Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
need advice/suggestions on early retirement
Old 12-01-2005, 04:57 PM   #1
Recycles dryer sheets
 
Join Date: Dec 2005
Posts: 186
need advice/suggestions on early retirement

40 yrs old
would like to retire asap
portfolio:
950k in cash acct / ~30% stocks, 10% mutual funds, 10% cash / 50% short term bonds and muniew
200k ira* 100% equities
variables:
40 yrs old
own home free and clear /dont plan to sell
live in HAWAII*
no bills
worried bout medical insurance premium
have 14 year old
need about $45-$50k per year to live well
CAN IT BE DONE WITH THIS?
any thoughts would be much appreciated
by the way, i just joined this sight and absolutley love it!
lots of positive feedback and opinions...
God Bless
__________________

__________________
We should all feel blessed!
wstu32 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: need advice/suggestions on early retirement
Old 12-01-2005, 04:59 PM   #2
Recycles dryer sheets
 
Join Date: Dec 2005
Posts: 186
Re: need advice/suggestions on early retirement

by the way, i need about $45-$50k per year to live on
__________________

__________________
We should all feel blessed!
wstu32 is offline   Reply With Quote
Re: need advice/suggestions on early retirement
Old 12-01-2005, 05:18 PM   #3
 
Posts: n/a
Re: need advice/suggestions on early retirement

Hi, Stu. *Knowing your tolerance for risk is important, since you are contemplating retirement at such an early age. *You might well live for 60 more years. *A lot can happen in 60 years. *

My suggestion would be to estimate your life expectancy, and then run FireCalc to see how you would have done historically. *

Also, some questions come to mind. * Does your estimeate of living expenses include buying medical insurance? *How about college for your 14 YO?

You'll get all kinds of answers here from some really smart people. *Truth is, however,nobody really knows. *It's ahrd enpough to guess what might happen to someone who retires at age 65.
__________________
  Reply With Quote
Re: need advice/suggestions on early retirement
Old 12-01-2005, 05:24 PM   #4
Recycles dryer sheets
 
Join Date: Dec 2005
Posts: 186
Re: need advice/suggestions on early retirement

i would need to 'get' health insurance. Off the top of your head, what does that run.
wife and I are both healthy, no pre existing...
__________________
We should all feel blessed!
wstu32 is offline   Reply With Quote
Re: need advice/suggestions on early retirement
Old 12-01-2005, 05:29 PM   #5
 
Posts: n/a
Re: need advice/suggestions on early retirement

Depends on where you live, to some extent. I don't know about Hawaii. Many of the Blue Cross providers have web sites that give free quotes. These quotes apply mainly to "perfect specimen" people, who have no pre-existing medical conditions of any kind. Generally, med insurance is not too expensive for someone your age. However, as you grow older, rates generally go up a whole lot.
__________________
  Reply With Quote
Re: need advice/suggestions on early retirement
Old 12-01-2005, 05:54 PM   #6
Thinks s/he gets paid by the post
greg's Avatar
 
Join Date: Jun 2005
Posts: 1,071
Re: need advice/suggestions on early retirement

Consumer guide to health insurance in Hawaii: http://www.healthinsuranceinfo.net/hi.pdf

Health insurance quotes: www.eheathinsurance.com

Mrs. Apocalyspse Martha
__________________
Compounding: Never forget! Never not remember!
greg is offline   Reply With Quote
Re: need advice/suggestions on early retirement
Old 12-01-2005, 05:58 PM   #7
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,024
Re: need advice/suggestions on early retirement

Nords lives in Hawaii and will be able to speak accurately with respect to cost of living, etc. He will chime in at some point.
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: need advice/suggestions on early retirement
Old 12-01-2005, 05:58 PM   #8
Recycles dryer sheets
 
Join Date: Dec 2005
Posts: 186
Re: need advice/suggestions on early retirement

thanks... that sight has tons of info!!
__________________
We should all feel blessed!
wstu32 is offline   Reply With Quote
Re: need advice/suggestions on early retirement
Old 12-02-2005, 06:52 AM   #9
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,563
Re: need advice/suggestions on early retirement

Quote:
Originally Posted by wstu32
40 yrs old
would like to retire asap
portfolio:
950k in cash acct / ~30% stocks, 10% mutual funds, 10% cash / 50% short term bonds and muniew
200k ira* 100% equities
variables:
40 yrs old
own home free and clear /dont plan to sell
live in HAWAII*
no bills
worried bout medical insurance premium
have 14 year old
need about $45-$50k per year to live well
CAN IT BE DONE WITH THIS?
any thoughts would be much appreciated
by the way, i just joined this sight and absolutley love it!
lots of positive feedback and opinions...
God Bless
Well, hallelujah & welcome to the board, WSTU!* We were beginning to think that we were the only ERs on this island!

