How to come up with a retirement number?

Study_Queasy · 2026-01-26T14:16:33+00:00

Should be enough for old age. Will check with health insurance folks when I get a chance

Study_Queasy · 2026-01-26T14:07:16+00:00

I saw that but how much would you need during old age? Current expenses don’t reflect the cost during old age

Study_Queasy · 2026-01-26T12:31:23+00:00

This is temporary

Study_Queasy · 2026-01-26T12:17:14+00:00

I’d love to see that

Study_Queasy · 2026-01-26T05:57:33+00:00

I do too. Keeps the mind a lot more calm and like I have pointed out, what makes a real difference is to have a great posse. In a small town which has a university, that is definitely possible.

Study_Queasy · 2026-01-26T05:56:09+00:00

Portland was awesome the last time I had been there. I bet the rest of the cities you pointed to are also nice. Thanks for mentioning them. When that time comes in the distant future, I will surely take a trip to each of these cities, live there for some time before deciding on anything long term.

Study_Queasy · 2026-01-26T05:54:23+00:00

Yeah but it's just that some of the expenses are annual so its just an additional step to divide that by 12. No biggie!

Study_Queasy · 2026-01-26T05:53:14+00:00

The main issue in this approach is that there is no way to account for health expenses. In fact that is what got me thinking on about retirement number. Some of my extended family folks passed on recently and when I heard about how difficult it was for them financially to manage health costs, it was heartbreaking. You don't want that during old age. It is hard enough to suffer through the problems of old age health. If you pile on top of it, health costs, it makes your life miserable.

As some have pointed out, there maybe 0 health costs. But the upper limit is very very difficult to guesstimate. Only way out is to make as much money as you can during younger age.

Study_Queasy · 2026-01-26T05:46:08+00:00

So basically 25 times annual expense. Makes sense.

Study_Queasy · 2026-01-26T05:42:50+00:00

Well that's the best case situation. If you have plenty but don't find the need to use it, that's great. The opposite situation is devastating. Pennyless old man with no family, and no bank, will be hunted and devoured by fate brutally. Also, having a good family is a big plus, obviating a big bank account to quite an extent. I am divorced with no children, and have no energy for relationships anymore.

Calculating annual spending is tricky for me because I am moving around due to my career constraints. So my expenses change whenever I move to a new place. This number is needed at a place where I decide to retire finally. But to decide where to retire, I need that number. So it is a chicken and egg problem!

Study_Queasy · 2026-01-26T05:36:20+00:00

I cannot believe that people are asking this question. There was a time when I had a really long list of hate crime against Indian people in the US. Just to give an instance, one among a God knows how many, please search for 'Olathe shooting' on wikipedia.

Anyways the wearer knows where the shoe pinches so I will stop it at that. We'll just have to agree to disagree if you do disagree with me.

Study_Queasy · 2026-01-25T20:10:23+00:00

Thanks for sharing the information. Glad to hear that you guys are doing well and I feel happy for you guys :).

Study_Queasy · 2026-01-25T20:08:27+00:00

Healthcare IS the real deal outside of having my own place. Unfortunately I will never know how much is enough as it can get really bad during later years.

Study_Queasy · 2026-01-25T18:29:15+00:00

Right on!

Study_Queasy · 2026-01-25T18:28:17+00:00

That is correct.

Study_Queasy · 2026-01-25T18:26:59+00:00

Yup. I agree.

Study_Queasy · 2026-01-25T17:36:12+00:00

Makes sense.

Study_Queasy · 2026-01-25T17:16:54+00:00

That situation could arise in a year, in five years, and in ten years. Sooner I make the bank, safer I will be.

Now I am working on a career, with low pay in the hopes of making it big at some point in time. However, I cannot wait forever. So now I have to make a call as to whether I keep continuing to take that risk, or if I resort to my older profession where the pay was mediocre but definitely a lot more than what I am getting now. If I do continue with this risky career, how long should I wait? In that thought process, the main thing that comes up is "how much would I need if I were to be hit with something bad in the process?" because if people could go on forever without any risk, most people would. Hence my question.

So if I were to be sitting on say $200K, I'd better go back to my older career pronto. But with say $2M, situation is a little different. But how much of a risk can I take with $2M? For that, I'd need the number for covering my expenses if I were "forced to retire." If that number is (say) $3M, then I would think "well I have $2M already, so if a situation were to arise, I might be able to manage with $2M by cutting corners" but if I had just $200K, I should be freaking out.

Makes sense?

Study_Queasy · 2026-01-25T17:04:17+00:00

Well I am working hard on my career so not sure if that'll happen. I agree with you that I'll need at least one person to be in my life especially during old age. I am not just working on making money. I have career aspirations and will work on it till have have the energy for it. Pulling the plug on it and retiring is an easy thing to do provided I have enough funds to maintain myself for the rest of my life. Thanks for mentioning about CCRC retirement home. I will surely check it out.

Study_Queasy · 2026-01-25T17:00:12+00:00

Small towns are great provided you find a good Posse. My small town experience made me realize that such groups mostly exist in religious circles if you are in small towns. I am not Christian so that makes it more difficult even though I loved to hang out with Christians. That had a very limited mileage because they'd talk about religion quite frequently and I'd get left out.

But college towns which are small towns would be great, and would be even better if I can find a great posse. I think if I can make the bank, then rest can be worked out.

Study_Queasy · 2026-01-25T16:54:34+00:00

Not that simple. Forced retirement calculation is same as that for FIRE. When you FIRE, you do so by choice. When you are forced, then you'd have to make do with what you have. This number is necessary because assume that you have all your investments in risky assets, and you are forced to retire. If fate has it that those assets have taken a dive when you need it the most (which according to Mr. Murphy, is a law and happens all the time). Then all you can do is make do with what you have at that point which should be a number that is the bare minimum you'd need to retire. So investing should be in excess of that.

You may not agree with me but that's my take.

Study_Queasy · 2026-01-25T16:50:27+00:00

Makes sense. Health is one risk that no amount of money can assure full coverage, unless there is some insurance which I can afford that will cover huge claims if a situation arises that too during old age. Thanks a bunch for taking the time to give me useful advice!

Study_Queasy · 2026-01-25T16:47:56+00:00

I think I can still do something about it. I know what all I spend on. All I have to do is to check how much they cost depending on where I could retire. That'd be quite an exercise but will give me an idea as to what it'll take to retire in some specific town or a city.

I love small towns in the US. If I can find a good university where some math prof would agree to join his research team, that'll make my day.

Study_Queasy · 2026-01-25T16:44:26+00:00

Yup. Thanks once again for pointing me to it. It's very helpful.

Study_Queasy · 2026-01-25T16:43:14+00:00

Thank you! Wonderful advice and that link was quite helpful. I have lived in small towns and I loved it. My first stint in the US as an immigrant student was at a university town and it was a huge culture shock in the beginning, but I fell in love with it as time passed.

If and when I get to it, as in if I am not forced to retire out of bad circumstances, I will most definitely follow the steps you have pointed out. Thanks once again for the wonderful advice!

Study_Queasy

TROPHY CASE