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Age and Net Worth of People You Know Who Retired

Old 10-31-2019, 01:54 PM
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Originally Posted by Barefoot View Post
Why do I need to know or even care what my net worth is?
It is a pretty clear indicator of your financial health. It tells you how much of an emergency fund you have available. It helps you decide whether you can retire comfortably or not.

I have read that as much as a third of all retired people rely almost totally on social security payments for income. I bet they'd wished they had paid more attention to their net worth when they were working and had a chance to improve it.
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Old 10-31-2019, 02:16 PM
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Originally Posted by aubv View Post

Care to give a source for that number? Pretty sure the last I looked it is less than $50k/household...
There is no source, I pulled it out of my ass to represent the average middle class+ person (white collar job, potential pension or at least 401k). Assume they made 80-180k while working and now bring in 60-80k in retirement. Lots of assumption, but the numbers were chosen to reflect the audience on THT (boat/fishing forum).

Government and military pensions can be surprising to many folks on the outside.
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Old 10-31-2019, 02:19 PM
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Originally Posted by beernutzbob View Post
It is a pretty clear indicator of your financial health. It tells you how much of an emergency fund you have available. It helps you decide whether you can retire comfortably or not.

I have read that as much as a third of all retired people rely almost totally on social security payments for income. I bet they'd wished they had paid more attention to their net worth when they were working and had a chance to improve it.
You are saying if you know what the number is you can decide whether you are in good shape or not. Whatever makes you warm and fuzzy...

Pay your debts, put away all you can and that number is going to be whatever it is going to be.
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Old 10-31-2019, 02:25 PM
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Could walk out the Mega Corp door tomorrow if I chose to. Funny how I longed for this moment and now it's fun - except for that effing commute. Having autonomy over whether or not I have to work another day has been very liberating and I like what I do day in and day out. To complicate matters a bit more my wife has found an occupation she really likes and wants to keep working.

Never wanted to retire at this time of the year since winter here leaves little to do outdoors and it gets dark so much earlier. Spring is coming it's only a matter of time.
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Old 10-31-2019, 02:28 PM
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Originally Posted by johnny.dollar View Post
There is no source, I pulled it out of my ass to represent the average middle class+ person (white collar job, potential pension or at least 401k). Assume they made 80-180k while working and now bring in 60-80k in retirement. Lots of assumption, but the numbers were chosen to reflect the audience on THT (boat/fishing forum).

Government and military pensions can be surprising to many folks on the outside.
Are you saying you're a masseuse of statistics?
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Old 10-31-2019, 02:44 PM
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Originally Posted by aubv View Post

Are you saying you're a masseuse of statistics?
Possibly. But it wasn't meant to be a concrete number to use in a research report; I was just tossing out figures to express an abstract concept. The numbers are irrelevant to the idea. Sometimes hypotheticals help people understand. I didn't mean to imply I read it on the internet
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Old 10-31-2019, 02:48 PM
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Originally Posted by johnny.dollar View Post
Possibly. But it wasn't meant to be a concrete number to use in a research report; I was just tossing out figures to express an abstract concept. The numbers are irrelevant to the idea. Sometimes hypotheticals help people understand. I didn't mean to imply I read it on the internet
Math is racist anyhow .
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Old 10-31-2019, 03:09 PM
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Originally Posted by aubv View Post
Are you saying you're a masseuse of statistics?
I think he said he's a proctologist.
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Old 10-31-2019, 03:12 PM
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Originally Posted by Jonboater View Post
You are saying if you know what the number is you can decide whether you are in good shape or not. Whatever makes you warm and fuzzy...

Pay your debts, put away all you can and that number is going to be whatever it is going to be.
I don't understand your first point. Are you saying that knowing your net worth doesn't help you know your financial health?

As to your second statement, there are a lot of things you can do to make that number what you want it to be so you don't end up financially stressed. That is unless you think you have no control over what you spend your money on in which case there's no helping you.
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Old 10-31-2019, 03:14 PM
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My parents retired at 65. Home paid off. Cars paid off. Motor-home paid off. Two social security checks and about $400k in savings. They lived simple frugal lives but the money did not last. As they got into their 80's the medical expenses from the hospitals, the doctors and pharmacy piled up and ate up all of the savings. As you age, and your health fails and you have funds - expect to see every medical entity salivating at the door.

