Can I retire at age 40?
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Can I retire at age 40?
I realize that is crazy talk but I think I can pull it off... that is only 14 months away.
I've been very fortunate in investing and business.
Negatives to early retirement: 4 children under age 10 and future expenses for them (college etc) healthcare for 6.
Positives: House and 2 newer vehicles paid off. 2 million in retirement account. Can live off $120,000 year. $500,000 in savings.
So basically 2.5 million available to create the $120,000 interest.
However... and reason for my post is... I'm sure I'm missing lots of things I'm not thinking about. So what do I need to consider and learn about before giving up my job. My job isn't terrible. I just spend way too much time there (and one thing I'll try to do is scale back but they may not allow).
Thoughts? advice?
I've been very fortunate in investing and business.
Negatives to early retirement: 4 children under age 10 and future expenses for them (college etc) healthcare for 6.
Positives: House and 2 newer vehicles paid off. 2 million in retirement account. Can live off $120,000 year. $500,000 in savings.
So basically 2.5 million available to create the $120,000 interest.
However... and reason for my post is... I'm sure I'm missing lots of things I'm not thinking about. So what do I need to consider and learn about before giving up my job. My job isn't terrible. I just spend way too much time there (and one thing I'll try to do is scale back but they may not allow).
Thoughts? advice?
Re: Can I retire at age 40?
"However... and reason for my post is... I'm sure I'm missing lots of things I'm not thinking about."Johnretirement wrote: ↑Sun Apr 15, 2018 11:55 pm I realize that is crazy talk but I think I can pull it off... that is only 14 months away.
I've been very fortunate in investing and business.
Negatives to early retirement: 4 children under age 10 and future expenses for them (college etc) healthcare for 6.
Positives: House and 2 newer vehicles paid off. 2 million in retirement account. Can live off $120,000 year. $500,000 in savings.
So basically 2.5 million available to create the $120,000 interest.
However... and reason for my post is... I'm sure I'm missing lots of things I'm not thinking about. So what do I need to consider and learn about before giving up my job. My job isn't terrible. I just spend way too much time there (and one thing I'll try to do is scale back but they may not allow).
Thoughts? advice?
hello and welcome...
Things you may want to think about in your plan:
- what is your real budget for each child from now until they are independent?
- what is a realistic approach and budget for healthcare?
- what will retiring now mean for your SS and you spouses SS availability?
Typically the thought for drawing on funds for a 35+ year retirement is approximately 3% - slightly less if the time period is larger. While it is possible that you may be able to stretch that to maybe 4% with some luck the $2.5 million represents $75,000 at 3% and $100K at 4%.
It is also typical that people and families spending increases when kids are in late HS and college.
In summary - IMHO I would review the future budgets and make them representative and conservative and I would model the potential income from investments to be conservatibe for a long term draw.
Perhaps use a few models not just one to get a feel for what may happen - there are plenty of good ones to choose.
Re: Can I retire at age 40?
No.
Find a different job, even if it pays less. Balance.
Find a different job, even if it pays less. Balance.
Re: Can I retire at age 40?
I second the comments smitcat made above.smitcat wrote: ↑Mon Apr 16, 2018 7:14 amJohnretirement wrote: ↑Sun Apr 15, 2018 11:55 pm
...reason for my post is... I'm sure I'm missing lots of things I'm not thinking about. So what do I need to consider and learn about before giving up my job. My job isn't terrible. I just spend way too much time there (and one thing I'll try to do is scale back but they may not allow).
Thoughts? advice?
...Typically the thought for drawing on funds for a 35+ year retirement is approximately 3% - slightly less if the time period is larger. While it is possible that you may be able to stretch that to maybe 4% with some luck the $2.5 million represents $75,000 at 3% and $100K at 4%.
It is also typical that people and families spending increases when kids are in late HS and college.
In summary - IMHO I would review the future budgets and make them representative and conservative and I would model the potential income from investments to be conservatibe for a long term draw.
Perhaps use a few models not just one to get a feel for what may happen - there are plenty of good ones to choose.
You should not assume a 4% WD rate as safe for potentially a 50 years retirement period (and you are assuming a 4.8% initial WD rate).
