Am I close?

[Amy T]

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!

[HI Bill]

Welcome! Have you calculated your SS benefits using the AnyPIA spreadsheet? You have to use this if you want an accurate estimate of benefits if retiring early. The ROTH $60K likely won’t be able to make 120 $1K payments from age 60 to 70. Your plan seems to lack any contingency funds for the unexpected. Will you rent all of the remainder of your life? Have you considered all taxes?

Overall, this seem a bit thread bare. I’d suggest running this through FIRECALC and consulting a fee-only financial adviser. Best wishes!

[Amy T]

Thank you for the feedback. I am not new to saving but new to running the calculations. I have not used a PIA spreadsheet. Where do I find that? I just learned from this site that I will get dinged on my SS because of my Belgium SS.

I plan to roll over IRA to Roth during age 50 to 60 when I will have lower taxes. Currently earning 80k and saving half.

Small slush fund of 20k euro. Also a lot of travel and entertainment in budget that I could cut if times were hard. I like your feedback because I don't really want to cut it too close. That would cause me stress.

[njhowie]

Quote:

Originally Posted by Amy T 1k/mo from cash 100k earning 2.35%

I'm missing something here.

[joeea]

Quote:

Originally Posted by Amy T Cash to last me to age 60.

What does that mean?

I see $1k/month income coming from a rental unit?
I don't see the other $1k/month you indicate you need. You don't seem to have a fix on your SS benefits. You might want to dig into that a bit.

I'd be worried about inflation and the stability/continuity of the rental unit for such a long term (62 years).

[Amy T]

Quote:

Originally Posted by njhowie I'm missing something here.

Cash value $0 at the end of 12 years age 60. This means I don't touch any retirement money until I reach 60.

[njhowie]

Quote:

Originally Posted by Amy T Cash value $0 at the end of 12 years age 60. This means I don't touch any retirement money until I reach 60.

Got it - thanks.

That takes care of joeea as well.

[Amy T]

Quote:

Originally Posted by joeea What does that mean? I see $1k/month income coming from a rental unit? I don't see the other $1k/month you indicate you need. You don't seem to have a fix on your SS benefits. You might want to dig into that a bit. I'd be worried about inflation and the stability/continuity of the rental unit for such a long term (62 years).

My biggest concern is between now age 48 and 60. I have enough experience in rentals to know they can be a nightmare and unstable. The other 1k/mo is coming from cash. I am building that up now and looking for investment opportunities. I think we will see a market downturn in the coming year or two. I believe there will be opportunity in the downturn both in the market and in real-estate.

[Golden sunsets]

Have you run firecalc to see what your chances of success are? I have a hard time believing that a $24,000 budget has lots of room for entertainment and travel.

[Amy T]

Quote:

Originally Posted by Golden sunsets Have you run firecalc to see what your chances of success are? I have a hard time believing that a $24,000 budget has lots of room for entertainment and travel.

You are right 24k is not much. I have experience living on 12k. I didn't mind for a year but not what I want long term. I also have done a lot of travel in my life so I have no "bug" to run around the world traveling when I stop working. One big trip every year or two and some regional travel and I'm good.

The way I'm running the numbers the 401k would be on top of the 24k after age 70. I don't know how to anticipate what firecalc number to put in for 22 years into the future?

[ivinsfan]

Couple things.. at your income level when retired you can stay in the US and also have free or almost no cost HC at least until you go on Medicare.

You are looking for a life partner. Your life partner might not be comfortable with such a bare bones life style.

A 3rd thing.. living to 110, it's JMO but I would continue to work till around 50, and then lay out a 50 year retirement plan. I think that would give you a much bigger comfort zone...

[Amy T]

Quote:

Originally Posted by ivinsfan Couple things.. at your income level when retired you can stay in the US and also have free or almost no cost HC at least until you go on Medicare. You are looking for a life partner. Your life partner might not be comfortable with such a bare bones life style. A 3rd thing.. living to 110, it's JMO but I would continue to work till around 50, and then lay out a 50 year retirement plan. I think that would give you a much bigger comfort zone...

