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September 25, 2010


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"When you reach the point in your life where you can celebrate the freedom to work instead of the freedom from work, that’s success. If just a fraction of people in the second half of life turn their experience, time and talent to our nation’s most pressing challenges, imagine the progress we could make."

why toil and wait all the way till 50 when it can be expedited?

why wait to reevaluate at 50 when it should be an ongoing process?

Well not bad article,... I retired at 47 (financial planner, sold out my practice) with aprox $2.85M~ net worth, paid taxes on some of it (deferred comp), lived on some of it until the typical over $100K Federal tax bill subsided) built a semi-custom small townhome, a new Jeep and haven't looked back. Conservative net worth STILL over $2.25M @ 50 and pension income (military retirement and VA disability) is MORE than enough to live on without the investments, travel, fun and daily exercise and healthy habits will hopefully allow me to attempt to see 100 healthy years....have ALL the deferred money (about 25%~) in a VARIABLE ANNUITY (love the new VA's and all the living benefits you can buy them with) extremely diversified managed stock funds (about 33%), life insurance (yep, whole life!) only 2%, real estate 10%, CD's and money markets the rest, all "buckets" for different needs/times....bliss

I don't like this article at all. Too many examples of specific advice (ex: should be in Roth IRA or taxable account, 81.6% in appreciating assets) which will not apply to everyone. Bottom line is that you can't rely on a general article like this for advice on your specific situation. You need to educate yourself so that you can determine what makes sense for you!

So you are saying you have a 100k /year lifestyle. You live in some midwestern state I forget which. Yet you were complaining about the couple in DC one of the top ten most expensive cities in the US who were devastated about thinking of moving their income to 100k? Please explain this to me?

Investing wisely - now there's the challenge for today! Good thought provoking article. I am north of 50 but am retiring early to pursue other things from which I don't have to worry about how much I make. I can just enjoy what I am doing. I do agree with the one comment that this evaluation should start early and continuously.


I believe the article is a guest post.

why toil and wait all the way till 50 when it can be expedited?

If Im 50 and I needed to have $800,000.00 saved by this time, I would have had to save over $25,000 from age 21 on (Average S&P ajusted return for this period is approc 7.52%). From 1980 to 1990 average wage was between $20,000-$40,000. Seems highly unrealistic. Really almost impossible.
It would be nice to see reality in these articles. It is very important to evaluate on an regular basis how we are progressing in our financial planning and growth, but if the message is unrealistic then articles like this accomplish little.

George --

I think you need to re-do your math. $25,000 for 29 years is $725k assuming ZERO return rate. If you get a return rate of 7.52% on your money, my numbers say you simply need to save $8,000 a year starting at age 21 to reach $800k by 50. Anyone get anything different?

It is rare when a single article will cover all situations. Commonly, when annual withdrawals from investments are mentioned there is no mention of a decent pension (and most calculators do not factor it is either). Similar to that Progressive Insurance commercial that is airing, "My wife won't let me retire!" Although I (age 58) have the blessings of my financial advisor and my tax man, the mere mention of my retiring sends her into fetal shock (although she retired last October). I am hoping she just needs adjustment time cause this old boy is tired of doing same basic thing for 34 years now. Advice?

We should always plan ahead of time and set reasonable financial goals in order to learn how to manage our money carefully to achieve them. Saving money to retire, for example, is something that not everyone prioritizes, but everyone needs. So, I think that it should be done from an early age to make sure that the future will not present difficulties.

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