Reply to I said we can’t retire yet. Am I wrong?

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[quote=Anonymous][quote=Anonymous]How on earth do you spend $18k a month?  I’d think with that kind of spending you absolutely can’t retire with $5 million saved.  I could but my spending is probably 1/3 of yours.  So you need to keep working.[/quote]
+1 this is what I'm thinking.

Our expenses are about $12K, and that includes some travel and contributing $1100/month to kid's 529.    Our mortgage is $150K, PITI is about $2500, but the mortgage part is $1400, and the interest is 2.75%. So, we won't be paying it off.

We can retire with $3.8 to 4 mil.  We will stop contributing to 529 when we retire, which is when DC is in college.

We ran the numbers, and we can do it.

But $18K?  Assuming a 4% conservative growth rate, given that you do want to be conservative if you are retired, you would be pulling out more than the investment is growing.  This is not accounting for down markets within the 40 years, either.  I assume you also don't have a pension?

As for the 529 tax deduction... have you been contributing more than $5000 per year?  If you have, and you live in MD, the difference can be carried over to the next year's tas deduction.  We've been over contributing for over 10 years, so we have a lot of tax deductions accumulated which we will be using long after the kids have graduated college.

I think you should talk to a financial advisor.  We did.  They ran the numbers and also said we would be fine.[/quote]

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