View Poll Results: Retire now at 45 with 2.5% SWR or not?
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DO IT!!!!!!!!!!!!!!!!!!!!!!!!!!
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92.31% |
NO!!!!!!! YOU'LL BE SORRY!!!!!!! DON'T DO IT!!!!
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6 |
7.69% |
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45 years old - 2.5% SWR - retire or not?
07-20-2010, 03:24 PM
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#1
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Recycles dryer sheets
Join Date: Feb 2005
Posts: 72
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45 years old - 2.5% SWR - retire or not?
A quick poll - I'm 45 years old and figuring all expenses (basic living, health insurance, 10K replacement / repair fund) I'd have a 2.5% SWR on my 55/45 portfolio. Darned sick of my own business that I've been in for 25 years and would likely take a year or two or maybe more off and then either go to work part time for someone or start my own one man business.
My quick question - Do it or don't?
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07-20-2010, 03:27 PM
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#2
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Recycles dryer sheets
Join Date: Feb 2005
Posts: 72
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I forgot to add that everything is paid off - there is no debt
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07-20-2010, 03:32 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Who manages your investments? If you have an adviser that sucks 1%+ off your portfolio every year, I may have to change my vote to "DON'T DO IT!!!!!!!".
Otherwise you are pretty golden.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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07-20-2010, 03:32 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,140
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Quote:
Originally Posted by tomc5179
" and would likely take a year or two or maybe more off and then either go to work part time for someone or start my own one man business. "
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This, along with your very low SWR, means you have so much flexibility that your chances of success are very high.
You certainly can afford to take a nice break right now.
Edited to add: Oh Yeah - FUEGO gives a key caveat.
Audrey
__________________
Retired since summer 1999.
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07-20-2010, 03:39 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2006
Location: Collin County, TX
Posts: 9,296
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I agree with the others...especially if you have funds you can get to without having to pay a penalty.
__________________
There's no need to complicate, our time is short..
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07-20-2010, 03:42 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,695
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Quote:
Originally Posted by tomc5179
A quick poll - I'm 45 years old and figuring all expenses (basic living, health insurance, 10K replacement / repair fund) I'd have a 2.5% SWR on my 55/45 portfolio. Darned sick of my own business that I've been in for 25 years and would likely take a year or two or maybe more off and then either go to work part time for someone or start my own one man business.
My quick question - Do it or don't?
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I think you can do it, too. And that is because my SWR when I was 45 2 years ago was also 2.5%. And my AA was 55/45 at the time (but has changed in order to provide me with more income).
So if it was good enough for me to retire on very comfortably, it should be good enough for you, too!
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
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07-20-2010, 04:49 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Posts: 1,934
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Quote:
Originally Posted by tomc5179
My quick question - Do it or don't?
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I'd have done it at 3%.
__________________
And if I claim to be a wise man, it surely means that I don't know.
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07-20-2010, 04:51 PM
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#8
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,774
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Do it.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
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07-20-2010, 04:53 PM
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#9
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Full time employment: Posting here.
Join Date: Dec 2004
Posts: 699
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Numbers look great - assuming your budget allows you to accomplish what you want - if the 2.5% SWR equates to a $10,000 annual spending budget - then that may be a low SWR - but no way I'd want to live...
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07-20-2010, 05:02 PM
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#10
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,708
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If you need a poll you're not ready. If your portfolio can sustain you with a 2.5% withdrawal rate and you're still not sure, perhaps you should think about your goals a bit more.
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07-20-2010, 06:52 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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You need a third choice.
"I don't give a ****"
Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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07-20-2010, 07:05 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,071
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Quote:
Originally Posted by haha
You need a third choice.
"I don't give a ****"
Ha
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Stock market was up! You should be in a good mood.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
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07-20-2010, 08:46 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,688
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A 2.5% WR suggests you are financially ready to retire (even without factoring in your plans to resume working in one form or another after a couple of years).
As Delawaredave5 said, this assumes that your WR is based on an appropriate and relalistic level of estimated expenses. Have you tracked historical expenses accurately and done a budget - I ended up revising my "number" upwards after doing that exercise.
__________________
Budgeting is a skill practised by people who are bad at politics.
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07-20-2010, 08:58 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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You are absolutely correct. I should have said, Sir, do as you wish, Sir, as it is your money and your life.
If somebody says "I have $400,000 and I need $30,000 a year and I am 22", I have an opinion. But when someone says my WR is 2.5% and asks if he can retire I suspect OAP. It is just too absurd to discuss.
BTW, I miss OAP. He had some nice sidewalk-life shots
Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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07-20-2010, 09:11 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,071
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Quote:
Originally Posted by haha
You are absolutely correct. I should have said, Sir, do as you wish, Sir, as it is your money and your life.
If somebody says "I have $400,000 and I need $30,000 a year and I am 22", I have an opinion. But when someone says my WR is 2.5% and asks if he can retire I suspect OAP. It is just too absurd to discuss.
BTW, I miss OAP. He had some nice sidewalk-life shots
Ha
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He had a blog for awhile. Moved from one city to the next, experiencing different cultures. Lost track of him though.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
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07-20-2010, 09:59 PM
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#16
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Moderator Emeritus
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
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Tomc, are you stlll single? In '05 you were planning to marry; that could change your numbers.
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07-21-2010, 05:09 AM
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#17
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Recycles dryer sheets
Join Date: Feb 2005
Posts: 72
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Quote:
Originally Posted by CuppaJoe
Tomc, are you stlll single? In '05 you were planning to marry; that could change your numbers.
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Correct - I am single now (but have been living together with fiancee for the past 5 years) and will be getting married in October of this year. I have been following all my expenses daily for the last five years. I pay 100% on prop tax, utilites, etc. She pays a small part on groceries. I am happy with this and also have a thorough pre-nup that has been executed.
What can I expect marriage to do to my taxes?
Also, Fuego wondered if I had any high cost brokers handling my money - I do have about a third of it from a long time ago at Wells Fargo. I know I need to get that moved. Anybody had any experiance with calling Vanguard and having them move accounts?
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07-21-2010, 05:39 AM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,327
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Quote:
Originally Posted by tomc5179
Correct - I am single now (but have been living together with fiancee for the past 5 years) and will be getting married in October of this year. I have been following all my expenses daily for the last five years. I pay 100% on prop tax, utilites, etc. She pays a small part on groceries. I am happy with this and also have a thorough pre-nup that has been executed.
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You say you are 45. What about her? Kids on the way could change everything.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
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07-21-2010, 05:57 AM
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#19
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Recycles dryer sheets
Join Date: Feb 2005
Posts: 72
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Quote:
Originally Posted by donheff
You say you are 45. What about her? Kids on the way could change everything.
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She's 46 and has been "fixed". Neither one of us have any desire to have kids.
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07-21-2010, 06:51 AM
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#20
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,708
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Quote:
Originally Posted by haha
You are absolutely correct. I should have said, Sir, do as you wish, Sir, as it is your money and your life.
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I thought you said it better the first time
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