It can be done with what you've listed, but you're riding the razor's edge (yee-haw).* Withdrawing $50K/year is a 4.3% withdrawal rate which should work fine but doesn't leave much room for surprises like paying hurricane-insurance deductibles, rising property taxes, replacing the roof, and six decades of buying appliances & vehicles.* If that amount doesn't include healthcare insurance then prepare to be surprised.* If you're not tracking your spending closely and feeling extremely confident that $50K/year will cover you then you might want to dig into the numbers or raise your annual spending estimate.

We use the military's TRICARE Retired and I'm afraid I don't know squat about local plans.* Two of my neighbors work for Kaiser, though, if it'd help answer your inside questions.*

Another potential ER-breaker is college.* Some parents feel obligated to fund their kid to a full ride, others don't.* If you don't already have money set aside (separate from the assets you've listed above) or if your kid plans on you paying for more than Kapiolani CC, then that could derail your plans too.* We've saved enough to pay for our kid to attend four years of UH or perhaps some Mainland schools but the rest is up to her.*

There are two other considerations.* One of them is Social Security.* You won't have a long work history and your SS won't be a huge distribution, but you need to add it to your calculations.* The SS estimate you get in the mail assumes you're working until age 62 and it's useless for ER.* An accurate estimate requires the SS website's online calculator but you'll need your paper statement (and about 20 minutes) to enter your lifetime earnings history.* In my case, an earnings history of only 24 years and not that much salary, I'm looking at about $9K/year.* That amount may swing the balance for you guys.

The second consideration may be part-time work.* I just donated a copy of Bob Clyatt's "Work Less, Live More" to the library so it'll be about three months until the catalogue division puts it into circulation.* It's the best book I've read on mixing employment with ER.* P/T work includes spouses, too-- my spouse is in the Reserves and while we don't count on that gravy train running much longer, it's nice to have.

But with the prospect of additional SS (starting as early as age 62) and perhaps a part-time job or an occasional contract hire, you may be able to hold your withdrawals down to a reasonable range.* Withdrawing $50K/year is pushing it (you'll want to run the numbers through FIRECalc with Social Security added) but that's only considered "pushing it" because it's unrealistic to expect a calculator to predict your spending for the next six decades.* Spending $60K/year for the next 20 years until $10K/year SS kicks in may work just fine but I'd have trouble sleeping at night.

Keep searching & reading the site's old posts.* Chances are pretty good that someone else has already had to deal with the issues that you have a question about.

In conclusion, the really really really important thing... is making sure that you have enough money in the budget for longboards.* You probably don't need a jetski to buzz your gun over to Jaws, but it's good to be able to pick up a nice board without having to send your spouse back to work!
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: need advice/suggestions on early retirement
Old 12-02-2005, 09:58 AM   #10
Full time employment: Posting here.
 
Join Date: Mar 2005
Posts: 557
Re: need advice/suggestions on early retirement

Welcome to the site

Health insurance is an issue that you'll have to deal with, but it can be dealt with. You can budget from $3,000-10,000 a year for insurance, depending on what type of coverage is available and what you decide to buy.

Some websites that might have some useful information:
http://www.healthinsurance.org/riskpoolinfo.html
http://www.ahip.org/
http://www.ehealthinsurance.com/ehi/index.html

Also, people we know who live in Hawaii have Kaiser and seem to like it so you might try to contact them directly.

Uncledrz
__________________
uncledrz is offline   Reply With Quote
Re: need advice/suggestions on early retirement
Old 12-02-2005, 01:24 PM   #11
Recycles dryer sheets
 
Join Date: Dec 2005
Posts: 186
Re: need advice/suggestions on early retirement

I love this sight. I really appreciate all the information I am getting!

Mahalo Nords...

I am at a position where I can actually stay for a while. ( mgr of mort company)

I just want to start using vacation and not worry about mainland pressing for 'numbers'

knowing that it can be done (er) makes coming to work and taking vacations that much easier!!

God Bless you folks.
__________________

__________________
We should all feel blessed!
wstu32 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Phoenix Chapter of Early Retirement Forum sgeeeee Other topics 23 03-30-2007 08:25 PM
Early Retirement Forum Cookbook is Ready! TromboneAl Other topics 32 02-18-2007 10:56 AM
500 search phrases for 2006 dory36 Other topics 2 01-16-2007 07:00 AM
Getting Serious about Early Retirement bookman51 Hi, I am... 28 05-22-2006 05:17 PM

 

 
All times are GMT -6. The time now is 12:54 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.