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Duke
Duke MegaDork
9/20/21 1:52 p.m.
mtn said:
RX Reven' said:

Not to be macabre but we're waiting for at least one of our ships to come in from inheritance to take us from "probably OK" to "definitely OK".

I read somewhere, and it "feels" accurate to me, that more than any other generations, GenX and Millenials are going to be relying significantly on inheritance for retirement. I'm personally planning on my parents and inlaws leaving us

(Are you a Boomer or a GenXr? Or does it depend on the context?)

Incomplete thought there?

DD#1 is saving for her retirement now, at age 29, and has been for at least 4 years.  I don't know her status but I know she is actively putting it away via 401(k) withholding and possibly other instruments.

DD#2 is not saving for retirement that I know of.  She is 25.  I wish she was, but we started a bit late too and with discipline we overcame that.

We received ~10%-15% of our current net worth via inheritance from my aunt (passed away childless in the early '80s; left me a small portfolio of stocks) and my parents (estate residue divided among 4 siblings, after a long stay in nursing care for my mother; she passed away in 2007).  The rest is investment income from those two sources, plus our own savings and investments.  We did not get anything from DW's father, because reasons that rhyme with "conniving predatory second wife".

Our financial guy is telling us we can live to 90 and leave our two kids with a substantial bump to whatever they've managed to put away in the next 30 years.

 

RX Reven'
RX Reven' UltraDork
9/20/21 2:01 p.m.
mtn said:
RX Reven' said:

Not to be macabre but we're waiting for at least one of our ships to come in from inheritance to take us from "probably OK" to "definitely OK".

I read somewhere, and it "feels" accurate to me, that more than any other generations, GenX and Millenials are going to be relying significantly on inheritance for retirement. I'm personally planning on my parents and inlaws leaving us

(Are you a Boomer or a GenXr? Or does it depend on the context?)

I was born in 1964 which makes me the very last year of the Boomers.

I see myself as a steward of what the previous generation leaves to my generation with the responsibility of managing the money and handing it off to the next generation along with considerable training on how not to be the jerk that pi$$es away the family money.

If need be, I'll follow the 3% rule which means setting up a conservative portfolio that yields about 6% per year and putting 3% back in to keep up with inflation and spending the remaining 3% myself.  However, I'd be disappointed in myself if I didn't do better that that...I want to leave more than I inherited after adjusting for inflation.  So, figure 2.5% or 25K annual allowance for every million inherited plus leaving what I've made on my own compounding at the rate of inflation.

eastsideTim
eastsideTim PowerDork
9/20/21 2:25 p.m.

As a late-ish GenXer, I am not planning on receiving an inheritance.  It is very possible I will , and it could cause me to retire a little bit earlier than planned, but my assumption is most of our parents' net worth will be eaten up by end of life care.

mtn
mtn MegaDork
9/20/21 3:10 p.m.
Duke said:
mtn said:
RX Reven' said:

Not to be macabre but we're waiting for at least one of our ships to come in from inheritance to take us from "probably OK" to "definitely OK".

I read somewhere, and it "feels" accurate to me, that more than any other generations, GenX and Millenials are going to be relying significantly on inheritance for retirement. I'm personally planning on my parents and inlaws leaving us

(Are you a Boomer or a GenXr? Or does it depend on the context?)

Incomplete thought there?

 

 

 

Oops, yes, I did not finish that sentence. Modified the original post, but I'm planning on no inheritance. I'm expecting one, of unknown size due to too many variables, but I'm not planning on it. 

calteg
calteg Dork
9/20/21 3:25 p.m.

Still in my 30's. The prospect of another 30 years of work is terrifying. Wife and I are doing well financially, I've had an IRA since I was 18, always maxed my 401k etc. But I've never actually sat down and asked myself "how much do I plan to spend in retirement?"  Might be a fruitless moot point, tough to predict cost of living in 2050, but an interesting exercise for sure.

Cousin_Eddie (Forum Supporter)
Cousin_Eddie (Forum Supporter) Dork
9/20/21 3:51 p.m.

I'm 48 and I can retire October 31st. So that's roughly about 40 days from now. I'm currently off on a month long vacation to burn some excess time I have accumulated at work. I told my wife this morning, when this stretch of vacation time is over I'll need to go to work two more days before I could retire.

I figure life is full of chances. There's a chance I may retire too early and get caught in a lurch and need to go back to work somewhere. There's also a chance I could keep working trying to fatten that retirement number and wake up one day with cancer and never get to retire at all. Life is a roll of the dice. 

Johnboyjjb
Johnboyjjb HalfDork
9/20/21 6:23 p.m.

In reply to alfadriver :

The whole point was to say that work has NOTHING to do with making money.

we added camping to our travel plans
cruising
going to Europe
volunteer at a local distillery

None of these will normally make you money or need to be done for somebody else but are all things that I would either be work or require the work of planning to pull off a decent trip.

