At what age do you plan to retire?

Correct, we weren’t super wealthy but we were more than comfortable. My pops did nearly go bust after about 15 years ago trying to get the business started after working 30 years in the corporate world.

I volunteer with a church group, though I’m not really religious, to help foster families. Recently patched some holes, and painted a foster moms kitchen, replaced some ceiling fans on a Saturday. Deliver food to foster homes when there is a need. I should do more, but raising my own family and climbing the corporate ladder and trying to stay in shape takes up a lot of time.

I agree that giving back is more important than material things. The shiny new car that I obsess over for months becomes just transportation after a year or so. It’s more travel and experiences, preferably in luxury style, that keep me grinding everyday. I’m not chartering yachts or anything but I like to stay in a nice resort even if I’m going hiking the next morning.

Hopefully giving my children the ability to not be slave to a job they hate, but have the comfort to find something that gives them purpose and hopefully wealth.

I appreciate your perspective.

Flagpole wrote:

GettingFasterDude wrote:

I’m an employee at a company where I also own a 4% stake and growing. That’s not currently enough to retire on, by itself, but it’s growing big enough to become a significant part of my retirement, when the time comes. I’m also on the Board of Directors of the same company.

Interesting. Owning 4% stake and growing is interesting, but, it's pretty clear most of the employees in your company don't have that...unless there are only 25 employees and everyone gets the same amount (and then it couldn't be growing. Also, as you are on the Board of Directors, you clearly are not an average employee.

Correct, most of our employees don't have any ownership at all. You're also correct in that I'm not an average employee in my company and my job is far from average, when compared to other jobs and careers. I'm very fortunate to be in the position I am. It took a lot of hard work. But also some help from others, risk and luck, too.

I also had it preached to me by my father, "Save, save and save early!" Which I didn't do as early in life as he might have liked. But I did start earlier than I would have otherwise (early 30's).

Another thing that influenced me was the book, The Millionaire Next Door. It explains how many very average people, in average jobs and lifestyles, accumulate wealth, sometimes millions.

Key Points:

1) Save 10-20% of whatever your income is, every check, every month. Invest it. Don't touch it, for years, decades.

2)Live frugally. Realize you don't get wealthy spending, to have flashy stuff to appear wealthy. Spending equals giving your money to other people in exchange for stuff that becomes your worthless used stuff. You get wealthy by keeping money and investing, not by spending it an handing it over to others, to get stuff.

3) *Super Important* Realize you don't need a high income to accumulate wealth. I repeat: You. Do. Not. Need. High. Income. To. Achieve. Wealth. You just need to save 10-20% of whatever your income is. Eventually it'll grow (faster, if invested well) to a large enough amount to keep your lifestyle sustained without work. You don't need to save enough to support someone else's lifestyle, just yours. But it takes patience, discipline and time.

As to the equity issue, in the corporate world, it’s very common for employers at a certain level or above to receive compensation in the form of equity. I work for a large publicly traded company. My annual equity compensation is targeted at about 1/3rd of my base compensation. This is true for everyone that’s any kind of VP or higher.

Rank and file operational employees don’t receive equity. While they make up the vast majority of our thousands of employees, I think for the purposes of this discussion, those rank and file employees aren’t representative examples (as many of those employees will simply retire when social security benefits, when combined with savings, are sufficient to support them in retirement. Those with discretion in the retirement decision tend to be in more managerial roles, and at publicly traded companies, those in managerial roles commonly get equity comp.

This is a good post. Unfortunately for me, I did NOT learn that from my parents. I was concerned with saving and investing even while still in college, and my father thought I was being unnecessarily concerned. He said to me, "The money will be there". Well, he has a pension. I will not have a pension. Turns out though that they did invest too separate from that pension, but for whatever reason, he did not think I should worry about investing as soon as I started working post-college. I'm glad I did not take his advice there...he has had great advice in other areas, just not in that particular one.

Flagpole, pensions change everything, which is why I, a teacher, feel teachers should never complain about money. I don't want this to become a bash teachers (or union) thread, but to be retired, have a nest egg and still receive money every month that isn't taxed allows one to retire with less money in the bank and without the need to work part time.

As stated in an earlier post: "You factor in the younger wife who will keep working a bit when your retire."

As a widower approaching 60 with two college age kids, I envy such a retirement plan. Fortunately, my late wife, who did not work in the traditional sense, but did manage the household and the family finances, set us up well with investments. As a "traditional" family, I brought home the bacon and the wife fried it up in the pan or through her investing skills, turned it back into the whole hog. By such a division of labor, we also avoided childcare costs and she was able to volunteer with and be a part of the kids' activities, especially when I was away from home on military service.

A common takeaway from this thread is that it is easier to go through life with a partner.

To those who question amassing a large retirement fund, having the funds available is a means of self-insurance and self-reliance. Both of my parents were Depression Era kids and not too far removed from the farm, so they had and passed on a sense of frugality and true conservation (ever see a clothespin bag made from a recycled pants pocket?).

Long-term care is something that has not been mentioned much on this thread. The government (i.e. other people you do not know) should not be responsible for you as you age, and it's very likely that many will age in a debilitated state. My father lived for a decade with severe dementia, so I need to plan for the same.

