I've got my medical covered, and no severe health issues now, and I live a pretty modest life style. I could retire without any stress if I had $3 million cash right now, and my modest house paid off. I'd close down work and relax finally for the first time in my life. Invested intelligently, wouldn't even need the SS and that would just be a kick-in later. Above $3 mil and it would be easy living. I could make it work with $2 million, but I'd have to be more frugal.
What should I have to comfortably retire at 55?
- Thread starter Vern_in_IL
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I know a few doctors with that kind of money and still working, they enjoy their work.
It is very easy to give advice with someone else's money and having nothing to lose.
Same could be said of oil recommendations, and yet you’re OK with that.
4WD
$50 site donor 2024
I would like to retire at 55, but I am almost 70 and still working. I guess I forgot to retire.
This seems like a perplexing question with very little detail. FWIW here is my plan for 55…
Expected spend = $10,000 / month
Yearly spend = $120,000 / year
With a 4% max withdrawal on retirement savings this means I need $2.4M in retirement funds to attain this goal. This does not account for any SS or pension to offset the $10,000 / month. If you have that lever you can reduce the $2.4M.
Just my $0.02
Expected spend = $10,000 / month
Yearly spend = $120,000 / year
With a 4% max withdrawal on retirement savings this means I need $2.4M in retirement funds to attain this goal. This does not account for any SS or pension to offset the $10,000 / month. If you have that lever you can reduce the $2.4M.
Just my $0.02
Does your expected spend of $10k a month include income taxes? If you are married, filing joint, standard deduction and withdrawing that amount from a taxable account like an IRA or 401k, your taxes will be a little under $1.5k a month with 2023 tax tables. If some of the funds are in after tax brokerage accounts where you can take advantage of long term capital gains rates, in rental real estate where you can use depreciation, or in a Roth account where withdrawals and gains are tax free your taxes will be significantly reduced.
A lot of people forget about income taxes since they won't be working any more. It can be the most significant expense in retirement when you are spending in the six figures.
I purchased my first house when I was 23 years old[ 1976]. My dad suggested I payed it off , it took me 12 years. It was the best thing I ever did financially. This was well before David Ramsay.
I have always suggested what the manual recommends and I am Ok with that. Besides, that is not someone's life's savings we are talking about.
How old are you now? If you’re 25 it sounds wonderful, if you’re 55 you already know it’s not going to happen anytime soon. If you’re 75 your ship has sailed.
Mentioned briefly page 1 and I haven't read all the rest so maybe covered more fully. Study up on Dave Ramsey. Working that now will lead to working what you want later. If you are reaching the big day to retire and have to "pay off" debt then you failed up to that point. Good luck.
You seem to be suggesting that I am unqualified to offer advice on this topic.
On what basis are you determining my qualifications?
While the original post lacks so much information as to be a nearly useless question, I do believe that asking advice on a myriad of topics on a forum of intelligent people is generally valid. If nothing more it presents data points the OP can take or leave. Members here range from probably 20 to 90 years old, and combined that's probably a million years of life experiences to draw from. For free. A figurative buffet of life advice on topic from being who have done it or are doing it, or who themselves had advice from financial planners and can relay advice, people who have done the heavy lifting and planning. Folks can suggest things the OP might not have considered. (BTW, financial planners are not omniscient and often get things wrong or have conflicted self interests, put clients in inappropriate high margin generating products, etc. I think it was one of the major institutions like ML and I think WF also got busted for that.)
Heck I learned something - I had not considered the income tax aspect someone upthread mentioned!
Why so down on asking questions? It's a great way to learn.
Anyone can say they are qualified behind a keyboard. I have yet to see any educational degrees or certifications.
I am not going to make any further issues but a one on one consultation with someone has has the credentials, does financial planning on a full time basis, is fee based and is a fiduciary is better than getting dozens of suggestions off a forum.
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Back then folks were much more conservative with their spending.
Good for you for making great financial decisions.
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I'm too old to die young but I'm not too young to retire. I left my job of 30 years at age 55 and have not regretted a minute. I know what it costs for me to live and I live within the confines of my wealth.
I set my goal to retire early when I was a very young man. I stuck to my goal and achieved it. I now spend my life in supplication to my creator, exercising and staying physically active, enjoying my free time in Europe, and just shaking my head at the direction the country is taking.
I'm not rich, I'm not poor. I have what I need and I'm happy with what I have. I don't rely on any man or government entity for survival and to me that is the definition of independence. Ask for nothing and owe nothing.
I set my goal to retire early when I was a very young man. I stuck to my goal and achieved it. I now spend my life in supplication to my creator, exercising and staying physically active, enjoying my free time in Europe, and just shaking my head at the direction the country is taking.
I'm not rich, I'm not poor. I have what I need and I'm happy with what I have. I don't rely on any man or government entity for survival and to me that is the definition of independence. Ask for nothing and owe nothing.
Yes. And no.
I agree by all means professional opinion.
AND open your mind to dozens of suggestions. Consider them.
Pros are not always right. That is a stone cold fact. Talk to the people who listened to the pros who put them in bond funds.
There are many unscrupulous credentialed professionals. Credentials alone don’t make for good investing decisions. I’ve seen predatory “advising” from credentialed fiduciaries devastate a person’s wealth while enriching the fiduciary. Legal theft. Moral bankruptcy. It abounds in the financial services industry.
So, while agree that professional consultation is wise, it is not without risk.
While we are all behind a keyboard, that fact alone doesn’t invalidate the advice offered. You quoted me multiple times, so, allow me to peel back some of the keyboard anonymity.
My undergraduate degree is in astrophysics - which isn’t a revelation to anyone who’s read my posts - and that doesn’t specifically qualify me to give financial advice.
However, I’ve been an investor for over 30 years. A journey with success, mistakes, and experience through several economic cycles and shocks.
I’ve been wiped out by a divorce, and recovered. I have a financial advisor. I am married to a former banker and stockbroker. We invest together. It’s something we do and in which we’ve achieved our goals. We are in good shape as we near retirement. Better than the vast majority of people our age.
The OP asked for advice, and I am better equipped than most to provide it.
It’s up to everyone on the board to weigh the merits of the advice they read - whether it’s in selecting an oil, or making financial decisions.
And I wouldn’t be so quick to dismiss what some of us have to offer in those other areas in which we have experience.
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