Hi guys, My first post here.
I've been reading this forum for over a year. One thing I noticed is that many of you are looking to retire in 50s, even late 50s with huge amount a money that you will leave behind when dead. Everybody fallows the same 4% rule so the money lasts forever just because Mr MMM says so. Most of you already are living frugally and have enough put away for the next 20 years, so why are you still working? Let me explain.
My wife retired 3 years ago at age 36 and I'm retiring next June at 41. But unlike many of you who plan to draw 4% till death, we will be broke by age 62.
My wife worked as Hospice nurse for 14 years and has a different view on things. Slowly I came to realize the same thing after hearing and seeing hundred of her patients and watching my own family. The people with more money on their death bed were much, much worse off than those that lived on SS and were leaving nothing behind. The family drama over money, the anger over Hospice costs, nursing cost. Patients who are in pain but refuse pain treatments in fear of the bill or leaving less for kids, or feeling guilty in front of their kids. End of the life care insurance fights and on and on and on. Even on their death beds, many still obsess about money.
The patients who are broke with no assets have the least amount of problems. The family is there because they want to. There is no money to fight over. All costs are paid by Medicare or Medicaid. The patients actually receive better care because no Insurance company is involved dictating what will be covered and what wont. And this is just a Hospice part.
Just looking at our large family (mom has 8 siblings), some have money, others none. The aunts and uncles that live strictly on SS live just as comfortable as those with money. Sure they can't travel or go out eat but they did most of that when they were younger and healthier (reason they are broke now). But because they have 0 left, they worry about nothing. Their healthcare is fully covered, free glasses, free dentures, free nurse assistance. Where my Las Vegas uncle who has the most money is always running around to doctors (almost like a hobby). He has 20 different health conditions (self diagnosed) and is obsessed with living forever. My Chicago aunt who also has money is the same way. All those two trade is supplements websites and insurance quotes. Arthritis runs deep in my family and it breaks my heart watching those that worked till mid 60s to spend it all on healthcare. Their entire life revolves around doctors, hospitals, dentists, physical therapies and drugs and they have to pay for it all.
If I compare my aunt that is broke, living on SS, gets everything for free, who quit working in her 30s and hit the road for 11 years. Traveled all over Asia and Europe. I see her as a winner. Now with 2 hip and 1 knee replacements she sits in front of TV just like the rich uncle but has no worries and is glad she did all these things when she was healthy.
So why worry about having 600K in 401K at age 62????
My wife and I saved just over 500K, most in 401K. We always lived frugally (old cars, small house) and plan on keep living that way except on the road. Bought 1999 truck I'm restoring to tow small trailer I plan on buying. We should live very comfortably bouncing around RV parks and some boondocking. Then in between spend some time in Asia and South America. If I budget everything right, by the time we reach 62, we will be broke. Starting with 20K per year, ending with 30K in 2036. Already talked to SS office. Actually we were very surprised how much we will be getting at 62 with this scenario.