Cool_Sparrow
Dryer sheet aficionado
- Joined
- May 19, 2008
- Messages
- 25
Hi all
This is a follow-up to my OP 5 years ago that the system no longer accepts replies on, so I started a new thread to update.
It's almost 5 years since my last update. Things are looking up, mostly thanks to nice capital market growth over the last 5 years. Junior (now almost 8 year old!) college fund has been boosted to $140K. Retirement assets now nearly at $1 million. Good thing I did not withdraw from either account over the last 5 years and kept some part time work going to cover our family living costs. Still living with wife (same one as five years ago ). I am now 42, so that's 5 less years to fund my retirement years compared to my first post in this forum Living expenses (real cost tracking over last one year) average INR 110,000 per month for our family, which works to $1833 (including insurance - see next para). Living a decent upper middle class lifestyle here, so no complaints, other than the typical developing country issues that other expat retirees must also be facing. Inflation here is at least 5-7%, so that's always a worry over long retirement horizons like mine. We haven't traveled much yet, so if I consider that in the future, we should be okay with $2000/month in today's value, or pre-tax equivalent of $2500/month or $30K/year.
Regarding health insurance in India, I did not get medical insurance other than catastrophic health coverage for hospitalization, which costed me barely $25/month for coverage upto $10,000/year, which is fine for 90% of in-hospital surgical procedures in India and even covers a semi-private room for the entire stay. Had to use the insurance twice in the last 5 years, and the insurance covered everything (). OP visits are not covered, which is fine as costs are relatively low. I am OK with this kind of insurance coverage.
I hope to start withdrawing from my portfolio and give up my side income gig (that too gets tiring in the crowded and competitive space here!) soon. So, $30K withdrawal in first year on $1 mill portfolio is 3% WR. I hope this is 'safe' enough to fund a 45-50 year retirement. What I am not including is SS payments of ~$1000/month from 67 (that's what my vested SS current data says) but then, don't want to count much on SS that's 25 years away for me.
A quick clarification please? Should I include dividends (currently reinvested) in the WR calculation? Dividends are around $20-22K for my portfolio, so should I start with stopping the reinvestment and spend that first before selling capital to fund the rest? How does this work in practice for ER?
Your thoughts on the 'revised' plan above please? Would like to hear from ER Experts and people in similar situation as mine. Thanks!
This is a follow-up to my OP 5 years ago that the system no longer accepts replies on, so I started a new thread to update.
It's almost 5 years since my last update. Things are looking up, mostly thanks to nice capital market growth over the last 5 years. Junior (now almost 8 year old!) college fund has been boosted to $140K. Retirement assets now nearly at $1 million. Good thing I did not withdraw from either account over the last 5 years and kept some part time work going to cover our family living costs. Still living with wife (same one as five years ago ). I am now 42, so that's 5 less years to fund my retirement years compared to my first post in this forum Living expenses (real cost tracking over last one year) average INR 110,000 per month for our family, which works to $1833 (including insurance - see next para). Living a decent upper middle class lifestyle here, so no complaints, other than the typical developing country issues that other expat retirees must also be facing. Inflation here is at least 5-7%, so that's always a worry over long retirement horizons like mine. We haven't traveled much yet, so if I consider that in the future, we should be okay with $2000/month in today's value, or pre-tax equivalent of $2500/month or $30K/year.
Regarding health insurance in India, I did not get medical insurance other than catastrophic health coverage for hospitalization, which costed me barely $25/month for coverage upto $10,000/year, which is fine for 90% of in-hospital surgical procedures in India and even covers a semi-private room for the entire stay. Had to use the insurance twice in the last 5 years, and the insurance covered everything (). OP visits are not covered, which is fine as costs are relatively low. I am OK with this kind of insurance coverage.
I hope to start withdrawing from my portfolio and give up my side income gig (that too gets tiring in the crowded and competitive space here!) soon. So, $30K withdrawal in first year on $1 mill portfolio is 3% WR. I hope this is 'safe' enough to fund a 45-50 year retirement. What I am not including is SS payments of ~$1000/month from 67 (that's what my vested SS current data says) but then, don't want to count much on SS that's 25 years away for me.
A quick clarification please? Should I include dividends (currently reinvested) in the WR calculation? Dividends are around $20-22K for my portfolio, so should I start with stopping the reinvestment and spend that first before selling capital to fund the rest? How does this work in practice for ER?
Your thoughts on the 'revised' plan above please? Would like to hear from ER Experts and people in similar situation as mine. Thanks!
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