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1 million dollar; 2 young kids; enuff to get out???
Old 01-03-2006, 10:20 PM   #1
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1 million dollar; 2 young kids; enuff to get out???

we got approximately around 1 million dollars networth. Both of us are 40 and tired of working, kids are 6 and 7. is this enuff for us to get out of the rat race? house is paid for. income from rental around 2k/mon. may be worked part time 20 hrs/week or so at the big blue (walmart)

i have seen so many post here that people are retired at around 40 years old, i was just wonder what kind of networh do you all have. and how much do you live on right now in ER? can someone tell me if this is a possible dream at all? or dream-on kind of deal.


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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-03-2006, 10:49 PM   #2
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Re: 1 million dollar; 2 young kids; enuff to get out???

Quote:
Originally Posted by Enuff2Eat
we got approximately around 1 million dollars networth.* Both of us are 40 and tired of working, kids are 6 and 7.* is this enuff for us to get out of the rat race? house is paid for. income from rental around 2k/mon. may be worked part time 20 hrs/week or so at the big blue (walmart)

i have seen so many post here that people are retired at around 40 years old, i was just wonder what kind of networh do you all have. and how much do you live on right now in ER? can someone tell me if this is a possible dream at all? or dream-on kind of deal.


enuff2eat
enuff2eat: Before the Cavalry rides in on this, you need to supply a lot more info.

Starting with Assets other than Real Estate.

What is equity in home?

Equity in Rental property?

In other words, a break-down of your assets that comprise your $1,000,000.00 net worth.
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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-03-2006, 10:58 PM   #3
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Re: 1 million dollar; 2 young kids; enuff to get out???

enuff, an equally important question to those Jarhead asked is what are your annual expenses? No one can answer your "do I have enough" question unless we know the other side of the equation.

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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-03-2006, 11:59 PM   #4
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Re: 1 million dollar; 2 young kids; enuff to get out???

And down the line stuff like whether you plan to cover university costs Etc. for the kids needs to be advised too. Cheers!
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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-04-2006, 04:32 AM   #5
 
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Re: 1 million dollar; 2 young kids; enuff to get out???

Also, how do you plan to get medical care/insurance for you and your family? Will benefits from the part-time job cover you all at an adequate level?
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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-04-2006, 06:08 AM   #6
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Re: 1 million dollar; 2 young kids; enuff to get out???

Let's suppose that your $1 mil returns 7% annually, you can safely withdraw $40K per year with minimal risk of running out of money. Will $40K (before tax) cover all your living expenses?
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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-04-2006, 07:25 AM   #7
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Re: 1 million dollar; 2 young kids; enuff to get out???

enuff, I think it is definately doable, depending on your living expenses and other income available. I suspect that when I get to about where you are (million bucks NW plus a paid-off house; I will have two kids and probably get there around 40), I will be seriously contemplating semi-retirement/a second career. If your expenses are in line, I think there are three main issues you would want to nail down before you take the leap:

1) How much income can you generate without it being a strain and where will it come from? If my only choice were Wal-Mart, I would keep wor,king my day job for a longer time. If i could figure out a small business taht I could run PT, or maybe work at a more worker-friendly employer (Costco, Starbucks, etc.), I might find it a lot more palatable.

2) Healthcare. This is the big unknown in pretty much every retiree's budget. With a family, you can't afford to "go naked", so you'd better have a good idea of what coverage you can get and what it will cost.

3) College costs. This is up to you, but I plan on funding my kids' undergrad education. If they don't go to college, I am more than willing to fund trade school or help them set up a business. If you can figure this one out and maybe set aside a designated sum, it would be dealtt with and done.
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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-04-2006, 08:47 AM   #8
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Re: 1 million dollar; 2 young kids; enuff to get out???

Rather than work at wal-mart, have you looked if your employer offers a part-time option to keep health insurance?
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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-04-2006, 10:51 AM   #9
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Re: 1 million dollar; 2 young kids; enuff to get out???

A definite maybe.
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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-04-2006, 12:06 PM   #10
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Re: 1 million dollar; 2 young kids; enuff to get out???

This thread had the best detailed information that I've seen here:

http://early-retirement.org/forums/i...hp?topic=964.0

If you're willing to make some sacrifices and take some risks you can do it, but it seems pretty dicey to me. I'm in a similar situation to you (but with two more kids), and I'll be working for a while.
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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-04-2006, 01:20 PM   #11
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Re: 1 million dollar; 2 young kids; enuff to get out???

