Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Possible To Retire On $600,000?
Old 05-08-2008, 08:06 PM   #1
Dryer sheet aficionado
 
Join Date: May 2008
Posts: 32
Possible To Retire On $600,000?

Hi, would like very much your thoughts. I'm 50, single, no kids, no debt except $14K on mortgage. Have $600,000 in savings in the form of my 401(k). Wondering if it's feasible to retire and live off these funds.My overhead is low, just need around $2,000 month,which takes care of apartment maintenance, utilities, healthcare insurance. Thanks for your advice.
Marcretire is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-08-2008, 08:09 PM   #2
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Yes, if your $2000 per month expenses are before taxes.

Welcome to the board. You may want to read the FAQs, and look at FIRECalc to help sort things out. Rule of thumb suggests that if you play it right, you need about 25x your annual expenses to come out OK.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 05-08-2008, 08:11 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Collin County, TX
Posts: 9,293
I suggest you run your numbers through firecalc, paying close attention to inflation and how your funds are invested.
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 05-08-2008, 08:15 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Feb 2006
Posts: 1,183
Yes. But if the market has a hard time... You have a hard time. The nest egg you have is really close to not having to work at all anymore for wages. Is there some way to boost it a bit and or do part-time work? I would want a little more cushion myself. Check out Firecalc here and Welcome to 72t on the Net those two are the best around to do the what if scenarios with.

I also pulled the plug at 50 and understand the desire to move on.
crazy connie is offline   Reply With Quote
Old 05-08-2008, 08:17 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 13,148
Do you have any pension coming later? Qualify for SS? What will you do for health insurance?
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 05-08-2008, 08:18 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
Send a message via Skype™ to kcowan
There is no way. Keep working or move to the Ozarks. You think it is $2k but you have not considered all your costs.
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 05-08-2008, 09:04 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 7,863
Quote:
Originally Posted by kcowan View Post
There is no way. Keep working or move to the Ozarks. You think it is $2k but you have not considered all your costs.
kcowan, do you know the OP personally? How do you know he hasn't considered all his costs?

2Cor521
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Old 05-08-2008, 09:11 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
Sounds like it would work. In tweleve years you will have some SS. Can you make it in New Jersey on 2k a month? We can do it but we are in the midwest.
FANOFJESUS is offline   Reply With Quote
Old 05-08-2008, 09:33 PM   #9
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 204
Quote:
Originally Posted by Marcretire View Post
Hi, would like very much your thoughts. I'm 50, single, no kids, no debt except $14K on mortgage. Have $600,000 in savings in the form of my 401(k). Wondering if it's feasible to retire and live off these funds.My overhead is low, just need around $2,000 month,which takes care of apartment maintenance, utilities, healthcare insurance. Thanks for your advice.

check out boglehead ..there is a guy there that retired on that amount. He grew his 600000 to 1.4 mil in 10years
steve88 is offline   Reply With Quote
Old 05-08-2008, 09:57 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Dec 2007
Posts: 4,764
Go for it. Heck you might die well before you blow all of that. Just remember most people think they will live to 120.
Notmuchlonger is offline   Reply With Quote
Old 05-08-2008, 10:14 PM   #11
Recycles dryer sheets
 
Join Date: Oct 2005
Posts: 499
perfect for oversea deal.
Enuff2Eat is offline   Reply With Quote
Old 05-09-2008, 01:05 AM   #12
Dryer sheet wannabe
 
Join Date: Oct 2007
Posts: 12
I'm about your age and have around the same amount in my retirement account but I am married. If I were single and have no mortgage, I think I could live off that money plus my projected SS income of $1300/mo in 7 years. Yes, I live in LA.
camefromnothing is offline   Reply With Quote
Old 05-09-2008, 01:12 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Of course it all depends on your projected expenses including health care which is increasing at a rate faster than normal inflation.

600k at 4% wold yield the 2k/mo.. but I think you have underestimated your expenses.

IMHO - You need to work a few more years. Sock away a little more money and get closer (in age) to SS and any pensions you hopefully have available. In your situation, I would set a target of $1MM, and a house (that is in good shape) paid off. Perhaps you could set a goal between 55 and 59.
chinaco is offline   Reply With Quote
Old 05-09-2008, 01:34 AM   #14
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
You need to consider the following if you haven't already:

Is $2K a month your post-retirement budget or your pre-retirement budget? They could be the same, but they could be different. If you post your post-retirement budget here it might help. Did you factor in large ticket items like car purchases, root canals, purchase of a dog, etc?

