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Old 09-02-2014, 12:23 AM  
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Early Retirement

Looking for some thoughts on a early retirement. If you can give me some advise I would appreciate you assistance.

56year old about to retire
I have almost 600k in the bank and 300 of that is making 4% the rest is making nothing as usual.
I have a house that I owe 45k on
Have a retirement income of 195k yearly and that is after taxes.
Can you survive on that.
Like to buy an RV and travel. Currently have about 10k in bills each month.
As soon as the house is paid off I will be sitting nice I think. Any thoughts would be appreciated. Thank you
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Old 09-02-2014, 07:45 AM  
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Originally Posted by LVMUS101 View Post
Looking for some thoughts on a early retirement. If you can give me some advise I would appreciate you assistance.

. . .

Have a retirement income of 195k yearly and that is after taxes.
Can you survive on that.

...
Is that a typo?

An annual retirement income of $195k after taxes. I think I could survive on that.
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Old 09-02-2014, 07:54 AM  
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I could live on 195k yearly, given that it's more than twice the budget I'm living on for a family of 4. But you don't say whether *you* can. You also don't mention whether it is cost of living adjusted. So the $195k in todays dollars might be less as you age....

But it seems like plenty of money. Only you know if it's enough. Part of the retirement equation is having an accurate picture of your spending. Do you spend less than $195k?

I have to ask what everyone is thinking.... what is the source of this 195k? That's one heck of a pension if that's the source. Color me envious.
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Old 09-02-2014, 08:08 AM  
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With a retirement of 195K your income while working should be somewhat more then that. So....where has all your money gone? You still have a mortgage and need to buy an RV.. a.decent RV is not cheap. A 600K nest egg is nice but not very big on a 200K plus income. Why don't you come back with a few more details so we know you are not pranking us ......
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Old 09-02-2014, 08:13 AM  
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Looking for some thoughts on a early retirement. If you can give me some advise I would appreciate you assistance.
Welcome to the forum. Here are a few questions you might find useful Some Important Questions to Answer Before Asking - Can I Retire?
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Old 09-02-2014, 08:55 AM  
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No. Unless you want to live in an alley and beg for food you must keep working. You do not have enough.
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Old 09-02-2014, 09:11 AM  
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If you have a retirement income of 195K and bills of 120K this will leave you with 75K to splurge on. What's the problem?
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Old 09-02-2014, 09:12 AM  
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Situation doesn't seem right or very unusual anyways. A person can't generate that kind of income off of 600k yearly. A $250,000 a year pension would be highly unusual also. Unless of course an unmentioned wife will still be bringing home the 6 figure bacon to spend.


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Old 09-02-2014, 11:55 AM  
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Situation doesn't seem right or very unusual anyways. A person can't generate that kind of income off of 600k yearly. A $250,000 a year pension would be highly unusual also. Unless of course an unmentioned wife will still be bringing home the 6 figure bacon to spend.


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Very possibly a pension or government official if a teacher educator or public administrator promoted late into school administration, person I know was in school system got promoted to superintendent and salary went from 120K to 250 K and after 4 years got retirement of 200K per year.
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Old 09-02-2014, 01:22 PM  
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Very possibly a pension or government official if a teacher educator or public administrator promoted late into school administration, person I know was in school system got promoted to superintendent and salary went from 120K to 250 K and after 4 years got retirement of 200K per year.

Possible, as there maybe are 3 or 4 superintendents in my whole state who could squeak out a 200k pension,but none could get a $250k pension as that is what it would take to get 195k after taxes. But I certainly hope it is not.... And not because the pension is high, but because a person in charge of a 20 million plus annual school budget who has to come here to see if he could live on 10k a month with 195k after tax income would be a bad reflection on a schools ability to manage it's finances!


