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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The real hidden cost of retiring early is losing 401k catchup contributions.

this year I did the $23,500 and the new $11,250 catch up for 60-63. So a total of $34,750. And that is before match. For instance Fannie Mae pays a 8 percent match and they match on bonus too.

Someon making lets say $225K with a 75K bonus will get a $24,000 match.

So that would be $58,750 in 401k in one year.

60-63 alone doing max can massively increase 401k

Now imagine you work till 67 vs retiring early at 59.5 when you can first take your 401k penalty free and and did max each year with catch up at a place with a 8 percent match. Given the new 60-63 super catch ups it would grow a ton those last 7.5 years and you will be compounding your current funds too. Most likely it may double or even triple in size those last 7.5 years.

My BIL early retired at 62 in 2020. He had been pulling from his 401k the last 5 years and missed most of bull market Fall 2022 to today. By time he hits RMDs at 73 he will have used up a ton of his 401k already.    [/quote]

Why would I work until 67 if I have $7M now at 49.  I am retiring now. LOL.  [/quote]

Because you are stealing from your children and grandchildren. And to be honest 10 million is minimun at that age. College alone will be $500,000 a kid for you and medical insurance soon to be $50,000 a year based on past increases.

And property taxes will be $50,000 on a average house and new cars will be 100K. and these projections arse just in next 10-15 years.

My Mother in law who bought her house in 1964 today her property tax equal her purchase price. Someone buyng a house in Bethesda in 2024 for two million by 2084 will be paying two million a year property tax. Sounds scary. But it took my MILs house just 60 years to go to an annual property tax bill equal to her purchase price.      [/quote]

College is paid for.  We only have one kid  so that we would have more financial freedom.  With $7M we have plenty to pay for health insurance and property taxes.  Plenty!  But by all means go ahead and widdle away for 10+ more years in you 9-5.  I will be living my life fully.[/quote]

Anyone telling to you keep working has mental health issues with severe anxiety.  Ignore.  If you cannot retire with SEVEN f-ing millions, then 90% of US population cannot retire at all. Ever.   You are at the point where money makes money for you and you do not need to work for income and you won't even touch your principal to have a nice life.  congrats and ignore all this BS how you owe your kids sizeable trust funds, houses, private college grad schools, private schools for grandkids, etc.  There is no such requirement.  [/quote]

Well the issue is that if you have $7 F'ing million at age 52, you likely are living a lifestyle that cannot continue to be supported by retiring at 52 and living until 85+.  So yes, you "could" retire, many of us want to travel (and not budget travel), live in a nice house/condo, and continue living a similar lifestyle to while we were working (maybe downsize but still nice home).  And that in our VHCOLA is not very feasible on $7M, if I have to pay for 13+ years of healthcare and live the way I want.  Healthcare for us at 55 is $3.2K/month with a $7K/$14K deductible right now (and that's ONLY medical).  So I'd estimate we will spend $4.5K/month on medical/dental/vision easily, more if either of us has an issue (spouse needed a few MRIs last year due to a new issue---well you have to pay the deductible first, and ongoing PT)

So most of us would rather work a bit longer to have the life we want, especially if you enjoy your job.

[/quote]

This may be difficult for some to believe, but one way to get to $7M by 50ish is to NOT spend lots of money aged 20-50, and instead save and invest your earnings.  Folks who live like this do not have an inflated standard of living, and retire more than comfortably at 50 or so.  The key is to value your time and life more than endless possessions and to appreciate that bigger is not usually better.

- retired and living in peace and happiness[/quote]

We lived like that up until about 45. Then college was fully funded, we had a company sale, and we finally started "spending more".  So we had $10M+ at that age.  But we still retired at 56 and are set.  Spouse loved their job, so didn't want to retire until 56/57 (always had been the goal) (and sticking around for another 10 years did mean adding significantly to our bottom line (now approaching UHNW).

But point remains that many with that much are not saving as much (I know I see it with friends/co-workers).  [/quote]

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