How much would you want to retire at 50?

[Anonymous]

Anonymous wrote:

Anonymous wrote:$5M invested at 3% per year will give you a $200k distribution for 40 years.

Remember that’s pre-tax. If you’re living off of non-qualified investments, they can be managed to limit the tax hit, but qualified investment withdrawals are all taxable as income, even if there’s no withdrawal penalty.

For us the number was $5 million, but we had small pensions and were on FEHB in retirement. I’d go for $7 million without that.

Of course it's taxable. It's just like you're making a $200k salary for 40 years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$5M invested at 3% per year will give you a $200k distribution for 40 years.

Remember that’s pre-tax. If you’re living off of non-qualified investments, they can be managed to limit the tax hit, but qualified investment withdrawals are all taxable as income, even if there’s no withdrawal penalty.

For us the number was $5 million, but we had small pensions and were on FEHB in retirement. I’d go for $7 million without that.

Of course it's taxable. It's just like you're making a $200k salary for 40 years.

I can’t tell you how many times I’ve seen people on this board insist that they can live on x% of income from a certain amount of $$ and not take that into account. Especially that RMDs can push you into a higher tax bracket than you anticipate.

[Anonymous]

Anonymous wrote:There are so many of these threads, why create a new one?

Why bother with posting this. Move on. Be kind.

[Anonymous]

I plan on it.

At 50, I'll have a $100+k/y pension, with COLAs and healthcare. I can live indefinitely on 70% of that.

I have savings, deferred comp, and real estate, but probably not much more than $1M between all of them.

I'll continue to work at something else, far away from DC.

[Anonymous]

Anonymous wrote:I plan on it.

At 50, I'll have a $100+k/y pension, with COLAs and healthcare. I can live indefinitely on 70% of that.

I have savings, deferred comp, and real estate, but probably not much more than $1M between all of them.

I'll continue to work at something else, far away from DC.

Nice!
That's huge at 65 let alone 50! How did you do it?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I plan on it.

At 50, I'll have a $100+k/y pension, with COLAs and healthcare. I can live indefinitely on 70% of that.

I have savings, deferred comp, and real estate, but probably not much more than $1M between all of them.

I'll continue to work at something else, far away from DC.

Nice!
That's huge at 65 let alone 50! How did you do it?

Good union government job and earning lots of promotions.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I plan on it.

At 50, I'll have a $100+k/y pension, with COLAs and healthcare. I can live indefinitely on 70% of that.

I have savings, deferred comp, and real estate, but probably not much more than $1M between all of them.

I'll continue to work at something else, far away from DC.

Nice!
That's huge at 65 let alone 50! How did you do it?

Good union government job and earning lots of promotions.

So basically forcing all of us to pay for it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I plan on it.

At 50, I'll have a $100+k/y pension, with COLAs and healthcare. I can live indefinitely on 70% of that.

I have savings, deferred comp, and real estate, but probably not much more than $1M between all of them.

I'll continue to work at something else, far away from DC.

Nice!
That's huge at 65 let alone 50! How did you do it?

Good union government job and earning lots of promotions.

So basically forcing all of us to pay for it.

This is capitalism, dear. Someone else is always paying for it through their time or labor.

[Anonymous]

*Everyone* in the DC area is only a degree or two away from making a living off the people's taxes.

Don't hate the player, hate the game.

[Anonymous]

Anonymous wrote:$5M invested at 3% per year will give you a $200k distribution for 40 years.

If you want 200K (pre-tax) every year for 40 years, with an ROI of 3%, and inflation at 2%, you need closer to 10mm.

[Anonymous]

Depends on how many kids and their ages. How are you funding college?
But the general rule is 25x your annual expenses, including taxes you’ll have to pay, and healthcare.

I’m targeting retiring at around 50 or later, once I get to $6m

[Anonymous]

Anonymous wrote:$5M invested at 3% per year will give you a $200k distribution for 40 years.

shouldn't the math be $150k per year?

[Anonymous]

The best back of the napkin way to do this (while you should be running actual calculators) is to take how much you need per year and X by the number of years you expect in retirement.

Retiring at 50, I would X by 40, which puts you to 90.

100K/year x 40 = 4mm
200K/year x 40 = 8mm

[Anonymous]

Anonymous wrote:

Anonymous wrote:$5M invested at 3% per year will give you a $200k distribution for 40 years.

shouldn't the math be $150k per year?

No. You continue to invest at 3% with your balance going down. You can calculate this with a financial calculator app.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$5M invested at 3% per year will give you a $200k distribution for 40 years.

shouldn't the math be $150k per year?

Yeah, I'm hoping the PP will come back and explain. I can recreate the pure math of it, but not how it applies to actually living off of 5mm at 200K/year for 40 years.