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.
