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Advice, can I do it, where etc?
Old 08-30-2018, 12:47 PM   #1
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Advice, can I do it, where etc?

Great forum and hoping some folks here have good advice.

I am wondering is it really feasible to retire under 50 (I am a couple of years off) and peoples thoughts on where?

I own a home worth around 400K as well as one worth about 200K which I owe 180K on so that's a wash if I sell it. I have a retirement account that has about 700K in it and won't take early or be penalized and an investment account that is around 400K.

Interested in thoughts from people who have done this and where?

Thanks for your time/advice
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Old 08-30-2018, 01:03 PM   #2
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You left out a lot of information.
Expenses, married/single, where you currently live, investment profile, how much time/balance left on your main house, how you plan to pay for HC, yada yada.
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Old 08-30-2018, 01:26 PM   #3
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You left out a lot of information.
Expenses, married/single, where you currently live, investment profile, how much time/balance left on your main house, how you plan to pay for HC, yada yada.
Thanks. Single live in NY and that is everything. I have no mortgage on my main house looking at the other one as a wash (sell it and get out owing nothing) and would have to pay for HC out of pocket which lends itself to where is a good place to retire if I could even do it
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Old 08-30-2018, 01:30 PM   #4
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If you haven't seen it here's a list of questions that you'll want to have solid answers for:

http://www.early-retirement.org/foru...ml#post1399715
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Old 08-30-2018, 01:37 PM   #5
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If you haven't seen it here's a list of questions that you'll want to have solid answers for:

http://www.early-retirement.org/foru...ml#post1399715
Sorry I should have said I did that but still have a few unanswered questions this is what I had come up with

#1 Expenses - 50K
#2 HC - Depends on where I live currently would be $700 a month with 3K Deductible
#3 Money for children, Car etc $0
#4 Lifestyle change - Yes plan to leave NY but to where? And do I buy or rent?
#5 Income - No source of income planned at the moment hence retirement
#6 What will you pension be - I am not sure I don't have a pension just the investment account
#7 Social Security - At age 70 it will be $1350 a month
#8 Taxes - will depend on where I live
#9 Nest egg - The money stated above
#10 Live past 85? Doubtful

FireCalc tells me based on what I know I have about a 70% success rate
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Old 08-30-2018, 01:38 PM   #6
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I was basically trying to fill in some blanks with people thoughts on places to live, taxes are less, HC would probably be less, etc
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Old 08-30-2018, 01:46 PM   #7
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Welcome to our wonderful forum.
If you can provide some estimated yearly expense budget and your AA investment ratio, you could receive more advice from this group.
Healthsherpa.com can provide you with some medical expense information.
Healthcare.gov can provide you with some different ACA coverages with variable premiums, deductibles and OOP costs.
The rules for ACA taxable income are located below.

http://laborcenter.berkeley.edu/pdf/..._summary13.pdf

Edit - okay I see you now provided some more info.
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Old 08-30-2018, 01:48 PM   #8
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In general if you don't mind the heat, Florida has no state taxes and comprehensive pre-medicare ACA medical plans.
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Old 08-30-2018, 01:51 PM   #9
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Quote:
Originally Posted by DoneAt50 View Post
FireCalc tells me based on what I know I have about a 70% success rate
At your current $50K spend rate, I doubt it would work out. If you sell both houses and move to a very low cost of living area (maybe buying a $200K house), and reduce your expenses to, say, 4% of your then-investible assets ($700K + $200K + $200K=$1.1M), you could maybe make a $40K budget work. However, this would be higher than the 3.5% withdrawal rate, and your FIRECALC chances of success would be lower than the 95-100% that most here advocate. ~15 to 20 years from RE is when seaquence of returns may result in you being broke (or not).
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Old 08-30-2018, 01:54 PM   #10
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Originally Posted by DoneAt50 View Post
Sorry I should have said I did that but still have a few unanswered questions this is what I had come up with

#1 Expenses - 50K
#2 HC - Depends on where I live currently would be $700 a month with 3K Deductible
#3 Money for children, Car etc $0
#4 Lifestyle change - Yes plan to leave NY but to where? And do I buy or rent?
#5 Income - No source of income planned at the moment hence retirement
#6 What will you pension be - I am not sure I don't have a pension just the investment account
#7 Social Security - At age 70 it will be $1350 a month
#8 Taxes - will depend on where I live
#9 Nest egg - The money stated above
#10 Live past 85? Doubtful

