Author Topic: How much is enough?  (Read 785 times)

19581925

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How much is enough?
« on: February 24, 2019, 10:19:27 AM »
 Strange but hopeful place:
 61 year old single RN who is really over working in health care (30+ years critical care) Santa Fe NM
 no kids (no need to leave an estate)
 Really fun partner(retired veterinarian he lives separately)
 simple tastes: gardening,walking, swimming, yoga, fly fishing and camping (I already have all my stuff), horse riding (boyfriend is retired Veterinarian keeps,shoes, and feeds our horses)
 no mortgage, no debt of any kind, ZERO (I have worked so hard to be able to say this)
 Low maintenance rental property (paid for) with low tax and insurance bringing in 1475/mo (rents really easy anytime it has ever been vacant)
 Fantastic housemate bringing in 525/mo cash (always easy to find another one -home is walking distance to all cool things in Santa Fe)
 Beautiful family home that I love living in which I own with my brother who lives in Denver (LLC)
 I live here full time (and rent a bedroom to housemate for cash)
 He and his wife use the guest house, when they are here and sometimes they rent it short term
 This property also has an apartment that we rent and we each take 300/mo the rest is banked for tax, insurance and improvements (rents in about half hour anytime it's been vacant)

So my income is 2300.00

 So....my expenses are:
 util 200 (varies by season but max was 200 over three year history)
 food 400 max (often less)
 car 100/gas insurance (I drive very little, old perfect Honda civic)
 internet 50 (can't find cheaper don't have cable or pay TV)
 cell phone 40 (page plus love it)
 Netflix 15
 Misc 200
Total about 1200.00 (I have over three years of records on this being factual)
I realize it's a total crap shoot on what I'll pay for health insurance until medicare (4 years)
My income will be low and I have a friend in a similar situation who buys on the government system for about 250/mo with high deductible????
I understand it is based on income, not assets??
Plan:
Wont take SSI until 67 = 2700.00
Plan:defer taking anything from 300k retirement until I actually need to, it's in moderate conservative mutual funds (never plan to take more than 3%)
I plan to just let that money grow
I have 25,000 cash in interest bearing immediate access savings account (2.45%) for use roof repair, cheap used car if mine dies, medical? I can also take from Roth if needed
I want to stop working and start living
No one believes I can live my beautiful life on less than 1200.00 per month
I acknowledge that I have full four years until I can be on Medicare- so insurance is my biggest FEAR provoking unknown expense
I will keep my RN license and could always do either part time or even return to work full time at any moment (sadly, there is no shortage of sick people)
I could also work part time in a shop or gallery (I get those kind of offers all the time from friends and contacts)
Right now I work everyday single day with patients whose lives are cut short or changed forever and they're young.... and I know life is short
Not one time ever has anybody ever said crap, I wish I'd worked longer, had more money....
I am fearful but really think I'm going to do this I know I won't be "retiring early" at 61 but I think I am done with work as I have known it
I have friends my age who have two mortgages, credit card debt, and new cars payments every two years!!
55-60 year old nurses with huge student loan debt from being forced to go back to school to keep their job to get 1-2 dollar raise
Adult children that they subsidize every month.....
Really enjoy hearing that some people have decided this societal expectation of more,more,more is crazy gives me hope and courage



Tuskalusa

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Re: How much is enough?
« Reply #1 on: February 24, 2019, 10:39:39 AM »
From an income standpoint, it definitely looks like you have enough income to support yourself without a traditional job. Yay!

That being said, you need some kind of emergency savings. What does your savings look like?  You mention some cash and a Roth?

bacchi

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Re: How much is enough?
« Reply #2 on: February 24, 2019, 11:03:37 AM »
You should've retired years ago.

I'm curious, though. You're working full-time, right? Where is all of the work money going since you only have $300k saved? The real question is: are you sure your expenses are correct? Or did you decide to get serious about saving somewhat recently?

FIRE 20/20

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Re: How much is enough?
« Reply #3 on: February 24, 2019, 11:18:03 AM »
You should've retired years ago.


Agreed, if your numbers are accurate.  It appears that, very roughly, if you quit today you would have monthly expenses of $1,200 plus $250 for premiums plus (absolute worst case) $600/month to cover a $7k/year deductible.  I suspect the deductible guess is too high so you should adjust this with a more reasonable number.  That means your worst case spending should be around $2k/month.  With a claimed steady income of $2,300 a month, you should never need to tap your $300k savings.  Ever.  On top of that, you will have $2,700 (that's $700 more than your spending) coming to you in just 6 years. 
It should be trivially easy to figure out your health care costs, at least for this year.  Go to your state's health care website and get a quote, or you might be able to get an appointment with a health care navigator.  You're correct that your health care costs could go up significantly at any time, but given how much of a buffer you appear to have it looks like you've already worked too long.  If your numbers are correct, you should be very safe giving notice tomorrow. 

There are a lot of things to consider before actually pulling the plug - make sure your income and expenses are correct, make sure your partner is on board, verify and double-verify all ACA costs, consider unexpected expenses, etc., but if it all checks out as you've outlined it you should be good to go.