My experience a few years ago with the ACA was eye opening. I want nothing to do with it. Horrible from limited doctors etc. etc. I could write pages on my outrage. It is hard to come back to the US after living in a country with good healthcare.

Good point on the life partner. However, housing cost are always a big portion of expenses. Living alone is very inefficient. I'm not looking for a partner for financial reasons, just saying.

Planning to live to 110 is a pain. I don't plan to slow down much till 95 or so. I was hiking in the alps with a 90 year old. She was inspiring. Family history is 100+ plus I live healthier then they did. Looking to buy some annuities around age 80. Probably sell the real-estate.

[ivinsfan]

Quote:

Originally Posted by Amy T My experience a few years ago with the ACA was eye opening. I want nothing to do with it. Horrible from limited doctors etc. etc. I could write pages on my outrage. It is hard to come back to the US after living in a country with good healthcare. Good point on the life partner. However, housing cost are always a big portion of expenses. Living alone is very inefficient. I'm not looking for a partner for financial reasons, just saying. Planning to live to 110 is a pain. I don't plan to slow down much till 95 or so. I was hiking in the alps with a 90 year old. She was inspiring. Family history is 100+ plus I live healthier then they did. Looking to buy some annuities around age 80. Probably sell the real-estate.

OP, the quality of ACA care can be very location dependent in the US. It's too bad but that's the way it is. IMO our area has some of the best healthcare in the world. I didn't say you wanted a partner for money reasons and who knows even when you find a partner nothing says you will share a residence or each other's money. Choose whatever age you wish, Wiki tells me that after you turn 100 you have a 1 in 1000 chance of living to 110...

I'd still keep working to 50 and if you really feel the 110 thing no point delaying on that SS payment...

[Teacher Terry]

I would keep working a few more years. I laugh when people run their calculations to 100 yet alone 110.

[HI Bill]

Quote:

Originally Posted by Amy T I have not used a PIA spreadsheet. Where do I find that?

https://www.ssa.gov/oact/anypia/download.html

This won't tell you about reduced benefits due to other country's benefits, though.

[Amy T]

Quote:

Originally Posted by HNL Bill https://www.ssa.gov/oact/anypia/download.html This won't tell you about reduced benefits due to other country's benefits, though.

Thank you. (My mac of course is not cooperating) I will get it on another computer later. Will it be different than the estimate they send each year? My estimate they sent me was 1200 but it did not change for the ten years that I had no US earnings. This made me question the number. That was before I even knew that they would penalize me for getting a foreign benefit.

I will try to get a person on the phone and see if they can help me with the two country calculation.

[HI Bill]

Quote:

Originally Posted by Amy T Thank you. (My mac of course is not cooperating) I will get it on another computer later. Will it be different than the estimate they send each year? My estimate they sent me was 1200 but it did not change for the ten years that I had no US earnings. This made me question the number. That was before I even knew that they would penalize me for getting a foreign benefit. I will try to get a person on the phone and see if they can help me with the two country calculation.

Yes, it should be different, and more accurate, as you won't have continued employment through your full SS retirement age. It may be lower. You can tell it you will have $0 income over which years.

[joeea]

Quote:

Originally Posted by Amy T My biggest concern is between now age 48 and 60. I think we will see a market downturn in the coming year or two.

You do?

Do you have predictions regarding inflation over the next 12 years?

[joeea]

Quote:

Originally Posted by Amy T My experience a few years ago with the ACA was eye opening. I want nothing to do with it. Horrible from limited doctors etc. etc. I could write pages on my outrage. It is hard to come back to the US after living in a country with good healthcare.

Yup. In some parts of the US healthcare sucks, and they rejected the chance to take advantage of the ACA. It's unfortunate that was all you experienced.

That said, it's hard to predict what healthcare will look like for the next 62 years - in the US or anywhere else.

Quote:

Planning to live to 110 is a pain.

A pain? What part is a pain - the planning part?

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I don't plan to slow down much till 95 or so.

It's nice to have plans. But sometimes things don't work out as planned. Most people just slow down when their body forces them to slow down. Plans have little to do with it.

Quote:

Looking to buy some annuities around age 80. Probably sell the real-estate.

Good luck.

It's an interesting plan.

[Vacation4us]

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.