Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in similar situation as OP.

Net Worth almost 10 million, mid 50s.

Military retirement, VA disability, dividends from taxable accounts last year were $95,000.

But we have zero debt and sons done with college.

So, for us, we are retiring early and enjoying life while we are young and healthy. We will never spend all of our assets. Will pass to our children and alma mater.

Wow, our military retirement is $15K a year. The difference with you is you get tricare.

I was unclear.

Yearly military retirement $84000
Yearly VA Disability $25000
Yearly taxable dividends $95000

This is what we are living on until we turn 59.5, then can tap into our retirement accounts.

The key for us is no debt.

Highest categories of expenses in retirement are insurances and taxes.

Wow, that’s crazy. So unfair the differences in retirement pay.

Anonymous wrote:

Anonymous wrote:Do you have mortgage?

Do you have fully funded 529s?

OP here.

800k left on the mortgage, but I think I will be paying it down. Obviously, this does not affect NW.
Kids should have enough for instate (NW does not include their 529s)

None of this makes sense. Pay off your mortgage and save for college and grad school.

Anonymous wrote:NP here with 3 kids. I just wonder what kind of message it sends your kids that you will only fund in state tuition. I also have three kids and plan to retire in 9 years (only 44). We only have half your net worth, but are really torn with saving only $500k plus GI bill for college. We are considering saving for grad school as well because we’d rather give our kids the leg up as young adults then a large inheritance when they are in their 60s.

I'm with you. I might work an extra year or two to have more available to my kids for college/grad school.

The OP still hasn't stated how much pension is, relative to prior income. That makes a huge difference. Are they collecting 50% of their income or 90%? And what are their monthly expenses for the next 5-7 years with the kids living at home?

If you can live off your pension for currently monthly expenses and not need to draw down on the 10M NW, then sure. But you still have 800K mortgage, I'd be working a few more years to pay that down unless your pension is 75-80% of your current salary

Anonymous wrote:

Anonymous wrote:I’m in similar situation as OP.

Net Worth almost 10 million, mid 50s.

Military retirement, VA disability, dividends from taxable accounts last year were $95,000.

But we have zero debt and sons done with college.

So, for us, we are retiring early and enjoying life while we are young and healthy. We will never spend all of our assets. Will pass to our children and alma mater.

Wow, our military retirement is $15K a year. The difference with you is you get tricare.

I was unclear.

Yearly military retirement $84000
Yearly VA Disability $25000
Yearly taxable dividends $95000

This is what we are living on until we turn 59.5, then can tap into our retirement accounts.

The key for us is no debt.

Highest categories of expenses in retirement are insurances and taxes.

Anonymous wrote:I know that $10m in retirement accounts seems to be the magic number for many on this board, but would you retire in your eary-50s with $10m NW and a gov pension (that comes with health insurance).
3 kids (11,12,16), no inheritance, no family support with college tuition, etc.

FIrst, does your pension start now, how much per month relative to your total income previously?


I personally would not retire at that age with 3 kids to put thru college and still providing for. You have 11 years before the youngest is out of college and working full time, at the earliest. However, if your health insurance and pension cover current daily expenses, including all the activities the kids are used to, then you might be able to consider it.

Is college fully saved for and a part of that 10M? Because you could easily end up spending $500K to put the 3 thru college even at state schools. If you want them to attend "wherever they want" then you could be looking at $500K for the last kid alone in 7 years, so $1M to put all 3 thru college

Anonymous wrote:I’m in similar situation as OP.

Net Worth almost 10 million, mid 50s.

Military retirement, VA disability, dividends from taxable accounts last year were $95,000.

But we have zero debt and sons done with college.

So, for us, we are retiring early and enjoying life while we are young and healthy. We will never spend all of our assets. Will pass to our children and alma mater.

Wow, our military retirement is $15K a year. The difference with you is you get tricare.

NP here with 3 kids. I just wonder what kind of message it sends your kids that you will only fund in state tuition. I also have three kids and plan to retire in 9 years (only 44). We only have half your net worth, but are really torn with saving only $500k plus GI bill for college. We are considering saving for grad school as well because we’d rather give our kids the leg up as young adults then a large inheritance when they are in their 60s.

It totally depends on how much you hate your job and what you want to do with your time, but I would think of it more as picking the job you want. That could be a new career or an unpaid project, like building a farm or writing a novel or making art or whatever your dreams entail. “Retiring” in this context is not necessarily dropping out of vocation it just means you get to pick.

Anonymous wrote:I would absolutely retire with a NW of $10m. I can live comfortably at a $300k annual income, which is a conservative withdrawal rate.

That's not a NW amount for that return. It's investments, not including house/cars/etc.

Anonymous wrote:I retired long ago, but not even because of money, but because work place was so toxic. It must be nice to have a job one wants to keep.

OP here. And yes, this is my situation as well. Obviously, we won't be able to maintain our current lifestyle. But I figured, life is short...

Anonymous wrote:Do you have mortgage?

Do you have fully funded 529s?

OP here.

800k left on the mortgage, but I think I will be paying it down. Obviously, this does not affect NW.
Kids should have enough for instate (NW does not include their 529s)

It's a math problem. What are your current annual expenses, and projected annual expenses in retirement? Do your liquid investments exceed 25X your projected annual expenses (taking into account your pension)? Are your 529 savings on track or accounted for in your annual future spending If so, congrats you can retire!

Also, how much of a one-way door is retirement for you based on your skillset? I know lots of people who have both "retired", had one person in the couple retire, or taken sabbatical years, and then decided they actually wanted something else and went back to some type of paid role (usually consulting or board work) and it was fine. It gets harder as you get older though.

I retired long ago, but not even because of money, but because work place was so toxic. It must be nice to have a job one wants to keep.

Yes. Because with this NW the only thing you have to fear is death.

The other possibility is some sort of global event, Great Depression, coup that devastates the economy and your money is worthless. In this situation you have bigger problems than the loss of your money.

I’d absolutely quit.

Anonymous wrote:

Anonymous wrote:Why not? Go buy some 30 year treasuries and earn $475k per year with no state tax.

I assume you can live comfortably on that plus pension

OP said net worth. Assuming that includes his primary home. So couldn’t use that to buy treasuries.

Fine…so buy $8MM of treasuries and live off of $380k per year with no state tax plus pension.