If the government allows me, and this statement made in a country founded on limiting the power of government, I would like to exert my privilege of family, study, hard work, service, and clean living by passing on a legacy to my children. It's my money, not the government's despite what China Joe thinks. As time goes by and it becomes apparent that I may not need all of what I have saved, I would like to pass some of it on to others based on my own terms. I am no Andrew Carnegie, so I won't be funding libraries across the country, but I would like to establish scholarship funds through some of my favorite "special interest" organizations (what organization isn't devoted to a special interest?) or fund organizations that hold the same values that I do.

I'd like to step away from my corporate job between age 60 and 65, but not "retire", but rather transfer by knowledge and skills to a non-profit position supporting a purpose/mission consistent with my values.

I’m 55 , plan to work at my current schedule - I’m a physician - 3 days a week with one 24 hour call and one weekend a month for next 5 years, then cut back to 2 days a week for 4 years then be done at 65.

Disagree with this Smoove. This is a pretty old school approach and is not in line with compensation strategy at, I would guess, a significant portion of the S&P500. At all tech companies worth their salt, the majority of pharma companies etc. qualify almost all employees for some form of LTI (long term incentive). As you climb up the ladder it becomes an increasingly larger share of you total compensation.

GettingFasterDude wrote:

1) Save 10-20% of whatever your income is, every check, every month. Invest it. Don't touch it, for years, decades.

This is the only unsolicited advice I give to the kids I teach at the local JC. Most of them look at me like I'm from Mars initially, but when I break down what $100 becomes in 10 years v. 30, their eyes light up.

Ca$hclay wrote:

GettingFasterDude wrote:

1) Save 10-20% of whatever your income is, every check, every month. Invest it. Don't touch it, for years, decades.

This is the only unsolicited advice I give to the kids I teach at the local JC. Most of them look at me like I'm from Mars initially, but when I break down what $100 becomes in 10 years v. 30, their eyes light up.

Unfortunately I had to explain this to my young colleagues, many of whom were from teach for America/teaching fellow programs with impressive undergraduate pedigrees.

38 now - planning on getting out at 55.

My wife and I are hoping to "retire" in our early 40s.

Where we are currently (Age 27):

Combined annual Income: $170k

Roth 401(k): $158k

Savings: $26k

Home Equity: ~$50k

We recently finished paying off ~$110k in student loans (took us just under three years) and are now focused on creating a "bridge" fund for us to live off of between the day we "retire" and age 59.5.

After retirement contributions (~$20k/yr total before employer match), we're able to save about $50k/yr while maintaining an enjoyable lifestyle.

We try to prioritize spending on things we enjoy (travel, food, entertainment, craft beer) and really don't spend much on things that don't give us satisfaction (clothes, cars, furniture, technology).

We'll see what the future brings but that's our plan for now :)

HHH, do you really think the cashiers and hourly employees who make up the bulk of the workforce at places like Wal-Mart, most supermarket chains, most restaurant chains and most hotel chains (many of which are F500 companies) are getting equity as part of their comp? Those are the folks I’m talking about.

I think your personal experience in a small cross section of the economy has colored your perspective on this issue.

I cold retire today, in my early 50s, if I wanted to.

I dunno. I'd just sit and noodle around too much. I'd feel I was wasting my life.

Now I help people, I learn things, I feel I'm on a journey.

Honestly I won't retire until I really have to.

But I'm in a good position - I can work my own hours unless a crisis comes up.

If I had to work 9-6 with a boss over my shoulder I'd 100% feel differently.

Ca$hclay wrote:

GettingFasterDude wrote:

1) Save 10-20% of whatever your income is, every check, every month. Invest it. Don't touch it, for years, decades.

This is the only unsolicited advice I give to the kids I teach at the local JC. Most of them look at me like I'm from Mars initially, but when I break down what $100 becomes in 10 years v. 30, their eyes light up.

+1

I do this math for every child in my family.

They seem to think you put 10% aside and it sits there doing nothing.

When you show how compounding works for 40 years they get it.

How old are you now? At what age do you plan to retire? Has this age changed for you from your earlier plans and how? Forgot this one. I was planning on 67 but I've saved a ton of money, my salary has increased more than I ever thought and the stock market has allowed me to make some good stock bets and take profits to diversify.

RuningManJumpSuit wrote:

38 now - planning on getting out at 55.

agip wrote:

Ca$hclay wrote:

This is the only unsolicited advice I give to the kids I teach at the local JC. Most of them look at me like I'm from Mars initially, but when I break down what $100 becomes in 10 years v. 30, their eyes light up.

+1

I do this math for every child in my family.

They seem to think you put 10% aside and it sits there doing nothing.

When you show how compounding works for 40 years they get it.

One of the best teaching tools used to be the passbook savings account. The physical passbook helped track the flow of funds into and out of the account, including the accrued interest. It was also a useful tool for me to track the profits from my all cash newspaper delivery, lawn mowing, and snow shoveling businesses as a teen.

Depends! If moving to my love in Ukraine and settle down there I will only work two more years and live on my pension. If we settle down in my native Sweden we need more money and I have to work to age 67 if I`m still healthy. More expensive to live in Sweden of course.