Let's go for $2500 on the monthly housing expenditure. We can say 84 on the money running out (that way I stay consistent with the original scenario). Disposable Income...hmmm? Well, let's be modest and say 60% of current annual take home of $140k (most financial models I see normally say 80%), so $7k a month.
The DROP account is this, once I hit my 20 years with the city, I entered DROP. My monthly pension check of $4600 is deposited into the account, and then interest is added to it. The interest rate is never less than 2.5 or higher than 7%. We used to also have our monthly contribution added in as well, but during the last Legislative year, we had some pension restructuring done. The DROP program was started in 1995, and was eliminated in 2004 for new hires. It was primarily done to keep personnel from leaving after 20 years and finding another job.
The best part is that I still work full-time with full pay, while my DROP account grows year after year.
What about currency risk? The USD is essentially worthless fiat toilet paper, do you really think there aren't going to be drastic changes to the world's financial system? Get some Bitcoin for real.
Oh, and Wells Fargo let people withdraw based on their word in the 1800's. Sure they did. Make sure you keep your money there. LOL.
Oh, and Wells Fargo let people withdraw based on their word in the 1800's. Sure they did. Make sure you keep your money there. LOL.
:monsters-
had to double check that, not far off!
https://smartasset.com/taxes/new-york-property-tax-calculator#JYeMgkULIa
any kind of retirement planning starts with an assessment of expenses. Personally , HATE the word 'retirement'- sounds like its time to die, head to a pasture. Change it to 'financial independence'; having the freedom to do as you please.
let me guess...British Columbia? or rather The Shit Show that is real estate in BC(no house in 416- area of Ontario valued at 1.3 mill is paying $4200 is taxes, um nope). NOTHING puts flames on residential real estate more powerfully than rising interest rates...up she goes again, and 2-3 more times in 2019. 10 years of cheap money is DONE WITH....couldnt be happier. That Horgan chap going to go through with that spec., tax? must be fun times in BC to be a real estate agent; Audi's returned for Tercel's?...lol
Dude, your agencies DROP is sick!!
My opinion, when planning for retirement a person should ask "how much do I need per month?" And that's your answer on how much money do you need to retire.
Like texasfan, I have pensions, DROP, and deferred comp/Roth IRA, etc. By the time I collect SS (I'm probably going to take it immediately), I'll probably be drawing $12K/month - and that's not touching anything I have in an IRA/Roth/Deferred comp account. I plan to retire around 55 (7 years, give/take a few months), and the income will be a little less until I hit 60 (when I can collect a small Federal pension....and then 62 for SS to add to it).
Our DROP used to be even better, but concessions were made last year to ensure our pension stays strong. I'm hoping that the WEP will be eventually removed as it affects anyone who receives a pension by reducing their social security. I've fully paid into social security, why should I be penalized?
Agree on the WEP issue. Such bullshit.
Our DROP was 3 years initially at 8.4%....then moved to 5 years. They just recently changed the interest to anywhere from 0% to (I think) 18% (depending on the market) - they sold it as "it will average around 6%". Our city just did away w/ the pension for new hires; they get a 401K style plan where the employee puts in 10% and city matches 25%. It's a 3-year contract so we expect the city will screw them over and drop that to a more reasonable amount of 10-15% (still saving the city a ton of money either way). I can't believe the union allowed it to happen. I'm retired now (from that job) and building my military pension. I didn't get the full DROP, which is really my only 'regret' about leaving early (I just couldn't stand the job anymore).
Could be as low as $0 (or even lower).
If old (like 60+), social security would be $1,000+ per month each. Add another $1,000 per month each for side work, hustling, gambling, et cetera. A paid off house sold for $500,000 would be another $2,000 per month just in interest, or more like another $3,000 if it's going to be spent down over 30 years.
If young (like 37), a military pension would be about $2,500 per month per person (more for an officer). And pretty much no limits on how to use their time if that isn't enough.
If old (like 60+), social security would be $1,000+ per month each. Add another $1,000 per month each for side work, hustling, gambling, et cetera. A paid off house sold for $500,000 would be another $2,000 per month just in interest, or more like another $3,000 if it's going to be spent down over 30 years.
If young (like 37), a military pension would be about $2,500 per month per person (more for an officer). And pretty much no limits on how to use their time if that isn't enough.
