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Old 05-20-2019, 08:47 PM   #21
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Originally Posted by Vacation4us View Post
I am definitely missing something. I canít imagine your anywhere near retiring with your lack of assets or funds. Your plan is to spend down your cash and hope your 401k grows enough to replace what your spending plus hoping your SS will be high even though you worked outside the states for at least 10 years.

I donít see it.
I don't see it either, OP wants to wait till 70 to take SS but plans for a 110 year life span. If I knew I would make it to 110 I'd pull that SS trigger as early as possible..
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Old 05-21-2019, 04:47 AM   #22
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Originally Posted by Vacation4us View Post
I am definitely missing something. I can’t imagine your anywhere near retiring with your lack of assets or funds. Your plan is to spend down your cash and hope your 401k grows enough to replace what your spending plus hoping your SS will be high even though you worked outside the states for at least 10 years.

I don’t see it.
I believe that many folks are way too conservative in their belief of what is necessary to retire. There's no problem being conservative for your own particular situation. However, it's all a matter of what your expenses will be and how you manage your money. OP clearly states her ability to live on $1000 per month, and is then allocating an additional $1000 per month for entertainment and travel. You may not be able to appreciate being able to live on that kind of budget, however, that doesn't mean that others are not capable of living on it and being extremely happy.

Your post here solely focuses on the assets yet doesn't mention liabilities/expenses. OP is building in the extra $1000/month for travel/entertainment. Should things end out being tight or growth does not meet expectations, that $1000/month is fungible - travel/entertainment can be reduced. Living in another country in itself is travel/entertainment - much can be done locally without even "traveling".

After a while, if it appears that things are not working out, going back to work, or taking an easy part-time job could make ends meet.

It's all a matter of priorities. If OP is looking to do this and believes she'll be able to pull it off with an acceptable lifestyle in retirement, that's wonderful. There are plenty of websites and articles showing how Americans can retire abroad on significantly less than what they traditionally believe is necessary and live incredibly well.
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Old 05-21-2019, 04:52 AM   #23
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I don't see it either, OP wants to wait till 70 to take SS but plans for a 110 year life span. If I knew I would make it to 110 I'd pull that SS trigger as early as possible..
On the contrary - if you know that you'll live to be way above the average/median life expectancy, then it pays to delay SS to the point of where you'd get the maximum annual benefit. You're going to have many years collecting way past the break even point.
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Old 05-21-2019, 05:08 AM   #24
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I don't see it either, OP wants to wait till 70 to take SS but plans for a 110 year life span. If I knew I would make it to 110 I'd pull that SS trigger as early as possible..
I don't understand that strategy. Could you explain why extreme longevity would compel you to claim early and get a lesser amount for an extremely long time?
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Old 05-21-2019, 05:41 AM   #25
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I believe that many folks are way too conservative in their belief of what is necessary to retire.
While I believe that's true for some, I believe many folks (not necessarily folks here) underestimate what they need in order to retire with the lifestyle they imagine.

Lots of folks are eager to leave the jobs they despise and convince themselves that they will be happy living on far less than they ever have.

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There's no problem being conservative for your own particular situation.
There's no problem whatsoever, assuming you are willing to live with the consequences of your actions, right or wrong.

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After a while, if it appears that things are not working out, going back to work, or taking an easy part-time job could make ends meet.
Maybe. If your health is good enough and the economy is good enough, you might be able to get a part-time job as a cashier or greeter to make ends met.

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It's all a matter of priorities. If OP is looking to do this and believes she'll be able to pull it off with an acceptable lifestyle in retirement, that's wonderful. There are plenty of websites and articles showing how Americans can retire abroad on significantly less than what they traditionally believe is necessary and live incredibly well.
Yup, it might work out very well. For some, it's terrific. For others, not so much. A lot depends on each individual's definition of "acceptable lifestyle".

Many years ago, my grandparents planned to move to Florida and live out their life in style, relying solely on his small pension and their Social Security benefits. After a year, they decided "it was too hot" and moved back to New England. She had to go back to being a waitress but he wasn't healthy enough to work. They lived out their lives watching television, mostly. I guess they changed their definition of "acceptable".
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Old 05-21-2019, 06:21 AM   #26
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On the contrary - if you know that you'll live to be way above the average/median life expectancy, then it pays to delay SS to the point of where you'd get the maximum annual benefit. You're going to have many years collecting way past the break even point.
Or if things might be a little tight at the beginning give yourself some extra money for the first 8 years and let your 401 continue to grow. In fact we pretty much know the OP won't really live to 110...do you know that no one 110 years old can still walk? No chance you'll be living unassisted. Anyone want to guess what a nursing home will cost in 60 years?

