What's your retirement nut?

[DespotInExile]

Mine is $10M liquid, with housing paid for. $5M liquid (after housing) also works, but would require us to take more long term market risk.

['Chair]

yes but is your penis 8" ?

[hawk59]

so you are saying this is what you have, or what you will need for retirement?

[Thremp]

Is it just me or does this dude need a 5mil in houses for his "nut"?

[Perplexity]

I guess he's saying that with $10M he'd be living off the income from zero-risk assets, but with only $5M he'd have to hold equities.

[juschuma]

For those that want to try and figure out what they will need, a rough estimate is a 4% withdrawal rate at retirement. Meaning you'll need roughly 25 times your desired annual income.

So, if you expect to live off of $100,000 per year in retirement, you'll need $2.5m saved by the time you retire.

4% is a rough guideline and YMMV, but it's a good target to plan for.

[Thremp]

[ QUOTE ]
For those that want to try and figure out what they will need, a rough estimate is a 4% withdrawal rate at retirement. Meaning you'll need roughly 25 times your desired annual income.

So, if you expect to live off of $100,000 per year in retirement, you'll need $2.5m saved by the time you retire.

4% is a rough guideline and YMMV, but it's a good target to plan for.

[/ QUOTE ]

On this same topic its interesting to see how a 10% market downturn if you're fairly aggressively invested (or just a nasty bond market) can really eff up your entire retirement.

[Scorpion Man]

[ QUOTE ]
For those that want to try and figure out what they will need, a rough estimate is a 4% withdrawal rate at retirement. Meaning you'll need roughly 25 times your desired annual income.

So, if you expect to live off of $100,000 per year in retirement, you'll need $2.5m saved by the time you retire.

4% is a rough guideline and YMMV, but it's a good target to plan for.

[/ QUOTE ]
This is great if you make sure to DIE.

[Scorpion Man]

[ QUOTE ]
Mine is $10M liquid, with housing paid for. $5M liquid (after housing) also works, but would require us to take more long term market risk.

[/ QUOTE ]

In my experience, this is a moving target for people. When they get within sniffing distance of the first target, they simply move it. We used to play this game all the time in biz school. Everybody started at $5m, then got to $10m pretty quickly. People who got there did not pass go and went directly to $20m. I have a good friend who just got there and is still agonizing about whether its enough. And he does not even live a big lifestyle.

These are SF, NYC, Boston numbers. They can be lower elsewhere, I guess.

I often see on these boards people thinking they are going to retire young on $1-2m. I don't see how that is possible unless you continue to live like a student.

[zimmer879]

$2 mill will give you $80K/yr inflation adjusted at a 4% withdrawal rate. That seems like it would be reasonable for most people.