Would you retire with a NW of $10m?
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Anonymous
You simply need to plan for the added costs. Once you hit 60 it can be $30-40K/year. In50s, with the full family ours would be $25K for the plan plus typical expenses for the year. So that $25-40K must be included in your budget. |
Anonymous
I think it's fine to start drawing on the savings, but not *that* much. You want to make sure you have at least $x mil by the time you are 60. Also, keep in mind that you won't be able to collect that much social security if your income goes down now. |
Anonymous
It all comes down to how much do they need to live each year (in the lifestyle they want)? 10MM is great if someone is living on 130K/year. But lets say you live until 90 (typical for my family on both sides). that means another 40 years of living and expenses. Take away $1M for college for the 3 kids (one is only 12, instate might be $50K+/year). Then how much of that NW is in intangible assets like a home or boat or car? Let's say 2M. Now you are down to 7M and you need to generate income from that to live. All while realizing you still have a decade before your kids are really out on their own. If you need $400K to live/year, then you likely will be drawing down the principle. If you need only 200K you can probably find a way to generate income without drawing principle. Just need to do the calculations |
Anonymous
I priced plans similar to what we have had for years. PPO (not doing an HMO), $2500 family deductible, max of $7K for family and 80/20 coverage approximately. Those are over 25K for family coverage and typically have "lesser coverage". Which isn't shocking as our plan thru work is $500/month for employee and the company pays ~1500, so total cost is $24K/year |
Anonymous
why does working hard at a job you love set a bad example? |
Anonymous
I'm going to guess that someone who has amassed $10M by early 50s will probably not be affected by a decrease in earnings for their last 5-10 years. They still very likely will be at or over the SS max |
Anonymous
dp.. MD and DC (I think) is cheaper and has better selections than Va. But, yea, PPO is expensive. |
Anonymous
IDK.. They may have inherited a bulk of that. Haven't read through the entire thread. And I think the decrease in earnings is more like 15 years. OP doesn't seem like they are 50. |
Anonymous
+1. Especially because unlike a PP I don’t actually need $300k a year once I am no longer paying a mortgage and saving for college and retirement. |
Anonymous
Thought they said 52/53. So I doubt they would work more than 10 more years. Did not see anything about it being inherited. But perhaps it is. And then yes, the decrease in SS might affect them, but not much in reality. |
Anonymous
We own our two homes outright. But Proptery taxes on our 2 homes are 33K currently (total), so 33+25 is $58K just for those two items. Add in maintenance, HOA fees, utilities, streaming, etc the costs for healthcare and to maintain our two homes would be $120K/year. We haven't eaten, drank, done anything or driven anywhere or paid our auto insurance or travelled. So just starting with that we would need $250-300K to live how we want for retirement. So healthcare (that didn't include costs other than premiums) is 10%+ of our expenses. |
Anonymous
Because OP stated that they hate their job. |
Anonymous
I mean it’s probably fine but plenty of people get sick and need help or have to help their kids or grandkids. There are plenty of people with a way higher net worth than this that still work until 70. So I just don’t get it. I’d take a less stressful job perhaps. |
Anonymous
| I’m at NW $4M right now at 53 and NFW would I retire, but half of it is real estate (paid off mortgage plus investment property). |
Anonymous
If that is the age then the answer is *f* yea*. I'm 53 now, and I would absolutely retire with $10mil. As it is, I'm hoping to retire at 56 with $3mil. |