Author Topic: No pension or working spouse or side gigs - FIREd w/investment portfolio only?  (Read 23058 times)

ZiziPB

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I see a lot of posters who make a decision to FIRE but they often have a spouse who is still working and providing some income and health insurance.  Or they have a generous pension they can rely on.  Or a side gig generating some income that they will continue into retirement.

Is anyone here FIRED and relying on an investment portfolio only? 

CowboyAndIndian

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I see a lot of posters who make a decision to FIRE but they often have a spouse who is still working and providing some income and health insurance.  Or they have a generous pension they can rely on.  Or a side gig generating some income that they will continue into retirement.

Is anyone here FIRED and relying on an investment portfolio only?

Quite a few here. ARebelSpy, Spoonman and Dr. Doom are the three that come to mind. I think all three do not have a pension or a working spouse. ARS has a portfolio of rentals, but I guess you could call it an investment portfolio.

When I FIRE, my wife will also quit her job as we plan to move. We do not have pensions, and will solely rely on our investment portfolio.

Financial.Velociraptor

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I'm relying on portfolio only.  I have a pension but its cash value is under 25k and I can't touch it for about 11 more years.

Greenback Reproduction Specialist

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Yep we are working at it, and we have a son. We plan to FIRE before he is out of high school.... But I may continue working at least part time until he is completely out of the house.

In my opinion, its a lot more challenging than being single or being married with multiple incomes(simple math suggests it).... If my wife were working a job with decent pay, we could fire in 2 years(maybe sooner) instead of 5. But there is a lot of value in having one of us managing the household. When we spend time together we don't have to worry about doing as many chores and can spend time building our future home or visiting with family. At the moment we are fortunate enough that I have a good paying job that supports us and have enough left over to plan for the future. It can be done : )

whiskeyjack

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That's how we're doing it but we only pulled the plug over the summer so I can't comment much about how it's going to work out.   Sending kids to college and health care costs are my main concerns.

oldtoyota

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I see a lot of posters who make a decision to FIRE but they often have a spouse who is still working and providing some income and health insurance.  Or they have a generous pension they can rely on.  Or a side gig generating some income that they will continue into retirement.

Is anyone here FIRED and relying on an investment portfolio only?

Quite a few here. ARebelSpy, Spoonman and Dr. Doom are the three that come to mind. I think all three do not have a pension or a working spouse. ARS has a portfolio of rentals, but I guess you could call it an investment portfolio.

When I FIRE, my wife will also quit her job as we plan to move. We do not have pensions, and will solely rely on our investment portfolio.

I thought ARS did have a pension--or would get one in the future from teaching.


ZiziPB

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I see a lot of posters who make a decision to FIRE but they often have a spouse who is still working and providing some income and health insurance.  Or they have a generous pension they can rely on.  Or a side gig generating some income that they will continue into retirement.

Is anyone here FIRED and relying on an investment portfolio only?

Quite a few here. ARebelSpy, Spoonman and Dr. Doom are the three that come to mind. I think all three do not have a pension or a working spouse. ARS has a portfolio of rentals, but I guess you could call it an investment portfolio.

When I FIRE, my wife will also quit her job as we plan to move. We do not have pensions, and will solely rely on our investment portfolio.

I thought ARS did have a pension--or would get one in the future from teaching.

Don't know about his pension but he and his wife are currently generating more income through writing and side gigs than what they spend.  So he's off the list :-)

webguy

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I see a lot of posters who make a decision to FIRE but they often have a spouse who is still working and providing some income and health insurance.  Or they have a generous pension they can rely on.  Or a side gig generating some income that they will continue into retirement.

Is anyone here FIRED and relying on an investment portfolio only?

Quite a few here. ARebelSpy, Spoonman and Dr. Doom are the three that come to mind. I think all three do not have a pension or a working spouse. ARS has a portfolio of rentals, but I guess you could call it an investment portfolio.

When I FIRE, my wife will also quit her job as we plan to move. We do not have pensions, and will solely rely on our investment portfolio.

I thought ARS did have a pension--or would get one in the future from teaching.

Don't know about his pension but he and his wife are currently generating more income through writing and side gigs than what they spend.  So he's off the list :-)

Yeah pretty sure he said he's doing some credit card side hustle that generates $40k/year or something. I'd be interested to hear about people who are living solely on investment income as a lot of people rave about the 4% rule but don't actually need to implement it themselves and end up just doing side gigs to fund all/some of their expenses.

