Quote:
Originally Posted by CoachKandSportsguy
The published number is meaningless to any individual, as its a survey of average peoples' feelings with no published background on annual spending rate. Hard financial data is not present or known to be present.
Example
our house costs $30K annually and add in food and vacations. .
Say $60-70K max annually at the moment.
current social security for both of us is $72K at FRA, so at the moment no savings is needed.
I saw one CFP touting planning services say $3M is not enough in savings. (Scare tactic)
He was using $200K in annual costs and saying money runs out in less than 7 years. (That's like living in NYC!)
The determining factor is "sufficing expenses" and how you structure your spending.
Renting money with a mortgage sucks money away. .
best to pay it off to free up cash flow and reduce cost of living and dependence on any investment offset.
(maintaining a mortgage and keeping investments earning as much or more will work until it doesn't, ie you have to use the money for a huge unplanned black swan event, or the returns stop returning.)
So there's a lot of numbers in the world, a lot are not relevant or useful to any individual's circumstance. This is one of them
|
I like that phrase, "the returns stop returning", have to borrow it.
