Would you retire with a NW of $10m?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I plan to retire in my late 50s debt free with $2.5 million. Me and my wife can easily live off of $100k per year. $100k goes a long way when you don't owe anyone money

Good luck staying healthy and then dying suddenly!

Lol!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I plan to retire in my late 50s debt free with $2.5 million. Me and my wife can easily live off of $100k per year. $100k goes a long way when you don't owe anyone money

where will you get healthcare?

DP.. for us, in MD, ACA high deductible plan is about $1400/mo for family of 4. I budgeted around $20K for healthcare.

We can live off of $140K, and that includes healthcare, and mortgage (low). Planning to retire at 56/62 when last kid leaves for college. We will have about $3.2 mil in our retirement/savings. I don't include the house value.

Is the $20k based on your current age or after 60? When I priced them, it was closer to $30k for 60-65 range.

[Anonymous]

Anonymous wrote:I would absolutely retire with a NW of $10m. I can live comfortably at a $300k annual income, which is a conservative withdrawal rate.

Similar situation with similar aged kids. I wouldn’t. Heath insurance is an issue.

[Anonymous]

OP originally stated $10 million, plus federal pension and health insurance. I also think OP started the other college thread as only funding state school for three kids was questioned by others. It’s crazy that someone with such a high net worth would skimp on higher education…

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would absolutely retire with a NW of $10m. I can live comfortably at a $300k annual income, which is a conservative withdrawal rate.

Similar situation with similar aged kids. I wouldn’t. Heath insurance is an issue.

With $10MM NW, you really don't think a family can just buy health insurance? Why not?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would absolutely retire with a NW of $10m. I can live comfortably at a $300k annual income, which is a conservative withdrawal rate.

Similar situation with similar aged kids. I wouldn’t. Heath insurance is an issue.

With $10MM NW, you really don't think a family can just buy health insurance? Why not?

It adds significantly to the annual budget.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would absolutely retire with a NW of $10m. I can live comfortably at a $300k annual income, which is a conservative withdrawal rate.

Similar situation with similar aged kids. I wouldn’t. Heath insurance is an issue.

With $10MM NW, you really don't think a family can just buy health insurance? Why not?

It adds significantly to the annual budget.

But not really. Of course, OP indicated they receive health insurance even if they were to retire today.

I still don't understand why anyone thinks $20k - $30k per year for health insurance is much of an issue with a $10MM net worth.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I plan to retire in my late 50s debt free with $2.5 million. Me and my wife can easily live off of $100k per year. $100k goes a long way when you don't owe anyone money

where will you get healthcare?

DP.. for us, in MD, ACA high deductible plan is about $1400/mo for family of 4. I budgeted around $20K for healthcare.

We can live off of $140K, and that includes healthcare, and mortgage (low). Planning to retire at 56/62 when last kid leaves for college. We will have about $3.2 mil in our retirement/savings. I don't include the house value.

Is the $20k based on your current age or after 60? When I priced them, it was closer to $30k for 60-65 range.

For two people? That seems very high, but of course depends on the plan you choose...Bronze, Silver, Gold, Platinum? PPO vs. HMO?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I plan to retire in my late 50s debt free with $2.5 million. Me and my wife can easily live off of $100k per year. $100k goes a long way when you don't owe anyone money

where will you get healthcare?

DP.. for us, in MD, ACA high deductible plan is about $1400/mo for family of 4. I budgeted around $20K for healthcare.

We can live off of $140K, and that includes healthcare, and mortgage (low). Planning to retire at 56/62 when last kid leaves for college. We will have about $3.2 mil in our retirement/savings. I don't include the house value.

Is the $20k based on your current age or after 60? When I priced them, it was closer to $30k for 60-65 range.

It is based on 53 and 59. If I enter ages 56 and 62 with 2 dependents, it comes out to $1550. So, yea, maybe set aside $30K for healthcare costs. But, it's only for a few years since medicare kicks in at 65, and my oldest DC hopefully will start working in 4 years with health insurance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would absolutely retire with a NW of $10m. I can live comfortably at a $300k annual income, which is a conservative withdrawal rate.

Similar situation with similar aged kids. I wouldn’t. Heath insurance is an issue.

With $10MM NW, you really don't think a family can just buy health insurance? Why not?

It adds significantly to the annual budget.

But not really. Of course, OP indicated they receive health insurance even if they were to retire today.

I still don't understand why anyone thinks $20k - $30k per year for health insurance is much of an issue with a $10MM net worth.