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Thats what we did for a year and 9 months. Just flat out fire'd on our investments only. And they are worth more now than the were when we fire'd/ My DW recently took a job just till we see what pans out with the ACA. In fact the companies business provides benefits so couldn't of worked out better and is about a 3k turnaround for us a month plus she is having fun right now.  Part of our retirement plan was to always be flexible if things didn't seem right to us. The healthcare thing was scaring the crap our of us with 4 kids still at home. She can always quit anytime if she wants and if cheaper go on cobra for 18 months as thats what i did when we fire'd.  Flexibility is the key.

Racer X

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Yes, we retired at 46 with only our investment portfolios.  No rental properties, no part time work, no pensions.  We also do not include any future inheritances or Social Security in our calculations.

We only need about 2% a year to support our spending habits, so I feel pretty good about it.

Jakejake

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We're going to be there in 2-3 years. I quit this year, my husband's (deferred) pension is highly dependent on him working to 55. Then from 55 to 62 we plan on living on investments only.

We are retiring relatively late in the game though. We can (and will) live within the 4% rule, but we know we will get some pensions and social security eventually.

Holyoak

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Hand raised - supported by my investment portfolio only.  FIRED @46, single, no pension, no side gigs, have ACA health insurance (more like crazy expensive catastrophic, anti-going broke from an injurious/sickness "insurance").  Looking forward to receiving SS as my only boost to future income.  So there, add another name (smile).

Melf

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I'm in the club also.  Only been FIRE'd for two months though so I can't claim any sort of success yet.  I'm single, don't have or own anything other than my investment portfolio, no side gigs and taking a lump sum for the small pension that I had.  Using COBRA for med/dental for 2017 and hoping ACA is still around for the following years.  The plan is to rely on the 4% rule to cover my annual expenses.

respond2u

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Investments, cash, $200/month non-COLA pension and (in 10 years) social security for me. I decided to limit my (planned) annual spending to match my dividend income.

Major consideration is tax efficiency, including ACA. I plan on starting one of 3 SEPPs soon (for February) to take money out of IRAs. Roth IRA conversion ladder is too expensive when ACA subsidy loss is included. (I may revisit that after this year!).

www.cfiresim.com says I can take out approximately 25% more and still make it.

I chose to base my spending off dividends because they should grow, are more stable than stock price, and should be "pessimistic" overall.

oldtoyota

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I see a lot of posters who make a decision to FIRE but they often have a spouse who is still working and providing some income and health insurance.  Or they have a generous pension they can rely on.  Or a side gig generating some income that they will continue into retirement.

Is anyone here FIRED and relying on an investment portfolio only?



Quite a few here. ARebelSpy, Spoonman and Dr. Doom are the three that come to mind. I think all three do not have a pension or a working spouse. ARS has a portfolio of rentals, but I guess you could call it an investment portfolio.

When I FIRE, my wife will also quit her job as we plan to move. We do not have pensions, and will solely rely on our investment portfolio.

I thought ARS did have a pension--or would get one in the future from teaching.

Don't know about his pension but he and his wife are currently generating more income through writing and side gigs than what they spend.  So he's off the list :-)

Very cool. I did not know they were doing that!

CanuckExpat

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A pension, I thought nobody had seen one of those in decades ;)
We count for now, only an investment portfolio, no working spouse, though if she wanted to I have no problem being a kept man.
We had no side gigs when we quit our jobs, but can't guarentee it won't happen in the future. I did get paid money to eat some chicken last month, so perhaps we no longer count :)

Playing with Fire UK

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I did get paid money to eat some chicken last month, so perhaps we no longer count :)

Oooo sounds like a job to me. I'm totally reporting you to the IRP. Do you have business cards that read Professional Chicken Eater? If not then you should, because you totally have a job.

Playing with Fire UK

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But seriously OP: what do you really want to know?

Are you thinking of pulling the plug with less than a full stache as the FIRE'd folk seem to attract money like magnets or are you doubting the 4% guidance?

ZiziPB

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But seriously OP: what do you really want to know?

Are you thinking of pulling the plug with less than a full stache as the FIRE'd folk seem to attract money like magnets or are you doubting the 4% guidance?

Haha, just trying to see if I will be the first person to quit for good and just rely on my stache :-)  Seems like we have a lot of FIRED people around here but almost everyone has some safety net besides the stache.  True, I will have SS - that is if there is anything to be had in 21 years when I turn 70 :-)

Playing with Fire UK

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But seriously OP: what do you really want to know?