Quote:
Originally Posted by brewer12345

1) How much income can you generate without it being a strain and where will it come from?* If my only choice were Wal-Mart, I would keep wor,king my day job for a longer time.* If i could figure out a small business taht I could run PT, or maybe work at a more worker-friendly employer (Costco, Starbucks, etc.), I might find it a lot more palatable.

Ok, send the 2 little kiddies out to sell some lemonade, they have to learn to be 9-5 ers. otherwise they will end up like my son who is 27 and still has to be supported by mom and dad* even though he is halfway throught a masters.

2) Healthcare.* This is the big unknown in pretty much every retiree's budget.* With a family, you can't afford to "go naked", so you'd better have a good idea of what coverage you can get and what it will cost.

Depending on the state, look at the website of your state insurance dept/commission, they may have programs for people with little earned income.* This can cosr up to 12k a year for a family plan.

3) College costs.* This is up to you, but I plan on funding my kids' undergrad education.* If they don't go to college, I am more than willing to fund trade school or help them set up a business.* If you can figure this one out and maybe set aside a designated sum, it would be dealtt with and done.

Unless you have a genius or someone who is going into a high profile trade/profession, those who go to expensive schools do not do any better than those who go to local schools.

The proof of the pudding is where I work, we are all accountants/lawyers and some went to city college, very little tuition and some to full tuition college.* There is no difference in promotions or success, all have to do with how the indivdual operates, the diploma is long forgotten.

The amount of success has more to do with how you perform, and then how you suck up.
this is the real world.*

It does pay to go to Wharton if your son or daughter is working for a high profile firm. Not that Wharton is any better than Brooklyn College for 4K a year.*

However if child wants to be a teacher, doctor or whatever where the school doesnt matter in the long run, than the cheapest will do just fine.

Think!, many doctors cut their teeth in very inexpensive out of country med schools, came back to the US, and still make a bundle.

Interesting when compared to financial people and lawyers, grrrr, who present that Harvard or Wharton diploma as though they know something more than someone who went to City U.

My BIL spent 100K of guilt money to send his daughter to out of state school in Indiana, and she ended up working for Macy's walking the floats in the thanksgiving parade.

My son DEMANDED that I send him to Boston University, I told him to lay out the fare at the bus terminal and I;ll reimburse him.
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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-04-2006, 01:28 PM   #12
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Re: 1 million dollar; 2 young kids; enuff to get out???

thanks for all of the respone. here is the "ruff" figure that i can come up with

home 350k market price
real estate 1200k market price (may be 150k underestimate) *with 340k mortgage
401k 155k
ira 60k
brokage 55k
bond 16k
cash 40k
no car payment
public school for kids

i am trying to convince tw that we can live on 25-30k/yr. and work pt job somewher and still can survive. the big one is health care. also, i am convince that if i don;t have a job. my kids will perform much better in school and get 1/4 of tuition or something because rightnow, we spend more time working than helping the kids with homework.

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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-04-2006, 01:55 PM   #13
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Re: 1 million dollar; 2 young kids; enuff to get out???

Quote:
Originally Posted by Enuff2Eat
thanks for all of the respone. here is the "ruff" figure that i can come up with

home 350k market price
real estate 1200k market price (may be 150k underestimate) *with 340k mortgage
401k 155k
ira 60k
brokage 55k
bond 16k
cash 40k
no car payment
public school for kids

i am trying to convince tw that we can live on 25-30k/yr. and work pt job somewher and still can survive. the big one is health care. also, i am convince that if i don;t have a job. my kids will perform much better in school and get 1/4 of tuition or something because rightnow, we spend more time working than helping the kids with homework.

enuff

I ran your numbers, taking into account your home, which I presume has no mortage, and your RE holding, with 340K mortgage, all netted out, you have 1.5 million equity with all other holdings, you seem ok to me.
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Re: 1 million dollar; 2 young kids; enuff to get out???
Old 01-04-2006, 01:57 PM   #14
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Re: 1 million dollar; 2 young kids; enuff to get out???

Quote:
Originally Posted by bongo2
This thread had the best detailed information that I've seen here:

http://early-retirement.org/forums/i...hp?topic=964.0

If you're willing to make some sacrifices and take some risks you can do it, but it seems pretty dicey to me.* I'm in a similar situation to you (but with two more kids), and I'll be working for a while.

Thanks for the link! *It was pretty interesting to go back and look at our original stats and see how far we've come:

Old:

Me - 32; hubby - 34
Home - $400K (no mortgage)
Combined retirement accounts - $270K
Cash and taxable accounts - $75K


Current:

Me - 34; hubby - 36
Home - $450K (no mortgage)
Combined retirement accounts - $338K
Cash and taxable accounts - $194K
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