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Is it possible to live off 12k/year?
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I am 65 and retired 4 months ago. Debt free. Pension plus social security make the expenses. Will dip into 401K as necessary. Glad I did not retire earlier. Enjoy the relaxation and no stress. Spend more time with my 7 grandchildren. Volunteer some. Read to keep my mind sharp.
That’s great! Congrats! 🎊
I am working on investing and saving so that my wife and I will have the median US household income for the rest of our lives. Right now that is $63.7k / annum. I have no desire to run the rat race my whole life but I will probably work to do something I love. On a pure savings basis and applying the 4% rule, that would be $1.59M (which we are no where close to). To assist, I’m working on stabilize my two occasional rental properties to generate a $20k positive cash flow. My wife will also be full pension eligible at 52/55 which will also provide about $25k per year in today’s dollars. So if I’m able to get an ongoing cash flow stream of $20k from investments and $25k from deferred income, I only need an extra $20k per year in savings which would be around $500k saved up. I’m sure there’s a lot of people that would disagree with me, and that’s fine. I’m a-ok living a modest life.
@SM2, yes, that’s correct. When I refer to savings, I refer to investment account(s) that I can draw down ~4% per year.
Having enough money to choose to do anything with my life without worrying about how much it pays. For me, that’s around $5M.
Able to live a comfortable but frugal life in a country I would like to live in without worrying about working (at least full time)
Able to work in a more meaningful job without worrying about high pay