Second, how sure are you that $120K is "enough" to support a family of 6 people? I'd prepare a detailed bottoms up budget and build in contingencies.
When you retire, you likely will not have access to former employer paid health care. That alone is going to be very expensive and who knows how much that cost will increase in the coming years/decades (especially the first 25 years of your retirement - before you are medicare eligible). My DW and I are early retired and my budget for healthcare for the two of us is nearly $25K per year.
Also, with 4 children under ten, you have a lot of saving to do for college (likely needing $500K and potentially closer to $1 million if you intend to pay for it yourself). Kids get much more expensive as they age too - costs much higher for teenagers than for kids under 10.
I'd keep working and saving if I were you. Maybe look for a new job which might rekindle your interest in working. Try to push back on the hours at your current job - at a minimum. You never know unless you ask.
Last edited by MikeG62 on Mon Apr 16, 2018 5:10 pm, edited 1 time in total.
Real Knowledge Comes Only From Experience
Re: Can I retire at age 40?
You could be planning for a 55 year retirement. If you have a 40 year old spouse there is a 50/50 chance one of you will make it to 88, which is 48 years. As pointed out, a 3% withdrawal rate would give you the best chance for success, so if you could make it on $75,000 you might have a shot. I would try really hard to get a better life /work balance in my current job, since it "isn't terrible". If you could work another 10 years even at slightly lower income you would much better positioned to do what you want.Johnretirement wrote: ↑Sun Apr 15, 2018 11:55 pm So what do I need to consider and learn about before giving up my job. My job isn't terrible. I just spend way too much time there (and one thing I'll try to do is scale back but they may not allow).
Thoughts? advice?
"Confusion has its cost" - Crosby, Stills and Nash
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Re: Can I retire at age 40?
No, keep working. I think you might be having a mid-life crisis. A 6% withdrawal rate at such an early retirement age is not sustainable. At that age, you should be thinking about a 3% withdrawal rate or roughly $60K per year. You need to remain employed and revisit this question in 10 years OR need to dramatically downsize your lifestyle.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Re: Can I retire at age 40?
What's your plan for insurance: health, dental, life? Does the $120K include? What's your budget for those items?
Re: Can I retire at age 40?
I don’t think you can. Def not w 4 kids. Off top of my head, u prob need double that ie like 5
Mln
Mln
Re: Can I retire at age 40?
At 3% withdrawl 2.5m is 75 k a year
At 4% withdrawl 2.5m is 100 k a year
The amount is inclusive of taxes and healthcare.
You don't have enough for 120k lifestyle.
At 4% withdrawl 2.5m is 100 k a year
The amount is inclusive of taxes and healthcare.
You don't have enough for 120k lifestyle.
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Re: Can I retire at age 40?
This, you could easily if you lived like us (without daycare, a <$40k lifestyle). But you'd be taking a huge risk if you expected to maintain the current lifestyle. As others have said, trudge through a few more years or find a different job that is a little less stressful. Congrats on the accomplishments so far, we hope to be about halfway to where you are when I hit 40 (in 3yrs, my wife will be 35). Amazing to think that with our current lifestyle, retiring in 3yrs might actually be doable for us; although I am not even remotely considering it that early.
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Re: Can I retire at age 40?
This is great stuff.
Currently we have been living off $120,000 and paying $25,000 for a family plan insurance that includes health. Dental. Vision
I did check a little bit on Open market and was coming up with similar pricing albeit higher deductibles. That $120,000 included insurance so really living off 95000 plus insurance.
I kind of enjoy the stock market and have had failures and success. Fortunately a lot more success than failures.
My thought is by actively managing my account I could generate 6% interest but this feedback is good. I might be way overestimating returns.
That is also good advice to factor in thoughts of the teen years.
I was thinking about weddings and college but not teens more expensive than 9 year olds when it comes to activities etc.
Currently we have been living off $120,000 and paying $25,000 for a family plan insurance that includes health. Dental. Vision
I did check a little bit on Open market and was coming up with similar pricing albeit higher deductibles. That $120,000 included insurance so really living off 95000 plus insurance.
I kind of enjoy the stock market and have had failures and success. Fortunately a lot more success than failures.
My thought is by actively managing my account I could generate 6% interest but this feedback is good. I might be way overestimating returns.
