Reply to Do you see any flaw in this very early retirement calculation

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[quote=Anonymous][quote=Anonymous]Wife retired at age 38 when our son was born. Son is 4 and I am 44, make a modest $140k and able to save about 24k a year. House, cars paid off. Hoping that current 2 mil becomes 5 mil in 6 yrs at 8% return (aggressive and moderate investments) to enable me to retire at age 50. Not expecting any ss income and have no pensions. Will that be sufficient?

Yes there are health issues, hence a higher amount than I would have otherwise factored, even for early retirement. Will have worked for 25 yrs and some of those were beyond tough with my health issues.  College will be paid from that money as part of it is 529 and a custodial account. [/quote]

There are several questions in here.  First, will you be able to retire at 50 if you have $5 million, some health problems, and a 10 yo kid?  Probably, yes, although your insurance costs will be significant, and you may have trouble finding coverage for preexisting conditions.  But even if you assume an extra $50,000/year for each year until you hit Medicare, you still have more than $100,000 to spend over 40 years, without factoring in any growth at all. However, includes any amounts you have earmarked for college, which should be excluded from this calculation.

Now, this statement, "current 2 mil becomes 5 mil in 6 yrs at 8% return" is problematic.  You certainly can hope that your $2 million will turn into $5 million in 6 years.  That chances of that happening are vanishingly small, though, and it would require around a 15% appreciation rate, not 8%.

Why are you not expecting any SS?

Finally, your wife didn't retire at 38.  She suit work to become a SAHM.

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