacity you will need at least $3 million".....okay, do you have any fvcking ideas, strategies, tips, ways, to get that shyt?? We are operating in a horrible job market, cost of living going through the roof, the stock market in a major bubble, fixed income has been destroyed........how the FVCK does a guy without a major network amass $3 million? Getting to my $1 million goal is going to be like pulling elephant's teeth for the vast majority of people!

That's when you hear crickets..........because people like talking out of their a.ss. Inflation is a factor but it isn't this major factor that people make it out to be. Inflation is mainly a tool used by WallStreet to CONVINCE people to invest in the Stock Market. Inflation only comes up when Fixed Income is discussed, nobody ever discusses Inflation when talking about the Stock Market because, Inflation is used as the tool to get more people buying into the Wallstreet Casino.

They say, "Nope, don't lock in that Fixed Income rate of 5% and sleep well at night! Because Inflation will come and get you! So put your money in the Stock Market for 20 years and ride the waveeee baby for GROWTH!"

What fvcking growth? The stock market is in a major bubble, the moment the Fed raises rates even a little it's going to crash.

 

[imported]

Man I find this argument so weird.

I've had people tell me that $1 million USD in retirement in 30 years won't be "hardly anything" due to inflation....okay but $1 million is going to be more than what 95% of other people have. If I'm going to be eating "dog food" then what are 95% of the rest of the population who have NO WHERE NEAR my $1 million going to be doing?

Then they say, "Tenacity you will need at least $3 million".....okay, do you have any fvcking ideas, strategies, tips, ways, to get that shyt?? We are operating in a horrible job market, cost of living going through the roof, the stock market in a major bubble, fixed income has been destroyed........how the FVCK does a guy without a major network amass $3 million? Getting to my $1 million goal is going to be like pulling elephant's teeth for the vast majority of people!

That's when you hear crickets..........because people like talking out of their a.ss. Inflation is a factor but it isn't this major factor that people make it out to be. Inflation is mainly a tool used by WallStreet to CONVINCE people to invest in the Stock Market. Inflation only comes up when Fixed Income is discussed, nobody ever discusses Inflation when talking about the Stock Market because, Inflation is used as the tool to get more people buying into the Wallstreet Casino.

They say, "Nope, don't lock in that Fixed Income rate of 5% and sleep well at night! Because Inflation will come and get you! So put your money in the Stock Market for 20 years and ride the waveeee baby for GROWTH!"

What fvcking growth? The stock market is in a major bubble, the moment the Fed raises rates even a little it's going to crash.

Not that I disagree with you but you have to remember that earning interest on savings is very old news. Not that long ago you could get a healthy income from interest, but later it dropped to around 3% which most consider to write-off depreciation from inflation. Now interest is 0% so you are literally losing money when it's just stored in the bank. It's unlikely to change anytime soon (or maybe even never) because now there is too much money floating around for any bank to pay any interest — think about it. Before banks paid interest because they could use the money, but now that they have basically unlimited borrowing why would they pay anything to borrow? Ironically, bankers are now allowed to take even bigger risks because people are being pushed into investing their money rather than just keeping it in a savings account. In a way it might be a good thing because at least you can get a better share of the rewards in exchange for the extra risk.

Average person makes about $1million in 20 years and that's in today's money (taking out inflation). This is also when you have about 5 hours of free time on weekdays. If you are retired then you have 16 hours of weekday leisure time. During that time you will spend the money very quickly, and because you don't have income from a job eventually it will diminish. You can invest the money somewhere but the return isn't going to cover your bills and money to pay to do **** during the 16h free time.

Also the more you earn the more you will want to spend. Everyone thinks "oh if I make $60k a year then I'll be happy" but once you do then your standards go up and then the happy number is 100k, and so on. There is no debating here because you just have to look at lotto or old people as proof that it's almost impossible to comfortably retire ever.

 

[Tenacity]

Not that I disagree with you but you have to remember that earning interest on savings is very old news. Not that long ago you could get a healthy income from interest, but later it dropped to around 3% which most consider to write-off depreciation from inflation. Now interest is 0% so you are literally losing money when it's just stored in the bank.

What bank? My bank savings/CDs are paying on average of 2.30% - 2.5% per year right now and have been doing so since about 2011 (old and new ones you can open right now at 2.3% - 2.5%). The total "inflation rate" right now is 1.1% but has been under 1% in most months lately. BTW, the S&P 500 last year was at a 1.30% return before inflation.

Average person makes about $1million in 20 years

No actually the median income for an individual in the US is about $32,000 per year before taxes. So in 20 years that's a gross of $640,000 not $1 million.

Also the more you earn the more you will want to spend. Everyone thinks "oh if I make $60k a year then I'll be happy" but once you do then your standards go up and then the happy number is 100k, and so on. There is no debating here because you just have to look at lotto or old people as proof that it's almost impossible to comfortably retire ever.

It's called living on a budget, you are right, most people don't seem to be operating on one as most people live paycheck-to-paycheck and have hardly ANY savings to cover emergencies.

But again, if my $1 million goal isn't enough.....and I need $3 million instead....do you have any ideas on how the hell to get to that when the FACT is that 95% of people won't get to my $1 million goal? Are you going to tell me like most brain-dead "financial advisors" that I should just keep stuffing money into the S&P Index for "GROWTH"?

- I like Fixed Income because I can predict what my rate of return will be before inflation.

- I hate Stocks because there's no way I nor anybody else can tell me what my return will be before inflation....or more specifically....where the hell my investment will be in 10, 15, or 20 years. Nobody knows a damn thing. I could have a 10% CAGR, I could have a 3% CAGR, I could have a negative 2% return. Nobody knows a damn thing when it comes to Stock returns before inflation, and that's why I can't stand Stocks. It's literally an entire fvcking Casino where you just SLAP money in a mutual/index fund, and HOPE it grows!

 

[Bible_Belt]

It's literally an entire fvcking Casino

That's investing in the market, yes. But when you learn to be a trader, it's more like being a card counter at blackjack. As soon as you push the odds into your favor, it's not really gambling any more.

 

[Huffman]

The problem with retirement is that it gives you 3-4x the free time. You will need things to do and things cost money, also as humans we have natural urge to spend money when we are bored or retired. Even with €1m today it wouldn't be enough because you would spend it really quickly when you have 3x the free time. That's why lottery winners end up broke, and why so many retired folks end up going back to work.

True, many people can't control themselves which is why, in my country, the government takes your money to give it back to you when you're 67... but I've been raised to be responsible with money so I could pull off retirement as a low spender.

That said, 1M now would be a bit of a challenge, since I'd still have 50 years to go before I die
But still. For example, if I could achieve a stable, low-risk 5% investment strategy, minus inflation and taxes would still net like 30k a year which is still an above average income over here.
The one big risk would be health insurance though, gotta be really careful that you won't get ruined by high premiums in old age.

Anyway, it's just a what-if game. 1M means you have to be careful, but you can pull it off.