That is also good advice to factor in thoughts of the teen years.
I was thinking about weddings and college but not teens more expensive than 9 year olds when it comes to activities etc.
Re: Can I retire at age 40?
As a general rule the temptation to chase returns leads to lower returns. And even if you could potentially generate 6% returns, that is assuming all else goes well with life, the market doesn't crash, you or spouse doesn't become disabled, no serious injuries to anyone in your family, etc.Johnretirement wrote: ↑Mon Apr 16, 2018 8:46 am This is great stuff.
Currently we have been living off $120,000 and paying $25,000 for a family plan insurance that includes health. Dental. Vision
I did check a little bit on Open market and was coming up with similar pricing albeit higher deductibles. That $120,000 included insurance so really living off 95000 plus insurance.
I kind of enjoy the stock market and have had failures and success. Fortunately a lot more success than failures.
My thought is by actively managing my account I could generate 6% interest but this feedback is good. I might be way overestimating returns.
That is also good advice to factor in thoughts of the teen years.
I was thinking about weddings and college but not teens more expensive than 9 year olds when it comes to activities etc.
I think you move into "yup, we can do this" territory when you're accounting for the worst-case scenario and still coming out okay.
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Re: Can I retire at age 40?
Perhaps you could, but you could also generate losses in excess of the market. What do you do if 20 years from now your portfolio is no longer sufficient to support you? It's unlikely you could just go back to your former career. If you haven't already, check out firecalc: https://www.firecalc.com/Johnretirement wrote: ↑Mon Apr 16, 2018 8:46 am
My thought is by actively managing my account I could generate 6% interest but this feedback is good.
It will look at historic returns on various investments and estimate your chances of outliving your money under various spending scenarios. For what it's worth, it only gives you a 33% chance of success trying to spend 120k/yr (inflation adjusted) over a 50-year time horizon on a $2M portfolio. Over the very long term, inflation can become a serious issue. You can't just generate 6% nominal returns and assume your spending power would remain static.
To answer your question, you COULD afford to retire if you scaled down to more like 60k/yr, but I imagine it would require significant lifestyle downgrades.
Re: Can I retire at age 40?
The rule of thumb is that you can pull 4% a year for 30 years. $2.5 million would generate $100,000 a year in that scenario.Johnretirement wrote: ↑Sun Apr 15, 2018 11:55 pm I realize that is crazy talk but I think I can pull it off... that is only 14 months away.
I've been very fortunate in investing and business.
Negatives to early retirement: 4 children under age 10 and future expenses for them (college etc) healthcare for 6.
Positives: House and 2 newer vehicles paid off. 2 million in retirement account. Can live off $120,000 year. $500,000 in savings.
So basically 2.5 million available to create the $120,000 interest.
However... and reason for my post is... I'm sure I'm missing lots of things I'm not thinking about. So what do I need to consider and learn about before giving up my job. My job isn't terrible. I just spend way too much time there (and one thing I'll try to do is scale back but they may not allow).
Thoughts? advice?
But since you want to retire at 40, thirty years of retirement isn't enough. You'd more likely want to cut that back to 3% or 3.5%.
That's only $75,000 or $87,000.
So no, you can't retire at 40 if you need $120,000 a year to live.
But if you cut your expenses you could. Where do you live that with a paid off house, you still need $10,000 a month? Could you move to a lower cost of living area? That might make it possible.
4 young children also makes it tough. College for them will be at least $500,000. That's a huge chunk of your money.
You can certainly switch jobs at this point. Maybe even go part-time. Try to find something with a better work-life balance anyway.
Re: Can I retire at age 40?
Play around with https://firecalc.com. I put in 120k spending on 2.5M portfolio for 55 years and it said there's a 45% chance you'll run out of money. Obviously it does not predict the future, but I think it does give a good indication of the riskiness of your decision.
Fees are the rub.
Re: Can I retire at age 40?
What type of account is the $2m?Johnretirement wrote: ↑Sun Apr 15, 2018 11:55 pm I realize that is crazy talk but I think I can pull it off... that is only 14 months away.
I've been very fortunate in investing and business.