Are you thinking of pulling the plug with less than a full stache as the FIRE'd folk seem to attract money like magnets or are you doubting the 4% guidance?

Haha, just trying to see if I will be the first person to quit for good and just rely on my stache :-)  Seems like we have a lot of FIRED people around here but almost everyone has some safety net besides the stache.  True, I will have SS - that is if there is anything to be had in 21 years when I turn 70 :-)

Cool. This is an interesting perspective. I don't think that everyone who has FIRED but picks up an income from writing/credit cards/chicken eating is doing that because they don't trust the stache or can't get by without their chicken money. They seem to be doing something that is interesting to them and generating income is a side effect (at least that is what they claim!) Having said that, there is no knowing what the actual motivation for these side gigs is.

I'm confident in a stache being adequate, but I don't think that it will be the last money that comes my way. I see FIRE as not having to work again, not something that prevents me from doing things I find interesting that generate money.

What are you FIREing to? Is it important to you to never earn another cent? Do you have a date yet? Would you object to an ankle monitor so that we can demonstrate to the IRP that it is possible to properly retire early?

ZiziPB

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But seriously OP: what do you really want to know?

Are you thinking of pulling the plug with less than a full stache as the FIRE'd folk seem to attract money like magnets or are you doubting the 4% guidance?

Haha, just trying to see if I will be the first person to quit for good and just rely on my stache :-)  Seems like we have a lot of FIRED people around here but almost everyone has some safety net besides the stache.  True, I will have SS - that is if there is anything to be had in 21 years when I turn 70 :-)

Cool. This is an interesting perspective. I don't think that everyone who has FIRED but picks up an income from writing/credit cards/chicken eating is doing that because they don't trust the stache or can't get by without their chicken money. They seem to be doing something that is interesting to them and generating income is a side effect (at least that is what they claim!) Having said that, there is no knowing what the actual motivation for these side gigs is.

I'm confident in a stache being adequate, but I don't think that it will be the last money that comes my way. I see FIRE as not having to work again, not something that prevents me from doing things I find interesting that generate money.

What are you FIREing to? Is it important to you to never earn another cent? Do you have a date yet? Would you object to an ankle monitor so that we can demonstrate to the IRP that it is possible to properly retire early?
Yes and Yes and Yes :-)

Yes, I want to FIRE and never worry about earning another cent.
Yes, the date is April 1, 2018.
and Yes to the ankle monitor :-)

I guess I should post my numbers and see what you all think about my plan...

CanuckExpat

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Here is a 20 year update from someone, who as far as I know, has been living off his savings, withdrawing 4%:
http://www.retireearlyhomepage.com/20year.html

He was 38 when he retied. He's 58 now (or was in 2015). His only regret is that he didn't retire earlier.

oldtoyota

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Here is a 20 year update from someone, who as far as I know, has been living off his savings, withdrawing 4%:
http://www.retireearlyhomepage.com/20year.html

He was 38 when he retied. He's 58 now (or was in 2015). His only regret is that he didn't retire earlier.

This is the MAN. I used to read and ponder all he wrote. Thankfully, MMM came along and laid the Shockingly Simple Math on us, because that's when it all came together for us.

I remember him telling a story about his boss not liking how often Retireearly would check his stocks while at work. If I recall, Retireearly used stock buys to accelerate his exit from the work world.


Lake161

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We FIREd at 50 with investments only. My only concern is the ACA and unknown future healthcare costs.

Playing with Fire UK

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Yes and Yes and Yes :-)

Yes, I want to FIRE and never worry about earning another cent.
Yes, the date is April 1, 2018.
and Yes to the ankle monitor :-)

I guess I should post my numbers and see what you all think about my plan...


Numbers would be great! Looking forward to hearing more.

I maintain there is (or can be) a difference between never earning another cent and never worrying about earning another cent. If there isn't for you then that is your path. I'm excited for you.

ltt

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When husband retires, he will be around 61 (in about 4 years)  Not exactly early retirement.  My guess is he will take SS at 62.  There will be a gap year prior to SS.  The rest will come from investments.  Our big thing is health insurance.  I'm not sure what will happen at this point.  There absolutely needs to be a shake-up in health care---the cost of health care as well as the cost of premiums.  It's just absolutely unaffordable. 

FrugalZony

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Here!

