Author Topic: Retiring with $750K?  (Read 29464 times)

oldtoyota

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Retiring with $750K?
« on: November 01, 2016, 04:27:04 PM »
In another post here, someone said that a lot of FIRE-ers retire with about $750K.

I realize that's a generalization yet I'm curious if folks here would be comfortable retiring with $750K.

WITHOUT rental properties
and
WITHOUT a pension.

Would you feel comfortable retiring with just your savings?


Personally, I would not be comfortable with that amount of money.


Cassie

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Re: Retiring with $750K?
« Reply #1 on: November 01, 2016, 04:33:52 PM »
Definitely not. The younger someone is the more foolish this would be in my opinion.

doneby35

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Re: Retiring with $750K?
« Reply #2 on: November 01, 2016, 04:43:12 PM »
I would say that depends on how old you are when you retire with 750K and possibly whether you have mortgage/rent?

mustachianteacher

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Re: Retiring with $750K?
« Reply #3 on: November 01, 2016, 05:37:43 PM »
In an area with a very low cost of living, I can see how that might work, but it doesn't leave much of a buffer for health insurance, catastrophic events, and housing.

I can't live comfortably on $30,000 in this area (HCOL) and I do like a few creature comforts, so I wouldn't retire on that little, but to each his own.
« Last Edit: November 04, 2016, 05:56:23 PM by msjd123 »

Classical_Liberal

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Re: Retiring with $750K?
« Reply #4 on: November 01, 2016, 06:42:09 PM »
I'd do it in an instant. Well, not an instant because it takes some time to get the mindset right.  Financially, I'd be fine on 30K, I know I'd likely end up with some type of paid work again.  Are you in the US?  will you get SS?

mozar

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Re: Retiring with $750K?
« Reply #5 on: November 01, 2016, 06:52:48 PM »
I will be able to retire comfortably on 24k a year including a mortgage in an HCOL area. I can't relate to needing 750k+.

tiger002

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Re: Retiring with $750K?
« Reply #6 on: November 01, 2016, 07:19:33 PM »
I probably good if I had a paid off house. Granted, I'm single and in a LCOL area so my expenses are lower than others. If I had a family it would be harder for sure.

sol

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Re: Retiring with $750K?
« Reply #7 on: November 01, 2016, 07:26:26 PM »
In a heartbeat, if your expenses were low enough.  A single dude who wants to run his sailboat around the world with whatever beautiful women want to accompany him?  Totally.  A child-free paralegal who wants to quit her big law job and volunteer for her local food bank?  Why not?

Remember that retirement isn't a one way street, you're not committing to never working again.  You're just committing to not continuing your current job in the immediate future.  That's a bigger commitment to make, the older you get and the less control you keep over your growing expenses.

If you're a 40 something middle class suburbanite with three cars and an overwhelming sense of guilt about not being able to send you kids to college for free?  Then early retirement probably isn't for you, at any level of assets.  There will always be SOMETHING you could work towards, if you only had a little more money.




Cathy

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Re: Retiring with $750K?
« Reply #8 on: November 01, 2016, 07:27:35 PM »
I previously asserted that "it [is] child's play to retire on US$250,000". It is even easier still to retire on US$750,000.


If I had a family it would be harder for sure.

It's far easier to retire with a family than without one. (It might be harder to retire on a given amount, but it takes considerably less time to save that amount in the first place, so the person with a family still comes out ahead by a large margin.)
« Last Edit: November 01, 2016, 07:30:56 PM by Cathy »

Metric Mouse

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Re: Retiring with $750K?
« Reply #9 on: November 01, 2016, 08:12:58 PM »
Worked for me. It may have been foolish to do so at such a young age, but I feel it would have been more foolish to keep working when I clearly have enough.

slugsworth

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Re: Retiring with $750K?
« Reply #10 on: November 01, 2016, 08:24:13 PM »
My annual expenses, in a high COL area. . . With a mortgage (including PITI), a student loan, a car, and a very healthy drinking at the bar habit. . . Plus an international vacation and a bunch of domestic travel are at it under $30k . . . So yes. Absolutely.
« Last Edit: November 01, 2016, 08:50:12 PM by slugsworth »

Goldielocks

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Re: Retiring with $750K?
« Reply #11 on: November 01, 2016, 08:29:33 PM »
I previously asserted that "it [is] child's play to retire on US$250,000". It is even easier still to retire on US$750,000.


