Retire at 48 with what I have now???

[Holyoak]

Hello, and glad to be here!

I am a 47 y/o man, recently unemployed, divorced about a year ago from a 23 year marriage because of my wife's adultery, and am feeling the draw of what this site is all about.  I have no debt other than monthly rent/modest utilities/car and health insurance, etc.  Expenses are about $15,000-$18,000 a year total.  I am physically fit, exercise daily, eat well, repair and maintain everything myself, and live a frugal but good lifestyle.  Money or no money, materialism never meant a darn thing to me, and that remains constant.

One big goal is to not keep paying rent, and own a modest home on a few acres perhaps in NE Ohio NW PA, or maybe the Finger Lakes region of NY.  I have lived in many places, lived overseas as a military officer, and would consider just about anywhere now that I can.  However I live, in whatever dwelling, I want to keep the cost under $100,000 and pay in cash.

As for what I have with regard to investments and cash to pursue this potential retire at 48 gig, here goes:

$600,000 in a  Vanguard taxable portfolio, mostly index funds that track large US indices, some US and foreign bond index funds.  All dividends are reinvested.

$170,000 stock portfolio

$250,000  In various IRA mutual funds with Vanguard and Janus 

$325,000 in cash earning .5%, and ready to either buy a home or get it working again by being invested...  Maybe keep $25,000 in a bank as an emergency fund.

By my math, that's $1,345,000

With what I have written, how does it look to be able to never work at a regular job again, maybe do some PT work to stay busy.  I know the calculators say it can happen, but I would love to hear from real people, not calculators as to real world viability.

I currently do volunteer work that is very rewarding, but I have to admit never commuting again, getting stuck with crappy hours/weekends, office politics, and general nastiness sounds VERY appealing!  So, for those of you who were are in a similar circumstance, hell bent on retirement around my age and with similar, or less amounts of resources, how did you do it, what was the catalyst to hit the go button? 

Thank you very much for the help; I eagerly await your wise replies...  And hope this is the right place to post this...

[seattlecyclone]

Even if you spent $145k on your house, that would leave you with $1.2 million invested. According to the 4% rule that amount of money should be able to support expenses of $48k/year indefinitely. Even if you go with a more conservative 3% SWR, you can spend $36k/year. That's roughly double what you say you spend now. Congrats! You're retired!

[MandyM]

+1 to seattlecyclone. Congrats to Holyoak! We look forward to your tales of a fantastic retirement life.

(side note - I anticipate retirement expenses close to yours and plan to retire (in ~20 months) on about half of what you have)

[Eric]

Why wait until 48?  Or maybe tomorrow is your birthday?

Even if you spent $145k on your house, that would leave you with $1.2 million invested. According to the 4% rule that amount of money should be able to support expenses of $48k/year indefinitely. Even if you go with a more conservative 3% SWR, you can spend $36k/year. That's roughly double what you say you spend now. Congrats! You're retired!

Yep!

[Cheddar Stacker]

Hello, and welcome here!

Yes, retire. You're safe. More than safe really.

Taxes - read this. I think you'll fit right into this game plan.
Divorce - Sorry/congratulations! Whichever fits better.

Questions:
- No alimony I guess-it looks like you came out ok financially?
- No military pension?

[FrugalZony]

Congratulations!! You definitely are there and then some!

If you deduct your 25K Efund and your 100k house found, your portfolio is still at 1220k
With 18k in expenses, your withdrawal rate is 1.48%!!
It doesn't get any safer than that, as long as your funds are invested right.

You may want to clean up a bit and simplify and choose a good allocation to ride out dips, once you don't have any more work income flowing in.
http://jlcollinsnh.com/2012/05/12/stocks-part-vi-portfolio-ideas-to-build-and-keep-your-wealth/

Good luck and keep us posted!!

[gimp]

You can definitely live a very appealing life - get a little place in a little town somewhere in the mountains or on a lake or whatever; bike places, grow some food, fix things, do odd jobs when you feel like it, help people out (with time and sweat only!). You're ready to be your own boss, and a decently easy-going one at that.

[Holyoak]

Wow, thank you so much everyone!  It is so weird to think it really possible, it is surreal, overwhelming really, and EXCITING to think it really could happen!  Retired at 48 just seems "wrong", but feels so right!

No, I did not receive/give any alimony, and I have no military pension as I was in for only 8 years.  Oh yeah, my birthday is in about three weeks; maybe the best gift I could ever get is freedom to live as I see fit till the day I die!

I wanted to ask about Social Security, which I did not calculate in the mix.  I intend on drawing at 62, and invest it...  I know some might say wait...  Thoughts on this for my situation?  Again, thank you!

[Jags4186]

Wow, thank you so much everyone!  It is so weird to think it really possible, it is surreal, overwhelming really, and EXCITING to think it really could happen!  Retired at 48 just seems "wrong", but feels so right!

No, I did not receive/give any alimony, and I have no military pension as I was in for only 8 years.  Oh yeah, my birthday is in about three weeks; maybe the best gift I could ever get is freedom to live as I see fit till the day I die!

I wanted to ask about Social Security, which I did not calculate in the mix.  I intend on drawing at 62, and invest it...  I know some might say wait...  Thoughts on this for my situation?  Again, thank you!

How long lived were your parents/close relatives?  SS is actuarial and I believe you get the same total payout up until about age 82. If you live any longer then waiting until 70 is the way to go.  I would say reevaluate your finances/health at age 62. If you are healthy and are in great financial shape I would not take it. If you get sick you might want to take it to defray healthcare costs.

[FrugalZony]

It does not look like you will need it that early, so you'll probably benefit from taking it later.
Cfiresim let's you play with your numbers with and without SS
http://www.cfiresim.com/input.php
It's a fun tool!

With only 18k in expenses, I bet it gives you 100% success with or without SS!

I am a bit jealous ;)
I recently found out, I was much closer than I thought (thanks to MMM and Jim Collins) and that was super exciting!!!
But being in a situation like you must be even MORE exciting!! How fun!

[matchewed]

Wow, thank you so much everyone!  It is so weird to think it really possible, it is surreal, overwhelming really, and EXCITING to think it really could happen!  Retired at 48 just seems "wrong", but feels so right!

No, I did not receive/give any alimony, and I have no military pension as I was in for only 8 years.  Oh yeah, my birthday is in about three weeks; maybe the best gift I could ever get is freedom to live as I see fit till the day I die!

I wanted to ask about Social Security, which I did not calculate in the mix.  I intend on drawing at 62, and invest it...  I know some might say wait...  Thoughts on this for my situation?  Again, thank you!

Re: Social Security. Try looking at this thread.