#4387400 - 10/30/17 06:08 PM
How To Retire At 63 With $500,000
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Joined: Oct 1999
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Haggart
I Fought Diablo
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I Fought Diablo
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https://seekingalpha.com/article/4117916-retire-63-half-millionWhat 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"
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#4387402 - 10/30/17 06:13 PM
Re: How To Retire At 63 With $500,000
[Re: Haggart]
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PanzerMeyer
Pro-Consul of Florida
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Pro-Consul of Florida
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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.”
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#4387407 - 10/30/17 06:19 PM
Re: How To Retire At 63 With $500,000
[Re: Haggart]
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Joined: Oct 1999
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Haggart
I Fought Diablo
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I Fought Diablo
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The Lone Star State
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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"
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#4387409 - 10/30/17 06:24 PM
Re: How To Retire At 63 With $500,000
[Re: Haggart]
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PanzerMeyer
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Pro-Consul of Florida
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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 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.”
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#4387456 - 10/30/17 10:51 PM
Re: How To Retire At 63 With $500,000
[Re: Haggart]
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Joined: Jan 2006
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Mr_Blastman
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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.
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#4387459 - 10/30/17 11:01 PM
Re: How To Retire At 63 With $500,000
[Re: Haggart]
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Joined: Oct 1999
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Haggart
I Fought Diablo
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I Fought Diablo
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The Lone Star State
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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"
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#4387471 - 10/30/17 11:57 PM
Re: How To Retire At 63 With $500,000
[Re: Haggart]
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Joined: Jan 2006
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Brit44 'Aldo'
Every Human is Unique
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Every Human is Unique
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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.
TPA who TWI "The 10th Amendment simply says that any powers that aren’t mentioned in the Constitution as belonging to the government belong to the states themselves."
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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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oldgrognard
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USA
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I have expensive hobbies.
Good people sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.
Someday your life will flash in front of your eyes. Make sure it is worth watching.
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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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cichlidfan
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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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PanzerMeyer
Pro-Consul of Florida
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Pro-Consul of Florida
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Miami, FL USA
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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.”
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#4387523 - 10/31/17 10:41 AM
Re: How To Retire At 63 With $500,000
[Re: LB4LB]
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Joined: Apr 2001
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PanzerMeyer
Pro-Consul of Florida
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Pro-Consul of Florida
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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.”
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