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Please tell me why....
Old 07-14-2017, 01:03 PM   #1
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Please tell me why....

Please tell me why CFP are saying OP can't afford to retire?

I just read answers give by 3 CFPs on another website to an early retirement question. The OP, at age 40 asked if he could retire in 10 years at age 50 and the CFPs all said no!!!

OP has investments of $2.2 million in non-retirement accounts (75 equities, 20% bonds, 5% percent cash). OP has paid for home valued at $400k. OP has $60k cash in bank saving account. No mention of 401k retirement or pension. OP didn't mention healthcare coverage.

OP desires to have an income of $70k at age 50 when he wants to retire.

This equals a little less than 3.25% withdrawal rate. I don't understand why the CFPs are saying he cant afford to retire.

What am I not understand about CFPs saying NO? Am I missing something here?
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Old 07-14-2017, 01:21 PM   #2
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Given you didn't link to "another website" we can only make guesses. I'll start:

The post you read was from 2007 and the OP was fully invested in Zimbabwe. That $2.2 million wasn't enough for a bus ticket across Harare.

Seriously though, link to the discussion if you want feedback on this one
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Old 07-14-2017, 01:23 PM   #3
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Given you didn't link to "another website" we can only make guesses. I'll start:

The post you read was from 2007 and the OP was fully invested in Zimbabwe. That $2.2 million wasn't enough for a bus ticket across Harare.

Seriously though, link to the discussion if you want feedback on this one
Hahaha, I believed every word till I got to the last paragraph.
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Old 07-14-2017, 01:31 PM   #4
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Ok OPs age was 44 not 40. I still don't understand the basis for their responses. Here's the link let me know.

https://www.nerdwallet.com/ask/quest...ly-at-50-28979
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Old 07-14-2017, 01:32 PM   #5
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Originally Posted by Trumpcardz View Post
Please tell me why CFP are saying OP can't afford to retire? ...
Why don't you ask them?
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Old 07-14-2017, 01:32 PM   #6
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Quote:
Originally Posted by orangehairfella View Post
Given you didn't link to "another website" we can only make guesses. I'll start:

The post you read was from 2007 and the OP was fully invested in Zimbabwe. That $2.2 million wasn't enough for a bus ticket across Harare.

Seriously though, link to the discussion if you want feedback on this one
Or just ask the question on the website in question. Why here?
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Old 07-14-2017, 01:36 PM   #7
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Or just ask the question on the website in question. Why here?
Everyone knows we are smarter
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Old 07-14-2017, 01:46 PM   #8
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I didn't see them say "you can't afford it."

Instead, I saw them asking the same questions we see here time and time again:
- health care?
- what are your plans for social security?
- Your allocation may be off, why?
- You may have longevity risk
- Are you really prepared for modest expenses? Do you have a handle on them?

Etc.
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Old 07-14-2017, 01:46 PM   #9
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Everyone knows we are smarter
Speak for yourself. Most folks on here are WAY smarter than I am. That's why I stick around.
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Old 07-14-2017, 02:28 PM   #10
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Quote:
Originally Posted by JoeWras View Post
I didn't see them say "you can't afford it."

Instead, I saw them asking the same questions we see here time and time again:
- health care?
- what are your plans for social security?
- Your allocation may be off, why?
- You may have longevity risk
- Are you really prepared for modest expenses? Do you have a handle on them?

Etc.
I see the modest expenses as the biggest challenge (for me and I suspect many others). It's easy to be making a couple hundred and say you can live on 70k. It's another thing to do it. Sure, many people live darn well on 70k but when the time comes to "downsize" the spending, can you? I'm struggling with it and I think that's the most significant question for the person to get comfortable with.
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Old 07-14-2017, 02:52 PM   #11
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I don't know why they said that, but I am at the "10 years from now" age, and if I had that portfolio, I'd be gone, gone, gone!
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Old 07-14-2017, 03:02 PM   #12
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Speak for yourself. Most folks on here are WAY smarter than I am. That's why I stick around.
I hope that all the participants take the info for it's amusement value and not stake their future on anonymous postings on a forum. Due diligence please.
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Old 07-14-2017, 03:13 PM   #13
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I hope that all the participants take the info for it's amusement value and not stake their future on anonymous postings on a forum. Due diligence please.
Yes. My favorite internet cartoon: https://en.wikipedia.org/wiki/On_the...ternet_dog.jpg
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Old 07-14-2017, 05:00 PM   #14
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What am I not understand about CFPs saying NO? Am I missing something here?
Because CFP makes more money by keeping you scared and thinking you need CFP's services.
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Old 07-14-2017, 11:03 PM   #15
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Had I been responding in Nerdwallet, I would have included my usual caveat: Probably okay to retire, but do you have enough backups in place? IOW Could you cut spending dramatically for a couple of years? Would you be willing to sell the $400K place and live in a $150K place if need be? Could you find some temp w*rk if need be? ARE BOTH of you on board with the potential backups? Etc YMV
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