If I had a family it would be harder for sure.

It's far easier to retire with a family than without one. (It might be harder to retire on a given amount, but it takes considerably less time to save that amount in the first place, so the person with a family still comes out ahead by a large margin.)

Cathy,  I am assuming your point is not about a single income family of four....   or is it?

undercover

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Re: Retiring with $750K?
« Reply #12 on: November 01, 2016, 09:18:05 PM »
Like about 99% of all the questions asked here: it depends. It's such an arbitrary question.

A couple living off $30k/yr? Easy. Especially if you're willing to be mobile and relocate to a low-medium cost of living area. Of course, the waters get a little murkier if you start adding expensive travel and hobbies into the mix.

I mean if your risk tolerance is so low that you're unwilling to commit to the idea of living off of 4% indefinitely, that's one thing; but either way, $750k is more than enough to pull the tricker for two people. I think most single people here could easily do it on much less, more like $400-500k.

And, look, I don't see any point in calling it "retirement". You'll be "working" in your retirement anyway, it will just be work that you enjoy. You can always go back to "actual" work for money.

JLee

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Re: Retiring with $750K?
« Reply #13 on: November 01, 2016, 10:16:22 PM »
I previously asserted that "it [is] child's play to retire on US$250,000". It is even easier still to retire on US$750,000.


If I had a family it would be harder for sure.

It's far easier to retire with a family than without one. (It might be harder to retire on a given amount, but it takes considerably less time to save that amount in the first place, so the person with a family still comes out ahead by a large margin.)

"Child's play" is an apt description, considering the described lifestyle includes living on Kraft macaroni and cheese.

totoro

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Re: Retiring with $750K?
« Reply #14 on: November 02, 2016, 01:17:26 AM »
I wouldn't be comfortable.  I'd worry too much - but I'm inclined that way. 

happy

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Re: Retiring with $750K?
« Reply #15 on: November 02, 2016, 04:44:25 AM »
Depends how I calculate that with currency exchange and different COL between US and Australia. The currency exchange rate does fluctuate quite a bit between USD and AUD independently of COL, so its hard to be precise.

That being said, I worked out core basic day to day living expenses for myself not working would be $AUD25k ( with a better diet that Kraft mac cheese). This doesn't account for large extra expenses like extra home maintenance, car replacement etc. Thus $AUD30k a year would be the bare minimum and a bit close for my liking with regards to unexpected expenses. On the other hand in Australia worse case scenario there is the Old Age Pension and nearly free healthcare.

A while back we Aussies had a bit of discussion on relative COL between US and Down Under and pulled some stats and worked out its about 1.5-1.6 x more expensive basic  in Australia compared with US - i.e. for MMMs US25k a year US, for Australians its more like AUD40k. So if we converted US750k into Aussie dollars in terms of somewhere in the regional of AUD 1-1.1m,  I would be comfortable to retire with this with a paid off house, no pension.

boarder42

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Re: Retiring with $750K?
« Reply #16 on: November 02, 2016, 05:52:44 AM »
this is all circumstantial based on spending ... it doesnt matter what your savings is if it covers your spending at a 4% SWR.  a better question would be how many people are actually comfortable retiring on a bare bones 4% SWR around here.   

i also dont think MOST FIREers FIRE on a simple 750k.  we're shooting for 750k each however.  plus the mortgage balance.

