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Semi-retire at 50
Old 06-18-2015, 08:01 AM   #1
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Semi-retire at 50

New here and wanted say hello and lay out my situation/plan...

46, married, no kids; want to semi-retire at 50. which to me means doing something productive, just not 50+ hours a week in the office.

Current stats:
No debt
about $3.9M net worth, of that:
$900K in two houses (TN and FL) - live in TN fulltime
$1M in 401K/IRAs
$400K in other RE investments - not our houses
$1.5M in market, mutual funds/ETFs, individual stocks, etc.
The rest in cash/misc. assets

I've always had 50 as a goal. If the NW rises a little in these next 3/4 years, I think we'll be fine. If not, I can certainly hang around a little longer until the math works better. Healthcare is probably the big concern if I leave at 50.

That's about it for now...I welcome any comments or thoughts.
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Old 06-18-2015, 08:10 AM   #2
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Welcome hope; You've done well. Have you been tracking your spending so that you can estimate your expenses in semi-retirement? What type of work do you plan to pursue to keep yourself in productive mode.

You'll find lots of good advice and encouragement on this forum.
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Old 06-18-2015, 08:13 AM   #3
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NW is only half the equation... and not really that.

The other major missing info is expenses. Without that, really can't comment.

If you are not planning on selling your 2 houses or renting them out, it's fine to note them as net worth.. but since they are not producing income, you may want to leave them out of the equation.

Have you run your numbers through Firecalc or other planning software?
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Old 06-18-2015, 08:28 AM   #4
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I believe we would be very comfortable living on about $7000/mo in our 50's. I don't really know how my spedning would trend after that. I would like to keep both houses, but selling one is very much an option if needed. I've run Firecalc and have positive results.

As far as after 50...I have interest in getting more active in a few RE investments and continue to make some money there.
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Old 06-18-2015, 08:56 AM   #5
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go for it
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Old 06-18-2015, 10:20 AM   #6
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Looks like plenty to retire on if you choose and are comfortable with that expense level. Expense level seems to be (by gut feel only) a bit low for living out of two houses of that value in two states.
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Old 06-18-2015, 10:58 AM   #7
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Yes, the expense estimate might be a little low, but we live on about that much now. We save a lot of our income working to get to the 50 goal. To be safe, I could probably bump the expense number up a little for my planning.
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Old 06-18-2015, 01:04 PM   #8
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Your situation is fairly similar to mine, although I am single and my NW is a bit lower than yours. Also I only have one house, and less of my investments are in tax-sheltered accounts. Based on my own research and planning with tools like Firecalc, I would say your outlook for semi-retirement in 4 years (or even right now) is pretty solid. If I were you, though, I'd prepare a detailed ER budget that factors in things like healthcare costs, appliance replacement, home repairs/upgrades, car repairs/replacement, etc. I did this several years ago when I semi-retired, and it gave me a lot of peace of mind that I could pretty easily pull this off and even have a nice safety margin. You may want to read Work Less, Live More by Bob Clyatt for detailed guidance on preparing an ER budget.
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Old 06-18-2015, 01:31 PM   #9
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Welcome, sounds like you're in great shape, especially if you already have some experience in managing your real estate investments and are willing to do a bit more. I guess you have a management company or help with them while you are in FL or on vacation elsewhere? I agree with Sojourner that making sure your budget is accurate and accounts for irregular costs. It can be misleading to look at a couple years of expenses only to have your budget blown away when you go to replace a car and a furnace, and then the next year replace the other car and a roof.
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Old 06-18-2015, 01:34 PM   #10
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Unless you need to work until 50 to get a pension, I see no reason to continue full-time. If you plan to continue to work part time to stay busy then I see no reason not to start now. You should be fine financially with what you have now. Good luck.
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Old 06-18-2015, 01:46 PM   #11
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Always find it funny when a millionaire asks if they can retire.


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Old 06-18-2015, 02:00 PM   #12
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Quote:
Originally Posted by hopeisnotaplan View Post
Yes, the expense estimate might be a little low, but we live on about that much now. We save a lot of our income working to get to the 50 goal. To be safe, I could probably bump the expense number up a little for my planning.
Welcome to the forum. Here this a thread with some questions that may help you to find the answers you are looking for. Some Important Questions to Answer Before Asking - Can I Retire?
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Old 06-18-2015, 02:12 PM   #13
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Always find it funny when a millionaire asks if they can retire.
I always find it an indication of why they are millionaires.
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Old 06-18-2015, 02:15 PM   #14
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Always find it funny when a millionaire asks if they can retire.
Sounded like he was introducing himself and sharing his plan, and asking for comments, not permission. And if he was only a millionaire, he couldn't retire. Neither could I have, not without making cutbacks I wasn't willing to do. If you can, good for you.
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Old 06-18-2015, 03:15 PM   #15
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Thanks for the recommendations on threads and the Work Less, Live More read! I'll give both a look.

And yes, I need to take a closer look at how unexpected expenses will affect me...new roof, car, etc.

I look forward to checking in often and learning from everyone.
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Old 06-20-2015, 02:22 PM   #16
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OP

It sounds like we are pretty dang similar. I am 47, married, no kids, live in TN full time with a house in FL. I hope to partially retire around 50. My current NW is about 1m less than yours but I will be receiving an inflation adjusted commercial real estate lease payment of $5000 per month for the next 10 to 15 years and a piece of commercial real estate to sell at the end of lease. This will allow me to make an income part time and live off of the lease and part time work while I continue to grow my portfolio. It's all about a lifestyle change which I am more than ready for. It also sounds like our expected expenses will be similar.

I look forward to following your progress. Hard work does sometimes payoff.
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Old 06-20-2015, 03:41 PM   #17
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I'm 35 married with 3 kids and would retire now easily with that kind of savings.
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Old 06-20-2015, 04:18 PM   #18
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Hopeisnotaplan - may be interesting to explore a "what if" scenario just to test where you really are and what confidence you have in your numbers. "What if" for some unknown reason you lost your current job next week and you were unable to find another job acceptable to you. What would you do financially to respond to that situation and could your finances hold you in an lifestyle acceptable to you. Running firecalc and I-ORP are great ways to explore something like that.
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Old 06-20-2015, 04:39 PM   #19
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OP

It sounds like we are pretty dang similar. I am 47, married, no kids, live in TN full time with a house in FL. I hope to partially retire around 50. My current NW is about 1m less than yours but I will be receiving an inflation adjusted commercial real estate lease payment of $5000 per month for the next 10 to 15 years and a piece of commercial real estate to sell at the end of lease. This will allow me to make an income part time and live off of the lease and part time work while I continue to grow my portfolio. It's all about a lifestyle change which I am more than ready for. It also sounds like our expected expenses will be similar.

I look forward to following your progress. Hard work does sometimes payoff.
EO1...very similar indeed. Curious, did you choose the gulf coast of FL? We found we liked the southwest/gulf side a little better than the east or panhandle. We hope to transition to about 50/50 on time there when finally leave full time emp.
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Old 06-20-2015, 04:45 PM   #20
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Hopeisnotaplan - may be interesting to explore a "what if" scenario just to test where you really are and what confidence you have in your numbers. "What if" for some unknown reason you lost your current job next week and you were unable to find another job acceptable to you. What would you do financially to respond to that situation and could your finances hold you in an lifestyle acceptable to you. Running firecalc and I-ORP are great ways to explore something like that.
W66,
I've actually thought about the what if a lot. If the job goes tomorrow, I don't think I'll send out the resumes for the next megacorp job. I would think seriously about trying to manage on my stated plan just a couple years early. More involved in RE investments and go semi-retired then.
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