The OP would most certainly be living on government assistance at that point. For all the talk about how bad she feels our HC is I don' know if there are many countries in the world that would pay NH bills indefinitely. I would venture a guess that for the time between late 90's to 110 the extra SS money won't mean a thing to her. But it might improve her life in the early 60's until 70.
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Old 05-21-2019, 06:54 AM   #27
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do you know that no one 110 years old can still walk?
What lads you to believe that?
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Old 05-21-2019, 12:32 PM   #28
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Reread the OP's intro, she has lived on 1 k a month but does not plan on living that way forever.

I was just talking to DD about how lucky she is that minimum wage is $11/ hour and when I was 19 , 30 years ago $3.25 was the starting rate. Her response OMG what could you buy for $3.

OP is planning on 60 years with 100% spend down of a good portion of her assets.

She is 48 spent at least 10 earning years not paying any SS and wants to stop paying asap to retire. So she was less than 20 years paying in, her DESIRE is to collect $1000 a month. What will reality be?
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Old 05-21-2019, 03:17 PM   #29
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Reread the OP's intro, she has lived on 1 k a month but does not plan on living that way forever.
She specifically wrote: "I want a budget of 25 - 30k per year. "

As far as I can tell, that's a bit more than 1k/month.

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She is 48 spent at least 10 earning years not paying any SS and wants to stop paying asap to retire. So she was less than 20 years paying in, her DESIRE is to collect $1000 a month. What will reality be?
No way to know reality without knowing her income for those 20 years.

It wouldn't be hard for her to determine, but we'd all be just guessing.
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Old 05-31-2019, 05:11 PM   #30
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I like diversity but that makes calculations complicated. I am approaching 48, debt free, no children or obligations. I want a budget of 25 - 30k per year. I have experienced living on 1k / month in Ecuador. I loved it and is fine for me for day to day living but want to add another 1k+ for travel and entertainment.

Budget 2k per month
Current Income 1k /mo net from rental (150k assets)
1k/mo from cash 100k earning 2.35% (evaluating investment options market vs. rental vs. place to call "home")
Cash to last me to age 60.

60 to 70 1k/mo from Roth (current value 60k)
70 tapping into SS (I anticipate living to 110) hoping for 1k/mo
age 65 will receive around 200 euro/mo Belgium SS
Other assets
165k in traditional IRA and 401k
40k euro defined benefit lump sum age 65 taxed at 50%

My budget is based on living in a country with good health care at reasonable price (100 - 300 /month). I am healthy and hope to never need it but refuse to risk my life savings on US healthcare system. Plus I don't have the budget for it.

Writing all this down makes me think I am there. Feels good to know I don't have to work but will keep working until I figure out what to do next. I am also trying to find a partner for my next stage in life. Hard to find other FI persons at this age. New business idea dating site for FI persons!

Did you factor in inflation? Even if your in Ecuador, prices will go up. Traveling occasionally to USA or wherever will go up as well.
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Old 05-31-2019, 06:35 PM   #31
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The problem is this scenario is not inflation adjusted. A 1000/mo portfolio needs to produce 2700/mo in 40 years and 4400/mo in 60 years to keep up with 2.5% inflation, other wise your purchasing severely erodes. SS more or less keeps up with inflation. Also nothing is said about paying taxes and taxes will come due. Were I you I would hire a fee only adviser to come up with a real plan taking costs inflation and taxes into account and then set about funding it. Single pays more in taxes than MF jointly for example. Also the RMD schedule might kick in at 70 or 72 if the secure act passes and force you to take more out of IRA than you planned. It's a bitch to plan to live to 110 and run out of money at 88. Get some credible help
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Old 06-01-2019, 10:31 AM   #32
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I would make sure youíve accounted for these three factors:

1. Inflation
2. Healthcare Costs
3. Taxes
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Old 06-01-2019, 11:34 AM   #33
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Thanks again everyone for some valuable feedback. I see I still have some calculations to figure out. However, it feels good to know I could live on my current savings/income if I lost my job. Work is more fun when you don't have to do it. I also am lucky to have a job that I mostly enjoy, work from home, responsible for my own schedule and putting buck in the bank. So I am not itching to walking away. I also spent three years unemployed but having a lot of fun even living on $1000 / per month. Appreciating work even though I have no passion for helping megacorp make more money. (They came and found me birdwatching in the cloud forest and offered me a job) I took it knowing you don't always have a lot of job options once hitting middle age.

I have not been on here for a few weeks. So was surprised to see the discussion continuing on. I was out due to an accident that could very nearly have been tragic. You don't always get to walk away from being crushed between semi trucks. It was a nice reminder to enjoy everyday of your life. I have always tried to find a balance between saving to live a long life and enjoying life now. I feel like a have succeeded in that balance. My advice to everyone is to budget for what brings you joy in life both before and after retirement.
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Old 06-01-2019, 03:47 PM   #34
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Amy so glad you are fine. 15 years ago a semi pulled out in front of my husband on a highway. His car was crushed everywhere except where he was. He went partly under it and then got spit out. He walked away unharmed. The roof was missing except where he sat.
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