StreetCat

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Re: Retiring with $750K?
« Reply #17 on: November 02, 2016, 06:25:31 AM »
If I retire I may be able to get my general expenses down to 18,000 per year.  But that doesn't include healthcare expenses, and ACA premiums are quite high in my state (around 5,000 just for premiums).  To that, add out of pocket health expenses.

All of that put together doesn't leave much room for any bad events such as long term care, etc.

I wouldn't FIRE with 750k.

l2jperry

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Re: Retiring with $750K?
« Reply #18 on: November 02, 2016, 07:18:45 AM »
Why not? There are PLENTY of people living on less than 30K a year in the United States. Plus if you are living off 30K a year from investments, you are in a low enough tax bracket that you will pay 0% on the qualified dividends, 0% on the capital gains, and obviously no FICA taxes... 30K and paying no income or FICA tax? ... totally doable.

Gin1984

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Re: Retiring with $750K?
« Reply #19 on: November 02, 2016, 07:36:11 AM »
Nope, too risky for my blood.  But I have medical conditions.

oldtoyota

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Re: Retiring with $750K?
« Reply #20 on: November 02, 2016, 07:48:26 AM »
I'd do it in an instant. Well, not an instant because it takes some time to get the mindset right.  Financially, I'd be fine on 30K, I know I'd likely end up with some type of paid work again.  Are you in the US?  will you get SS?

Yes. I am in the US and will get SS.

oldtoyota

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Re: Retiring with $750K?
« Reply #21 on: November 02, 2016, 07:49:19 AM »
I will be able to retire comfortably on 24k a year including a mortgage in an HCOL area. I can't relate to needing 750k+.

That's wonderful you can do it in a HCOL area! I assume you are in the US??

oldtoyota

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Re: Retiring with $750K?
« Reply #22 on: November 02, 2016, 07:51:03 AM »
My annual expenses, in a high COL area. . . With a mortgage (including PITI), a student loan, a car, and a very healthy drinking at the bar habit. . . Plus an international vacation and a bunch of domestic travel are at it under $30k . . . So yes. Absolutely.

Impressive! I would love to see that budget of yours!

oldtoyota

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Re: Retiring with $750K?
« Reply #23 on: November 02, 2016, 07:53:57 AM »
Like about 99% of all the questions asked here: it depends. It's such an arbitrary question.

A couple living off $30k/yr? Easy. Especially if you're willing to be mobile and relocate to a low-medium cost of living area. Of course, the waters get a little murkier if you start adding expensive travel and hobbies into the mix.

I mean if your risk tolerance is so low that you're unwilling to commit to the idea of living off of 4% indefinitely, that's one thing; but either way, $750k is more than enough to pull the tricker for two people. I think most single people here could easily do it on much less, more like $400-500k.

And, look, I don't see any point in calling it "retirement". You'll be "working" in your retirement anyway, it will just be work that you enjoy. You can always go back to "actual" work for money.

Yes. The answers to many questions depend upon circumstances. That's what makes reading the answers so interesting to me. =-)


MishMash

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Re: Retiring with $750K?
« Reply #24 on: November 02, 2016, 07:57:37 AM »
We don't feel comfortable doing it that low but I can see where it is totally doable in some parts of the country, or if you are in a HCOL with a tiny mortgage.  Our 15 year mortgage on our teeny townhome is more then 30k a year.  We are aiming for around 2-3x that plus DH's pension/healthcare.  I think we can get by with a lot less then DH does needless to say.

oldtoyota

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Re: Retiring with $750K?
« Reply #25 on: November 02, 2016, 08:02:27 AM »
this is all circumstantial based on spending ... it doesnt matter what your savings is if it covers your spending at a 4% SWR. a better question would be how many people are actually comfortable retiring on a bare bones 4% SWR around here.   

i also dont think MOST FIREers FIRE on a simple 750k.  we're shooting for 750k each however.  plus the mortgage balance.

