And that’s the $5M point
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Anonymous
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Early retirement came first and then money. I wanted to brag too. I'd take early retirement over money any day.
Had I known that money would follow, I would have retired at 40 already. Nobody talks about the reverse order of the two. |
Anonymous
| Health insurance is the issue, more so if one spouse was SAHM. |
Anonymous
| One can minimize all expenses to stay within their budget but healthcare and nursing home expenses. |
Anonymous
I love when a crazy comment from an older thread gets repurposed. 😂 |
Anonymous
Agree that healthcare and potential LTC are the biggest wildcards. The two other expenses that could become challenging in retirement are property taxes and home/car insurance. As we've been diligently tracking our expenses over the last 7 years, the biggest increase has been in our assorted insurances. |
Anonymous
You are fortunate that you retired into an amazing market, and didn't hit sequence of return risk. |
Anonymous
There might be others, but municipal bonds are Federal tax free. Generally, if you buy municipal bonds in our own state those are tax free. Then you have tax free income. However, they aren't paying that much currently, regardless of the state. You'd have to put all your money into municipal bonds in order to make that kind of income. Note: while municipal bonds can be tax free, they do affect your IRMAA bracket, which affects how much you pay for Medicare Part B. |
Anonymous
And give up a good government job? |
Anonymous
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OP it all depends on what your income streams) will be, when they kick in a how stable they are and what you spending is like today and what you want it to be in retirement.
If you have health care covered and have stable income streams (pension, rental income, etc.) that cover 70% of your spend goal, then you are OK. If not build a larger nest egg, properly invested that should grow to about $20M by 61 or 62. |
Anonymous
What does that look like? Are you relying on the cash to produce income without drawing down the funds or are you relying on pensions and social security if you are old enough to collect those? |
Anonymous
Well the two things you mentioned are things most people don’t have so |
Anonymous
So that's $2.5M per person. Not enough to retire early. |
Anonymous
If you don’t put it in a dividend fund like schd ir something, a cash management account at fidelity that automatically splits it into fdic insured blocks and earns 3-4% per year is what you would do. Fidelity only pays interest once a month though on the 1st of the month so that’s an adjustment. It’s not tax free but interest income is taxed at something like 15%. Don’t take my tax advice, do your own due diligence. |
Anonymous
Beware of high inflation with this approach |
Anonymous
| OP, congratulations to save and invest so much money. Great job. |