Negatives to early retirement: 4 children under age 10 and future expenses for them (college etc) healthcare for 6.
Positives: House and 2 newer vehicles paid off. 2 million in retirement account. Can live off $120,000 year. $500,000 in savings.
So basically 2.5 million available to create the $120,000 interest.
However... and reason for my post is... I'm sure I'm missing lots of things I'm not thinking about. So what do I need to consider and learn about before giving up my job. My job isn't terrible. I just spend way too much time there (and one thing I'll try to do is scale back but they may not allow).
Thoughts? advice?
Would you be willing to move to a lower cost of living area and downsize your budget?
Do you have any 529's for the kids college?
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Re: Can I retire at age 40?
I have 500,000 in regular taxable account.
2,300,000 in retirement which is why I said 2 million because of early withdrawal fees I would lose a lot and wanted that to be factored in
We probably could live on much less.
We’ve been putting that 120000 towards mortgage and 2 car payments.
I figured that early retirement would Mean more travel and me being involved in kids sports and stuff. So I’d increase the spending so figured I’d keep the spending in same category as the house and cars. And eventually decade or so from now will need new vehicles.
But that’s why I thought it was doable.
Retire from job.
Spend more time with family and work the stock market for my future finances. (Aka new job)
But I might need to make it 45 or 42 or something. I don’t have to retire. Just “want” to. Ideally they’ll say I can scale back which is best case scenario. But don’t want to bring it up until I’ve fully exhausted all plans. And far from that now.
2,300,000 in retirement which is why I said 2 million because of early withdrawal fees I would lose a lot and wanted that to be factored in
We probably could live on much less.
We’ve been putting that 120000 towards mortgage and 2 car payments.
I figured that early retirement would Mean more travel and me being involved in kids sports and stuff. So I’d increase the spending so figured I’d keep the spending in same category as the house and cars. And eventually decade or so from now will need new vehicles.
But that’s why I thought it was doable.
Retire from job.
Spend more time with family and work the stock market for my future finances. (Aka new job)
But I might need to make it 45 or 42 or something. I don’t have to retire. Just “want” to. Ideally they’ll say I can scale back which is best case scenario. But don’t want to bring it up until I’ve fully exhausted all plans. And far from that now.
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Re: Can I retire at age 40?
Congratulations. You are doing very well, but you don't have enough to retire at 40. Find a less stressful job and let the market work it's magic and you should be in great shape to retire at 50. I have three kids older than yours. Kid expenses are very high and unpredicatable. Health care costs are wild and unpredicatable as well. Best wishes.
Re: Can I retire at age 40?
A few thoughts....Johnretirement wrote: ↑Mon Apr 16, 2018 8:46 am This is great stuff.
Currently we have been living off $120,000 and paying $25,000 for a family plan insurance that includes health. Dental. Vision
I did check a little bit on Open market and was coming up with similar pricing albeit higher deductibles. That $120,000 included insurance so really living off 95000 plus insurance.
I kind of enjoy the stock market and have had failures and success. Fortunately a lot more success than failures.
My thought is by actively managing my account I could generate 6% interest but this feedback is good. I might be way overestimating returns.
That is also good advice to factor in thoughts of the teen years.
I was thinking about weddings and college but not teens more expensive than 9 year olds when it comes to activities etc.
- Insurance and medical costs will go up based upon your families ages
- Your age indicates that you would have more stock market gains than loses, consider the longer view
- even a 6% gain is sometimes (often) partially lost to inflation, 40 years can apply a lot of inflation (382% past 40 years)
- even without college those teenagers can use up funds, not to mention the other stuff
Re: Can I retire at age 40?
Not if your spending remains at that level. Yes if you cut it in half.
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Re: Can I retire at age 40?
Early withdrawal fees can be mitigated with the "roth conversion ladder" strategy:Johnretirement wrote: ↑Mon Apr 16, 2018 9:23 am 2,300,000 in retirement which is why I said 2 million because of early withdrawal fees I would lose a lot and wanted that to be factored in
https://www.madfientist.com/how-to-acce ... nds-early/
http://rootofgood.com/roth-ira-conversi ... etirement/
https://www.gocurrycracker.com/never-pay-taxes-again/
https://www.gocurrycracker.com/the-go-c ... 013-taxes/
https://www.gocurrycracker.com/go-curry ... 014-taxes/
https://www.gocurrycracker.com/go-curry ... 015-taxes/
https://www.gocurrycracker.com/go-curry ... 016-taxes/
You'd do well to read all of the above blog posts and search through these blogs extensively. All are doing what you want to do, and doing it on much smaller account balances.
