Anyone Retire With Less Than One Million '09-'13

[Chuckanut]

Today at age 55:

1) Portfolio at approximately $900K
2) Rental properties valued at approximately $450K
3) Rental income about $25K, withdrawal from portfolio at about $25K to $30K
4) SS comes online in 6 1/2 years, expecting $20K per year.

I've had a little luck, but so far the plan appears to be working.

+1
It's hard to argue with success.

 

[Gotadimple]

Hi Rita.....

Could you have made it without the pension, employer subsidized health care and future SS? For example, if you were a relative youngster and won a million bux, would you be able to live out a long retirement just on that million bux?

Here's what I think, if all the stars align properly:

You own a home free and clear and are in a community where you will not move for the next 45 years (means you are about 45 years old today)

You live modestly on less than $40,000 a year in today's dollars including taxes

You invest your portfolio in a conservative 40-60 stock/bond mix with bonds being split 10/50/30 between muni's (taxable account)/corporate bonds/treasuries. Everything except the muni's are in index funds or index etfs with the lowest expense ratios possible, in tax-deferred or tax-free accounts, AND you do everything yourself

You stop working at the bottom of the market, not the top of the market.

THEN,

Your portfolio will grow more than your annual expenses and you should be able to make it last 45 years, although the last 5 years or so might be iffy.

Cost of health care is still a question, even with ACA, but Firecalc says this is doable:

$1M today to last 45 years.
No other income, no portfolio changes
Constant spending power ($40,000 spend + inflation)
Portfolio: US Small Value 10%, S&P 500 20%, US Large Value 10%, LT Treasuries 20%, Corp Bond 30%, ST Treasuries 10%

Firecalc doesn't consider International as a category, but most of the S&P 500 and Large Value has international companies.

How much younger than 45 will you be when you stop working?

-- Rita

 

[gerntz]

I retired on less than $100M if that helps.

 

[Surewhitey]

Interesting perspective. I haven't been around long, just a few months. I would've liked to have seen the boards back then. But you're right, I'm sure 2008 scared the pants off some people.

Scared the w*rk slacks off me

 

[Surewhitey]

No, but seriously, we did it in 2011 for a year (test). Went back to w*rk for a year (test). Moved back to Playa del Carmen 3 months ago. Testing for 2 years this time with 1.02 mil...

$400k in 401k
$150k home loan to DD
$360k in CD's
$110k in dividend stocks ($8k / yr)
Combined income of about $40k annually.

Living on $25k...so far.

 

[heyduke]

I fit into this category...

I ER'ed in march 2011 at the age of 55 with about 800K. Neither my wife nor I have a pension, but will have SS.

- Started saving hard in my late 40's putting 20 percent of salary into ROTH, and 403b also had a 401K, wife had no 401K but got bonuses at xmas we used to fund both ROTHs

- had about 70K in savings and 2.5 yrs later still have 40 k but have infused the income stream with some money from my one rent property and some from trading stocks - about 35k

So after 2.5 yrs we still have about 750k and haven't worked a day. We sold our house and goods and travel full time in an RV all over the USA... life is good for us right now...

 

[Major Tom]

We sold our house and goods and travel full time in an RV all over the USA... life is good for us right now...

Now you've got my attention. Inspirational!

 

[pb4uski]

I retired at age 51 in August 09' with my portfolio at $900K and no pension.

1) Cash $550K
2) 403b $350K
3) Package from former employer equaling approximately 2 1/2 years salary ($250K over three years)
4) Fully funded lifestyle approximately $50K to $55K per year.....

No disrespect but in your case you had over $1 million at the time you retired- $900K + a $250k receivable - but congratulations!