Boomers ask 'how much is enough?' as they near retirement

By KATIE ARCIERI, Staff Writer

Published 10/25/07

Darlene Duchene, 48, has always been a saver. The Edgewater resident's frugality has paid off with $500,000 in a 401(k) account she started at age 22 and has $75,000 invested in stocks.

Eric Salzberg - The Capital Darlene Duchene steps onto the back of a 26-foot Shamrock boat at Jonathan Foster Yacht Sales in Edgewater in Edgewater before her husband Robert steps aboard.

After decades of saving, she and her husband Robert were hoping to retire in about 10 years.

But with unexpected medical expenses, outstanding mortgage payments and their 16-year-old daughter Gabrielle's desire to attend Johns Hopkins University, the couple is no longer sure.

"That's nothing for what I'm going to need to live," said Mrs. Duchene, a senior-level employee with Verizon. "I'm going to live another 50 years."

And they're not...

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ENOUGH MONEY? - 2007-10-28 23:06:56

If you have $1 mil, earn 7% tax deferred, have 3.5% inflation, and expect to live 25 years beyond retirement, you can take out about $58,000 per year, before taxes. That is just math. I would be more conservative. If you get e.g. $25k in social security, and take out about $30,000 per year, and can live on e.g. 55000/year before taxes you are probably ok. This does assume that you have no debts, also own your home outright - no mortgage. If you only have $500,000 , all other items same, in 25 years, taking out $30,000/year, you have nothing left. Period. So it is risky to assume you can live on $25000 SS and $30,000 investment income and expect to make it for 25 years. Sorry, but that is what the math says.

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Stephen Kay - Severna Park, MD - Karma: Bad

enough for what?? - 2007-10-26 18:54:53

There's LOTs of evidence that more material possessions does not make humans happier.

If people are worried about "not having enough money", maybe they should at least look into the possibility that more is not really more.

Check out the Northwest Earth Institute's topic of "voluntary simplicity". Sounds weird, but, hey, this is the rest of your life that we're talkin' about.

I consume so much less than I used to and I am so much happier than I ever was before. Consuming less is NOT a sacrifice - it's actually quite liberating, and rewarding. I call it "living richly, not living rich".

And, I'll be able to live a lot longer on the money I've saved, and I'll be able to retire sooner too. Not a bad deal.

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Fred Y. - Worthington, OH - Karma: Bad