No SS, no side hustle, no working spouse AND pulled the plug early.

I have a pension worth $40 a month, so negligible.

4% currently covers my share of our living expenses, but not my own projected FIRE expenses (I had budgeted for a different lifestyle and a LOT more giving, when I planned "my number").

I know I may have to go back to work if shtf. Something I REALLY wanted to avoid.

I only am only 5 months in, so I cannot say much yet, but I for sure would like a little extra security than what I have right now.


doggyfizzle

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We FIREd at 50 with investments only. My only concern is the ACA and unknown future healthcare costs.

Healthcare is really my/my wife's only concern about ER.  We're pretty much FI (would require a move to a bit more LCOL area but no big deal), and I have incredible medical insurance through work.  I figure I'm only 32 now and really like what I do; I'll wait until around 40 and maybe the medical insurance industry in the US will have been pulled even more in the direction of the rest of the G7 countries and affordable medical insurance won't be as much tied to W2 employment as it seems to be now.

spokey doke

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But seriously OP: what do you really want to know?

Are you thinking of pulling the plug with less than a full stache as the FIRE'd folk seem to attract money like magnets or are you doubting the 4% guidance?

Haha, just trying to see if I will be the first person to quit for good and just rely on my stache :-)  Seems like we have a lot of FIRED people around here but almost everyone has some safety net besides the stache.  True, I will have SS - that is if there is anything to be had in 21 years when I turn 70 :-)

Cool. This is an interesting perspective. I don't think that everyone who has FIRED but picks up an income from writing/credit cards/chicken eating is doing that because they don't trust the stache or can't get by without their chicken money. They seem to be doing something that is interesting to them and generating income is a side effect (at least that is what they claim!) Having said that, there is no knowing what the actual motivation for these side gigs is.

I'm confident in a stache being adequate, but I don't think that it will be the last money that comes my way. I see FIRE as not having to work again, not something that prevents me from doing things I find interesting that generate money.

What are you FIREing to? Is it important to you to never earn another cent? Do you have a date yet? Would you object to an ankle monitor so that we can demonstrate to the IRP that it is possible to properly retire early?
Yes and Yes and Yes :-)

Yes, I want to FIRE and never worry about earning another cent.
Yes, the date is April 1, 2018.
and Yes to the ankle monitor :-)

I guess I should post my numbers and see what you all think about my plan...

Looks like we share some things (age, FIRE aspirations/questions) - I left my career last year and we have hit our number...BUT DW likes her work and is a long ways from accepting the math (health care catastrophe worries are a big part).  In the meantime, I am starting new venture pursuing a passion that should make a bit of money, to keep up appearances and help the bottom line a bit.

I'd like to fully embrace the math (supported by 100% success rate on cfiresim with very conservative numbers put in) and be able to include myself on your list, but I don't see it happening in the next few years at least.

But the new gig is really engaging, I sleep better, and have way less anger and frustration related to my job, and can simply say 'I do X' when people ask (see the many recent threads on hostility/incredulity in telling people you retired).
« Last Edit: January 18, 2017, 12:29:30 PM by spokey doke »

oldtoyota

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Currently almost 1 year into living off savings -- DH got his last paycheck on 1/31/2016, my last one was on 6/30/2015.  Our invested money is currently all in retirement accounts and the Beijing apartment.   Once the apartment sales proceeds clear and get transferred back to the US, that money will be used to buy our next house for cash, and the rest invested  --  we will live mostly off the dividends (I am planning to put that money mostly in Vanguard Wellington or Wellesley) until DH hits age 70 and starts taking SS and his RMDs from his retirement account.  He's currently almost 59, so we only have 11 years before we start using the retirement money, so even if we were spending down the principal on the taxable investments we would still be fine.

I do plan to continue the system we have had of having 2-3 years in a liquid savings "bucket" out of which regular living expenses are paid - that way we won't have to sell shares in a downturn, and will also have some room to throw money into the market as things turn around after a downturn. 

I may eventually earn something from bubbling business idea, but most likely will just donate that money if it is clear our stash is holding out just fine.

Thanks for sharing this. Nice to know how others are doing it. =-)

arebelspy

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I thought ARS did have a pension--or would get one in the future from teaching.

Don't know about his pension but he and his wife are currently generating more income through writing and side gigs than what they spend.  So he's off the list :-)

Yeah pretty sure he said he's doing some credit card side hustle that generates $40k/year or something. I'd be interested to hear about people who are living solely on investment income as a lot of people rave about the 4% rule but don't actually need to implement it themselves and end up just doing side gigs to fund all/some of their expenses.

