Retirement, how much is enough?

[luckytohaveajob]

Define rich, middle class, and poor?

What status are you now? What status do you want to stay?

How do you think inflation is going to change the status you desire to stay at? What other unknowns will change your desired status?

At what point will living on your own not be an option? What do you think about retirement homes? What do you think retirement homes cost? What are the different levels of retirement homes?

How far are you willing to go with the health system to live longer? Is money an object in elder health care?

Do you plan to leave anything for your children? Do you have adult children to support in retirement? Should there be money left after your spouse dies for the children?

How much is going to take to meet the above issues? What percentage of your last years earnings do you need in retirement to meet these above defined goals?

Do you think the previous retired generation has it better than future generations in regards to fixed income, security, health care, and overall quality of life?

How long have you had the answers to these questions prior to actual retirement? And does it take a lifetime of work to adequately prepare or can it be done in five to ten years? And if it does take a lifetime how is the unexpected addressed or even anticipated?

And is the new free market, world competition ,send it out to the lowest bidder eliminating retirement without work all together? Has retirement just become working less today?

 

[Secret Squirrel]

My 4 year old son does not ask that many questions.

 

[ASADFW7]

3 million plus for retirement, divide that by each divorce, multiply that by each night you do not go out drinking and get married to the chick with a nice set. Now factor in three crappy boats you bought, the amphib C206 that sucked out another 250K, a failed business, and a failed pyramid scheme. You should have enough for a few happy meals.

 

[temcgrew]

My 4 year old son does not ask that many questions.

My 4 year old girl at the zoo:
Dad is that a penguin?
No, that's not a penguin.
I want to go see the penguins!
We'll make it to the penguins soon.
Dad is that a penguin?
No, that's not a penguin.
I want to see a penguin.
O.k. well make it to the penguins soon.

This happens for an hour, when we finally go see the penguins:

Dad can we go see the Hippos?
Then replay the whole thing from above with the word Hippo in place of Penguin.

 

[slaquer5]

3 million plus for retirement, divide that by each divorce, multiply that by each night you do not go out drinking and get married to the chick with a nice set. Now factor in three crappy boats you bought, the amphib C206 that sucked out another 250K, a failed business, and a failed pyramid scheme. You should have enough for a few happy meals.

Hummm you must be DAL based

 

[kingairyahoo]

Define rich no worries middle class few worries and poor? lotsa worries

What status are you now? middle What status do you want to stay? middle

How do you think inflation is going to change the status you desire to stay at? none if properly planned for What other unknowns will change your desired status? thats why they are called unknowns

At what point will living on your own not be an option? never What do you think about retirement homes? aint gonna happen What do you think retirement homes cost? dosent matter What are the different levels of retirement homes? poor, middle, rich?

How far are you willing to go with the health system to live longer? huh? Is money an object in elder health care? money is an object in everything from toilet paper to roof shingles

Do you plan to leave anything for your children? sure, but it aint gonna be millions Do you have adult children to support in retirement? only one and she can move back in whenever she wants Should there be money left after your spouse dies for the children? not required

How much is going to take to meet the above issues? 1-3 million What percentage of your last years earnings do you need in retirement to meet these above defined goals? 15% is the goal but worthless unless you START EARLY!!!

Do you think the previous retired generation has it better than future generations in regards to fixed income, security, health care, and overall quality of life? nope

How long have you had the answers to these questions prior to actual retirement? start early And does it take a lifetime of work to adequately prepare or can it be done in five to ten years? did i mention start early? And if it does take a lifetime how is the unexpected addressed or even anticipated? dollar cost averaging...look it up

And is the new free market, world competition ,send it out to the lowest bidder eliminating retirement without work all together? nope Has retirement just become working less today? nope

 

[luckytohaveajob]

Thanks for playing. I was hoping a good dialogue about retirement would occur by asking questions younger pilots might have not considered.

Define rich, middle class, and poor?

I define rich as living in any style you see fit while being able to save and continue to invest at the same time. Rich could live in a trailer or a mansion just as long as they could continue to invest additional monies until death. Perpetual wealth is rich.

Middle Class is being able to save but at some point having to spend it hoping you do not spend it all prior to death.

And poor is not being able to met your current needs and not being able to save anything.


What status are you now? What status do you want to stay?

I am middle class hoping to be rich.