What do you plan on doing after retirement that you didn't do pre-retirement? Will it cost more? $2K a month may not leave enough wiggle room for travel and entertainment, although you might be doing activities that don't cost much like walking in the park, reading at the library, riding your bike.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Old 05-09-2008, 05:16 AM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 21,148
Quote:
Originally Posted by Marcretire View Post
Hi, would like very much your thoughts. I'm 50, single, no kids, no debt except $14K on mortgage. Have $600,000 in savings in the form of my 401(k). Wondering if it's feasible to retire and live off these funds.My overhead is low, just need around $2,000 month,which takes care of apartment maintenance, utilities, healthcare insurance. Thanks for your advice.
Looks like it could work, but I'll ask the question that others are being more subtle about: How much are you budgeting per month for health care?
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 05-09-2008, 05:48 AM   #16
Dryer sheet aficionado
 
Join Date: May 2008
Posts: 32
Quote:
Originally Posted by retire@40 View Post
You need to consider the following if you haven't already:

Is $2K a month your post-retirement budget or your pre-retirement budget? They could be the same, but they could be different. If you post your post-retirement budget here it might help. Did you factor in large ticket items like car purchases, root canals, purchase of a dog, etc?

What do you plan on doing after retirement that you didn't do pre-retirement? Will it cost more? $2K a month may not leave enough wiggle room for travel and entertainment, although you might be doing activities that don't cost much like walking in the park, reading at the library, riding your bike.
Thanks, everyone, for your replies. What is accelerating my desire to retire is the industry I've worked in is in a state of collapse and I'm finding age an impediment in my job search (sales). I'm in excellent health and don't foresee significant healthcare costs, although I know there's no guarantee of good health. The only other added future expense would be a new car. I'm pretty much living on a couple thousand a month pre-retirement. I'll weigh everyone's advice.
Marcretire is offline   Reply With Quote
Old 05-09-2008, 06:45 AM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,067
Quote:
Originally Posted by retire@40 View Post
You need to consider the following if you haven't already:

Is $2K a month your post-retirement budget or your pre-retirement budget? They could be the same, but they could be different. If you post your post-retirement budget here it might help. Did you factor in large ticket items like car purchases, root canals, purchase of a dog, etc?
Yup, similar expenses for me just in the last few days. As discussed in another thread, had a new crown installed yesterday and my dog will have surgery next week. Poor baby might even need some treatments afterward. So you need to budget for the unexpected.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
Dawg52 is offline   Reply With Quote
Old 05-09-2008, 07:33 AM   #18
Thinks s/he gets paid by the post
maddythebeagle's Avatar
 
Join Date: Jun 2005
Posts: 2,450
Quote:
Originally Posted by Marcretire View Post
I'm in excellent health and don't foresee significant healthcare costs, although I know there's no guarantee of good health. The only other added future expense would be a new car.
On that budget, I would suggest a used car
__________________
- Hurry! to the cliffs of insanity!
maddythebeagle is offline   Reply With Quote
Old 05-09-2008, 07:44 AM   #19
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,000
...or the bus.
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 05-09-2008, 07:57 AM   #20
Thinks s/he gets paid by the post
redduck's Avatar
 
Join Date: Mar 2005
Location: yonder
Posts: 2,851
You might consider working for a few more years. Your health insurance premiums will be going up and your body (more than likely) will require more visits to the doctor--so, depending on your policy, there could be more co-payments and the meeting of deductibles. I don't know if you have dental insurance, but if you need a crown or two, it's going to throw your budget way off.

The other thing, when I'm retired, I don't want to be anxiously thinking about money. I want to be able to spend on the stuff I want or need without agonizing. I don't think $600,000 will do it in a comfortable manner.
redduck is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
If giving americans 600 dollars a piece keeps us out of a recession... dumpster56 FIRE and Money 86 02-14-2008 08:50 AM
On $20,000 Salary Parking Lot Attendant Saves and Invests Has $500,000 Portfolio haha FIRE and Money 11 09-18-2007 08:26 PM
Don't forget to claim your part of the $10,000,000,000 refund mickeyd FIRE and Money 1 12-26-2006 12:58 PM
$2,000,000,000,000- Happy 55th mickeyd Other topics 12 12-28-2004 08:19 AM
Whistleblowers feel $10,000,000 insufficient haha Other topics 3 07-31-2004 12:23 PM

» Quick Links

 
All times are GMT -6. The time now is 10:17 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.