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Re: Is $1million enough
Old 10-20-2006, 07:33 PM   #41
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Re: Is $1million enough

Quote:
Originally Posted by Oldbabe
I agree with Ha, having lived in the Bible Belt for six long years, and I'd rather work full time at Wal Mart than go back, no matter how cheap it is.
Me too (not Walmart though, maybe Costco ), I grew up in the south, didn't move away until I was 30. Lots of people love it, so I don't want to disparage it, I'd just suggest knowing what you are getting into before you plan your retirement around it. That really goes for any place that is different though - there was a recent thread on foreign places too.
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Re: Is $1million enough
Old 10-20-2006, 07:55 PM   #42
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Re: Is $1million enough

Perhaps I missed it but nun how old are you and how long are you expecting to live.

If you are going to live 30 to 40 years then the SWR of 4% => 40k per year and thats not a bad lifestyle in the vast majority of this country. With a little flexibility, you could do 5.5% and a variable withdrawl plan. Have a bit of flexibility and perhaps work some PT to ride thru the rough patches. With SS raise these SWR's by about .5% and with Ty Bernicke raise them again by about .5 to 1%.

good luck

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Re: Is $1million enough
Old 10-20-2006, 07:57 PM   #43
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Re: Is $1million enough

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Originally Posted by Rock
On an old thread I proposed defining generic ER for a couple 50 yrs of age as $1MM liquid, plus cars and a house all paid for.

FWIW there weren't too many takers at that time though it still seems doable.
"doable"? I would like to think you jest but I did not see a "smiley".

JG
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Re: Is $1million enough
Old 10-20-2006, 08:10 PM   #44
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Re: Is $1million enough

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Originally Posted by unclemick2
1993 - 300k his and her's plus a duplex cranking out 6k/yr rent. No health insurance.

Really really cheap bastardhood and 0ne yr temp work AND Mr Market in the 90's allowed crossing 1mil around 1998,99, 2000 - not exactly sure.

Wouldn't look pretty on a spreadsheet in hindsight - but compared to work - ER was more better.

Post Katrina - right at 1 mil plus small pension plus early SS. Yes - and BC/BS health insurance.

Sort of miss the good old days when I was really cheap. Salvation Army is still my favorite clothing store - Walmart is second.

heh heh heh heh heh heh - more than one way to skin a cat.
1993, 500K his and hers. No duplex. Crappy health insurance.

Net worth cut in 2 with divorce no. one. Never got back to the 500K. No pension.

Farm and Fleet is my fav. store. I was at Walmart yesterday and shopped
the Goodwill Store today. I am trained to think of resale stores
first.

Early SS and everything worked out just fine. Most of what I was
worried about never happened.

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Re: Is $1million enough
Old 10-20-2006, 08:57 PM   #45
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Re: Is $1million enough

Quote:
Originally Posted by Cut-Throat

Yeah, I know that market downturn is already built into the 4% - But, I'm guessing that if we have one, we'd all like to cut our spending a bit for a cushion - It might take away any notion to get a job.

A multiplier of 1.5 would probably work, but before I tell anyone that they can quit their jobs I use 2. Do me a favor and look at your spending and weed out all of the discretionary items (Dining out, cable TV, Travel, vacations, Hobbies,) - I'm betting your budget could be cut in half. I know I spend at least twice of what I have to.
I've been living on a pension of under $30K gross (and saving).

If absolutely necessary, I could probably cut down to $15K or less.
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Re: Is $1million enough
Old 10-20-2006, 09:51 PM   #46
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Re: Is $1million enough

Quote:
Originally Posted by Khan
I've been living on a pension of under $30K gross (and saving).

If absolutely necessary, I could probably cut down to $15K or less.
Where do you live? Are you single? I find it hard to believe that somone could make it on 15K/year.
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Re: Is $1million enough
Old 10-20-2006, 10:15 PM   #47
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Re: Is $1million enough

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Originally Posted by Corporateburnout
Where do you live? Are you single? I find it hard to believe that somone could make it on 15K/year.
Single.

SW Ohio.

Small paid for house.

1989 Ford Festiva less than 2000 miles per year.

Don't go to restaurants or movies.

Could drop DSL, Cell phone, cable TV, water softener.

Am currently paying people for yard work & house cleaning.

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Re: Is $1million enough
Old 10-20-2006, 11:54 PM   #48
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Re: Is $1million enough

Quote:
Originally Posted by Khan
I've been living on a pension of under $30K gross (and saving).

If absolutely necessary, I could probably cut down to $15K or less.
OP here and I like what you are saying. I'll probably be moving back to a small town in Northarn England, which is pertty similar to the Southern USA wrt cost and culture. I figure that as I live off $24k per annum in NE USA (without housing costs) if I can buy a place in NE England and get $24k/year from remaining investments I should be ok. If things are tight I don't think it will be too tough to work part time and get $10k/year to supplement my income.
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Re: Is $1million enough
Old 10-21-2006, 12:12 AM   #49
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Re: Is $1million enough

Quote:
Originally Posted by nun
I'll probably be moving back to a small town in Northarn England, which is pertty similar to the Southern USA wrt cost and culture.
As The Fall sang, "The North will rise again."
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Re: Is $1million enough
Old 10-21-2006, 12:19 AM   #50
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Re: Is $1million enough