Last edited by Halifaxriverrat; 10-31-2019 at 03:14 PM. Reason: spell
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Old 10-31-2019, 03:45 PM
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^^^^^Curious what year did they retire?
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Old 10-31-2019, 04:04 PM
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Originally Posted by mikefloyd View Post
Just talked to a guy on Monday who's parents retired the first day they could and now have run out of money and are moving in with him.
Did we talk? My father passed early and my mother decided she would stop working at 60 when she needed the additional income. Her house is paid for but she cant afford the upkeep so I get to pay for it. Along with all the other big ticket items in her life.
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Old 11-01-2019, 06:17 AM
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Originally Posted by PMaine View Post
Did we talk? My father passed early and my mother decided she would stop working at 60 when she needed the additional income. Her house is paid for but she cant afford the upkeep so I get to pay for it. Along with all the other big ticket items in her life.
I sent my parents money every month for almost 8 years before they passed away.
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Old 11-01-2019, 07:14 AM
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Originally Posted by HS2300 View Post
Just a measure I picked.
Originally Posted by joe.giuliano View Post
I would never include my primary residence/cars etc. no matter their residual value. Seems these are necessities. To me net worth is fairly liquid investments. I don't often calculate net worth but when I do I even greatly discount PE positions.
I agree on deppreciables like cars but definitely think your home should be counted in your net worth. Unless your home is worth less than a small place suited for a retirement couple, I can't think of any logic that would argue that your home shouldn't be a factor in your net worth when computing retirement decisions? Also....depending on the circumstance and the location your home actually fuel your retirement.
As an example, I live in the Keys where many people down here are house rich but don't have a hoard of money elsewhere. Many also have apartments tied to thier homes because rental income is so profitable and historically is a stable income generator. Why not utilize the equity from a million dollar property and/or use the income from a downstairs rental as a factor when figuring the value into your decision whether to retire or not? You can sell and cash in on your home and move somewhere else with a bank account full of money. Or you can stay in your home and use a reverse mortgage to live out the rest of your life in style. Or you can rent your home seasonally and use the profits to buy a inexpensive home somewhere else and become a snowbird. There are other examples also.
Don't get me wrong...I am not arguing that your homes value is the wisest financial move but that's another subject and has to be addressed on each and every individual basis. But clearly a home's worth is a investment that can help you retire early.
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Old 11-01-2019, 08:40 AM
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Originally Posted by homeby51 View Post
I agree on deppreciables like cars but definitely think your home should be counted in your net worth. Unless your home is worth less than a small place suited for a retirement couple, I can't think of any logic that would argue that your home shouldn't be a factor in your net worth when computing retirement decisions? Also....depending on the circumstance and the location your home actually fuel your retirement.
As an example, I live in the Keys where many people down here are house rich but don't have a hoard of money elsewhere. Many also have apartments tied to thier homes because rental income is so profitable and historically is a stable income generator. Why not utilize the equity from a million dollar property and/or use the income from a downstairs rental as a factor when figuring the value into your decision whether to retire or not? You can sell and cash in on your home and move somewhere else with a bank account full of money. Or you can stay in your home and use a reverse mortgage to live out the rest of your life in style. Or you can rent your home seasonally and use the profits to buy a inexpensive home somewhere else and become a snowbird. There are other examples also.
Don't get me wrong...I am not arguing that your homes value is the wisest financial move but that's another subject and has to be addressed on each and every individual basis. But clearly a home's worth is a investment that can help you retire early.
That is my line of thinking also. When I retire, my house will be sold so we can relocate. When we move, I am not going to need the big house and 5 acres I have right now. We will downsize. The money I am going to get for my house is absolutely part of my plan when I retire.
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Old 11-01-2019, 08:53 AM
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Retirement has never and should never be measured by assets alone. A successful retirement plan is measured purely by the amount of guaranteed income you have versus costs of living and if you have done a good job at removing the key financial risks of retirement off the table. If your plan has not, it is not a good plan.

Retirement Risks Include:

Market Risk
Inflation Risk
Deflation Risk
Longevity Risk
Healthcare Risk
Sequence of Returns Risk
Withdraw Rate Risk
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Old 11-01-2019, 11:03 AM
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Originally Posted by KongerUp View Post
Retirement has never and should never be measured by assets alone. A successful retirement plan is measured purely by the amount of guaranteed income you have versus costs of living and if you have done a good job at removing the key financial risks of retirement off the table. If your plan has not, it is not a good plan.

Retirement Risks Include:

Market Risk
Inflation Risk
Deflation Risk
Longevity Risk
Healthcare Risk
Sequence of Returns Risk
Withdraw Rate Risk

You forgot,

Divorce Risk
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Old 11-01-2019, 11:19 AM
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Originally Posted by magua View Post
You forgot,

Divorce Risk
Ouch , your ... um ... not very much fun
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Old 11-01-2019, 04:34 PM
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Originally Posted by cwhite6 View Post


That is my line of thinking also. When I retire, my house will be sold so we can relocate. When we move, I am not going to need the big house and 5 acres I have right now. We will downsize. The money I am going to get for my house is absolutely part of my plan when I retire.
The dilemma to up or down size is one I'm currently wrestling with as retirement is in 2-3 years. One one hand, downsize to minimize cost and monthly cash flow. On the other, buy the last house, our dream house (within reason), and enjoy the additional features, space, location, etc until the end. I've always been very conservative financially but also a realist so struggling with this decision.
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Old 11-01-2019, 06:35 PM
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Originally Posted by KongerUp View Post
Retirement has never and should never be measured by assets alone. A successful retirement plan is measured purely by the amount of guaranteed income you have versus costs of living and if you have done a good job at removing the key financial risks of retirement off the table. If your plan has not, it is not a good plan.

Retirement Risks Include:

Market Risk
Inflation Risk
Deflation Risk
Longevity Risk
Healthcare Risk
Sequence of Returns Risk
Withdraw Rate Risk
Do you consider Social Security to be guaranteed? What about corporate pension plans? What do you consider to be an absolute guaranteed retirement income stream?
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