How much to retire at age 55? We are 50

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Two thoughts. First retirement is not a one way street but if you decide to reenter the labor market you will take a hit. Second, what’s your return assumption? Have you processed the fact that real interest rates are negative? What do you think that means?

Of course. If we retire , it would be very difficult to find jobs in our field again as we are very specialized unless we are willing to move etc. We are right now invested very aggressively for our age and have most in equities. Obviously if the stock market takes a big hit in the next few years we’ll be singing a different tune. My plan is before we retire to move 1M into safe assets. In 2008, our portfolio dropped by half and as traumatic as that was it was only 400k or so at that time- now it would be a much different story.

Can you tell me what assets are safe? I’d love to purchase some.

Right!

Are there any? CDs paying 0.25%?

I-bonds. Start now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My husband and I make 300k combined and have close to 5M saved. Our house is worth 700k and we have 500k in college savings for 2 kids.

Fidelity’s retirement investment calculator calculates that we’ll only be able to spend about 10k a month to weather a significantly below average market.m but an average market would give our kids 100M when we die. Planning for the significantly below average scenario seems crazy conservative. I’d like to retire before age 55 with hopefully 6M.

Is 6M too low? The 4 percent rule would suggest that we would be able to spend 240k per year which would be more than enough.

Thoughts?
TIA

If $6,000,000 isn't enough for two people to retire on then 99.9% of the country is f***ed.

It all depends on how much you plan to spend. We are planning 40k a month. That takes 12 million at least.

DCUM truly is a wonder. 40k... a month.

[Anonymous]

6M is enough 5M probably as well as long as you budget. The first 5 years I would want to be well under whatever that budget number is. If a shortfall occurs I guess a part time job would fix

[Anonymous]

Anonymous wrote:

Anonymous wrote:My husband and I make 300k combined and have close to 5M saved. Our house is worth 700k and we have 500k in college savings for 2 kids.

Fidelity’s retirement investment calculator calculates that we’ll only be able to spend about 10k a month to weather a significantly below average market.m but an average market would give our kids 100M when we die. Planning for the significantly below average scenario seems crazy conservative. I’d like to retire before age 55 with hopefully 6M.

Is 6M too low? The 4 percent rule would suggest that we would be able to spend 240k per year which would be more than enough.

Thoughts?
TIA

Surely you mean 10 million lol.

When looking at if you run out of money with the 4% rule, it is much more likeey that you have a crazy sum at the end like 100 million. Not a mistake.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My husband and I make 300k combined and have close to 5M saved. Our house is worth 700k and we have 500k in college savings for 2 kids.

Fidelity’s retirement investment calculator calculates that we’ll only be able to spend about 10k a month to weather a significantly below average market.m but an average market would give our kids 100M when we die. Planning for the significantly below average scenario seems crazy conservative. I’d like to retire before age 55 with hopefully 6M.

Is 6M too low? The 4 percent rule would suggest that we would be able to spend 240k per year which would be more than enough.

Thoughts?
TIA

If $6,000,000 isn't enough for two people to retire on then 99.9% of the country is f***ed.

It all depends on how much you plan to spend. We are planning 40k a month. That takes 12 million at least.

DCUM truly is a wonder. 40k... a month.

Yes 40k a month is a lot. That would work for us but our goal is 50k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My husband and I make 300k combined and have close to 5M saved. Our house is worth 700k and we have 500k in college savings for 2 kids.

Fidelity’s retirement investment calculator calculates that we’ll only be able to spend about 10k a month to weather a significantly below average market.m but an average market would give our kids 100M when we die. Planning for the significantly below average scenario seems crazy conservative. I’d like to retire before age 55 with hopefully 6M.

Is 6M too low? The 4 percent rule would suggest that we would be able to spend 240k per year which would be more than enough.

Thoughts?
TIA

If $6,000,000 isn't enough for two people to retire on then 99.9% of the country is f***ed.

It depends on what your spending expectations are in retirement, which are likely based on spending today. We have two houses with associated costs (maintenance, landscaping, cleaning, insurance, RE taxes, etc.). Also plan to travel quite a bit while we can, including spending a month at a time in some places. So we are budgeting or more than $240k. And we want plenty to be able to cover any long term care requirements and not burden our kids. Other people won't have those same expectations so don't need to fund the same kind of lifestyle.

Under the 4% rule -- $6 million is $240,000 a year or 20k a month. I spend about 35-40k a month now on the types of things PP says. I do not see expenses going down in retirement so that is $12 million with no real cushion. Goal is 14-15 million.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My husband and I make 300k combined and have close to 5M saved. Our house is worth 700k and we have 500k in college savings for 2 kids.

Fidelity’s retirement investment calculator calculates that we’ll only be able to spend about 10k a month to weather a significantly below average market.m but an average market would give our kids 100M when we die. Planning for the significantly below average scenario seems crazy conservative. I’d like to retire before age 55 with hopefully 6M.

Is 6M too low? The 4 percent rule would suggest that we would be able to spend 240k per year which would be more than enough.

Thoughts?
TIA

If $6,000,000 isn't enough for two people to retire on then 99.9% of the country is f***ed.

It depends on what your spending expectations are in retirement, which are likely based on spending today. We have two houses with associated costs (maintenance, landscaping, cleaning, insurance, RE taxes, etc.). Also plan to travel quite a bit while we can, including spending a month at a time in some places. So we are budgeting or more than $240k. And we want plenty to be able to cover any long term care requirements and not burden our kids. Other people won't have those same expectations so don't need to fund the same kind of lifestyle.

Under the 4% rule -- $6 million is $240,000 a year or 20k a month. I spend about 35-40k a month now on the types of things PP says. I do not see expenses going down in retirement so that is $12 million with no real cushion. Goal is 14-15 million.

A different world. Excluding what we put toward investments and savings, we spend $6-7k per month. Good on you, PP, it's just not my world! (FWIW, we put more than that into savings and investments)

[Anonymous]

The biggest expense would be health care as you age. Especially if you ned up needing in-home care for a long period of time.

[Anonymous]

Anonymous wrote:The biggest expense would be health care as you age. Especially if you ned up needing in-home care for a long period of time.

At 20k per month you probably have long term care covered.