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Ok, serious question...
Old 12-05-2014, 07:43 AM   #1
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Ok, serious question...

Can a 51 yo with no debt and 8.5 million retire while spending about 200,00 a year?
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Old 12-05-2014, 07:56 AM   #2
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You'll find the answer here: Some Important Questions to Answer Before Asking - Can I Retire?
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Old 12-05-2014, 07:56 AM   #3
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Serious answer....Yes that's a withdrawal rate of 2.3% which is very conservative.
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Old 12-05-2014, 07:57 AM   #4
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Are taxes and health care costs included in the 200,000¿
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Old 12-05-2014, 08:04 AM   #5
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And how is the portfolio invested?


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Old 12-05-2014, 09:00 AM   #6
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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.
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Old 12-05-2014, 09:08 AM   #7
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Originally Posted by blindsurgeon View Post
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...estEggCalc.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.
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Old 12-05-2014, 09:18 AM   #8
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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.
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Old 12-05-2014, 09:56 AM   #9
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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.

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Old 12-05-2014, 10:08 AM   #10
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Yup, I'd retire in a heartbeat with $8M & $200k yearly spending budget.
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Old 12-05-2014, 10:47 AM   #11
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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!
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Old 12-05-2014, 10:56 AM   #12
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If I had $8.5 Mil I wouldn't be spending any time here...
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Old 12-05-2014, 11:44 AM   #13
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Originally Posted by ERD50 View Post
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...
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Old 12-05-2014, 12:07 PM   #14
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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.
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Old 12-05-2014, 12:09 PM   #15
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Originally Posted by ERD50 View Post
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.
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Old 12-05-2014, 12:11 PM   #16
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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."
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Old 12-05-2014, 12:15 PM   #17
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The OP didn't specify Dollars. Can you live on 200k units?
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Old 12-05-2014, 12:34 PM   #18
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If the units are bitcoins... he might be pushing it. LOL
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Old 12-05-2014, 12:37 PM   #19
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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.
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Old 12-05-2014, 04:22 PM   #20
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If I had $8.5 Mil I wouldn't be spending any time here...
You'd give up your moderator's job? No way!!!
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