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Anyone familiar with the areas of McKinsey that do work on nonprofit/refugee work? What qualifications are needed? I’ve done pro bono related work at Deloitte,not sure how to do that full time.
Eg: https://www.mckinsey.com/featured-insights/employment-and-growth/a-road-map-for-integrating-europes-refugees
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Only you can define “decent lifestyle “ for you and your family. Figure out your spending target / year. People can retire for far less or far more.
“FIRE” is not a universal number that works for all. It’s you figuring out and sticking to the lifestyle for rest of your life.
BAH1 very thoughtful questions… kids education is built in this cost , yes 9 more years of mortgage left but included in the $200k per year cost , also $3k per month of health insurance is also included in this $200k per year budget , yes spouse but homemaker
Yes $200k is enough but it will not be same 20 years from now .. need to figure out a way to invest so that it can adjust for inflation
Retire or work for yourself at your own terms ? Later is more doable.
Yes that should be on my discretion but I want to be financially independent
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Do you plan on putting a chunk of that in a high yield dividend investment account so you can still compound wealth even without a full time job?
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Youll do just fine. Im recently retired in my 50s in NJ with "only" $3M invested, $400k remaining on my mortgage and 1 kid in college.
I use the bucket strategy with 2 years cash reserves in a HYSA and the rest in a mix of brokerage and retirement accounts.
In my view approx 2M is good for 100k annual, after children are on their own, and this is for 62-90. Your situation of 5M does sound right if your spend will be $200k. I think it is possibly more than enough.
Yeah 5M is plenty good for 200k/year. It’s within the 4% rule.
Assuming you have your house paid off, 5m at 4% a year is 200k in passive income. I am certain you can easily get double that (8% return). So yes. You can retire comfortably for now. Dot know about 5 years later you
Don’t forget health care costs as you age
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This is the biggest obstacle to retiring very early.
Is it $5M liquid? If so that gives you $200k/yr forever. Is that enough for you?
Define ‘decent lifestyle’. Depends entirely on that. For me $5m wouldn’t be nearly enough unless I changed my lifestyle considerably. For you it may be enough.
I don’t think you have enough. You’re only 50. I think you need to be closer to 60.
Your spending times 25 is the general rule, but mkt returns are expected to flatten after this year (tho they’ve been saying this for years), so I would add some cushion and consider belt tightening
With $5 M, engage a Flat Fee only financial advisor (you continue to manage your money) and get a solid financial plan that incorporates all your goals and tax impacts as well. They will also incorporate the Sequence of Returns Risk (the potential of a market crash in your retirement years) into the portfolio planning. These folks do NOT charge based on AUM but instead charge a flat fee.
Interview at least 4-5 and THEN select one.
Their fees will be money well spent.
Good luck.
Why not do barista FIRE or something similar where you work part time or something you are more passionate about
The 4% rules means 4% not 200k. If the markets drop for a couple of years can you adjust that budget downwards? After 2008 the 4% rule because the 3-3.5% rule for half a decade. If you have the flex in your budget to account for market swings or emergency spend you should be fine. If not it’s worth building a little buffer. It will be hard to go back to work in 20 years if you didn’t get it right.
I’m in central NJ and think that’s doable. I’m aiming for 10M to enable my goals (pay for college, beach house, etc)
$10M is a no brainer .. but was trying to understand if $5M would be enough if I can contain my annual expense within $200k per year