Is there a safe way to recieve a yield - say 5% x 500k = 25k annually? I have looked at Intl banks and some say they have yields like this but trust can be an issue. Where can a person get a safe yield so they can live on the interest as the principle is safe?
Is there a country out there that has safe financial offerings - no debt - some kind of bond or something. Safety is the key - our financial institutions keep ripping us off. Compounding interest - not.
Nothing risk free in that range, but you don't need 5%. Look at JPO's summary. You burn through the $600k until you meet SSI (62-67), Pension (?), and 401k eligibility (59.5) - and event then there should be room. Look at is you are pulling out 4% of total investments it just happens to be that you are pulling from non-retirement accounts. Also, keep in mind that the pension is like having another $210k in retirement accounts (future dollars).
Assuming 5% investment return, $40k expenses (assume pay off house but will need health insurance) at 3% inflation
- $500k will deplete after 11 years.
- $600k will deplete after 13 years.
So you can sustain your current lifestyle for 13 years on non-retirement funds and a modest return, and then still have $400k, SSI, and pension thereafter and you still have a boatload of home equity.
It may require some focus but it looks like it is doable.