To answer these earlier questions:
We are living off of rental income only, and reinvesting extra rental income on top of that.  We also have side gig income that we are reinvesting.

But our expenses are much lower than just our investment income, so the side-gigs are irrelevant to that.  Plus we're donating most of our money from side-gigs, so we really are living off of the rental income.

We will have a pension, about three decades from now, but inflation will have eroded it so much it'll be worth very little.  And we won't get social security.  And our pension value will be less than most people's social security.  So I don't count something I'll probably get (though it may be cut by then) which will be worth less than social security, combined with not getting any actual social security as "living off a pension."

But, bottom line, our expenses are less than our rents coming in, including setting aside reserves, such that we're investing extra rental income into Vanguard index funds to diversify our portfolio.  Maybe you don't count that as living off of one's investments, but I sure do.  :)
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Metric Mouse

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I see a lot of posters who make a decision to FIRE but they often have a spouse who is still working and providing some income and health insurance.  Or they have a generous pension they can rely on.  Or a side gig generating some income that they will continue into retirement.

Is anyone here FIRED and relying on an investment portfolio only?

Yes.

ZiziPB

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Thanks for chiming in, ARS.  You know my story and the struggle to get to the point where I feel ready to FIRE...

redbird

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My family was like that for our first FIRE year. DH went back to work in September. We don't need the money at all - he just wants to be able to buy a house in cash. Yes, we could easily afford a mortgage, especially because a mortgage on the size/cost of house we're looking at is actually a lot less than we've been paying in rent. Getting a mortgage while FIRE seems a bit difficult though. We tried (not very hard) and were turned down despite proving our large stash and super high (both over 800) credit scores. Honestly, our ages probably didn't help any. If we were in our 50s or 60s, I imagine we'd more likely be accepted. Because it would look more "normal". But we're both in our 30's.

He doesn't really like the job though (turned out to be not really as advertised/as he expected) so he's going to quit sooner than he intended. So we'll end up getting a mortgage after all.

MoneyStacher

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I am single and have no kids. My plan is to FIRE in Jan 2018 with investments only, but I think I could do it now and I do spend a lot of time thinking about that. My net worth is 1,040,000. 935 is investments and the rest is equity in a condo in Midtown Atlanta that I lived in for 20 years then started renting out in December last year. I turn 50 in October so I'm in a similar situation as the OP, I think.

Metric Mouse

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Thanks for chiming in, ARS.  You know my story and the struggle to get to the point where I feel ready to FIRE...

Looking forward to the numbers!

rpr

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Posting to follow. Curious about this as well.

ZiziPB

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All right, numbers.

49 single female.  1 child on the verge of adulthood (finishing her studies and looking for a job, has no student debt, so should be OK once employed).  Planning to FIRE at 50 and move to Poland next year (parents and extended family all live there). 
Current NW (investment and retirement accounts only) about $1.15M - about $460K taxable, the rest in tax-advantaged accounts.  If the markets don't crash in the meantime, should be $1.3M or so when I FIRE.
Estimated FIRE expenses living in Poland -  $36K per year. 

No pensions, but eligible for SS (about $2300 per month at full retirement age). I own a small apartment in Poland outright so costs will be low and knowable there.  But since DD is remaining here in the US, I may decide to come back here at some point.  And am extremely concerned about being priced out of the RE market while I'm gone and also health coverage availability and cost.  Have no idea what to budget for if I were to return here.  Working in Poland is not a possibility, and also extremely unlikely if I were to return here (I'm a corporate lawyer so once I'm done, I'm done).  Also very concerned about retiring on top of a stock market bubble.  Thoughts?

Metric Mouse

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All right, numbers.

49 single female.  1 child on the verge of adulthood (finishing her studies and looking for a job, has no student debt, so should be OK once employed).  Planning to FIRE at 50 and move to Poland next year (parents and extended family all live there). 
Current NW (investment and retirement accounts only) about $1.15M - about $460K taxable, the rest in tax-advantaged accounts.  If the markets don't crash in the meantime, should be $1.3M or so when I FIRE.
Estimated FIRE expenses living in Poland -  $36K per year. 

