What's your ERE goal amount?

DividendGuy · Post by **DividendGuy** » Tue Jun 21, 2011 11:44 pm

Good question.
My absolute minimum is $180K, which would be 15 years' expenses at my retirement budget of $1K/month. With this amount of money saved I could switch to part-time work or do something else with the majority of my time. I couldn't quit working completely.
My actual goal to provide a better margin of error is $300K. That would provide $1K/month, which is my retirement budget. This should come close to meeting just about all expenses as $1K may be a little high and I could always fill the difference with intermittent income. The $1K/mo is before taxes, of course, and also figuring a 4% SWR. I think I'll probably be higher than that by the time I'm withdrawing dividend income.

Shandi76 · Post by **Shandi76** » Wed Jun 22, 2011 6:40 pm

I reckon I need about £300K plus a paid off house.
I need about £1200pcm to cover my current expenses. That will hopefully decrease once my partner moves in and finds a postdoc position.
As an employee in a state funded educational establishment in the UK, I've been paying into a 'defined benefit' pension scheme for the past decade. The Government are now changing the rules so we have to pay in higher contributions, and work for an extra 6 years, only to retire on a lower defined amount. It's ridiculous that they can retroactively change the terms. So I am no longer counting on any of that as lowering the amount I need to save independently.
I have looked at the rental property route to FI, but in the UK house prices are too high to make it the obvious choice. Also, I was a landlady for a while and it was definitely not a passive form of income generation.

BeyondtheWrap · Post by **BeyondtheWrap** » Thu Jun 23, 2011 9:41 pm

I haven't started working yet (I'm 21), but what I'm thinking now is to retire either when I turn 30 or when I have $300,000, whichever comes last. More money would be preferable, since my area (NYC) is kind of high cost of living. I'll be living with my family as long as I can in order to get the best savings rate. Eventually I might move somewhere warmer.
I'll be relying on dividend income in retirement. I will also be looking for occasional acting gigs, which may or may not earn money. It won't matter, since I'll be financially independent. Another possibility is to spend a few years working abroad or doing random part-time jobs.

BPA · Post by **BPA** » Sat Jun 25, 2011 2:52 pm

I'm thinking $285K plus a paid off dwelling. Currently I could take the equity in my home and buy one of the apartments I've been eyeing, but none of them are close to work.
And I still need to save 55K, so being close to work (and thus being car free) is necessary for now.
I figure that $285K will give me about $10K a year. I'd spend about three months a year at my trailer, and need to factor in $2500-$3000 a year for park fees and transportation there. That will give me $583/month to live on (or $233 after coop fees).

dot_com_vet · Post by **dot_com_vet** » Sat Jun 25, 2011 5:14 pm

MichaelAndrewLo, your plan is pretty awesome, and you know what you want at 23. That is really great.
At 23, I thought life was about making a lot of money and spending it.

aquadump · Post by **aquadump** » Sat Jun 25, 2011 9:53 pm

Goal 1: 150k (25X of my historical expense low)

Goal 2: 225k (25X of my current capable minimum)

Goal 3: 400k (33X of "feeling rich" budget)
Currently, I view the capital as a security as something to fall back on and allow me to take larger career risks or possibly volunteer. As an ENTJ, I like interacting with others, but maybe not with the rigidness of the status quo 8 to 5.

Andre900 · Post by **Andre900** » Sat Jun 25, 2011 11:32 pm

@BeyondtheWrap: You're 21 and "haven't started working yet"!!! I take it you're in school full time, but that's no excuse; you need to get started. Just how do you plan to save $300K? Doing what? Living with your parents as a grown man is not the most admirable saving & investment strategy. Young man, I think you're going to be in for a big unpleasant surprise.

Post by **jacob** » Sat Jun 25, 2011 11:48 pm

@Andre900 - It's fairly normal to live with your parents into your late 20s (until you're job-stable marriage material) in the southern countries of Europe. Conversely, in the northern countries (and I suppose the US), it's fairly normal to move out ASAP which usually either means roommate(s) or getting into debt. I suppose either side doesn't admire the other strategy. I remember us northern Europeans making fun of the southern guys who still lived under mama's watchful eye at age 25+ in exchange for pasta and laundry service.

dragoncar · Post by **dragoncar** » Sun Jun 26, 2011 2:15 am

"when I turn 30 or when I have $300,000, whichever comes last"
Isn't this a convoluted way of saying "when I'm over 30 and have at least $300,000"?

