I built a good career and have achieved highest level of corporate hierarchy. My earning power now and next few years will be highest of my career/life. Have a comfortable life but I'm drawn to making a change and retiring for simplier life.
As far as retirement savings: I have over $5M in networth and worrier in me says, may not be enough. I have couple of kids to send to college and who knows what the life challenges to come.
I can either stay where I am and make as much as possible to retire early or retire early and see what life will be like as early retiree - which has been my dream.
My monthly expense, even if I retire, will definitely be over $15k a month. Health care, food/dining out, kids expense, traveling, auto, insurance, etc.
With low interest environment, its going to be hard to get yields on conservative investments (ie CD/bond). So 4% rule may not be so comforting going forward.
How do you get comfortable Firing yourself? Welcome comments.
Hi and wow what an achievement at such a young age of 49. Most would love to have 5M in assets
That being said, after reading through most of the posts, you have a lot to consider indeed.
1. If you really want to retire you can by making some modifications to your expenses. 15k monthly seems awe fully extreme.
2. Know the difference between want and need. Not trying to be rude just real.
3. College is expensive and there are ways to reduce that cost but
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4. Expenses, pare down if possible. It seems like you are use the higher end of living and that is fine although just know your realistic limits.
5. Retirement income: I did not see any from a retirement plan at age 62 or are you just planning on SS? The 5M will run through rather quickly if you do not use a wise withdrawal process. You are correct, in my opinion the 4% rule would very optimistic if the market keeps up on this environment. The stock market of our parents days are much different and will continue to morph.
6. Lastly, if you insist on the 15k withdrawal proposed, recommend as others have, to work until 55 and max out all you can. If you haven’t done so yet, put your numbers through some reliable retirement calculators like FireCalc. The numbers do not lie if they are actually reliable
Again, you have done so very well and so, I recommend that you prepare for the worst case at age 55, and just see how it goes if you can leave earlier.