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Old 09-02-2014, 03:35 PM  
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Starting to think this is either a typo or a troll.
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Old 09-02-2014, 03:49 PM  
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+1. Didn't want to say so at first, but I suspect same. Kudos to the board members for treating this unusual post seriously and in good faith, for a time.
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Old 09-02-2014, 03:51 PM  
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Originally Posted by LVMUS101 View Post
.... Have a retirement income of 195k yearly and that is after taxes.
Can you survive on that.
Like to buy an RV and travel. Currently have about 10k in bills each month.
....
You have to ask?
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Old 09-02-2014, 04:03 PM  
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This looks like a pretty unfriendly welcome to a new member. A high income with little savings is nothing new and frequently discussed here. LVMUS101, see the link in my earlier post, it may help you be more specific in your next post.
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Old 09-02-2014, 04:32 PM  
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Actually, all LVMUS101 has to do is respond to the simple question, and I think we'll embrace them and go from there.

195k income with 120k expenses and asking if one can "survive" might very well be an honest question. Perhaps there is no cola on that 195k, etc. Then we can talk.

Right now, there's just a lot of question marks on that statement.
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Old 09-03-2014, 12:32 AM  
Confused about dryer sheets
 
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Thanks for the follow up on my questions. Didn't answer as I was at work all day.
You all asked some questions I will answer.
Retirement is a 31 year pension
I was promoted up into upper management the last 5-6 years
I was under very old contracts that allows me to take almost 100% of highest 3 years
Didn't save as much as I could have but had large payment to ex over child support for a longtime. Probably would have had another 200k if I didn't have that long term payment.
Also have been paying on land that is almost paid off. Worth around 350k sometime in the near future.
House payment was almost equal to land payment. Once both of those payments are gone should have around 7k in expenses per month not 10k
I am not a troll
Would like to take 200k and put that down on a nice coach that will total around 330k so would need to carry a 150k note but would have a write off as I don't have one with my house and land now.
Also just had an offer for a new job after retirement. If I take the job the total for both retirement and new position will bring in around 420k before tax. Not sure i want to work
Thanks for your thoughts. I appreciate your 2cents.
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Old 09-03-2014, 07:49 AM  
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sounds like you are good to do whatever you want, whenever you want.

A couple minor questions, what is this land for, you didn't mention it the first time around.
Small comment on the RV, I don't believe it qualifies for a tax write off.

With that large of a cushion it doesn't really matter if your pension is COLA...
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Old 09-03-2014, 08:44 AM  
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sounds like you are good to do whatever you want, whenever you want.
420k per year? Heck yes.

LVM... Just be sure to watch your expenses. Even with high retirement income, people get in trouble. You'll have to keep some spending discipline.
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Old 09-03-2014, 09:52 AM  
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I think you should look into trying to get a little better overall rate on your $600K cash pile. If I were in your situation, I would probably take around $300K of it and put it 50/50 in Vanguard domestic stock index/VG international stock index. The other $300K maybe ladder in CDs or something safe and boring like that. This is a more aggressive oerall allocation than might be normally recommended given everything else, but you don't need that $300K to survive and putting it in equities means that most likely it will grow a lot.

Remember, if you let $300K sit in a 0% account, you're essentially losing/spending $6,000/year of that every single year.
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Old 09-03-2014, 11:14 PM  
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Originally Posted by LVMUS101 View Post
Looking for some thoughts on a early retirement. If you can give me some advise I would appreciate you assistance.

56year old about to retire
I have almost 600k in the bank and 300 of that is making 4% the rest is making nothing as usual.
I have a house that I owe 45k on
Have a retirement income of 195k yearly and that is after taxes.
Can you survive on that.
Like to buy an RV and travel. Currently have about 10k in bills each month.
As soon as the house is paid off I will be sitting nice I think. Any thoughts would be appreciated. Thank you
You have an after tax income of 195K. I'm extremely jealous. Sounds like you should invest that cash pile, and you can continue to invest after retirement with a pension like that.

You are losing money to inflation sitting on all that cash. My money made $600K last year. I'm up $150K this year so far, only putting in the max and company matching in the 401K (total $27K).

if your monthly expenses are $10K and your monthly income will be $16K, what are you waiting for?
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