I blog here: https://www.frugalprofessor.com/
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Re: Can I retire at age 40?
I was thinking similar two years ago. I have modified my job and it is so much better. Make 15% less but work about 40% less. The nest egg is still growing in the meantime. I'd hold off if I were you.
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Re: Can I retire at age 40?
Appreciate all of these replies. Keep them coming. Will go through each post. And advice and link and will check it out & learn.
Re: Can I retire at age 40?
How about part time work? Start a small business? Take a few years off and then restart work?
The other issue with stopping work so early is the effect on your SS benefits.
The other issue with stopping work so early is the effect on your SS benefits.
Re: Can I retire at age 40?
I'm in a similar vein that you are but I can't get over the idea of the kids seeing me sit at home while they went to school at those young impressionable ages. The phrase money comes from work get used a bunch here. My oldest(10) has funded a Roth with paper route money and is getting the idea that money can generate more money but I want the work ethic to be seen by all of them until they get old enough to understand that.
Re: Can I retire at age 40?
Maybe your wife could work to set a good example for them.Raabe34 wrote: ↑Mon Apr 16, 2018 9:45 am I'm in a similar vein that you are but I can't get over the idea of the kids seeing me sit at home while they went to school at those young impressionable ages. The phrase money comes from work get used a bunch here. My oldest(10) has funded a Roth with paper route money and is getting the idea that money can generate more money but I want the work ethic to be seen by all of them until they get old enough to understand that.
Re: Can I retire at age 40?
She teaches at a public school.Pajamas wrote: ↑Mon Apr 16, 2018 9:48 amMaybe your wife could work to set a good example for them.Raabe34 wrote: ↑Mon Apr 16, 2018 9:45 am I'm in a similar vein that you are but I can't get over the idea of the kids seeing me sit at home while they went to school at those young impressionable ages. The phrase money comes from work get used a bunch here. My oldest(10) has funded a Roth with paper route money and is getting the idea that money can generate more money but I want the work ethic to be seen by all of them until they get old enough to understand that.
Re: Can I retire at age 40?
We've been in a mostly bull market environment for the past 9 years. So sure, you've had a lot of winners.Johnretirement wrote: ↑Mon Apr 16, 2018 9:23 amwork the stock market for my future finances. (Aka new job)
Are you ready for a bear market?
The reason we say 3% or 4% is because a good chunk of your money should be in bonds or CDs to weather bear markets. If you want to make 6% a year, then you're going to have most of your money in stocks.
Are you ready for the next 50% crash where you lose $1 million dollars, and you're still pulling $120,000 a year?
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Re: Can I retire at age 40?
One doesn't have to sit at home. I stopped working at 39 but have been very busy since giving back to my community in various capacities that keeps me busy. If I let it, I could be busier than when I was working for a living but I don't. My kids get to see a father who is very active in their school and various activities along with my other volunteer and elected responsibilities. This is in contrast to my father whom rarely came to any of my activities because he was always at work.
Re: Can I retire at age 40?
No problem then. Surely you wouldn't be sitting around all day watching television and playing video games but would be cleaning the house, grocery shopping, doing the laundry, getting dinner ready, etc.Raabe34 wrote: ↑Mon Apr 16, 2018 9:50 amShe teaches at a public school.Pajamas wrote: ↑Mon Apr 16, 2018 9:48 amMaybe your wife could work to set a good example for them.Raabe34 wrote: ↑Mon Apr 16, 2018 9:45 am I'm in a similar vein that you are but I can't get over the idea of the kids seeing me sit at home while they went to school at those young impressionable ages. The phrase money comes from work get used a bunch here. My oldest(10) has funded a Roth with paper route money and is getting the idea that money can generate more money but I want the work ethic to be seen by all of them until they get old enough to understand that.
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Re: Can I retire at age 40?
