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Posted: 1/13/2015 8:06:24 PM EST
Okay, I'll be 58 in a few days, and I have:

one year's expenses in a money market account.

17 year's expenses in a 401k

an almost-paid-off mortgage

no other debt

Time to pull the trigger and retire? I feel like I have enough, but there are some wild cards, like inflation and medical care. When is enough, enough?
Link Posted: 1/13/2015 8:11:41 PM EST
So you're only covered until age 75 not accounting for emergencies or inflation? Ya I'd keep on showing up for work for a while.
Link Posted: 1/13/2015 8:17:47 PM EST
[Last Edit: 1/13/2015 8:18:50 PM EST by Rodent]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By clockworkjon:
So you're only covered until age 75 not accounting for emergencies or inflation? Ya I'd keep on showing up for work for a while.
View Quote


I'm figuring that if that money earns an average 6% per year, I can live on just the interest, and at age 75 the principle will still be untouched.

If I withdraw less than 6% per year, the principle will continue to grow while I'm retired.
Link Posted: 1/13/2015 8:26:49 PM EST
retire now while you are still young enough to enjoy it.



I know a bunch of people who retired with 30 years worth of money and died in 5.

Link Posted: 1/13/2015 9:02:19 PM EST
I was pricing medicare today which might be a good exercise for you as well. Also a 6% may be hard to find today. Obama care also enters unto the equation up until age 65. They keep moving the cheese. or live hard die young and leave a good looking corpse.
Link Posted: 1/13/2015 9:39:50 PM EST
I'm 62 and thinking about going SOON! If I were you I'd plan on your egg earning 5% and figure on withdrawing 8% per year. You still won't run out of money, if I do my math correctly. Are you in good health? What is your life expectancy, based on your family history? Do you think you'll live to 90 or 95 as a "best case" scenario? Or do you have a family history of 65-70? Sorry, I'm not being morbid, just realistic. You have to be at our age.

Regardless of how much you earn and withdraw, I'd encourage you to go now and enjoy the time you have left.

Best wishes!
Link Posted: 1/14/2015 6:08:52 AM EST
[Last Edit: 1/14/2015 8:07:30 AM EST by Rodent]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By wideglidejoe:
... Are you in good health? What is your life expectancy, based on your family history?...
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Actuarially, I'll make it into my 80's. My wife is ten years younger than me, so I'm more concerned about her running out of money than me. I need to plan on my life plus twenty years.
Link Posted: 1/14/2015 6:09:55 AM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By bmwrn:
I was pricing medicare today which might be a good exercise for you as well. Also a 6% may be hard to find today. Obama care also enters unto the equation up until age 65. They keep moving the cheese. or live hard die young and leave a good looking corpse.
View Quote


Obamacare and other taxes, and inflation are the wild cards that are making me hesitate.
Link Posted: 1/14/2015 6:24:24 AM EST
do it brother
Link Posted: 1/14/2015 10:16:41 PM EST
i am 56 and decided i am getting out at 60

Link Posted: 1/14/2015 10:35:27 PM EST
This is a calculation I started doing many years ago, before it had such a catchy phase. The "game", as I see it, is to avoid three big risks: (1) market risks, mainly underperformance and fluctuations, (There is NO 6% in sight, in fact there are declining expectations at this equity market level of the SP500, or total market levels going forward. (2) inflation, and (3) longevity. Once you've avoided all three, you've won. Your 58, if you look at the many longevity actuarial tables, you alone will live till your mid 80s. Perhaps you can take 6-12 months off to see what retirements like getting back to your job later, any other employment would be voided because of age discrimination in the real world. Best wishes...
Link Posted: 1/15/2015 8:15:18 AM EST
4% return over the long haul is probably more likely. I retired at 60. It's taken me a while to get over the fear of running out of money. I'm living frugally but I do what I want.
I took my SS at 62 so I would not take so much from my IRA. My financial situation was almost identical to yours. Do it. You can always get a PT job if you need spending $$.
Medical insurance has doubled in the past 3 years,
Link Posted: 1/15/2015 12:46:27 PM EST
[Last Edit: 1/15/2015 11:47:43 PM EST by die-tryin]
This thread is VERY relavent to my interests.

