Fine…so buy $8MM of treasuries and live off of $380k per year with no state tax plus pension. |
Yes. Because with this NW the only thing you have to fear is death.
The other possibility is some sort of global event, Great Depression, coup that devastates the economy and your money is worthless. In this situation you have bigger problems than the loss of your money. I’d absolutely quit. |
I retired long ago, but not even because of money, but because work place was so toxic. It must be nice to have a job one wants to keep. |
It's a math problem. What are your current annual expenses, and projected annual expenses in retirement? Do your liquid investments exceed 25X your projected annual expenses (taking into account your pension)? Are your 529 savings on track or accounted for in your annual future spending If so, congrats you can retire!
Also, how much of a one-way door is retirement for you based on your skillset? I know lots of people who have both "retired", had one person in the couple retire, or taken sabbatical years, and then decided they actually wanted something else and went back to some type of paid role (usually consulting or board work) and it was fine. It gets harder as you get older though. |
OP here. 800k left on the mortgage, but I think I will be paying it down. Obviously, this does not affect NW. Kids should have enough for instate (NW does not include their 529s) |
OP here. And yes, this is my situation as well. Obviously, we won't be able to maintain our current lifestyle. But I figured, life is short... |
That's not a NW amount for that return. It's investments, not including house/cars/etc. |
It totally depends on how much you hate your job and what you want to do with your time, but I would think of it more as picking the job you want. That could be a new career or an unpaid project, like building a farm or writing a novel or making art or whatever your dreams entail. “Retiring” in this context is not necessarily dropping out of vocation it just means you get to pick. |
NP here with 3 kids. I just wonder what kind of message it sends your kids that you will only fund in state tuition. I also have three kids and plan to retire in 9 years (only 44). We only have half your net worth, but are really torn with saving only $500k plus GI bill for college. We are considering saving for grad school as well because we’d rather give our kids the leg up as young adults then a large inheritance when they are in their 60s. |
Wow, our military retirement is $15K a year. The difference with you is you get tricare. |
FIrst, does your pension start now, how much per month relative to your total income previously? I personally would not retire at that age with 3 kids to put thru college and still providing for. You have 11 years before the youngest is out of college and working full time, at the earliest. However, if your health insurance and pension cover current daily expenses, including all the activities the kids are used to, then you might be able to consider it. Is college fully saved for and a part of that 10M? Because you could easily end up spending $500K to put the 3 thru college even at state schools. If you want them to attend "wherever they want" then you could be looking at $500K for the last kid alone in 7 years, so $1M to put all 3 thru college |
I was unclear. Yearly military retirement $84000 Yearly VA Disability $25000 Yearly taxable dividends $95000 This is what we are living on until we turn 59.5, then can tap into our retirement accounts. The key for us is no debt. Highest categories of expenses in retirement are insurances and taxes. |
I'm with you. I might work an extra year or two to have more available to my kids for college/grad school. The OP still hasn't stated how much pension is, relative to prior income. That makes a huge difference. Are they collecting 50% of their income or 90%? And what are their monthly expenses for the next 5-7 years with the kids living at home? If you can live off your pension for currently monthly expenses and not need to draw down on the 10M NW, then sure. But you still have 800K mortgage, I'd be working a few more years to pay that down unless your pension is 75-80% of your current salary |
None of this makes sense. Pay off your mortgage and save for college and grad school. |
Wow, that’s crazy. So unfair the differences in retirement pay. |