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Gotta say I LOL’d at this.
Any thoughts on the put down, “Ok, Boomer”
??
It will never be the same again
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There's an entire industry that has cropped up to tell you that unless you have $10M liquid you can't even think about retiring before 70. Not surprisingly, this industry depends on fees as a % of AUM.
The reality is that if your house is paid off, your kids are out of college, and you have access to health insurance through Medicare (age 65) or a former employer, you can easily retire on $2M. Especially if your lifetime earnings put you in the top tier for Social Security and you're not in a HCOL area.
Don’t all these assumptions change now that we have the current government?
As a recent retiree, there are several things to consider:
1) How much will you receive monthly from Social Security or other income such as rental properties.
2) Will you be carrying a mortgage?
3) What are you planning on doing during retirement, such as lots of international travel or going on cruises?
4) Where do you plan on living? HCOL, compared to LCOL city, makes a huge difference.
For my situation, we downsized (a little) to an LCOL area, and while there is a mortgage, a rental property covers most of it. About a year before retiring, we started living less extravagant and discovered how little money we really needed. After 6 months of retirement, I haven't touched any investments or savings yet.
The two unknowns that nobody can calculate are health and longevity, although my financial planner claims that if I stay relatively healthy, my money will last until I'm 96. Personally, I'm not sure I believe that, but I'm not going to worry for another decade or two.
1) not really counting on SS but it depends on when to withdraw. I’m told that if you retire early you take it even if the distributions are smaller, since your total will be higher. I haven’t worked out the numbers on that, though. We have two rental properties - I’m selling one and going back into investing it
2) good question. I’m trying to pay my home down so I can get it into a trust in ten years. I have a 15y mortgage right now.
3) lots of international travel so will need money
4) I’m in a MCOL city. We will stay there as I like being close to a major airport
There’s a decent simulation tool at cFIREsim.com. Takes a little effort to enter some values accurately, but once done, running alternate simulations is easier. Unsure about accuracy, but the results seem reasonable.
You can consult a professional financial planner (CFP) to run a retirement projection. This will give you a more objective assessment of whether your funds can support your expected lifespan.
At the same time, don't forget to consider: What kind of retirement life do you truly want? Is it a simple and stable life? Traveling the world? Or continuing to create value?
The essence of retirement isn't about stopping earning money, but about finally being able to choose the lifestyle you want.