Yes. In reference to what I bolded in your statement above, the health issue concerns me most.

limeandpepper

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Re: Retiring with $750K?
« Reply #26 on: November 02, 2016, 08:38:45 AM »
I am in Australia (a HCOL country, but we also have universal healthcare, which helps), don't own any property, no dependents, and have typically spent well under AUD$25k per year and this includes travel. So - with $750k, doesn't matter if it's USD or AUD - I can retire with that, and living on $30k would actually be a luxurious step up. Heck, I'm earning less than $30k/year at the moment, and I'm doing fine.

Enigma

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Re: Retiring with $750K?
« Reply #27 on: November 02, 2016, 08:50:21 AM »
If I am retiring...  I would want to fill that time with lots of activities, vacations, trips, dates, gadgets...  It would stress me out to no end if they only thing I could do was stay home and play a video game all day or watch TV.

30k isn't enough to live on COMFORTABLY in a HCOL area but still doable in my opinion.  For me, I live in the HCOL Washington DC area.  Small studio apt that was 1.35k/month last year (raised to 1.47k).  This includes all the fees that are charged on top of the rent base (parking, utilities, billing fee, trash, renter's insurance).    10 years ago this property was around $800 per month.  I am living albeit not comfortably...  Even expecting my rent to go up in about 4-5 more months.  So yeah it maybe doable but what kind of life would you have for the next 20 years?  increasing prices, inflation, hidden costs, etc.  If/when minimum wages go up I would expect the rental prices/mortgage expenses to go up as well.

boarder42

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Re: Retiring with $750K?
« Reply #28 on: November 02, 2016, 08:53:17 AM »
this is all circumstantial based on spending ... it doesnt matter what your savings is if it covers your spending at a 4% SWR. a better question would be how many people are actually comfortable retiring on a bare bones 4% SWR around here.   

i also dont think MOST FIREers FIRE on a simple 750k.  we're shooting for 750k each however.  plus the mortgage balance.

Yes. In reference to what I bolded in your statement above, the health issue concerns me most.

yeah you're about 2-3 years out ... we're closer to 7 years away.  so hopefully the dust will have settled around healthcare by the time we FIRE.  anytime in the next 4 years i feel like is a state of constant flux for the healthcare and insurance industries in america. 

jeffnhl

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Re: Retiring with $750K?
« Reply #29 on: November 02, 2016, 08:58:05 AM »
I certain hope I am comfortable since I just gave notice a couple weeks back.  We (the family - parents plus 3 kids) lived on the Post-FIRE budget for the better part of the past year with only some limited first world  'hardships'.  Technically we have closer to 650k in the retirement stache plus a paid off house (~175k) which we expect after the kids are out of the house to downsize and pull out another 100k or so (which gets me to that magical 750k number you asked about). 

We have 5 years of taxable accounts to work from while we build our Roth pipeline.  No pension other than SS when we turn 62 - 75 (depending on what happens with the program over the next 20 years!)

Retiring too soon is a recoverable error, retiring too late is not!  :-)

SweetTPi

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Re: Retiring with $750K?
« Reply #30 on: November 02, 2016, 09:09:37 AM »
Not sure if I'd first go with comfortable, since I'm a pessimistic game-out-the-worst-case-scenarios type person (as an engineer, it's a positive personality trait!), but I could definitely do it.

My current annual spending is ~24k/yr, but that number doesn't include taxes and health care premiums.  Of course, being retired I'd have the time to look over the situation and minimize those costs, making 750k quite plausible.  But... see pessimism, above.

ketchup

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Re: Retiring with $750K?
« Reply #31 on: November 02, 2016, 09:25:25 AM »
Could definitely do it.  Very comfortably as a single person, and pretty damn well as a couple too.  But we'll probably pull the FIRE trigger when we have somewhere between 30-40k passive income from whatever source (Depending on what changes in our lives in the next few years), plus my GF will probably keep working part-time at least in some capacity (self-employed), and I might stumble on some more income post-FIRE too.

mozar

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Re: Retiring with $750K?
« Reply #32 on: November 02, 2016, 09:26:48 AM »
Yes, Maryland.

