Retire option

Sep 3, 2021 27 Comments

15 yoe - TC 230k at 100% of target rewards.

Household TC 450k

Net worth (pre tax) - $3.5m including 401k etc. A big thank to market rally in the last 5 year. Tripled new worth.

I don’t own real estate and will move to a place where I can buy a small house for 500k

No debt.

Rent is 2200$.
Other Monthly expense - 6000$ including travel.

So total ~8k. Yearly 100k. (Not including medical)

Age 40, spouse 38. 2 kids elementary school age.

Where do we stand. Are we both ready to retire? Or what should be a good number.

I think I can survive for 30-40 years on my saving, unless market tanks.


Edit : need to save more for kids education and medical expense. So maybe 3 years more. But I can be out of the rat race and just balance and enjoy the work and life.

Thank you all for great feedback

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TOP 27 Comments
  • eBay
    ranger52

    Go to company page eBay

    ranger52
    If all your assets are in stock market then you have imbalanced portfolio. Buy some real estate which can give you rents and go to a place which is cheaper in expenses.
    Sep 3, 2021 3
  • OP- Golden rule of retirement- 4 percent expenses/year of your net worth and ur solid.
    In your case, looks like you need $100k a year which is decent. Save another $500k over next 3 years just to feel better and call it a day out of rat race.

    PS: My current net worth is $5M and calling it a day next year to pursue passions. Age-39.
    Sep 3, 2021 0
  • Societe Generale / Product
    HbLr55

    Go to company page Societe Generale Product

    HbLr55
    First of all congratulations on being in this great position at such a young age. Based on 3% (being conservative = $105k per year) or 4% rule and your expenses it seems that you would be okay. But two unknowns tell me that you are not ready yet to pull the trigger.

    1. You are over 20 years or so away to avail medicare. So you have a big unknown with your future medical expenses.
    2. Secondly, you have two elementary school kids and you have not really accounted for all the educational expenses, college etc.

    So give those two factors I would say you are probably another 3-5 years from calling it a day if the market remains the way it is. If I was in your position I would slow down in next 3-5 years and continue to work to get by and manage day to day expenses without touching the savings. My 2 cents!
    Sep 3, 2021 1
  • 100k expenses, using 3.5% swr, amount needed is $3mm.
    20k per year health insurance till 65, so roughly 500k.
    College education for two kids is 200k for in state or 500k out of state.
    So total is $3.7mm to $4mm. One or two years more you should reach the goals.

    If you buy house for 500k then expenses will be 6k or 72k per year. Using 3.5% swr amount needed is 2.2mm. And adding health insurance and college fund it will be 2.2mm + 500k house + 500k health insurance + 200k college = 3.4mm to 3.7mm. So with this option you are already there. But not sure how much will be property taxes and house maintenance expenses.
    Sep 3, 2021 0
  • What is your worth?
    Have you used fidelity retirement tools to determine how long your investments will last by keeping $x annual expenses?
    Sep 3, 2021 2