How do you think inflation is going to change the status you desire to stay at? What other unknowns will change your desired status?

I think inflation is far greater than the official govt. numbers indicate as housing, fuel, durable goods, and taxes are excluded. Inflation is the largest risk factor I see as I have no control over it and can not continue to just earn more past a point.

Other unknown while being unknown are what taking the risk out of the future is all about. Those that are prepared can adapt. Those that are not prepared can not.


At what point will living on your own not be an option?

Hopefully I will aways have my spouse to wipe my drool. But at a point, she may not be capable if I required special care.

What do you think about retirement homes?

I don't like them. Any of them. The poor, middle or rich ones.

What do you think retirement homes cost?

I know they are designed to bankrupt your personal finances and then put at the mercy of Medicare.

What are the different levels of retirement homes?
Almost all below what I would consider acceptable.

How far are you willing to go with the health system to live longer?
Tough question to answer. What is your life worth? How willing are you to sacrifice for your spouse and children?
I am willing to die to protect my spouse.

Is money an object in elder health care? Depends on how selfish you are.

Do you plan to leave anything for your children?
Yes
Do you have adult children to support in retirement?No
Should there be money left after your spouse dies for the children?
Yes, it is the only way your spouse is provided for the same as you were.

How much is going to take to meet the above issues?
It is to soon to say for me. I need to see what inflation does. But the more the better. $3M+

What percentage of your last years earnings do you need in retirement to meet these above defined goals?
75%+

Do you think the previous retired generation has it better than future generations in regards to fixed income, security, health care, and overall quality of life?
Yes, a pension system takes inflation out of the risks of retirement as most adjust for cost of living. Albeit based on the "official" inflation numbers verse actual but at least it is something.

How long have you had the answers to these questions prior to actual retirement?
A few years

And does it take a lifetime of work to adequately prepare or can it be done in five to ten years?
A lifetime of quality well planned decisions.

And if it does take a lifetime how is the unexpected addressed or even anticipated?
By faith

And is the new free market, world competition ,send it out to the lowest bidder eliminating retirement without work all together?
Not yet

Has retirement just become working less today?

I think it is rapidly moving towards this reality. I have read many many financial articles stating this as the future of retirement.

 

[luckytohaveajob]

What do others think about the issues. What other issues need to be considered?

 

[JediNein]

I doubled my IRA in one year. I don't think it'll happen again, but it was a great start. The one stock mostly responsible? GRMN.

Yeah, I own a piece the size of the dust bunny under the main desk in their clean room. (read: insignificant speck)

 

[retired guy]

Stay married to number one. Try and stay out of debt. Be really, really careful about investments..there is no free lunch. Never, ever invest with a pilot or go flying with a doctor.Anything that pays more than 6% is gambling. Slow and steady wins the race. Good luck.

 

[Jetjockey]

Stay married to number one. Try and stay out of debt. Be really, really careful about investments..there is no free lunch. Never, ever invest with a pilot or go flying with a doctor.Anything that pays more than 6% is gambling. Slow and steady wins the race. Good luck.

Probably some of the best advice ever posted here. I agree with all the above.

 

[jonjuan]

Probably some of the best advice ever posted here. I agree with all the above.

Too bad the divorce rate for pilots is greater than 70%.

 

[ualdriver]

Stay married to number one. Try and stay out of debt. Be really, really careful about investments..there is no free lunch. Never, ever invest with a pilot or go flying with a doctor.Anything that pays more than 6% is gambling. Slow and steady wins the race. Good luck.

Staying married to number one is huge. Staying out of *bad* debt (high interest debt, credit card debt, etc.) is certainly important. Never invest with a pilot or go flying with a doctor- that's rich Anything more than 6% is not necessarily "gambling."

Anything above a "risk free" rate of return (what FDIC insured CD's return, U.S. government backed bonds, etc.) is *not* necessarily gambling. And I would argue that it's pretty hard to find anything today that even returns a risk free 6% unless you locked a rate in from years ago or you're talking about paying down high interest debt. There are various assests classes that have returned well over 6% per year, annualized, over long periods of times. Holding a diversified portfolio of equities and bonds adjusted for your temperance for risk can be a way to enjoy returns greater than 6% and not "gamble." In fact, I would argue that very few people would have sufficient funds to retire in their 60's unless they could expect annualized returns in their portfolio of greater than 6%, especially in their accumulation phase of their careers.

