Retirement

Discussion in 'General Industry Discussions' started by PMLAWN, Jan 26, 2006.

  1. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    Maybe the wrong forum, but,
    The day will come when we no longer do this or can't. How many plan for it. What are your ideas. What amount do you plan to have to invest to live off the investment.

    Just a thinking time ( it is winter) and maybe this will help the young guys who have a lot of time to save to start early.

    I plan to be ready in 10 years- 55- not that I will, but I plan to be ready.
    To provide the lifestyle I live now and last for another 40 years or so with inflation I figure to amass about 5.6 mill. A little less if I keep doing Real Estate work. I use Real Estate, about 40%, stocks thru drips about40%, and the rest made up of 401ks and funds that I have started. I started 25 years ago so will have about 35 years of building total

    What other ideas are out there. How many are planning
     
  2. pcc070197

    pcc070197 LawnSite Member
    Posts: 4

    What - that's a REALLY nice lifestyle? According to my calculations, $5.6MM in savings allows you to spend $23,000 a month (or $282,000/year) before taxes - assuming monthly draws, 4% interest rate (which is arguably low – maybe everything is invested in T-bills/bonds at retirement?) and depleting your savings to $0 in 40 years from retirement? That’s a lot of money even if you assume 3% inflation over 40 years during retirement (and the 10 you have before retirement).Why do you need so much – if you have the ability to accumulate that much then I assume you’re house will be paid off, thus that cost is meaningless and allows you to have more disposable income. I suggest you speak with a financial planner and/or if you are on tract to retire in 10 years with $5.6MM then you should call it quits today and start enjoying life!!
     
  3. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    250 is the # I am shooting for. And in 10 years that will not be a lot of money. Also I do plan on a 4% rate of return on the investments. I believe with the way our economy is going that is a safe bet.
    Stopping today? If I did that I would run out of money if I continued to live like I do. I also have 2 college educations to pay for, and 2 weddings. No way to stop yet.
    Just a note- these numbers are for me and my wife, income now and than- I, by myself, do not support my lifestyle and only a portion of my income is from landscape.
    As far as the 250, in today’s dollars that is in the 150-160 neighborhood. With kids and a few toys that does not get you far.
    Funny you say get a planner my wife has planning training and is a CPA and yet we still use 2 accountants and a planner.

    This post was asked to see what guys in this business are doing or planning to set them up, not about me. A post about going to college got me thinking and I just wanted to see if we all are thinking ahead. If lawncare is the only income source and will be most of their income producing years than that has to be part of a plan
     
  4. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    pcc070197 I see you are from CT. These numbers should not suprise you
     
  5. Roger

    Roger LawnSite Fanatic
    Posts: 5,927


    Bad assumption. Some of us aren't wired this way.
     
  6. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    The lawn/landscape business as I view it now is just a start for me or a stepping stone if you will. I plan to get into other areas, and eventually incorporate. I plan to by the time Im 40 to have my business pretty much run it's self. I never really plan to retire, but if I want to I can and still keep the profits from the business.
     
  7. Evergreenpros

    Evergreenpros LawnSite Bronze Member
    Posts: 1,155

    You really don't need a great deal of money to retire if you do a few things.

    Most importantly you have to preserve your health. Stave off major problems by catching them when they're small. Stop smoking, exercise, eat right, reduce stress, have your hearts checked (50% chance of developing heart disease in the US if you're a male, that's base chance, smoking, eating habits, stress, etc increases it) especially if you have a family history of it.

    Have your house paid for and in good condition.

    Pay off all debt prior to retirement.

    If you saved a decent amount (10-20% of your income) you'll live just fine.

    I'm not sure why people want to retire young, what do you do with 30 years? I always viewed it as a pie in the sky, as most people who retire do something else in a couple years because they get bored. But to each his own.
     
  8. mmacsek

    mmacsek LawnSite Senior Member
    Posts: 544

    I started planning for retirement 20 years ago. I currently put 20% monthly towards retirement but I don't plan to retire "fulltime". I don't know what I will do but some income from a business. Not being sarcastic but I never seen a person who is retired that has a lifestyle I envy. Good thread. Matt
     
  9. o it grew landscaping

    o it grew landscaping LawnSite Member
    Posts: 36

    i rather work till the day i die, imagining life working sucks, but without working i wouldnt know what to do with the days..
     
  10. davidcalhoun

    davidcalhoun LawnSite Bronze Member
    Posts: 1,022

    PMLAWN,

    When it comes to college education for my two young kids, I look at it this way. I always put the money toward our own retirement first. Why, because my kids can always get loans for college. And if I have done my part well on the retirement side, I can always then pay for their education with some of the proceeds.

    Life insurance may not seem like a good investment for some, but it does have some benefits when utilized for college funds.

    "Gifting" is another way to help them with college expenses. Always check with the IRS for current guide lines.
     

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