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Too young to retire?
Old 04-22-2011, 05:16 AM   #1
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Too young to retire?

Hello.

I need advice.
I have 665K in cash in my checking. I have 173k in my 401K. I am debt-free. I will qualify for SS when I get to that age. I am 37.

I am in perfect health. Can I retire now?
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Old 04-22-2011, 05:27 AM   #2
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Quote:
Originally Posted by mrcollie1 View Post
Can I retire now?
Yes, anyone can retire at any time.

The bigger question is how long can you stay retired? If can you live on roughly $30k per year (4% of your cash and 401k, less taxes) until SS kicks in, you may be good to go. But that money is going to have to last you a very long time...

Try running FIRECalc (link at bottom of page) to see what it tells you.
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Old 04-22-2011, 05:30 AM   #3
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What are your annual expenses ? $24k not the same as $100k.
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Old 04-22-2011, 05:33 AM   #4
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Social Security is calculated on your highest 35 years of work. Retiring at 37 would leave a lot of 0 years in your calculation. I would say your SS would be pretty low. You can go to their site and run a calculation if you haven't already.
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Old 04-22-2011, 05:34 AM   #5
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Thank REWahoo....I will check FIRECalc out. obgyn65, my annual expenses are less than 10K/year. I live overseas.
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Old 04-22-2011, 05:39 AM   #6
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Living broad on less than 10k / year represents less than SWR 4%. If you feel strongly about FIRE, go for it and enjoy life. You are set IMO.
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Old 04-22-2011, 07:24 AM   #7
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Quote:
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Thank REWahoo....I will check FIRECalc out. obgyn65, my annual expenses are less than 10K/year. I live overseas.
If you're comfortable living on $10K/year then go for it. Of course, you probably have 40-50 years of life left so be sure and think hard about the decision. Good luck!
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Old 04-22-2011, 07:34 AM   #8
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I'm a novice. What's SWR?

Also, I am only comfortable with 10k/year b/c the company I work for provides pretty much everything I need. I've been overseas for almost 15 years. One more factor: when I retire, it will be to the states.......what state, I don't know right now. I have already listed my assets.......didn't see a house there did ya?.....well, my other option is remaining overseas for a few more years, maybe when I hit the million dollar (cash, not 401K) mark. I just don't know.
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Old 04-22-2011, 07:39 AM   #9
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$665K in checking? That isn't even insured. Are you for real?
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Old 04-22-2011, 07:40 AM   #10
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I think you will have to work on your asset allocation in any case. The 4% SWR studies assumed investments in stocks and bonds. Someone holding mostly cash is going to be consuming principal at an accelerating rate.
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Old 04-22-2011, 07:43 AM   #11
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"Too young to retire?"

Better than the alternative - "too old to work" ...
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Old 04-22-2011, 07:43 AM   #12
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Quote:
Originally Posted by mrcollie1 View Post
I'm a novice. What's SWR?
Safe Withdrawal Rate.

You can learn more about it here: Explain the 4% withdrawal rate
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Old 04-22-2011, 07:45 AM   #13
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@donheff: I have several checking accounts, each insured to 250k.

@growing_older: I know. I am just afraid of stocks. I am thinking CDs right now. I just don't know. I am not not too keen on investing.
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Old 04-22-2011, 07:46 AM   #14
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Also, I am only comfortable with 10k/year b/c the company I work for provides pretty much everything I need. I've been overseas for almost 15 years. One more factor: when I retire, it will be to the states......
You do understand it would be very difficult, probably impossible, to live on $10k/yr in any US location other than on the streets, right?
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Old 04-22-2011, 07:47 AM   #15
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Quote:
Originally Posted by mrcollie1 View Post
I am not not too keen on investing.
Better keep on working for a few more years.
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Old 04-22-2011, 07:47 AM   #16
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Thank you REWahoo.

That's funny rescueme.
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Old 04-22-2011, 07:48 AM   #17
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@REWahoo: Yes, I know. I lived in VA briefly in 2005.........cost of living.......way high.
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Old 04-22-2011, 08:00 AM   #18
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Quote:
Originally Posted by mrcollie1 View Post
@donheff: I have several checking accounts, each insured to 250k.

@growing_older: I know. I am just afraid of stocks. I am thinking CDs right now. I just don't know. I am not not too keen on investing.
I like that Twitter way of addressing simple responses instead of quoting the original. We need to make @username a convention around here.
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Old 04-22-2011, 08:02 AM   #19
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@doneheff: as do I.
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Old 04-22-2011, 08:19 AM   #20
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Also, I am only comfortable with 10k/year b/c the company I work for provides pretty much everything I need.
I would suggest creating a budget for where you might reside... in the US, what city? overseas, where? The budget should include what your company is covering right now as that will increase your out of pocket expenses.

Currently, your expenses are 10k + company covered expenses (housing, food/per diem, transportion, benefits, etc). You might discover your annual budget is much higher than 10k.

Based on this, retiring is always possible, but depends on the lifestyle you want in retirement IMHO .. YMMV
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