BTW, you can't access a 401k until 59.5 without penalty, which one of us hits next year... (This is also wrong. https://www.fool.com/retirement/plans/401k/rule-of-55/)

ddavidv
ddavidv UltimaDork
9/21/21 6:45 a.m.

I inherited ZERO.

My folks both wound up in with slowly failing health and went into an assisted living facility. Which took everything.

I didn't care (much) because it wasn't my money or assets; it was my parents'. One should never plan on an inheritance.

 

As for needing something to do, it's referred to as 'having a mission'. Filling your days with various 'missions' from making the bed to building a chicken coop is all it takes to remain engaged in life. Some good lessons in this cheap little e-book.

alfadriver
alfadriver GRM+ Memberand MegaDork
9/21/21 7:47 a.m.

In reply to Johnboyjjb :

You said work, I said active, and now they are the same thing. Ok.  

karplus2
karplus2 GRM+ Memberand Reader
9/21/21 2:22 p.m.
calteg said:

Still in my 30's. The prospect of another 30 years of work is terrifying. Wife and I are doing well financially, I've had an IRA since I was 18, always maxed my 401k etc. But I've never actually sat down and asked myself "how much do I plan to spend in retirement?"  Might be a fruitless moot point, tough to predict cost of living in 2050, but an interesting exercise for sure.

I'm mid-30s and this feeling is setting in for me too. The thought of even working 20 more years doesn't sound appealing.

Some of the generic 'retirement' calculators say I could retire at 57 based on what I have now and continue to invest the way I have. I think I will look back and regret some of the new car purchases that I took a loan out for. This thread has motivated me to talk to my wife about our retirement plans and goals so we can start thinking about it now.

Pete Gossett (Forum Supporter)
Pete Gossett (Forum Supporter) GRM+ Memberand MegaDork
9/21/21 3:51 p.m.

In reply to karplus2 :

To be fair the years will start going by much quicker, so there's that. 

eastsideTim
eastsideTim PowerDork
9/21/21 4:03 p.m.

In reply to karplus2 :

I feel the same way about 9 more years.  I just don't have the discipline to go with the more extreme FIRE stuff, and I really don't consider managing rental properties to be the same as being retired.

Driven5
Driven5 UltraDork
9/21/21 5:34 p.m.
calteg said:

Might be a fruitless moot point, tough to predict cost of living in 2050, but an interesting exercise for sure.

Yes and no. We have a lot more control over our individual cost of living (among other things) than a lot of people take credit for. That will be as true 30 years from now, as it is today.

My parents retired at 55, sold the house, and have been living the #vanlife since before there was a #vanlife. Despite spending half their time gallivanting around the country, and living out their dreams, their cost of living is stupid cheap. There are plenty of other ways to do it too.

Driven5
Driven5 UltraDork
9/21/21 5:38 p.m.

I see a lot of talk about not being able to access retirement accounts before 59.5 without incurring penalties... Might I point you in the direction of Substantially Equal Periodic Payments (SEPP), also known as rule 72(t).

eastsideTim
eastsideTim PowerDork
9/21/21 9:13 p.m.

Also, you can pull principal contributions out of a Roth IRA early, so if you start one early enough, that's 1-2 years living expenses at least.

ShawnG
ShawnG UltimaDork
9/21/21 10:12 p.m.

I'm on the Grinch plan.

I want to live alone on a mountain with my dog.

RX Reven'
RX Reven' UltraDork
9/22/21 10:35 a.m.

In reply to Driven5 :

Also, I think if you involuntarily leave your job at 55, you can start collecting from that employer's 401K without the 10% penalty.

mtn
mtn MegaDork
9/22/21 10:51 a.m.
Driven5 said:

I see a lot of talk about not being able to access retirement accounts before 59.5 without incurring penalties... Might I point you in the direction of Substantially Equal Periodic Payments (SEPP), also known as rule 72(t).

How did I not know about this? Thank you for posting this. 

DeadSkunk  (Warren)
DeadSkunk (Warren) UltimaDork
9/22/21 2:06 p.m.

For those wanting to "change focus" , many community colleges don't charge tuition to seniors. I went to welding school one winter, although you would never know it looking at my Challenge car. I had to pay the materials fee, but it wasn't much. Finishing a degree, or just taking up something new can be done without a lot of cash outlay.

eastsideTim
eastsideTim PowerDork
9/22/21 2:20 p.m.

In reply to DeadSkunk (Warren) :

I took a welding class at the local vocational school a ways back, and enjoyed it a lot.  I thought of taking maybe one or two classes a year in stuff that interested me, but then started traveling regularly for work, then other parts of life took more time and effort.  I could see taking the occasional class for fun after I retire and actually have time again.

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