MayDay

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Re: Retiring with $750K?
« Reply #33 on: November 02, 2016, 09:43:19 AM »
750k per adult, sure.

750k total: maybe if we had a paid off house. But not yet as with two young kids and uncertainty about ACA costs, I don't feel confident that we can predict our expenses out 10+ years.

Well probably have 750k when are kids are younger teens, and don't plan to actually retire until the kids graduate HS. By then hopefully medical costs will have stabilised and we'll have a good idea about how well our kids will launch (we have a special needs child).

BigHaus89

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Re: Retiring with $750K?
« Reply #34 on: November 02, 2016, 09:50:47 AM »
We could definitely retire on $750k. We only spend $20k-$25k per year and live a very luxurious lifestyle(quarter cow in the freezer, tasty cheese and wine, traveling to Canadian Rockies, hot-springing, season ski pass, etc.). That includes a mortgage as well.

Dicey

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Re: Retiring with $750K?
« Reply #35 on: November 02, 2016, 10:30:18 AM »
Nope, don't want to do it.FIRE on 2-3 times that? Done. I need to point out that a common belief is that one must "save" X amount to retire. Nope, nope, nope. The earlier you start investing, the fewer actual dollars you will need to save. The main reason I have so much more than 750k is because my investments grew. I never saved anywhere close to that amount. Early investing did the heavy lifting for me.

J_Stache

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Re: Retiring with $750K?
« Reply #36 on: November 02, 2016, 10:38:52 AM »
Give me one fine day of plain sailing weather and I can mess up anything.

I love finding random Frank Turner lyrics in a signature.

neophyte

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Re: Retiring with $750K?
« Reply #37 on: November 02, 2016, 10:56:52 AM »
I'm uncomfortable with the idea, but I've never spent $30k a year in my life! Current spending is a little less than half that so I should theoretically be fine it.

fatcow240

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Re: Retiring with $750K?
« Reply #38 on: November 02, 2016, 11:40:18 AM »
I would be okay with $750K + house for a family of 4.  My target is $600k + house.  I also have about $1,000 in passive income.

I figure I can always go back to work if needed.  I know I may not be able to go back and jump right back into a 6 figure job.  I'm sure that if the both of us went back to work, it would be very easy to make 50k - 100k+ combined.

Cassie

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Re: Retiring with $750K?
« Reply #39 on: November 02, 2016, 12:43:47 PM »
I know a few people that retired in early 40's and fast forward 20 years later they are sorry. They are penny pinching as costs have gone up and both were professionals but not able to find work now in their fields. Also with the free time you find yourself wanting to spend more $ on activities, hobbies, etc as you have the time and aren't tired all the time from working. WE semi-retired 4 years ago at 53 & 58 and are doing a lot more traveling and going to various festivals, events, etc so are spending more $ then when working f.t. Also our health care costs have gone up. The insurance premiums plus the need to see docs, have tests, etc even though we take good care of ourselves.  You are not in 100% control of your health.  I do worry about some of the younger people on this board sometimes.

undercover

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Re: Retiring with $750K?
« Reply #40 on: November 02, 2016, 12:50:05 PM »
I think your question in the OP is really less about the actual dollar amount and more about a "sure" retirement. Nothing in life is "sure". Live is all about compromise, adjustment, and ultimately, acclimation. I personally don't put all faith into the 4% rule. I'm about 90% confident with "2% rule", but also optimistic that 4% or better will actually be the norm. I definitely think it's wise to diversify. So, therefore, I think real estate and possibly another small business that's mostly passive are critical parts to "retirement". And even then, keeping your mind and options open are critical. Everything truly is temporary. So, with that, I'm optimistic.

