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#4387400 - 10/30/17 06:08 PM How To Retire At 63 With $500,000  
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Haggart Offline
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https://seekingalpha.com/article/4117916-retire-63-half-million

What one forum member said at Seeking Alpha after this article:

"I retired at 54 with$150,000. Depends where you live and your lifestyle. In My GA county, you don't pay property taxes after age 65. I'm a frugal person and never forgot what my dad said. "Save For A Rainy Day and Always Spend Less Than You Make!" It's not rocket science! I bought a new house and live well!"


"everything lives by a law, a central balance sustains all"
Inline advert (2nd and 3rd post)

#4387402 - 10/30/17 06:13 PM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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500k at 63 isn't really that much if you end up living into your 80's.


Let's say you decide to live relatively frugally and decide you need 50k per year. That will only last you 10 years. If you live to be 83 (very reasonable with today's life expectancy rates) then you would need to lower that yearly income to 25k in order to stretch it out sufficiently.


I suppose that if you have a fully paid off house, paid off car and relatively good health to keep the medical expenses down, most people could get by fine with less than 50k per year.

Last edited by PanzerMeyer; 10/30/17 06:15 PM.

“Whoever fights monsters should see to it that in the process he does not become a monster. And if you gaze long enough into an abyss, the abyss will gaze back into you.”
#4387403 - 10/30/17 06:17 PM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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if you require 50k a year to live then you need to move somewhere else when you retire. If you own your own house you should be able to live on 15-20k a year for a pair of retirees.

#4387407 - 10/30/17 06:19 PM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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Haggart Offline
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that's why you don't live off your principal directly .... as the article demonstrates you use your principal to generate income and you live off of that plus whatever other assets you might have such as social security


"everything lives by a law, a central balance sustains all"
#4387409 - 10/30/17 06:24 PM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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Originally Posted by Haggart
that's why you don't live off your principal directly .... as the article demonstrates you use your principal to generate income and you live off of that plus whatever other assets you might have such as social security




Ok, that would most definitely work in most cases. I had not read the article so I was just assuming that the 500k was the total amount available for retirement.


“Whoever fights monsters should see to it that in the process he does not become a monster. And if you gaze long enough into an abyss, the abyss will gaze back into you.”
#4387447 - 10/30/17 09:51 PM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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hahhaha silly americans worrying about retiring my president basically instituted life servitude by increasing retirement to 65 for man or 35 years of contribution, i will never have to worry about all that ,thank goodness ! one less worry for me!

#4387449 - 10/30/17 09:56 PM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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I'm well on my way to that now at 40, but 500K is nothing unless you want to retire to a 3rd world country with a very favorable exchange rate.

#4387451 - 10/30/17 10:27 PM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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Plenty retired people today are still financially helping their grown children. That seems to be one of those "unknown" variables in the equation. That, and medical expenses.

#4387454 - 10/30/17 10:42 PM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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Most Americans at retirement age don't even have 500 K saved !

[Linked Image]


"everything lives by a law, a central balance sustains all"
#4387456 - 10/30/17 10:51 PM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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5% annually is the rule of thumb as to the limit you may draw against a portfolio and stand an exceptionally good chance it will last you until you die. If you take no more than 5% annually, you can reasonably expect the principal to grow through market appreciation as well. Money should be used as a machine, cogs in an engine, a well oiled machine. Serviced right, it can last you a lifetime. But 500k? That's only 25k/year to start with, and that means even if you have an emergency arise, that's your cap. Very difficult to stay retired for 30 - 40 years on 500k--especially considering how expensive it gets once your health starts to fail.

Last edited by Mr_Blastman; 10/30/17 10:52 PM.
#4387459 - 10/30/17 11:01 PM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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5% is on the high side .... most stats I've seen are no more than 4% per year but of course it depends on how big a pile of cash you've saved as well as lifestyle, return on investment ....so many factors.


"everything lives by a law, a central balance sustains all"
#4387471 - 10/30/17 11:57 PM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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I have to agree with Master. I have chosen to live, in the Detroit burbs, on less then 12K per year since 96. Thanks to the AHCA, I am now forced to earn less then 10.1K per year or be forced to accept governmental charity for a service that I refuse to use. You choose a life that requires the latest and greatest. That is your right, but it does not mean that you can not exist without it. Anyone who expects to live that lifestyle is simply greedy.

Edit: Anyone who expects to live that lifestyle, without working hard to achieve it, is simply greedy.

Last edited by Brit44 'Aldo'; 10/31/17 12:02 AM.

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#4387472 - 10/31/17 12:02 AM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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#4387475 - 10/31/17 12:26 AM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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4% is about right (and it is the number that I am using currently). You can use a higher number but then you will need higher risk investments and, consequently, will be running the risk of losses that will reduce your net income to even less than 20k/year.


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#4387522 - 10/31/17 10:39 AM Re: How To Retire At 63 With $500,000 [Re: Blade_RJ]  
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Originally Posted by Blade_RJ
my president basically instituted life servitude by increasing retirement to 65 for man or 35 years of contribution, i will never have to worry about all that ,thank goodness ! one less worry for me!



This only affects the publicly funded pension system though. There are plenty of other options out there to fund your retirement and in fact, you shouldn't be relying principally on a public pension anyway.


“Whoever fights monsters should see to it that in the process he does not become a monster. And if you gaze long enough into an abyss, the abyss will gaze back into you.”
#4387523 - 10/31/17 10:41 AM Re: How To Retire At 63 With $500,000 [Re: LB4LB]  
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Originally Posted by LB4LB
Plenty retired people today are still financially helping their grown children.



People have to stop borrowing in excess of 50k or more worth of college loans so they can get a degree in English Lit or Art History.

Last edited by PanzerMeyer; 10/31/17 10:52 AM.

“Whoever fights monsters should see to it that in the process he does not become a monster. And if you gaze long enough into an abyss, the abyss will gaze back into you.”
#4387535 - 10/31/17 12:32 PM Re: How To Retire At 63 With $500,000 [Re: Haggart]  
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I retired at 50 with around $1.53m, but cost of living here is quite a bit higher than over in the US, and with the decline of the £ it is getting more expensive to live in Belgium, we are now considering to sell up my property here and move back to Scotland and live in my apartment there which would allow us to re-invest the capital from this house, and with the £ so low against the € just now compared with when I bought the house I stand to make about £90k with the increase in value of the house + exchange rate difference, a yield of around 46% over 9 years, even with only the exchange rate difference it is still around £40k on my investment.


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