mikeBOS · Post by **mikeBOS** » Sun Jun 26, 2011 2:33 am

It's also kind of a new thing to move out at 18 and then just visit your family on holidays from then on out. Which doesn't seem particularly healthy or desirable to me, even though it's what most people do. The American way used to be keeping several generations all in one house or small group of houses on the same farmland.
There were few enjoying 4 years away at college or relocating miles away for a job.
I don't think the new way of living as an adult member of a family is any healthier or better than the old way. And it seems presumptive to deem otherwise just because that's the norm and "pop-psychology" just wants to confirm the norm for everyone by saying it's "healthy to have distance".
beyondthewrap's strategy seems fine to me.

mikeBOS · Post by **mikeBOS** » Sun Jun 26, 2011 2:37 am

@dragon But they could potentially retire before 30 if the $300k number was reached. Actually I believe it would be more aptly shortened to "when I have $300,00 OR turn 30." The "whichever comes first" is technically superfluous, though may have some purpose in trying to portray to us the mindset or worldview of the author, that they're actively thinking about which might come first, for example.
Not to nitpick or anything, but since you started it

dragoncar · Post by **dragoncar** » Sun Jun 26, 2011 3:49 am

mikeBos, there's a big difference between "first" and "last"... if you retire before 30, then turning 30 hasn't "come last" yet.

dot_com_vet · Post by **dot_com_vet** » Sun Jun 26, 2011 5:21 am

@ Mike - Not to sideline the topic, but we're doing the extended family thing here. (MIL living with us.)
We all help each other, and our small house is both lively and being used to 100% capacity.

slacker · Post by **slacker** » Sun Jun 26, 2011 6:39 am

@andre: there's nothing dishonorable about living with your parents or grandparents or whoever.
what's dishonorable is depending on them (or your girlfriend or anyone for that matter) for handouts. the two should not be seen as the same thing.
like jacob mentions, its a cultural thing..that's all.
and about not starting work even at 21: yes, its a good idea to start early, but it doesn't by itself derail anyone's ERE plans. What if the education led to a job that paid a ton of money? then starting as late as 25 may well be enough for your retire-at-30 plans.

mikeBOS · Post by **mikeBOS** » Sun Jun 26, 2011 3:54 pm

@dragon ooops, you're right. I misread his original statement as 'whichever comes first' doh!

shanermack · Post by **shanermack** » Sun Jun 26, 2011 10:35 pm

150K to semi-retire before age 45.

mugwump · Post by **mugwump** » Tue Jun 28, 2011 1:47 am

My goal was to match my husband's pension (which I am not on) at $24k. That translated into $600k. I got there several years ago. I retired a year or two later, at 55, with a small pension ($400/mo). I am on DH's health insurance, so in many ways I have had it easy. Since then I have done a little contract work, and have added to the Roth IRAs. I have not started drawing on my retirement assets; those are staying put until I need the income. Our house is paid off. Several years ago we remodeled the basement so it is a semi-independent 1 bedroom apartment, in case we need extra cash flow in the future.
It took me a little longer because I have had lots of breaks in my employment record.

Koogie · Post by **Koogie** » Wed Jun 29, 2011 4:36 pm

umm.. yeah. I guess i'm more about the retirement than the extreme part....
Goal: 1.8M 1.5invested and 300K for a paid off house.

Retire at 40. Never lift another finger again unless motivated to by catastrophe or one of my three main passions in life (cold women, wet food, hot booze or something like that)

Currently 38. got the 1.5 part, working on the 0.3 part. Probably not quite make it at 40 but maybe 41. Depends on the market and my thirst...

Andre900 · Post by **Andre900** » Wed Jun 29, 2011 5:47 pm

@Jacob, re BeyondtheWrap: Right, but NYC is not Europe. I'll say it again, living w/ your parents as a grown man is and should be emasculating. Jacob, it sounds like you're advocating exactly that as a way to build a nest egg. IMO, sponging of one's parents is pathetic. My real complaint is that the dude is 21 years old and not working. Like I said, he's going to be in for a big surprise. Jacob, it sounds like you didn't like my straightforward response to BtW, but let's not make excuses for him. Getting to ERE & FI is not easy. Excuses will not help him there. He needs to get started now.
Anyway, love your blog! It surely helps keep me focused.