Ultimately, if you find the right work that's enjoyable, it's the only thing that makes life worth living (the ability to dream and create). I guarantee you that there's no such thing as "true" retirement. You're looking for distractions, regardless of your financial situation. The only purpose of money is to make you more of who you already are. To allow you to explore and do what you want to do. The concept of "retirement" is a modern facade that I wish this blog/forum would quit alluding to. It's the ideal that society generally accepts as the norm, without any thought as to what "retiring" actually means. In reality, the only thing it means is being able to do less of what you don't care for and more of what you do. That doesn't necessarily mean you won't ever make money again even after you've given up what you perceived to be your source of sustainability - in reality, odds are you'll come out way better.

jeffnhl

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Re: Retiring with $750K?
« Reply #41 on: November 02, 2016, 01:25:12 PM »
It's seems there is already a pretty exhaustive discussion on the 4% rule:

http://forum.mrmoneymustache.com/investor-alley/stop-worrying-about-the-4-rule/

Though I hear the point on more or less being can you really be comfortable with the expense side going up more than can be absorbed through asset growth (personal inflation rate not some arbitrary national number).  Asset allocation is a big part of it for me and there is a ton out there on it.  OP refers to FIRE on 'just savings'... if the question was just 750k of just cash no way; but a sensible asset allocation... for me - fa'sure!

I have no doubt that we will make trade-offs (up, down, and sideways) over time.  I know I found the posts from go curry cracker helpful:

http://www.gocurrycracker.com/the-worst-retirement-ever/
http://www.gocurrycracker.com/the-best-retirement-ever/

@undercover - I dig the comment regarding 'retirement' being a modern facade... it definitely is a loaded term.  I also like slowlysippingscoffee's take on it calling it a 'fully funded lifestyle change' instead.

http://www.slowlysippingcoffee.com/goodbye-fire-hello-fflc/

*Note I have no affiliation with either blog, just thought the links were useful in this discussion.


oldtoyota

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Re: Retiring with $750K?
« Reply #42 on: November 03, 2016, 12:23:05 PM »
I think your question in the OP is really less about the actual dollar amount and more about a "sure" retirement. Nothing in life is "sure". Live is all about compromise, adjustment, and ultimately, acclimation. I personally don't put all faith into the 4% rule. I'm about 90% confident with "2% rule", but also optimistic that 4% or better will actually be the norm. I definitely think it's wise to diversify. So, therefore, I think real estate and possibly another small business that's mostly passive are critical parts to "retirement". And even then, keeping your mind and options open are critical. Everything truly is temporary. So, with that, I'm optimistic.

Ultimately, if you find the right work that's enjoyable, it's the only thing that makes life worth living (the ability to dream and create). I guarantee you that there's no such thing as "true" retirement. You're looking for distractions, regardless of your financial situation. The only purpose of money is to make you more of who you already are. To allow you to explore and do what you want to do. The concept of "retirement" is a modern facade that I wish this blog/forum would quit alluding to. It's the ideal that society generally accepts as the norm, without any thought as to what "retiring" actually means. In reality, the only thing it means is being able to do less of what you don't care for and more of what you do. That doesn't necessarily mean you won't ever make money again even after you've given up what you perceived to be your source of sustainability - in reality, odds are you'll come out way better.

Meaty reply. Thank you.

I love the compromise, the figuring out, and the adjustments in creating this life.

I'm comfortable with how the word retirement is used on this board, yet I can see your issues with that usage. MMM has stated more than once that retirement didn't mean 0 work for him. I think it boils down, similar to what you said, to doing the work you really love.

After speaking with a woman in her seventh decade, I learned that some consider that a time of giving back. They don't need to strive or make huge incomes any longer, so they focus on giving back and what matters most to them and their values. It strikes me that a lot of people here do the same, but they are able to start their seventh decade a little sooner due to the financial freedom they've created.