No. You are in the ballpark but not there yet. If you cut your expenses to $80K, I would say yes.
Re: Can I retire at age 40?
One thing I have not seen mentioned is that if you do retire your spending might go up if you want to do things like have hobbies or travel.Johnretirement wrote: ↑Sun Apr 15, 2018 11:55 pm I'm sure I'm missing lots of things I'm not thinking about.
A big change like very early retirement can also put stress on a marriage so you also need to consider if you have enough to do OK financially if you end up getting divorced. That may a bit extreme but you would need to be sure that you and your spouse are on the same page about what you retirement might look like.
You would need to be prepared for having very few people that are you age that are available during the week to do things with.
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Re: Can I retire at age 40?
No. I would most definitely not retire with your current numbers. I would build up some college savings in the next 3-5 years, whilst also looking to trim your expenses to see "how low you can go" if push were to come to shove once retired. It will also help you sock away a little extra in the meanwhile.
Questions:
Questions:
- Is your spouse currently working?
Can you take a small portion of current portfolio to see if you can, in fact, beat the market before you retire? This way, you can prove or disprove your theory without risking your retirement on it.
Re: Can I retire at age 40?
I would say no but you should definitely be able to go when you're 45. Still a very young age to retire.
Re: Can I retire at age 40?
Yes you can.
No you should not.
You have another twenty productive years ahead of you.
Now just get out there and show everyone that "yes you can" retire AT SIXTY.
Good luck, y gracias por leer ~cfs~
No you should not.
You have another twenty productive years ahead of you.
Now just get out there and show everyone that "yes you can" retire AT SIXTY.
Good luck, y gracias por leer ~cfs~
~ Member of the Active Retired Force since 2014 ~
Re: Can I retire at age 40?
Just about everyone who has “managed their account” for the last 10 years looks like a genius since the market has gone crazy in a positive direction. These returns are unlikely to continue like they have been for the next 45 years, so count me skeptical that you could consistently eke out 6% growth over the time frame you are looking at.Johnretirement wrote: ↑Mon Apr 16, 2018 8:46 am This is great stuff.
Currently we have been living off $120,000 and paying $25,000 for a family plan insurance that includes health. Dental. Vision
I did check a little bit on Open market and was coming up with similar pricing albeit higher deductibles. That $120,000 included insurance so really living off 95000 plus insurance.
I kind of enjoy the stock market and have had failures and success. Fortunately a lot more success than failures.
My thought is by actively managing my account I could generate 6% interest but this feedback is good. I might be way overestimating returns.
That is also good advice to factor in thoughts of the teen years.
I was thinking about weddings and college but not teens more expensive than 9 year olds when it comes to activities etc.
Another vote for continuing to grind away for a while while looking to slow down at your current job or finding a new, less stressful job.
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Re: Can I retire at age 40?
"Work until you're 60 just because you're physically able, even if you have the money to retire"?? Terrible advice.
I'm not saying OP has enough to retire now with those high annual expenses, but there's no reason to work until 60 just for the sake of working until you're 60.
Re: Can I retire at age 40?
I'm all for retiring early but I would keep the pedal to the metal for a few years still. I think about age 45 - 50 you should hit your sweet spot depending on investment returns and how much you continue saving.
I would want around 3.5M in investable assets if I planned to retire pre-50 and spend 120k/yr. Especially with 4 kids who have yet to leave the nest.
I would want around 3.5M in investable assets if I planned to retire pre-50 and spend 120k/yr. Especially with 4 kids who have yet to leave the nest.
Re: Can I retire at age 40?
No, it wouldn't be wise. I'm like you, just a few years older. We are still so young with too many years of uncertainty in front of us, for a family of 6.
Plus, I believe that no one should retire until their portfolio has weathered a recession like 2008-2010 or 2001-2002. Not until your portfolio drops by several hundred thousands to millions, do you really know what you have to think about and plan for the future. It's scary but important
Plus, I believe that no one should retire until their portfolio has weathered a recession like 2008-2010 or 2001-2002. Not until your portfolio drops by several hundred thousands to millions, do you really know what you have to think about and plan for the future. It's scary but important
Re: Can I retire at age 40?
I was just curious what you mean by working the stock market.