No pensions, but eligible for SS (about $2300 per month at full retirement age). I own a small apartment in Poland outright so costs will be low and knowable there.  But since DD is remaining here in the US, I may decide to come back here at some point.  And am extremely concerned about being priced out of the RE market while I'm gone and also health coverage availability and cost.  Have no idea what to budget for if I were to return here.  Working in Poland is not a possibility, and also extremely unlikely if I were to return here (I'm a corporate lawyer so once I'm done, I'm done).  Also very concerned about retiring on top of a stock market bubble.  Thoughts?

Sounds to me like you're loaded! With no rent in Poland, you'll have over $50,000 U.S. a year to play with. At full retirement age that number jumps up to over $77K in today's dollars.  Do you spend more than that, currently? If you don't, that leaves quite a bit of buffer for saving for a house or apartment stateside over the next decade or so, should you decide to come back.

What do you plan on doing for healthcare in Poland?

ZiziPB

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All right, numbers.

49 single female.  1 child on the verge of adulthood (finishing her studies and looking for a job, has no student debt, so should be OK once employed).  Planning to FIRE at 50 and move to Poland next year (parents and extended family all live there). 
Current NW (investment and retirement accounts only) about $1.15M - about $460K taxable, the rest in tax-advantaged accounts.  If the markets don't crash in the meantime, should be $1.3M or so when I FIRE.
Estimated FIRE expenses living in Poland -  $36K per year. 

No pensions, but eligible for SS (about $2300 per month at full retirement age). I own a small apartment in Poland outright so costs will be low and knowable there.  But since DD is remaining here in the US, I may decide to come back here at some point.  And am extremely concerned about being priced out of the RE market while I'm gone and also health coverage availability and cost.  Have no idea what to budget for if I were to return here.  Working in Poland is not a possibility, and also extremely unlikely if I were to return here (I'm a corporate lawyer so once I'm done, I'm done).  Also very concerned about retiring on top of a stock market bubble.  Thoughts?

Sounds to me like you're loaded! With no rent in Poland, you'll have over $50,000 U.S. a year to play with. At full retirement age that number jumps up to over $77K in today's dollars.  Do you spend more than that, currently? If you don't, that leaves quite a bit of buffer for saving for a house or apartment stateside over the next decade or so, should you decide to come back.

What do you plan on doing for healthcare in Poland?
I'm eligible to be insured under the national system. The premiums come to just $30 per month for me. There are some out of pocket costs but mostly only if you want to go outside of the national health system (for convenience or to avoid long waiting times).  There's also private supplemental insurance available that is supposed to be inexpensive but I'm not sure of the exact cost. I'll look into that next time I'm there.
I have to look at my numbers again for spending details.  Will be back with that info.

cnocmmz

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I'm relying on portfolio only.  I have a pension but its cash value is under 25k and I can't touch it for about 11 more years.
I came across this site to see how people retire so early in their lives and live off of investments?  I find it amazing, I am retired military and still working at age 56 lol.  Good on all of you and congrats.

cnocmmz

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I retired at 42 and lived only on savings and investments and $400/month from the VA for aninjury/disability I got while in the military. Single and no side gigs - didn't even sell stuff on Craigslist. However once I turned 50 I started to get a government pension of approx. $1k/month and now live on that plus VA benefit leaving the stash alone for my old lady money. I won't be getting SS (or very little) so the pension is in lieu of that.   Not what the OP asked but I think you'll find most people will have SS years after they retire even if they don't have a pension, side gigs or working spouse. BTW I also retired shortly before the Great Recession and rode that out solely on savings and investments. Didn't even get a roommate.
ETA: Since I retired pre-ACA I paid for a private health insurance plan (first COBRA then a low cost/high deductible BCBS plan) until the ACA and the plan was cancelled. Then I started using the VA for free/low cost.
That is amazing and curious how this was accomplished. I am still working at almost 57. retired from mil and working for the gov that is probably why lol

Metric Mouse

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I'm relying on portfolio only.  I have a pension but its cash value is under 25k and I can't touch it for about 11 more years.
I came across this site to see how people retire so early in their lives and live off of investments?  I find it amazing, I am retired military and still working at age 56 lol.  Good on all of you and congrats.

Welcome to the forum!

Playing with Fire UK

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If you would be visiting the US, even for an extended visit, you can get travel insurance that will cover big ticket urgent healthcare. If you would be relocating back to the US it could be more difficult.

Have you considered any US tax you'd have to pay while living in Poland? Do you have assets in Euro/Zloty in case the exchange rates move against you? Have you researched your estimate for living costs or checked it with your family's experience?