Quote:
Originally Posted by Oldbabe
I agree with Ha, having lived in the Bible Belt for six long years, and I'd rather work full time at Wal Mart than go back, no matter how cheap it is. Living in a compatible community where you can make friends and, above all, make a HOME is more important than almost anything else, for me anyway. I would rather live in a cheap apartment in a community I love than a nice house in some out of the way place.
I was raised in New England but have lived in TX for many yrs and now TN...I have never quite gotten over the feeling of being a stranger in a strange land. I used to think TX was over the top with the "God, guns, and football" orientation but hey, it was just a warmup for TN. Plenty of wonderful people in both states but I'm not sure it will ever feel like home.
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Re: Is $1million enough
Old 10-21-2006, 12:32 AM   #51
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Re: Is $1million enough

Quote:
Originally Posted by Corporateburnout
Where do you live? Are you single? I find it hard to believe that somone could make it on 15K/year.
Me too. 15K is not enough... but I guess you can get food stamps & live in low-income housing.
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Re: Is $1million enough
Old 10-21-2006, 07:11 AM   #52
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Re: Is $1million enough

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Originally Posted by Corporateburnout
Where do you live? Are you single? I find it hard to believe that somone could make it on 15K/year.
You are kidding right? To most of the world 15K per year is an
unimaginable fortune.

JG
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Re: Is $1million enough
Old 10-21-2006, 07:14 AM   #53
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Re: Is $1million enough

Quote:
Originally Posted by Rock
I used to think TX was over the top with the "God, guns, and football"
God bless Texas! If it was not there I might have to emigrate.

JG
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Re: Is $1million enough
Old 10-21-2006, 07:16 AM   #54
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Re: Is $1million enough

Quote:
Originally Posted by Mr._johngalt
You are kidding right? To most of the world 15K per year is an
unimaginable fortune.

JG
Based on local prices and local standards of living. Here it would barely pay my property tax bill and groceries.

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Re: Is $1million enough
Old 10-21-2006, 07:20 AM   #55
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Re: Is $1million enough

Quote:
Originally Posted by saluki9
Based on local prices and local standards of living. Here it would barely pay my property tax bill and groceries.

Yeah, I know, but I could do it right in the USA. As a single?
No sweat!

JG
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Re: Is $1million enough
Old 10-21-2006, 07:41 AM   #56
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Re: Is $1million enough

Quote:
Originally Posted by saluki9
Based on local prices and local standards of living. Here it would barely pay my property tax bill and groceries.
If your goal was to live on 15k; or in the OP's case 40k or so, then the geography does not match the goal.

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Re: Is $1million enough
Old 10-21-2006, 07:52 AM   #57
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Re: Is $1million enough

Quote:
Originally Posted by Khan
Single.

SW Ohio.

Small paid for house.

1989 Ford Festiva less than 2000 miles per year.

Don't go to restaurants or movies.

Could drop DSL, Cell phone, cable TV, water softener.

Am currently paying people for yard work & house cleaning.

And for those of you who might be wondering:

Single (almost)

Rural Illinois

Small paid off house

8 year old SUV

Don't go to movies but I do eat out.

No DSL, cable or water softener. Prepaid cell only.

I do my own yard work and house cleaning, but I do hire
out almost all repairs/home improvement stuff.

JG
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Re: Is $1million enough
Old 10-21-2006, 08:10 AM   #58
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Re: Is $1million enough

Quote:
Originally Posted by Corporateburnout
Where do you live? Are you single? I find it hard to believe that somone could make it on 15K/year.
My mom has for many years.... not that hard with a paid house, paid car, over 65 so no medical insurance... also, no cable, DSL, mowed her own lawn until she was in her early 80s... does not go out to eat except with her kids.. doesn't travel far anymore unless with a group..

From what I can tell, she is less than $12K...
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Re: Is $1million enough
Old 10-21-2006, 08:26 AM   #59
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Re: Is $1million enough

I take the initial question as asking whether $1M, without any other source of income, is sufficient to sustain the typical early retiree (Sorry Mr. Galt, you are not typical). Your typical/average retiree seeks to sustain a typical/average American lifestyle. Most would agee that the typical middle-class lifestyle has a price tag of about $40K per year in today's dollars. Can a $1M nest egg safely and consistently generate enough income to sustain the average middle-class lifestyle? Perhaps, but IMHO it would retire taking on more risk than I feel comfortable with. I want a $40K/year lifestyle with very little risk. Why, because I don’t want to worry about how I’m going to make ends meet when I retire, or worry that a “down year” in the market could send me back to work, or that I might have to "cut back" drastically. So, in my opinion, ER requires more than $1M nest egg. Without a pension, or any other source of income, I venture that $1.2 – 1.5M would be a more reasonable target. And, I think you will find that a great many of the successful early retirees who participate in this discussion group fall within that profile. For those that have ER'd on less, more power to you! But, I would recommend a slightly larger nest egg for most early retirees . . . especially for someone who contemplates "pulling the plug" at age 45.
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Re: Is $1million enough
Old 10-21-2006, 09:02 AM   #60
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Re: Is $1million enough

Quote:
Originally Posted by GMueller
I venture that $1.2 – 1.5M would be a more reasonable target.
Does this $1.2M-$1.5M include a house?
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