sidsanuk Posted February 6, 2009 Author Report Share Posted February 6, 2009 You mean you work all of your life hard to live a confortable life and that must end in poverty ???I dont get that... I put monthly enough aside for my old day in order NOT to end at the bottom. I dont want to pinch pennies at the end of the day, but thats me. BB BB, how old are you? Just curious. If you put money away from the age of 18 or when ever you start working, and a sizeable % of your income (I think the figure required is about 15-20%) you can maintain the same income in retirement. That seems to be the common thinking anyway. Let's say you earn $100k pa. You retire this year at age 55. How long do you expect to live? Maybe 80. So you need to fund 25 years of income. If we assume a very low cpi of say 2% pa, that 100k pa by the time you are age 80 is now 160k pa. In total over the 25 years you'll need $3.2 million. If you invest, and just take your 100k pa income from the interest, you'll probably need a lump sum of about $3.5 million at least. Just back of the envelope stuff. Most people cannot afford to amass that amount of savings. I can't. That is why I am focussed on building my business to get an income from it in retirement. Of couse getting divorced 8-9 years ago, 'giving' the house to my ex, and paying off the mortgage, plus paying alimony probably doesn't help that much. I basically started from scratch again. Do most people retire on the same income as when they were working. No way. It doesn't work like that. Maybe a lucky 2-3% do. If you have managed to do it. Well done. What's the secret? What do others think? Link to comment Share on other sites More sharing options...
ThaiHome Posted February 6, 2009 Report Share Posted February 6, 2009 I have several friends that retired in early 2001 with millions in investments, by 2002 they were out looking for jobs. The very first rule once you reach retirement is to preserve your capital and move your investments into "safe" incoming producing vehicles. Apparently people continue to ignore this. My 401k has taken a big hit, almost 50%, but since I won't retire for at least 5 more years, I am fairly confident it will come back as it as every time. If it doesn't, and we get the doomsday scenario so many are fond of going on about, then it won't make any difference anyway, as we will all be fucked and even gold won't help. TH Link to comment Share on other sites More sharing options...
samak Posted February 6, 2009 Report Share Posted February 6, 2009 ok let's summarize rules of thumbs - move money to safe investments ahead of your retirement (maybe old rule that you should not keep more percents of your savings in stocks than 100 - your age) - free time during retirement will cost some money; that you spend considerable less during retirement is a illusion - you can only retire before 60 and keep your life style if you have enough funds; do your math Link to comment Share on other sites More sharing options...
RayRay Posted February 6, 2009 Report Share Posted February 6, 2009 Rule of Thumb #4 - If you are wondering if you have enough money stashed away for retirement then the answer is no. It's a direct relation to the old addage that if you have to ask how expensive something is then you can't afford it. Link to comment Share on other sites More sharing options...
BelgianBoy Posted February 6, 2009 Report Share Posted February 6, 2009 BB, how old are you? Just curious. no problem, its in my profile, soon to be 54 yo. If you put money away from the age of 18 or when ever you start working, and a sizeable % of your income (I think the figure required is about 15-20%) you can maintain the same income in retirement. That seems to be the common thinking anyway. I started 5 years ago.... but put today close to 50 % aside of my income. Most people cannot afford to amass that amount of savings. I can't. That is why I am focussed on building my business to get an income from it in retirement. same here, but different....I'll be in LOS, retired, but probably keeping my business as a hobby Of couse getting divorced 8-9 years ago, 'giving' the house to my ex, and paying off the mortgage, plus paying alimony probably doesn't help that much. same here 7 years ago I basically started from scratch again. again, same here, I started with 130 Euro in the pocket (~ 5700 Bt) Do most people retire on the same income as when they were working. No way. It doesn't work like that. Maybe a lucky 2-3% do. that is the plan, but instead of spending it here, I'll be spending it in LOS, it IS cheaper, no ? and your spending patters does change, I see that with my parents. If you have managed to do it. Well done. What's the secret? lets continue per PT..... BB Link to comment Share on other sites More sharing options...
The_Munchmaster Posted February 6, 2009 Report Share Posted February 6, 2009 ....Do most people retire on the same income as when they were working.... Of course they don't. Most people work in a job all their life that gives them very lttle opportunity to save much. They retire, and if in the UK, they get a state pension and hopefully a private pension from their employers. These, normally, amount to much less than what they used to earn. Some in the UK are lucky though and get final salary pensions, although how long that will last I don't know. One of the big expenses during a persons working life is their mortgage and hopefully they will have paid that off by the time they retire so that is an expense they won't have to pay out of their retirement income. Link to comment Share on other sites More sharing options...
cavanami Posted February 6, 2009 Report Share Posted February 6, 2009 The way it *** used *** to work in the USA: University Get job, maybe change jobs a few times Marry, kids, buy the house Now the house was the middle class saving institution for having retirement money...but the bubble burst. After a while, the wife usually worked and you saved money for the kids college and your retirement. Get the kids married off, sell the house and buy the condo in Florida...or Plan B, you got divorced from the wife, went to work in Iraq and saved a pile of $$$ to retire in LOS. If you land in LOS for retirement, you better have some $$$ saved up as it is not getting cheaper to live in LOS. Link to comment Share on other sites More sharing options...
gobbledonk Posted February 7, 2009 Report Share Posted February 7, 2009 Get the kids married off, sell the house and buy the condo in Florida. Similar retirement dreams here in Oz, with large sections of the Queensland coast occupied by the oldsters. I look at them wandering around, struggling to find a park etc, and think 'You worked your entire lives for THIS ?'. By 60, I need to be either rich or dead - cant see much sense in anything in between - and the crisis seems to be taking care of my superannuation so I guess it will be the latter. C'est la Vie. :smirk: Link to comment Share on other sites More sharing options...
sidsanuk Posted February 8, 2009 Author Report Share Posted February 8, 2009 BB, You seem to have it all well in hand. Well done. Saving like that requires discipline and sacrifice that most people don't have. To be able to save so much in such a short time, for retirement over such a long time, is indeed no mean feat. Link to comment Share on other sites More sharing options...
Bangkoktraveler Posted February 8, 2009 Report Share Posted February 8, 2009 If you live USA style, you will pay mak mak...like USA prices. LOS is no longer cheap. Medical is getting to be the same as the USA!!! Internet...same as the USA/LOS is NOT the place to retire/live if you are on a budget. I have medical in the USA and I was surprised that it covers any place in the world. Link to comment Share on other sites More sharing options...
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