Quote:
Spend more time with family and work the stock market for my future finances. (Aka new job)
Thanks for any clarification there.
Good luck.
Quote:
Spend more time with family and work the stock market for my future finances. (Aka new job)
Thanks for any clarification there.
Good luck.
Re: Can I retire at age 40?
He means picking stocks or funds. Not something we recommend around here.
Re: Can I retire at age 40?
also, I know about a half dozen guys in my neighborhood who "retired early" in 2005-2007 and played the stock market as their pseudo career.
Every single one of them is back to a regular job after the last recession, with many wives going back to work too. A couple of them downsized to lower cost areas. Short answer is it didn't turn out as they hoped.
Every single one of them is back to a regular job after the last recession, with many wives going back to work too. A couple of them downsized to lower cost areas. Short answer is it didn't turn out as they hoped.
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Re: Can I retire at age 40?
OP- Do it brother!
I retired at age 42. Fortunately I didn't ask for advice- I'm sure I would've been told to keep working.
My net worth has nearly tripled since I retired 9 years ago.
Work sucks- don't wait until you're old to enjoy your money.
I retired at age 42. Fortunately I didn't ask for advice- I'm sure I would've been told to keep working.
My net worth has nearly tripled since I retired 9 years ago.
Work sucks- don't wait until you're old to enjoy your money.
Funding secured
Re: Can I retire at age 40?
Mid-life crisis. I'm there too.
Find another position or scale back.
Thank goodness your wife works for the school system? She should have a group health policy? My wife is a teacher and we do.
Find another position or scale back.
Thank goodness your wife works for the school system? She should have a group health policy? My wife is a teacher and we do.
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Re: Can I retire at age 40?
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Re: Can I retire at age 40?
2.8 Mil? Yup. I sure as heck would give it a run. Try and live off of 80k a year and spend some time with the family.
Love the folks who claim it's impossible to support a family of 5 on a $2.8 Mil best egg. I guess we all need someone paying into social security to keep it afloat.
Love the folks who claim it's impossible to support a family of 5 on a $2.8 Mil best egg. I guess we all need someone paying into social security to keep it afloat.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.
Re: Can I retire at age 40?
Agree 1000%LiterallyIronic wrote: ↑Mon Apr 16, 2018 11:56 am"Work until you're 60 just because you're physically able, even if you have the money to retire"?? Terrible advice.
I'm not saying OP has enough to retire now with those high annual expenses, but there's no reason to work until 60 just for the sake of working until you're 60.
Re: Can I retire at age 40?
Literally nobody has said that.Olemiss540 wrote: ↑Mon Apr 16, 2018 1:02 pmLove the folks who claim it's impossible to support a family of 5 on a $2.8 Mil best egg.
People have stated that the portfolio wouldn't support a $120k annual withdrawal figure.
The OP can certainly support a family of 5 if they reduce their withdrawal rate.
Re: Can I retire at age 40?
Besides the fact that it is a family of 6, not a family of 5. . . .greg24 wrote: ↑Mon Apr 16, 2018 2:04 pmLiterally nobody has said that.Olemiss540 wrote: ↑Mon Apr 16, 2018 1:02 pmLove the folks who claim it's impossible to support a family of 5 on a $2.8 Mil best egg.
People have stated that the portfolio wouldn't support a $120k annual withdrawal figure.
The OP can certainly support a family of 5 if they reduce their withdrawal rate.
Re: Can I retire at age 40?
thank you for these links!FrugalProfessor wrote: ↑Mon Apr 16, 2018 9:32 am
Early withdrawal fees can be mitigated with the "roth conversion ladder" strategy:
https://www.madfientist.com/how-to-acce ... nds-early/
http://rootofgood.com/roth-ira-conversi ... etirement/
https://www.gocurrycracker.com/never-pay-taxes-again/
https://www.gocurrycracker.com/the-go-c ... 013-taxes/
https://www.gocurrycracker.com/go-curry ... 014-taxes/
https://www.gocurrycracker.com/go-curry ... 015-taxes/
https://www.gocurrycracker.com/go-curry ... 016-taxes/
You'd do well to read all of the above blog posts and search through these blogs extensively. All are doing what you want to do, and doing it on much smaller account balances.