Retiring at 46 in AZ with $2 Mil Cash

[Johnzo]

Woo hoo! 30 days to go to reach the end!

I'm 46 and sold my company last year and have reached the end of my 1 year employment contract.

Everyone asks me what I'm gonna do, and am I going to be bored.

My answer is, ain't gonna do nuthin' fer now, 'cept play my banjo and have a good time.

Got all the money I need and am never ever gonna work another minute!

 

[Sam]

[-]Are you sure 2 Mil is enough?[/-]

Congrats and welcome.

 

[Dawg52]

Everyone asks me what I'm gonna do, and am I going to be bored.


Got all the money I need and am never ever gonna work another minute!

Welcome and congrats! I was told I would be bored too but glad I didn't listen. Life has been good so far.

Just curious, how do you have your money invested? Need to be sure it will last 40-50 years.

 

[Johnzo]

Hey Dawg - I put the money in a managed fund when I sold last year. It has returned 30% in the last 10 months. Its dropped $80k in the last two weeks, but I'm in for the long haul. The fund has historically returned 10% annually, which means it generates about $200k annually on average. I have no debt, own my house, cars, RV, etc and my living costs are basic expenses, plus various insurances. I doubt I'll need it for 50 years - 40 at the most. I came from nothing, so I'd rather go back to eating Top Ramen and boogers than ever work again.

 

[73ss454]

Sounds like a plan. Doing nothing is great and I found I'm real good at it.

 

[Fireup2020]

I'd rather go back to eating Top Ramen and boogers than ever work again.

LMAO - I still know people like that (regardless of retirement status!)

Congrats & welcome

 

[bssc]

Welcome to the boards

Where in Arizona? Did anyone mention that it is hot here, unless you are going to Flag?

There are lots of threads on how to keep busy after you are free.

 

[megacorp-firee]

Welcome and congrats to you .... Nicely done and well deserved. I SOOO agree with your view on never going back ... although it's been many years since I've put any boogers in my mouth ... but I do like ramen.

 

[MasterBlaster]

Hey Dawg - I put the money in a managed fund when I sold last year. It has returned 30% in the last 10 months. Its dropped $80k in the last two weeks, but I'm in for the long haul. The fund has historically returned 10% annually, which means it generates about $200k annually on average. I have no debt, own my house, cars, RV, etc and my living costs are basic expenses, plus various insurances. I doubt I'll need it for 50 years - 40 at the most. I came from nothing, so I'd rather go back to eating Top Ramen and boogers than ever work again.

I'm sure you know this already but I'll post the usual warning...

A $2M portfolio will on average generate the kind of returns that you mention. However if you retire into a down market and draw that kind of money you could go broke well before you kick off. A sustainable draw rate is much less than you indicated.

Check out the FIRECALC calculator to see what kind of sustainable draw you are likely to get.

FIRECalc: A different kind of retirement calculator

also check out this website for some background on sustainable draw rates...

The Retire Early study on safe withdrawal rates - Millenniam Edition.

 

[SteveR]

Welcome to the board Johnzo. Glad you found us and hope you enjoy being a part of this special group. It looks like you are doing well with your nest egg now comes the hard part...keeping it from going to zero before you die. Don't forget to include inflation in your return numbers to keep your return percentages real.

Good luck and welcome to the board.

 

[Dawg52]

I'd rather go back to eating Top Ramen and boogers than ever work again.

I understand. Retirement is all I ever really wanted out of life.

 

[chinaco]

... I came from nothing, so I'd rather go back to eating Top Ramen and boogers than ever work again.

Unfortunately I am still working. But I do understand how you feel, I fell the same way, Uh... except for the boogers?



Oh... Welcome to the board and good luck in ER.

 

[frayne]

Being bored beats the **** out of being stressed. Been bored for the last two years and ain't tired of it yet.

 

[Khan]

Being bored beats the **** out of being stressed. Been bored for the last two years and ain't tired of it yet.

I sometimes get bored; then I do something: weeding, pruning, cleaning, sorting through papers...

 

[FinanceGeek]

Make sure you read up on the SWR research on this site and elsewhere, $2m infers an annual draw of $80k, probably more than enough for AZ I would think unless your lifestyle is "out there".

 

[hayekcapitalist]

Hold the boogers...

Well done old, I mean young chap. This work thing is not all its cracked up to be, at least not if you have to do it just to pay for "stuff" that really belongs to the finance company! Remember the man who drowned in the stream that had an average depth of one foot. i.e It sounds like you have it covered but beware of basing your spending projections on an average return of 10%. A bad year early on in your retirement can change things. It sounds as if you sold at about the right time.

 

[CourtneyC]

Congratulations!!

 

[packrat44]

I'd rather go back to eating Top Ramen and boogers than ever work again.

I can look on a package of Top Ramen and find their nutritional value. Where does a person go to find the nutritional value and calories for boogers?