$20K for a few years is nbd. But, who knows what healthcare costs will be like in 10 years. Also, all it takes is one serious illness to wipe out a significant portion of your savings. ACA will help, but OP is still young, and medicare won't kick in for a while.

No one ever thought college costs would reach $100K, and look where we are now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I plan to retire in my late 50s debt free with $2.5 million. Me and my wife can easily live off of $100k per year. $100k goes a long way when you don't owe anyone money

where will you get healthcare?

DP.. for us, in MD, ACA high deductible plan is about $1400/mo for family of 4. I budgeted around $20K for healthcare.

We can live off of $140K, and that includes healthcare, and mortgage (low). Planning to retire at 56/62 when last kid leaves for college. We will have about $3.2 mil in our retirement/savings. I don't include the house value.

Is the $20k based on your current age or after 60? When I priced them, it was closer to $30k for 60-65 range.

It is based on 53 and 59. If I enter ages 56 and 62 with 2 dependents, it comes out to $1550. So, yea, maybe set aside $30K for healthcare costs. But, it's only for a few years since medicare kicks in at 65, and my oldest DC hopefully will start working in 4 years with health insurance.

pp here.. also, that is for a high deductible plan.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would absolutely retire with a NW of $10m. I can live comfortably at a $300k annual income, which is a conservative withdrawal rate.

Similar situation with similar aged kids. I wouldn’t. Heath insurance is an issue.

With $10MM NW, you really don't think a family can just buy health insurance? Why not?

It adds significantly to the annual budget.

But not really. Of course, OP indicated they receive health insurance even if they were to retire today.

I still don't understand why anyone thinks $20k - $30k per year for health insurance is much of an issue with a $10MM net worth.

$20K for a few years is nbd. But, who knows what healthcare costs will be like in 10 years. Also, all it takes is one serious illness to wipe out a significant portion of your savings. ACA will help, but OP is still young, and medicare won't kick in for a while.

No one ever thought college costs would reach $100K, and look where we are now.

That's why you have health insurance. It's not as though the exchange health insurance is much different than many employer plans. You may have a high deductible (or not depending on what you select), but then you are covered after that (to the extent anyone's coverage is any good). Also, if you are diagnosed with a serious illness you can simply opt for a better plan the next year to cover your medical bills at a higher premium.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I plan to retire in my late 50s debt free with $2.5 million. Me and my wife can easily live off of $100k per year. $100k goes a long way when you don't owe anyone money

where will you get healthcare?

That is a key question everyone must answer before retiring before 65. If you still have kids at home/in college it can cost $20-25K to have decent coverage for the family. Just have to plan for that.

[Anonymous]

Anonymous wrote:OP here. Thanks, everyone. After sleeping on it, I decided to stay in the rat-race for 2 more years, save more, and then "retire." By "retire" I mean leaving my current high-stress job and doing something much less demanding for significantly less money. I hope that my kids will learn the value of enjoying life and will enjoy having more of me rather than more money. I will report back in a few years.

Ummm...that was never stated in the OP. You can figure out how to leave your high stressed job now. You just need to ensure that you are living on the money you bring in. I wouldn't start drawing on the savings quite yet. But that just means choices to reduce your expenses. But if you still have some income, that's not retiring

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would absolutely retire with a NW of $10m. I can live comfortably at a $300k annual income, which is a conservative withdrawal rate.

Similar situation with similar aged kids. I wouldn’t. Heath insurance is an issue.

With $10MM NW, you really don't think a family can just buy health insurance? Why not?

It adds significantly to the annual budget.

But not really. Of course, OP indicated they receive health insurance even if they were to retire today.

I still don't understand why anyone thinks $20k - $30k per year for health insurance is much of an issue with a $10MM net worth.

$20K for a few years is nbd. But, who knows what healthcare costs will be like in 10 years. Also, all it takes is one serious illness to wipe out a significant portion of your savings. ACA will help, but OP is still young, and medicare won't kick in for a while.

No one ever thought college costs would reach $100K, and look where we are now.

That's why you have health insurance. It's not as though the exchange health insurance is much different than many employer plans. You may have a high deductible (or not depending on what you select), but then you are covered after that (to the extent anyone's coverage is any good). Also, if you are diagnosed with a serious illness you can simply opt for a better plan the next year to cover your medical bills at a higher premium.

The ACA plans are not as good as most employer's plans. I had both in the past 2 years.

I haven't read whether the OP's 10mil is mostly in liquid assets, but if it's not, that's a risk. 10 years on ACA is one thing; 20 years on ACA is another because like I said, who knows what healthcare costs even with insurance will be like in 10 years.