If yes then your plan seems solid.


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I have considered the tax situation and am fully expecting to be paying taxes in both the US and Poland, taking any permitted credits (Poland and US have a tax treaty in place designed to prevent double taxation).  I am planning to consult with a tax professional as to the details. 

I have no assets in Euro/Zloty other than investments in international stocks through a US-based international index fund.  I'm considering buying a small investment property in Poland as a partial hedge.  Not sure if I will in the end, but it's a possibility.

As to the expenses in Poland, I have done a lot of research and consulted with my family in detail, and feel comfortable in my estimates.  Actually my brother thinks my estimate is way too high.  He thinks my everyday expenses should not exceed $1K per month (not including travel or any extraordinary expenses).

ZiziPB

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All right, numbers.

49 single female.  1 child on the verge of adulthood (finishing her studies and looking for a job, has no student debt, so should be OK once employed).  Planning to FIRE at 50 and move to Poland next year (parents and extended family all live there). 
Current NW (investment and retirement accounts only) about $1.15M - about $460K taxable, the rest in tax-advantaged accounts.  If the markets don't crash in the meantime, should be $1.3M or so when I FIRE.
Estimated FIRE expenses living in Poland -  $36K per year. 

No pensions, but eligible for SS (about $2300 per month at full retirement age). I own a small apartment in Poland outright so costs will be low and knowable there.  But since DD is remaining here in the US, I may decide to come back here at some point.  And am extremely concerned about being priced out of the RE market while I'm gone and also health coverage availability and cost.  Have no idea what to budget for if I were to return here.  Working in Poland is not a possibility, and also extremely unlikely if I were to return here (I'm a corporate lawyer so once I'm done, I'm done).  Also very concerned about retiring on top of a stock market bubble.  Thoughts?

Sounds to me like you're loaded! With no rent in Poland, you'll have over $50,000 U.S. a year to play with. At full retirement age that number jumps up to over $77K in today's dollars.  Do you spend more than that, currently? If you don't, that leaves quite a bit of buffer for saving for a house or apartment stateside over the next decade or so, should you decide to come back.

What do you plan on doing for healthcare in Poland?
I'm eligible to be insured under the national system. The premiums come to just $30 per month for me. There are some out of pocket costs but mostly only if you want to go outside of the national health system (for convenience or to avoid long waiting times).  There's also private supplemental insurance available that is supposed to be inexpensive but I'm not sure of the exact cost. I'll look into that next time I'm there.
I have to look at my numbers again for spending details.  Will be back with that info.

Looked at my expenses which I've been tracking for the last 9 months.  Without the mortgage, condo fee and the allowance/education related expenses for my daughter (which will all go away when I FIRE), my monthly spending is right at $2K.  That includes out-of-pocket medical expenses but does not include health insurance premiums.  That also doesn't include any taxes.

I think I would need at least $1,500 per month to rent a semi-decent apartment here (HCOL) and the medical costs are unknown.  Let's assume $1K per month.  So that brings me to $50K after tax income that I would need in order to live in the US as I currently live...

So that means $60K pre-tax annually, right?

Cherry Lane

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So that brings me to $50K after tax income that I would need in order to live in the US as I currently live...

So that means $60K pre-tax annually, right?

Not necessarily.  Initially, you'll be withdrawing from your post-tax accounts.  Since you've already paid income taxes on that money, the only taxable portion is any capital gains.  Under current tax rules, provided your taxable income is under the limit for the 15% tax bracket (I think), capital gains are not taxed at all.  So if you need $50k, you need only withdraw $50k. 

Then if any of your tax advantaged accounts are Roth-type, you can withdraw from those tax-free (contributions only while you are still under age 59.5).

You should also look for resources on Roth conversion ladders.  Any tax-free space you may have (which for us single folks isn't much - just standard deduction and personal exemption), you can use up in converting some traditional (pre-tax) retirement accounts to Roth retirement accounts, for tax-free withdrawal at a later date.

arebelspy

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Yeah, you should never pay taxes, you should Roth convert for years while living on taxable, then have free Roth withdrawals.

50k in ER should be 50k, $0 taxes paid.
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ZiziPB

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But the Roth conversion is taxable, no?

And all of that of course assuming no changes in the tax code...

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My DIL is from Rybnick and the COL is so cheap. If I knew Polish and the air quality was better in the winter I would be moving there. It is beautiful and the people really nice. We have been there twice.