Ok, serious question...

[blindsurgeon]

Can a 51 yo with no debt and 8.5 million retire while spending about 200,00 a year?

 

[REWahoo]

You'll find the answer here: http://www.early-retirement.org/for...-answer-before-asking-can-i-retire-69999.html

 

[utrecht]

Serious answer....Yes that's a withdrawal rate of 2.3% which is very conservative.

 

[gauss]

Are taxes and health care costs included in the 200,000¿

 

[photoguy]

And how is the portfolio invested?


Sent from my iPad using Early Retirement Forum

 

[nash031]

If I had 8.5MM and thought I spent $200K with no debt (meaning no mortgage?), I'd look at where that 200K went and see if I could reduce that. I'd bet you could reduce spending by at least 10% with no marked change in living standard/quality of life. But as it stands, you're probably fine anyway.

 

[pb4uski]

Can a 51 yo with no debt and 8.5 million retire while spending about 200,00 a year?

Short answer, yes.

See https://retirementplans.vanguard.com/VGApp/pe/pubeducation/calculators/RetirementNestEggCalc.jsf and plug in 49 years, $8.5 million, $200k and your AA. At a 50/50 AA the analysis returns 99%. YMMV.

Just make sure that enough of the $8.5 million is readily available to cover your $200k a year from 51 to 59 1/2 when you can start drawing from tax-deferred accounts without penalty.

 

[RetireAge50]

Assuming you live to 100 real income (after inflation) would likely be:

$73,000 if keep under mattress
$173,469 Ibonds or similar
$467,836 Vanguard Wellington

Of course the above will not happen as it is only what is expected.

 

[ERD50]

If I had 8.5MM and thought I spent $200K with no debt (meaning no mortgage?), I'd look at where that 200K went and see if I could reduce that. ....

Heck, with $8.5M I'd probably look at increasing my spending! Why not? Assuming a reasonable AA, 2.35% WR is pretty darn conservative. You could always cut back later if needed, it's not like cutting back would mean eating dog food.

-ERD50

 

[robnplunder]

Yup, I'd retire in a heartbeat with $8M & $200k yearly spending budget.

 

[Meadbh]

Can a 51 yo with no debt and 8.5 million retire while spending about 200,00 a year?

If he or she is a blind surgeon, I suggest retiring ASAP!

 

[aja8888]

If I had $8.5 Mil I wouldn't be spending any time here...

 

[nash031]

Heck, with $8.5M I'd probably look at increasing my spending! Why not? Assuming a reasonable AA, 2.35% WR is pretty darn conservative. You could always cut back later if needed, it's not like cutting back would mean eating dog food.

-ERD50

Agreed, just saying that if I was really concerned about "making it", I'd look at my spending. IMO, there's no problem here...

 

[robnplunder]

If I had $8.5 Mil I wouldn't be spending any time here...

With that money, I can hire someone to post on this forum.

As far as the 1st time post of this nature goes, this tops the cake. I think the last one I remember was someone with $5M+ (house paid for, not counting SS, ...) can retire with $50k/year spending budget. I am fuzzy on details but I remember it being rather outrageous that the poster even needed to ask. If someone amassed that amount of money and having been doing LBYM, I assume the poster is likely more of an expert on money management than an average Joe, even in here.

 

[youbet]

Heck, with $8.5M I'd probably look at increasing my spending! Why not? Assuming a reasonable AA, 2.35% WR is pretty darn conservative. You could always cut back later if needed, it's not like cutting back would mean eating dog food.

-ERD50

I would also look at increasing spending. BUT, remember that many folks on this board are extreme LBYM types who frequently derive more pleasure from not spending than spending, even if they can easily afford the spending and would enjoy the activity. The actual act of saying no to an opportunity and instead keeping the money on their ledger brings them more pleasure than the activity would have. Each to his own. We all enjoy life in our own ways.

 

[imoldernu]

Can a 51 yo with no debt and 8.5 million retire while spending about 200,00 a year?

DW and I retired 26 years ago @age 53, with not much more that your 1 year budget.

Umm... my answer... "You can probably squeak by, if you're very careful."

 

[jetpack]

The OP didn't specify Dollars. Can you live on 200k units?

 

[rodi]

If the units are bitcoins... he might be pushing it. LOL

 

[robnplunder]

The OP didn't specify Dollars. Can you live on 200k units?

Also, the OP wrote "200,00." Is that 20k, or 200? Regardless, he can buy a small island and make himself a king for that money. But watch out for divorce if he is married. Living on 200k "dollars" on $4.25M can be a little tougher although I think it is very doable.

 

[redduck]

If I had $8.5 Mil I wouldn't be spending any time here...

You'd give up your moderator's job? No way!!!

 

[aja8888]

You'd give up your moderator's job? No way!!!

I'd probably fit better over at Boglehead's site with all the rich folks and LadyGeek!

 

[blindsurgeon]

Thanks for all the replies, So I'm 48 now, no debt, have a little over 1 million dollars in stocks and cash, but looking at a significant windfall in the next few years, thinking at about age 51. Not sure where to put the 8.5 or more million to maintain a 200,000 dollar yearly budget for all expenses, without touching the principal. Married with 2 young kids, currently 6&8, live in the South, no state income tax. Property taxes and insurance run about 10,000 dollars a year.

 

[pb4uski]

....Not sure where to put the 8.5 or more million to maintain a 200,000 dollar yearly budget for all expenses, without touching the principal. ....

Psst.... Wellesley.

Vanguard Wellesley Income Fund would be an easy/peasy place for it. In some bad years you might have to dip into principal, but it is unlikely unless you had a very bad sequence of returns.

 

[Chuckanut]

Psst.... Wellesley.

Vanguard Wellesley Income Fund would be an easy/peasy place for it. In some bad years you might have to dip into principal, but it is unlikely unless you had a very bad sequence of returns.

+1 on the Psst.... Wellesley fund.

You might want to look at how it performed during the recent crash. It's total return was not quite a negative 10% in 2008, but that was the only negative return year since 2000.

https://finance.yahoo.com/q/pm?s=VWINX+Performance

 

[audreyh1]

Can a 51 yo with no debt and 8.5 million retire while spending about 200,000 a year?

Yes, if that includes taxes.