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That's my plan. Also, to become even more self sufficient, grow everything e can.. perhaps go with an alternate heating source. I don't think we can be much more frugal than we already are.
As soon as te kid is out of college and assumes more of her costs(car insurance, life insurance etc.), I will have a better idea of the actualspending we do in a year and will probably re-crunch the numbers.
If you thnik 50,000 will suit you ;you still need to realise that it needs to keep up with basic inflation.In ten year that 50,000 may not look so good otherwise.5% per year increase is a pretty safe margin on COL in most cases.
The 1 mil is supposed to keep up with inflation and be able to yield more as inflation makes the actual dollars taken out increase. It is the rule of thumb theory, anyway.
When they talk about the Present Value of a sure thing pension that has cost of living increases built in, they value it at $1 mil per 50k of initial pension benefit in today's dollars. Forest's military pension is valued at this rate and his actual estate is valued with the Present Value of his pension being increased by that amount.
That's my plan. Also, to become even more self sufficient, grow everything e can.. perhaps go with an alternate heating source. I don't think we can be much more frugal than we already are.
As soon as te kid is out of college and assumes more of her costs(car insurance, life insurance etc.), I will have a better idea of the actualspending we do in a year and will probably re-crunch the numbers.
We have been using firewood, peat moss, woodchips and WVO to heat with. [and a bit of propane].
We are fortunate to be in an area where we have lots of firewood, peat moss and woodchips, so these fuels do not cost us anything.
Forest, I also work for the govt. I understand that they give you a cola. Last year with the fuel increases and food going up caused the inflation rate to go up drasticaly. This year they talk about deflation. I wonder if they ever took money back after they give it out. If cola was like minus 2% this year do they take it back? Thanks JM
Thanks Forest and Tes. My partners dad is a retired police officer and his cola payments are more than his original pension. His been collecting for 30 years and is 86. Thanks for the chart Tess.
Thanks Forest and Tes. My partners dad is a retired police officer and his cola payments are more than his original pension. His been collecting for 30 years and is 86. Thanks for the chart Tess.
Neither myself or my DH have ever been at a job where we receive a cola, just get the once a year raise. Unfortunately, DH capped out (at a very low rate)10 years ago next month. Good thing were super frugal.
I can't remember the rule of thumb exactly but when applied it says I should have 3 million. Which would mean I can't ever retire because I'll have trouble getting to 300,000.
So I hope that's not true.
What frightens me is that there doesn't seem to be anyway to come up with a number other than oh so much more than you planned.
Things change so much, nothing is fixed. Think your forever healthcare promised in retirement can't be taken away? Oh whoops. Think your pension can't be reduced? Whoops. Think the stock market can't crash and wipe out your 401K? Whoops.
How on earth can you plan?
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