First - retiring means that you are not working full time for yourself or an employer. It means you could do nothing each day or work on hobbies that generate a little spending money. It does not mean dropping down to 30 hours a week or even 20 hours a week. I would say 10 hours a week or less would qualify as being retired.
Second - comfort is defined differently by different people. Comfort is also defined differently depending upon one's geographical location as it revolves around the cost of living in that location.
Third - being retired, in my opinion, means that you are debt free, regardless of how much money you have in your retirement plan. If you have debt, then that obligation means that you are not necessarily work free.
Multi-millionaires who have debt have no reason to worry as their money earns more interest than interest on their debt, so their are making money, in essence.
But, I am talking about only 1-10% of the population. The other 90% do not have that luxury.
Back to Comfort Retiring...
Here in East TN where I live, the cost of living to pay for essentials and taxes is right around $3,000 each month. I would say the range is $2,500 to $4,500...
The average amount of Social Security is about $1,200-$1,500 each month. If we go with the lowest amount and double it for a couple, we are looking at $2,400 each month.
If we say that the average cost of retired living is $3,500, then, that couple only needs $1,100 each month.
OR, $13,200 each year
OR, $132,000 ever decade
OR, $396,000 every three decades
Note: if one retires at 67 and lives 30 more years, then they are 97 years old which is longer than the average life span... so, $400,000 is plenty of money...
However, what about extras?
-->Like a car every 10 years - about $60,000 taking into consideration trade in value.
-->Like 4-6 vacations each year - about $8,000 each year for 15 years or $120,000.
-->Like out of pocket medical expenses or $220,000 on the outside
Therefore, now a retired couple will need another $400,000.... added to the $400,000, we are looking at around $800,000.
INTERESTINGLY - the average value of a home in the US is about $300,000.
Add these two together and one's retirement needs are $500,000
WHAT IS YOUR LEVEL OF COMFORT?
Answering this question will determine what your retirement will look like.
My retirement comfort is different than yours. I require very little to feel comfortable. My current home is larger than I really need. My current yard is larger than I really need. We have no debt. I eat healthy which costs more than buying garbage food. I exercise regularly for free by walking around the neigborhood. I live in a very quiet neighborhood. I drive my vehicle less than 9,000 miles each year. Our home was renovated before we retired to accommodate the handicapped. I enjoy being alone and spend my days writing. I don't care if my writing is published or not... the fact that I complete a lengthy novel is recognition enough for me. The only television I watch is FOX News in the mornings.
My retirement is comfortable and enjoyable, relaxing and fulfilling. I have no desire to have anything more than I already have. I don't work for money. I work for myself and am content. I keep wondering what I would do if I had tons of money and I think I would give it to charity.
What I find interesting is that millionaires and billionaires who have private jets, do so because they want to fly ALONE... with all that money, they still just want to be alone.
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