Would you retire with a NW of $10m?

[Anonymous]

Anonymous wrote:

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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.

+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.

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]

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Anonymous wrote:

Anonymous wrote:No, not with kids that young as I believe it sets a bad example. I could have retired at 52 but I had two kids in HS and I had no desire to hand around the house or hang out with old people. So I worked until I was 60 and tripled my net worth.

I would, because continuing to amass gold beyond meaning sets a bad example.

why does working hard at a job you love set a bad example?

Because OP stated that they hate their job.

[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.

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]

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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

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.

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

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.

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.

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.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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

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.

So, what's the x?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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

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.

So, what's the x?

depends on the person's annual expenses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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

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.

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

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.

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.

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.

that 3mil is just retirement/cash, not including my house.

[Anonymous]

I haven't read all the responses but how much of a pension are you drawing by retiring in early 50's? Isn't it age adjusted? My DH waited until 62 to start taking his government pension.

We have $12m and a government pension (but no government health care) and are planning to retire at 65-66. But that's with adult kids who are done with college/weddings. We could easily retire now, but we both like our work and can save another couple million by working a few more years.

[Anonymous]

I would have retired well before $10M.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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

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.

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

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.

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.

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.

But do you still have a 12, 14 and 17yo (I think those were the ages) living at home? For me that changes the equation. We always planned to retire once the youngest is out of college. That will be 56/57ish for us.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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

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.

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

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.

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.

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.

But do you still have a 12, 14 and 17yo (I think those were the ages) living at home? For me that changes the equation. We always planned to retire once the youngest is out of college. That will be 56/57ish for us.

DP here with a 13 and 16 year old. We would absolutely retire TODAY if we had $10M. We are mid 40s. Maybe we'd find some lower stress/lower hour jobs we enjoyed, maybe not. Our house payment is very manageable and will be done in 7 years. And we already have plenty saved for college so the ages of our children isn't really relevant. $10M would be more than enough, including what we would need for ACA healthcare.

[Anonymous]

Yes! Life is short, and you never know how long you have or when your health may change drastically. My parents retired late 40’s with a net worth of $10 million. This was late 90s, but still. I’m so glad they did, because they got to travel the world and spend lots of time with their kids as adult and young grandkids before my mom suddenly passed way at 70. My dad is now mid 70s, and doing great financially still with a NW of $10 million, after giving each child almost a million to buy a house, fully funding higher education, taking many luxury trips, helping with some grandkids expenses etc.

[Anonymous]

Of all the things to have, money is certainly the best. We've never had a HHI above $120k so I'm pretty sure we could retire, like tomorrow, if we noticed our retirement savings were $10 million. Alas....

[Anonymous]

Every dollar you earn after that, you can consider an absolute gift of an inheritance for your kids. Maybe that would help you eek out another year or two of working. But yes, you can definitely retire on $10 million.