Family history is playing a very big part of my decisions. We dont live to be a 100. More like 70-75. Ive budgeted my life out to 72yr, w/ concession to 82. But any year after 72 will be a celebration, lol.. Yes, there is inflation, rising costs, etc etc. But honestly, you can work yourself to death to keep up or say "screw it" and take the chance. Im taking the chance.,

I feel I have a enough to go NOW, Like you, Ive done the math, ive done the math til im blue in the face, ive calculated, ive re-calculated and then I calculated some more. When anyone asks me what im doing and I say "Running numbers",they just laugh and say "Of course you are."

There are X factors that you mentioned, that is a gamble.

How I did my retirement budget is like this, I will essentially be paying myself each month XX amount of money. Im going by a debt / income ratio for my budget.

For arguement sake, if my bills are $1000 a month (mortgage, elect, food, car ins. cell phone, internet, misc), i will budget up to $2000 for the month (id like to get better than 50/50) but this is just an example, not actual. I live below my means, save and dont spend much money. So, im in a position to do what im going to do. The idea is to have a monthly cushion for repairs, etc, if I dont use the cushion, it gets cycled back into savings or what have you. There was no real formula or book i read or internet guru for my plan, its a plan that has kept me going all these years and seems to work, ive stayed out a debt, got good credit history (score) and have been able to buy the things I want and need.

To put it into perseptive , my monthly living expenses will be less than alot of ppls mortgage alone is. its all about budget and living below ones means. I read all the pitfalls of "retirement" and they say ppl spend more, etc etc. We will see, but I doubt that will happen.

The funniest part, when I tell ppl im retiring, they say "Arent you a bit young", I tell them "yes, I am" lol. and usually get an odd look and behind that look is the same in everyone of them "How are you able to do that", they dont ask it, but you can see it. How really doesnt matter, the fact I can , is what matters. If you can, and your comfy, go for it. You can always pick up a part time job doing something you really enjoy. This is a back up plan if I get bored, but my budget is setup so Im not forced to that.

Not only am I retiring early, but im changing my lifestyle, buying a house on 10acres in the country (live in city, in 800sq ft apt now) , I feel Ill live healthier and happier, less stress, no micro managing managers, no punching the time clock, no GPS in work vans (being monitored all the time), etc etc etc etc.

As each day in the house buying process goes on, the more excited I am about the whole life style change.

OP ~ I know my situation is a lil more extreme than yours, but I say go for it. Ive been thinking about this for 2 solid years (no joking). Everyone knows how serious ive been thinking about this and doing it, Ive talked to my family and friends for hours (granted only I can make the choice). But every single person has said , if they could do it, they would and are happy I am able to.

I have alot of various influences into my decision, the biggest is every year flying home to a funeral, when you do that 3 years a row (sister, mom, dad), it has made the rest of our family take serious stock into our lives, Im content right now, not happy or sad, just content, when I think about the lifestyle change, it makes me happy, I was born and raised in WVa, im use to the country, the city sux and im over it. The noise, the traffic, the ppl, im over it all. I literally dont want to work til im 62-65yr and then what? Have a few years to do what? sit around, maybe travel. I can retire now, really enjoy myself, do the activities I want and then when I get to that older ages , retire again and maybe downsize or whatever.

Life literally is too short, we all say it, we all read it, rarely does anyone do anything about it. if your comfy, go for it. There will always be X factors, that is life, whether you work or not, there is always something, we cant live in fear on "what if".
Link Posted: 1/16/2015 7:30:24 PM EST
What monthly expenditure budget are y'all using for retirement projections?

I am 53, and thinking about retiring as early as 55. My house is paid for, and we currently spend about 70% of my take home pay, with my wife thoroughly enjoying that.

Are your projections based on a percentage of your current gross or net?

Link Posted: 1/17/2015 6:01:07 AM EST
Im using Net income for my budget. No real formula, just what I posted earlier.
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