Would you retire with a NW of $10m?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Do you have mortgage?

Do you have fully funded 529s?

OP here.

800k left on the mortgage, but I think I will be paying it down. Obviously, this does not affect NW.
Kids should have enough for instate (NW does not include their 529s)

None of this makes sense. Pay off your mortgage and save for college and grad school.

What is the interest rate on your mortgage? It may not make sense to pay it off early if the rate is low.

This is backwards. it is much better to keep a mortgage if the rate is low.

[Anonymous]

Anonymous wrote:OP, my answer to your question would depend on the following factors:

1. Whether I like my current job
2. Whether the current job is demanding and takes me away from my family too much
3. Whether anyone in my family has health or other issues that could benefit from having more of my time and attention
4. Whether college funds are fully funded or not
5. Whether house is paid off
6. Whether we have any other major expenditures coming in the future that have not been saved for

OP here:
1. Whether I like my current job. I feel burned out. Otherwise, I probably would not be crunching retirement numbers.
2. Whether the current job is demanding and takes me away from my family too much Yes. It's a very demanding job.
3. Whether anyone in my family has health or other issues that could benefit from having more of my time and attention My parents are not the youngest, so yes.
4. Whether college funds are fully funded or not We should have enough for in-state tuition. The youngest has $200k in their 529. The older ones have more.
5. Whether house is paid off About 800k mortgage @2.75%
6. Whether we have any other major expenditures coming in the future that have not been saved for I guess, nobody really knows

[Anonymous]

How is this even a question?

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, my answer to your question would depend on the following factors:

1. Whether I like my current job
2. Whether the current job is demanding and takes me away from my family too much
3. Whether anyone in my family has health or other issues that could benefit from having more of my time and attention
4. Whether college funds are fully funded or not
5. Whether house is paid off
6. Whether we have any other major expenditures coming in the future that have not been saved for

OP here:
1. Whether I like my current job. I feel burned out. Otherwise, I probably would not be crunching retirement numbers.
2. Whether the current job is demanding and takes me away from my family too much Yes. It's a very demanding job.
3. Whether anyone in my family has health or other issues that could benefit from having more of my time and attention My parents are not the youngest, so yes.
4. Whether college funds are fully funded or not We should have enough for in-state tuition. The youngest has $200k in their 529. The older ones have more.
5. Whether house is paid off About 800k mortgage @2.75%
6. Whether we have any other major expenditures coming in the future that have not been saved for I guess, nobody really knows

Retire, OP. If this isn’t enough, nothing will be.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Do you have mortgage?

Do you have fully funded 529s?

OP here.

800k left on the mortgage, but I think I will be paying it down. Obviously, this does not affect NW.
Kids should have enough for instate (NW does not include their 529s)

None of this makes sense. Pay off your mortgage and save for college and grad school.

What is the interest rate on your mortgage? It may not make sense to pay it off early if the rate is low.

This is backwards. it is much better to keep a mortgage if the rate is low.

It says exactly what you said...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

And wasted eight years of your life working when you didn’t have to.

I’m 62 and still working even though we have $14m NW. I like working, and don’t consider it a waste. I’m at the peak of my career (took longer as a working woman to get here) and make over $1m/year. I will work for 2-3 more years before dialing it way back but may continue to dabble in work until 70. Some people do great with early retirement but I’ve also seen some who flounder and age more quickly mentally post retirement.

I hope for your sake that you live long past 70 and have mental and physical health to allow you to enjoy your life when you are relieved of the burden of working. I think you may realize it is an amazing gift to be able to do that.

But who says I am not enjoying life now? I don't equate working with not enjoying life. I enjoy my work. I spend the summer at my beach house (working remotely, but still enjoying it), travel internationally and domestically, see my adult kids regularly.

[Anonymous]

Anonymous wrote:I know that $10m in retirement accounts seems to be the magic number for many on this board, but would you retire in your eary-50s with $10m NW and a gov pension (that comes with health insurance).
3 kids (11,12,16), no inheritance, no family support with college tuition, etc.

Um. 100%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Do you have mortgage?

Do you have fully funded 529s?

OP here.

800k left on the mortgage, but I think I will be paying it down. Obviously, this does not affect NW.
Kids should have enough for instate (NW does not include their 529s)

None of this makes sense. Pay off your mortgage and save for college and grad school.

What is the interest rate on your mortgage? It may not make sense to pay it off early if the rate is low.

This is backwards. it is much better to keep a mortgage if the rate is low.

It says exactly what you said...

Haha. You are right! Sorry.

[Anonymous]

Not with kids those ages. Money will go quickly.

[Anonymous]

No, not with your kids' ages and your obligations.

We retired with a net worth of almost 10 million, but including $1 million of home equity, when we were 58 and 56, no mortgage, kids out of school. $83K annual pension, with a COLA, and subsidized lifetime healthcare.

[Anonymous]

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.

And wasted eight years of your life working when you didn’t have to.

No they kept themselves happy and ensured they could support their kids should an emergency happen

Until kids are at least in college (and you have funds to pay for all 4 years of college) it’s hard to retire because of what ifs

[Anonymous]

Yes, but YMMV. Would you be comfortable with 2.8% withdrawal rate, to supplement the pension? There’s your answer.

[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.

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

I doubt OP was including a boat or car or even equity in a home in her $10m net worth. People who are sophisticated about these things don’t do that.

It really depends. Do they have multiple homes? Do they plan to sell one or kore and downsize at some age?

If so, selling. A 3m home when you are 70+ will provide more income than if you keep it and have to maintain it

[Anonymous]

Depends on your earning capacity most importantly but also age and how easy your job is. I’d rather have 20M than 10M but if I will never make more than 200k/year then my free time left on this planet is more valuable than achieving 20M which wouldn’t happen for probably a decade even with good stock market returns.

I’m clearing 7 figures a year I might grind it out for a few more if the job is bearable and I still have a long life expectancy.

I have a NW of 1M and would quit tomorrow if I didn’t expect to live another 5 years.

[Anonymous]

Absolutely yes.