*Investors Blog*
- Thread starter Warstud
- Start date
Why work 10 more??
The guy is only 52 years old. He broke the $1.0M mark….. not $3M mark.
Twas kidding about fast gains
That depends. It's enough to skinny FIRE at 55, but it doesn't leave much padding if you have expenses. Does he have medical from another source or will he be paying out of pocket until Medicare eligible in 10 years? Does he have a paid for house? Does he have any debt? Does he have a wife with expensive habits or medical issues? Or, like me, one that will divorce him if he is planning on retiring early. Does he have kids that will tap him for education or other expenses?
Using the 5% rule (the 4% rule, adjusted for a higher stock allocation than 50% and not paying management fees), starting at $1M he could spend $50k a year, inflation adjusted, with an excellent chance of his money outlasting him. Add Social Security to that in 10 years plus or minus. If he can get by on that, he can hang up his spurs.
No medical from another source.
House is paid off.
Very little debt.
Wife has no expensive spending habits.
Wife works part time.
Wife has no health issues.
Both daughters graduated college, working full time, no debt.
He’s doing better than 90% of the people his age.
I told him to hit the 401K hard when I met him back in 2009.
I also convinced him to open Roth IRAs for him and his wife, he also gets a pension.
It’s basically comes down to planning for retirement 35 years before you leave the workforce, not 15 years before retirement.
House is paid off.
Very little debt.
Wife has no expensive spending habits.
Wife works part time.
Wife has no health issues.
Both daughters graduated college, working full time, no debt.
He’s doing better than 90% of the people his age.
I told him to hit the 401K hard when I met him back in 2009.
I also convinced him to open Roth IRAs for him and his wife, he also gets a pension.
It’s basically comes down to planning for retirement 35 years before you leave the workforce, not 15 years before retirement.
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I tell people if you want Milion$ in your account, get on a 30+ year plan. Or buy a Lotto ticket, which I have never done.
Positive answers to all questions and he gets a pension? Yep, he can afford to retire at 55 if he wants to. For flexibility, I'd suggest building up after tax accounts in the next 3 years (if they aren't already significant), putting only enough in the 401k to get the match. That way he has money to live on before 59.5, and money to pay income taxes on conversions to Roth during low income years.
At 55 he likely has a good 30 years left. He could have 40. I doubt you could ever find a bond fund that outperformed the S&P 500 over a 20 year period, much less 30 or 40. I would only keep enough cash or bonds to cover living expenses for a few years to avoid having to sell stocks in a down market thus minimizing sequence of return risks. The remaining 80 or 90% would go into stocks (index funds, mutual funds, etc).
At 55 he likely has a good 30 years left. He could have 40. I doubt you could ever find a bond fund that outperformed the S&P 500 over a 20 year period, much less 30 or 40. I would only keep enough cash or bonds to cover living expenses for a few years to avoid having to sell stocks in a down market thus minimizing sequence of return risks. The remaining 80 or 90% would go into stocks (index funds, mutual funds, etc).
It was too late to edit.
Back 15 years ago he had no idea what an IRA was, I explained the difference between traditional and Roth IRA.
The average worker in the USA only saves for retirement through a 401K, 403B, Thrift Savings Account, 457 plan, etc… and don’t know the benefits of an IRA.
Back 15 years ago he had no idea what an IRA was, I explained the difference between traditional and Roth IRA.
The average worker in the USA only saves for retirement through a 401K, 403B, Thrift Savings Account, 457 plan, etc… and don’t know the benefits of an IRA.
OPEC+ extends oil production cuts through all of 2025 to help prop up weaker crude prices
Members of the producers cartel and allied countries including Russia decided at an online meeting to hold steady its production levels, which include collective cuts of 2 million barrels per day, through Dec. 31, 2025.
More production cuts.
And BRENT is down $3.
I doubt it moves the needle much. Maybe for a week or two then we will be back around $80.
I doubt it moves the needle much. Maybe for a week or two then we will be back around $80.
No.
The only contrarian bit I will add - it seems like places to live on that little are getting down to a short list
Depends on your current assets (cars, houses), where you live, your lifestyle, what you want, etc.
True.
When I retire I don’t want to live in a very small Humpty Dumpty city to stretch $1M retirement.
South Carolina caps your property tax increase to 15% once ever 5 years.
South Carolina does not tax social security. They also give an additional $10K deduction for other retirement income.
If everything is paid for and you get some amount of social security, it would be a pretty nice time here in Charleston with $1M in a 401K. I guess were Humpty Dumpty. OK with me, we don't need any more transients moving in.
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