Would you retire with a NW of $10m?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in similar situation as OP.

Net Worth almost 10 million, mid 50s.

Military retirement, VA disability, dividends from taxable accounts last year were $95,000.

But we have zero debt and sons done with college.

So, for us, we are retiring early and enjoying life while we are young and healthy. We will never spend all of our assets. Will pass to our children and alma mater.

Wow, our military retirement is $15K a year. The difference with you is you get tricare.

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.

Wow, that’s crazy. So unfair the differences in retirement pay.

Huh?

It’s all public record. Your retirement pay is based on rank, number of years of service.

There’s nothing unfair about it.

[Anonymous]

I would absolutely retire with half of that and intend to as soon as possible. Are you currently spending (not saving) more than $400K a year? If you are, then do not retire.

My husband and I spend about $120K of our $450K salary- the rest to savings, investments, and taxes. We plan to stop the plug at $5 million plus a pension of about $70K and that feels overly conservative.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I know that $10m in retirement accounts seems to be the magic number for many on this board, but would you retire in your eary-50s with $10m NW and a gov pension (that comes with health insurance).
3 kids (11,12,16), no inheritance, no family support with college tuition, etc.

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 knew someone would come on here and say 10 million isn’t enough to retire.

[Anonymous]

Absolutely. No doubt. Like yesterday.

[Anonymous]

Anonymous wrote:I would absolutely retire with half of that and intend to as soon as possible. Are you currently spending (not saving) more than $400K a year? If you are, then do not retire.

My husband and I spend about $120K of our $450K salary- the rest to savings, investments, and taxes. We plan to stop the plug at $5 million plus a pension of about $70K and that feels overly conservative.

That is amazing. I wish I could get my spending down to that level.

[Anonymous]

Being able to and wanting to are different things. You can for sure. I wouldn’t with kids still in high school unless I had another useful way to spend my time (as someone else said, writing a book, farming). I think it’s important to look productive to kids, vs loafing around or playing golf all day.

[Anonymous]

Wow. Hoping to maybe have 4.5M 20 years from now.

If I had 10M, I'd quit today, easily.

[Anonymous]

Anonymous wrote:Not when you have young kids and at that age with college and other costs. Or, retire and work part time or retire if spouse has a job.

This. I’d be less anxious but I’d continue working in some capacity till youngest at least highschool.

[Anonymous]

I would not retire. Not enough. To live the lifestyle I want, I would need 100m.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why not? Go buy some 30 year treasuries and earn $475k per year with no state tax.

I assume you can live comfortably on that plus pension

OP said net worth. Assuming that includes his primary home. So couldn’t use that to buy treasuries.

A primary home is not included in net worth calculation. If you are on DCUM you should know that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know that $10m in retirement accounts seems to be the magic number for many on this board, but would you retire in your eary-50s with $10m NW and a gov pension (that comes with health insurance).
3 kids (11,12,16), no inheritance, no family support with college tuition, etc.

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 knew someone would come on here and say 10 million isn’t enough to retire. \


It really isn't if you calculate the expected cost of taking care of someone with severe dementia/alzheimers round the clock for ten years (I just did it).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know that $10m in retirement accounts seems to be the magic number for many on this board, but would you retire in your eary-50s with $10m NW and a gov pension (that comes with health insurance).
3 kids (11,12,16), no inheritance, no family support with college tuition, etc.

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 knew someone would come on here and say 10 million isn’t enough to retire. \


It really isn't if you calculate the expected cost of taking care of someone with severe dementia/alzheimers round the clock for ten years (I just did it).

How much would you need then?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in similar situation as OP.

Net Worth almost 10 million, mid 50s.

Military retirement, VA disability, dividends from taxable accounts last year were $95,000.

But we have zero debt and sons done with college.

So, for us, we are retiring early and enjoying life while we are young and healthy. We will never spend all of our assets. Will pass to our children and alma mater.

Wow, our military retirement is $15K a year. The difference with you is you get tricare.

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.

So you have about $200K to live off of. Should be doable for most people, especially if you have no debt. You won't need to tap the 10M really at all for a long time

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know that $10m in retirement accounts seems to be the magic number for many on this board, but would you retire in your eary-50s with $10m NW and a gov pension (that comes with health insurance).
3 kids (11,12,16), no inheritance, no family support with college tuition, etc.

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 knew someone would come on here and say 10 million isn’t enough to retire.

Initially nothing was stated about college, except family not funding it (inheritance/wealthy grandparents/etc).
I'd want to see a budget and number of incoming and outgoing. They have 3 kids at home as teens/preteens. Kids are expensive. What are they used to spending yearly currently? Part of that NW is tied up in the house---how much?

But if their monthly expenses are too high with all the kids at home, then they need to cut back or have a plan. What if a kid needs private school for a learning issues/behavioral issues/etc? Do you have 30-40K/year until they get to college? Can the kids do travel sports or whatever they are used to on your budget, without drawing down on your retirement?

For me it would be a much different story if the kids were 18, 20 and 22---out of the house at college and beyond.

Also, if I was worth that much (I am worth more actually), I'd want to also provide for grad school for our kids, so I'd continue working a few more years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why not? Go buy some 30 year treasuries and earn $475k per year with no state tax.

I assume you can live comfortably on that plus pension

OP said net worth. Assuming that includes his primary home. So couldn’t use that to buy treasuries.

A primary home is not included in net worth calculation. If you are on DCUM you should know that.

Idiot---of course homes are included in your NW. They just are not easily accessible money and cannot be used to capitalize on the interest/gains on a monthly basis