Anonymous wrote:I know we're been very fortunate. But until recently, the prospect of limited future wages had not suggested itself. Although we haven't lived beyond our means, we haven't exactly had to budget expenses, either. We could discuss this with our accountant, but it hasn't been a conversation I've wanted to have since he/she also works with many current colleagues from work.

Sounds like we're in a situation similar to you. We just had a fee-only certified financial planner look through every single facet of our financial lives, complete with retirement scenarios. Best $2500 we ever spent. I'd highly recommend you do the same. I just looked on the Internet for a CFP who didn't want to take over and manage all our $$ and who had a conveniently-located office.

In another 10-15 years, depending on when you elect to start receiving benefits, you can add Social Security to your income mix as well.

Anonymous wrote: If OP made a paltry 3% a year on 7.3 million, you'd be pulling in almost $220,000/year without touching a lick of principal. Assuming no mortgage payment, that's more than enough to live a "very nice, comfortable lifestyle." Not enough to spend without caring, but that's somethign totally different.

Don't forget, $1M home equity and college savings are included in that lump sum. Unless they downsize they can't tap the equity, and college could be another $1M if, for example, they have four kids headed for the Ivy League. So could be more like 3% on $5.3-6.3M. Which is still a very respectable $159K/year on the lower end without touching the principle.

If it were me I wouldn't worry in the slightest. I won't have near that amount when I retire, and I expect to be very comfortable. But my expenses are low.

It would be far more than adequate for me, but I don't have enough information on your situation to say the same for you. Savings are only half of the equation. What are your fixed expenses? Do you want to sustain the same lifestyle in retirement? How many children headed to college and when, and what type of institution do you expect them to attend? Do you still have a mortgage or any other debt? Etc, etc.

Anonymous wrote:Maine, if you like snow. But I don't think 7.3M is enough to retire on, sadly. What lifestyle would you like to have, OP? You can't spend all your capital because you don't know how long you will live, and $7.3M is not going to throw off enough income to pay for a very nice, comfortable lifestyle.

If OP made a paltry 3% a year on 7.3 million, you'd be pulling in almost $220,000/year without touching a lick of principal. Assuming no mortgage payment, that's more than enough to live a "very nice, comfortable lifestyle." Not enough to spend without caring, but that's somethign totally different.

Anonymous wrote:If I had that kind of money I would have retired at age 22.

We each had negative net worths at that age, so that wasn't an option!

If I had that kind of money I would have retired at age 22.

I know we're been very fortunate. But until recently, the prospect of limited future wages had not suggested itself. Although we haven't lived beyond our means, we haven't exactly had to budget expenses, either. We could discuss this with our accountant, but it hasn't been a conversation I've wanted to have since he/she also works with many current colleagues from work.

Are you kidding? You're RICH.

$7,300,000 / 35 = $208,000 per year. I think you'll be fine.

4 percent is traditionally considered the safe withdrawal rate, though some argue 3 percent is safer in the current low interest environment.
Can you live on 210k/year?

Maine, if you like snow. But I don't think 7.3M is enough to retire on, sadly. What lifestyle would you like to have, OP? You can't spend all your capital because you don't know how long you will live, and $7.3M is not going to throw off enough income to pay for a very nice, comfortable lifestyle.

Of course this is enough, unless it standard of living is quite high.

Quite impossible, I am afraid.

Assume a net worth of about $7.3 million, $1.0 of which is home equity. Included in the net worth are savings to pay college tuitions.

How easy would it be for a couple in good health to retire on that amount at age 55? If not enough in this area, what would be a good lower-cost area to try and live off these funds?