Slow and steady definintely wins the race. How true that is. I can't tell you how many pilots I fly with or people I know who are chasing those mythical 80% returns every year and end up losing their a$$ when the inevitable correction in that asset class takes place.

 

[800Dog]

Stay married to number one. Try and stay out of debt. Be really, really careful about investments..there is no free lunch. Never, ever invest with a pilot or go flying with a doctor.Anything that pays more than 6% is gambling. Slow and steady wins the race. Good luck.

How about avoiding marriage! It is the number one threat to your financial well being.

 

[TheBaron]

Thanks for playing. I was hoping a good dialogue about retirement would occur by asking questions younger pilots might have not considered.

Define rich, middle class, and poor?

I define rich as living in any style you see fit while being able to save and continue to invest at the same time. Rich could live in a trailer or a mansion just as long as they could continue to invest additional monies until death. Perpetual wealth is rich.

Middle Class is being able to save but at some point having to spend it hoping you do not spend it all prior to death.

And poor is not being able to met your current needs and not being able to save anything.


What status are you now? What status do you want to stay?

I am middle class hoping to be rich.

How do you think inflation is going to change the status you desire to stay at? What other unknowns will change your desired status?

I think inflation is far greater than the official govt. numbers indicate as housing, fuel, durable goods, and taxes are excluded. Inflation is the largest risk factor I see as I have no control over it and can not continue to just earn more past a point.

Other unknown while being unknown are what taking the risk out of the future is all about. Those that are prepared can adapt. Those that are not prepared can not.


At what point will living on your own not be an option?

Hopefully I will aways have my spouse to wipe my drool. But at a point, she may not be capable if I required special care.

What do you think about retirement homes?

I don't like them. Any of them. The poor, middle or rich ones.

What do you think retirement homes cost?

I know they are designed to bankrupt your personal finances and then put at the mercy of Medicare.

What are the different levels of retirement homes?
Almost all below what I would consider acceptable.

How far are you willing to go with the health system to live longer?
Tough question to answer. What is your life worth? How willing are you to sacrifice for your spouse and children?
I am willing to die to protect my spouse.

Is money an object in elder health care? Depends on how selfish you are.

Do you plan to leave anything for your children?
Yes
Do you have adult children to support in retirement?No
Should there be money left after your spouse dies for the children?
Yes, it is the only way your spouse is provided for the same as you were.

How much is going to take to meet the above issues?
It is to soon to say for me. I need to see what inflation does. But the more the better. $3M+

What percentage of your last years earnings do you need in retirement to meet these above defined goals?
75%+

Do you think the previous retired generation has it better than future generations in regards to fixed income, security, health care, and overall quality of life?
Yes, a pension system takes inflation out of the risks of retirement as most adjust for cost of living. Albeit based on the "official" inflation numbers verse actual but at least it is something.

How long have you had the answers to these questions prior to actual retirement?
A few years

And does it take a lifetime of work to adequately prepare or can it be done in five to ten years?
A lifetime of quality well planned decisions.

And if it does take a lifetime how is the unexpected addressed or even anticipated?
By faith

And is the new free market, world competition ,send it out to the lowest bidder eliminating retirement without work all together?
Not yet

Has retirement just become working less today?

I think it is rapidly moving towards this reality. I have read many many financial articles stating this as the future of retirement.

Dude!! If you already knew the answers, why did you ask? :laugh:

 

[check six]

Investments

I disagree with the 6% statement where the guy says that's a reasonable return. My dad worked for Texaco/Getty Oil for 30 years and always made good money on oil stocks. Take a look at Conoco Phillips/Exxon/Chevron. All our stable solid stocks and make about 30%/yr over the last five years. Now past performance does not equate to future results but try it out and diversify and you should do better than 6%.

Also, I do buy the line about doctors and flying. Last plastic surgeon I took up for a BFR was not good. Pulled the power on him in his 182 and he just about had a coronary. Wondered why I would make him dead stick the bird into a rural area in farmland. He needs a chute.

Check Six

 

[mynameisjim]

Answer all these questions and forward it to everyone you know !!1!1one!

 

[PCL_128]

I think inflation is far greater than the official govt. numbers indicate as housing, fuel, durable goods, and taxes are excluded.

That's not true. Those things are excluded from core CPI, but not from the total CPI number. Total CPI has averaged about 3.5% since the end of the great depression.