I used to debate with my snowboard buddy how much it really takes to retire. He thought a person needed about $4 million in assets to retire in today's economy. His number was based upon reader polls in some high finance magazine. Truth is, most the people responding to the poll probably lead a lifestyle much higher than mine.
My number to retire is a lot less. After your home is paid for, your kids receive a good education and your debts are paid off, what else is there? Maybe getting a new snowboard?... Spending has always been the problem with us.... or rather not saving it.
My wife and I used to call that big box store where we shopped "the $200 store". Now it's the "$400 store" and we have banished ourselves from their doors. I can recall one visit a few years back when I decided I never had to return, we had bought at least one of everything they sold; and it's now piled up in our garage. Sure am glad they sucked us in for years with cheap hot dogs and sodas.
What I have learned is a trillion dollars is one million million dollars. Most people don't appreciate the vast math difference between a million, a billion and a trillion. Our politicians talk about the numbers like it's Monopoly money. They need to all go to jail without passing GO. Stimulus, TARP, bailouts and bankruptcies are all paid for from one source, the American taxpayer (insert your name here). We have created over 10 trillion dollars in national debt and now the primary source purchasing our debt is the Chinese government. We have also created over 50 trillion dollars in unfunded debts future generations cannot pay for. Those include the commitments to pay our social security and medicare as we reach our AARP years.
I do not envy whomever my daughters may marry someday. They will make a lot of the same mistake we did. Worse though they will never be able to discuss the thought of retiring let alone finding a day to go snowboarding.
My number to retire is a lot less. After your home is paid for, your kids receive a good education and your debts are paid off, what else is there? Maybe getting a new snowboard?... Spending has always been the problem with us.... or rather not saving it.
My wife and I used to call that big box store where we shopped "the $200 store". Now it's the "$400 store" and we have banished ourselves from their doors. I can recall one visit a few years back when I decided I never had to return, we had bought at least one of everything they sold; and it's now piled up in our garage. Sure am glad they sucked us in for years with cheap hot dogs and sodas.
What I have learned is a trillion dollars is one million million dollars. Most people don't appreciate the vast math difference between a million, a billion and a trillion. Our politicians talk about the numbers like it's Monopoly money. They need to all go to jail without passing GO. Stimulus, TARP, bailouts and bankruptcies are all paid for from one source, the American taxpayer (insert your name here). We have created over 10 trillion dollars in national debt and now the primary source purchasing our debt is the Chinese government. We have also created over 50 trillion dollars in unfunded debts future generations cannot pay for. Those include the commitments to pay our social security and medicare as we reach our AARP years.
I do not envy whomever my daughters may marry someday. They will make a lot of the same mistake we did. Worse though they will never be able to discuss the thought of retiring let alone finding a day to go snowboarding.
Hey Andy, get to Bachelor much, or just Mt. Hood?
ReplyDeleteMy husband and I are also thinking about retiring, especially since it looms not so far ahead. Our goal is a Craftsman bungalow, maybe 2 br so the grandkids can come visit. All around us, though, people are upsizing to 3000-5000 sq ft McMansions even as their kids leave for college. I think most people have the same attitude as our legislators -- why think about who is going to pay for everything and spoil the fun? No one wants to think about it. Me, I'm looking into moving to New Zealand, where the country is more socialist but at least it's more honest about the taxpayers paying for everything. ;-)
We had a (b)rude awakening (good name, btw) last year when Andre's mom went into the local hospital for a heart attack. Ten days, mostly in ICU, and the bill was over $200,000. Yep, you and I paid for it because it was through their military insurance, TriCare. That's the kind of expenses that are being paid for every day out of our pockets. But I guess healthcare is a whole 'nother ballgame, and I'm sure that gets you riled up, too, like it does me -- but being in that industry, I'd be interested to know what your thoughts are.
I'm right in the middle of the healthcare crisis because of my job. Having more patients come into the doctors office will bode well for me. Having doctors close their practices because they will not carry on with reduced reimbursement is a bad thing. The Jury is still out, but the key is keeping people healthy, at the lowest possible cost while not chasing the best doctors from their chosen profession.
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