« Last Edit: November 04, 2016, 04:09:24 PM by oldtoyota »

BigBangWeary

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Re: Retiring with $750K?
« Reply #43 on: November 03, 2016, 10:27:20 PM »
I agree with others here that it can be done, especially with a paid of house. This is our plan. But there are a lot of variables. Being Canadian we do not need to worry as much as others about the healthcare issue. We have also traveled extensively in our 20s and 30s and are really looking to settle down for the next decade or so.

I also like the concept that you can always go back to work while you are an early retiree (and not at your former high paying job ... fine by me), but if you have a heart attack or get dementia at 60 (as so many of my parents friends) it is a bit harder to undue that miscalculation.

And I really do not think of FIRE as sitting by the fire and doing crosswords, it can absolutely involve other income generating activity ...but at our own discretion.

MoonLiteNite

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Re: Retiring with $750K?
« Reply #44 on: November 04, 2016, 03:45:56 AM »
My personal goal is 600k with a house that has a roommate or two.
Even without roommates  i could manage with with the 600k.
My yearly out cashflow is only around 14,000$

edit: i guess my COL is kinda cheap, Austin, TX
« Last Edit: November 04, 2016, 03:48:34 AM by MoonLiteNite »

Kitsune

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Re: Retiring with $750K?
« Reply #45 on: November 04, 2016, 07:48:04 AM »
Yes. My family could absolutely make that work.

... Especially because the suddenly liberated spare time would give us the ability to make money on our hobbies, which would totally provide extra income. Significantly less than corporate jobs, but definitely enough to round out corners.

Zikoris

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Re: Retiring with $750K?
« Reply #46 on: November 04, 2016, 09:59:55 AM »
Absolutely! That's our target amount. We spend around 27K/year now, living in expensive Vancouver, with a VERY comfortable lifestyle that includes extensive international travel - so far this year we've been to Singapore, Taiwan, Malaysia, Ireland, Northern Ireland, and Las Vegas, and we've booked and paid for a trip to Thailand and China leaving at the end of December. 30K/year of retirement income would be totally fine for living in Vancouver forever, but an absolute breeze pretty much anywhere else.
« Last Edit: November 04, 2016, 10:04:27 AM by Zikoris »

dougules

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Re: Retiring with $750K?
« Reply #47 on: November 04, 2016, 11:33:59 AM »
Our spending is at $33k/year right now, so if you use 4% SWR that's $825k.  This is with a paid-off house in a LCOL area (for the US) without counting medical paid through work, but on the other hand that's for two people not trying all that hard to cut back.   If we were comfortable with 4% and were serious about cutting back, $750 + paid off house would not even be a stretch for us.
« Last Edit: November 04, 2016, 11:35:32 AM by dougules »

robartsd

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Re: Retiring with $750K?
« Reply #48 on: November 04, 2016, 12:25:36 PM »
Assuming: a paid off house, reasonable cost of living, and no dependent children; yes, I would retire with $750k invested. As I'm in a position with a defined benefit pension and my actual savings rate is low (by MMM standards), I'll likely retire with 20 career working years and about $500k invested.

oldtoyota

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Re: Retiring with $750K?
« Reply #49 on: November 04, 2016, 04:08:41 PM »
I know a few people that retired in early 40's and fast forward 20 years later they are sorry. They are penny pinching as costs have gone up and both were professionals but not able to find work now in their fields. Also with the free time you find yourself wanting to spend more $ on activities, hobbies, etc as you have the time and aren't tired all the time from working. WE semi-retired 4 years ago at 53 & 58 and are doing a lot more traveling and going to various festivals, events, etc so are spending more $ then when working f.t. Also our health care costs have gone up. The insurance premiums plus the need to see docs, have tests, etc even though we take good care of ourselves.  You are not in 100% control of your health.  I do worry about some of the younger people on this board sometimes.

I do, too. I've dealt with older sick people for most of my life, so I became familiar at a young age with the associated costs.
« Last Edit: November 05, 2016, 06:22:30 PM by oldtoyota »