Thanks so much to all of you, who responded so far. It appears that I wasn't as clear and precise as it is necessary, so here is some more info and clarification.
I am actually planning to RE
in a few weeks with the following assets:
- Taxable accounts $1.9M (all stocks) [About $1.2M are not in a U.S. account, but in an account in my country of origin, in case that matters.]
- Emergency fund: $100k (cash)
- Roth IRA ca. $100k (all stocks)
- 401k & IRA ca. $650k (>90% stocks)
My annual expenses would be around $60k-$65k, so I'm under 3% WR, thus no problem with RE (or so I hope ;) ). Dividends in my taxable account are about $40k p.a., so my plan is to cover the rest of my expenses by selling some stocks as needed. The Emergency fund seems high, but it's also a cash bucket to cover 2-3 years of a down market, so I don't have to sell stocks in a bad market.
So for our current living situation, I'm set up just fine, but now comes the eventuality of buying a condo in a few years time.
Why do you need 50% down on a $600k condo?
It would be 100% down on my half of a $600k condo. My GF would cover the other half. Essentially this would be to cover the situation, if I am unable to get a mortgage, because of RE, so I would need to pay cash.
Couldn't you just switch off dividend reinvestment for a few years?
Oh, I will, but as I'm going to RE in the new few weeks, these dividends will cover my living expenses.
I hope that this clarifies the situation a bit better, but please feel free to ask away, if anything else is not clear.