Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Too young to retire?
Old 04-22-2011, 04:16 AM   #1
Dryer sheet wannabe
 
Join Date: Apr 2011
Posts: 12
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?
mrcollie1 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 04-22-2011, 04:27 AM   #2
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: 50,003
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.
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 04-22-2011, 04:30 AM   #3
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
What are your annual expenses ? $24k not the same as $100k.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 04-22-2011, 04:33 AM   #4
Thinks s/he gets paid by the post
 
Join Date: May 2005
Location: Texas
Posts: 1,038
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.
__________________
In theory, theory and practice are the same. In practice, they are not.
Lazarus is offline   Reply With Quote
Old 04-22-2011, 04:34 AM   #5
Dryer sheet wannabe
 
Join Date: Apr 2011
Posts: 12
Thank REWahoo....I will check FIRECalc out. obgyn65, my annual expenses are less than 10K/year. I live overseas.
mrcollie1 is offline   Reply With Quote
Old 04-22-2011, 04:39 AM   #6
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 04-22-2011, 06:24 AM   #7
Recycles dryer sheets
robbridg's Avatar
 
Join Date: Sep 2010
Location: Allen Park
Posts: 118
Quote:
Originally Posted by mrcollie1 View Post
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!
robbridg is offline   Reply With Quote
Old 04-22-2011, 06:34 AM   #8
Dryer sheet wannabe
 
Join Date: Apr 2011
Posts: 12
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.
mrcollie1 is offline   Reply With Quote
Old 04-22-2011, 06:39 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,317
$665K in checking? That isn't even insured. Are you for real?
__________________
Idleness is fatal only to the mediocre -- Albert Camus
donheff is offline   Reply With Quote
Old 04-22-2011, 06:40 AM   #10
Thinks s/he gets paid by the post
growing_older's Avatar
 
Join Date: Jun 2007
Posts: 2,657
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.
growing_older is offline   Reply With Quote
Old 04-22-2011, 06:43 AM   #11
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
"Too young to retire?"

Better than the alternative - "too old to work" ...
rescueme is offline   Reply With Quote
Old 04-22-2011, 06:43 AM   #12
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: 50,003
Quote:
Originally Posted by mrcollie1 View Post
I'm a novice. What's SWR?
Safe Withdrawal Rate.

You can learn more about it here: http://www.early-retirement.org/foru...ate-19234.html
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 04-22-2011, 06:45 AM   #13
Dryer sheet wannabe
 
Join Date: Apr 2011
Posts: 12
@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.
mrcollie1 is offline   Reply With Quote
Old 04-22-2011, 06:46 AM   #14
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: 50,003
Quote:
Originally Posted by mrcollie1 View Post

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?
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 04-22-2011, 06:47 AM   #15
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: 50,003
Quote:
Originally Posted by mrcollie1 View Post
I am not not too keen on investing.
Better keep on working for a few more years.
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 04-22-2011, 06:47 AM   #16
Dryer sheet wannabe
 
Join Date: Apr 2011
Posts: 12
Thank you REWahoo.

That's funny rescueme.
mrcollie1 is offline   Reply With Quote
Old 04-22-2011, 06:48 AM   #17
Dryer sheet wannabe
 
Join Date: Apr 2011
Posts: 12
@REWahoo: Yes, I know. I lived in VA briefly in 2005.........cost of living.......way high.
mrcollie1 is offline   Reply With Quote
Old 04-22-2011, 07:00 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,317
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.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
donheff is offline   Reply With Quote
Old 04-22-2011, 07:02 AM   #19
Dryer sheet wannabe
 
Join Date: Apr 2011
Posts: 12
@doneheff: as do I.
mrcollie1 is offline   Reply With Quote
Old 04-22-2011, 07:19 AM   #20
Thinks s/he gets paid by the post
 
Join Date: Dec 2010
Location: USA
Posts: 1,050
Quote:
Originally Posted by mrcollie1 View Post
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
Aiming_4_55 is online now   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
Too Young to Retire LarryBob Other topics 16 03-04-2010 06:14 AM
Best Places to Retire Young ESRBob Life after FIRE 23 06-07-2007 11:11 AM
New and Looking to Retire Young Sommie Hi, I am... 19 07-22-2005 03:39 PM
Why retire young? Austin_Explorer Young Dreamers 5 05-06-2005 03:59 PM
Too young too retire Familyretired Other topics 18 11-13-2004 12:23 PM

» Quick Links

 
All times are GMT -6. The time now is 06:39 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.