Reply to Would you retire with a NW of $10m?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I would absolutely retire with a NW of $10m. I can live comfortably at a $300k annual income, which is a conservative withdrawal rate. [/quote]

Similar situation with similar aged kids. I wouldn’t. Heath insurance is an issue. [/quote]

With $10MM NW, you really don't think a family can just buy health insurance? Why not?[/quote]It adds significantly to the annual budget. [/quote]

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.  [/quote]

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
[/quote]

Assuming they have to draw 200K from the 7M principle, they would run out after 35 years. They are in their early 50s, so they would already be 90 or very close by then. 
And if they can only generate 200K income from the 7M (btw, that's less than 3%), they would be considered the worst investors in the world with a 7M portfolio).[/quote]

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