FireCalc tells me based on what I know I have about a 70% success rate
Is your only source of income the 400k for ~ 10 years?
What equities % did you use for Firecalc? Most posters here who use the calculator would not feel comfortable with a 70% success ratio.
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Old 08-30-2018, 01:58 PM   #11
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Is your only source of income the 400k for ~ 10 years?
What equities % did you use for Firecalc? Most posters here who use the calculator would not feel comfortable with a 70% success ratio.
House worth 400K and 700K investement. I am not comfortable with 70% but trying to figure out factors like where to live (maybe expat) and health that in a few years could get me to like 85-90%
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Old 08-30-2018, 02:05 PM   #12
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There are some expats on this site who could potentially provide more info on that type of experience.
If staying in the USA, it sounds like your best bet could be getting that one time housing differential by moving to a LCOL or MCOL area and putting the money differential into investments.
I am from the Northeast and moved to Florida, so am aware of various differences in lifestyle, environment, culture, etc.
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Old 08-30-2018, 02:07 PM   #13
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There are some expats on this site who could potentially provide more info on that type of experience.
If staying in the USA, it sounds like your best bet could be getting that one time housing differential by moving to a LCOL or MCOL area and putting the money differential into investments.
I am from the Northeast and moved to Florida, so am aware of various differences in lifestyle, environment, culture, etc.
Thanks. I figured I'd probably have to go to FLA
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Old 08-30-2018, 02:12 PM   #14
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Originally Posted by DoneAt50 View Post
House worth 400K and 700K investement. I am not comfortable with 70% but trying to figure out factors like where to live (maybe expat) and health that in a few years could get me to like 85-90%
Quote:
Originally Posted by Dtail View Post
There are some expats on this site who could potentially provide more info on that type of experience.
If staying in the USA, it sounds like your best bet could be getting that one time housing differential by moving to a LCOL or MCOL area and putting the money differential into investments.
I am from the Northeast and moved to Florida, so am aware of various differences in lifestyle, environment, culture, etc.
Quote:
Originally Posted by DoneAt50 View Post
Thanks. I figured I'd probably have to go to FLA
Truth be told, if you're from the NY area, Florida might just seem like a foreign country. I can assure you it's not - unless you're thinking about South Florida, in which case the jury is still out. At times it's more like a different planet.
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Old 08-30-2018, 02:13 PM   #15
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If you are single and your current CoL is 50k, but in NY, I assume you can cut that CoL by relocating to any location that is more rural within reason. I could see you shaving off 10k between your current 180k mortgage payments, the gain from selling a 400k home and buying a very similar home in lower CoL area for 200k (gaining 200k equity). This would put you at 900k in liquid assets to invest.



At 900k with a 4 percent rule you would be pumping 36k a year from investments. Not 50k, but a lot closer to 40k.


Once you hit 65 for medicare you get a break on CoL and then again at 70 or 62, whenever you take SS. If you were able to wait until 70 and take that SS number you gave, you would probably be fine with the 900k investments as a lot of buffer. How you get to that point is going to be up to you.



I made a lot of assumptions with the information you provided. Not sure how nice your 400k home is. but typically housing is cheaper further in from the coasts.
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Old 08-30-2018, 02:14 PM   #16
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Truth be told, if you're from the NY area, Florida might just seem like a foreign country. I can assure you it's not - unless you're thinking about South Florida, in which case the jury is still out. At times it's more like a different planet.
LOL!! Yeah I am not a huge FLA fan but from a retirement standpoint it makes the most sense which is why it's filled with NY (and others) people that aren't originally Floridians
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Old 08-30-2018, 02:16 PM   #17
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If you are single and your current CoL is 50k, but in NY, I assume you can cut that CoL by relocating to any location that is more rural within reason. I could see you shaving off 10k between your current 180k mortgage payments, the gain from selling a 400k home and buying a very similar home in lower CoL area for 200k (gaining 200k equity). This would put you at 900k in liquid assets to invest.



At 900k with a 4 percent rule you would be pumping 36k a year from investments. Not 50k, but a lot closer to 40k.


Once you hit 65 for medicare you get a break on CoL and then again at 70 or 62, whenever you take SS. If you were able to wait until 70 and take that SS number you gave, you would probably be fine with the 900k investments as a lot of buffer. How you get to that point is going to be up to you.



I made a lot of assumptions with the information you provided. Not sure how nice your 400k home is. but typically housing is cheaper further in from the coasts.
Thanks Stripes your assumptions are in my line of thinking. My big question(s) are healthcare and even if to buy someplace or not and where that would be.
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Old 08-30-2018, 02:18 PM   #18
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LOL!! Yeah I am not a huge FLA fan but from a retirement standpoint it makes the most sense which is why it's filled with NY (and others) people that aren't originally Floridians
There's a reason they call it the 6th borough. One appreciates that in January when 1/2 the license plates are Lady Liberty and all the restaurants are packed.
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Old 08-30-2018, 02:36 PM   #19
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Truth be told, if you're from the NY area, Florida might just seem like a foreign country. I can assure you it's not - unless you're thinking about South Florida, in which case the jury is still out. At times it's more like a different planet.
Ah, depends if OP is from NYC or more like upstate NY. If from NYC area, then moving to Northern FLA whether on the east or west side of FLA could feel like another planet.
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Old 08-30-2018, 02:47 PM   #20
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Ah, depends if OP is from NYC or more like upstate NY. If from NYC area, then moving to Northern FLA whether on the east or west side of FLA could feel like another planet.
FLA in general is like another planet
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