Hi Readysoon here..42..3 more years?


Confused about dryer sheets
Oct 14, 2010
Hello all,

long time reader, first time poster...

lets see.. i'm 42, single male, and i want to know what people think about my retiring in 3 years at 45, or do they think i can do sooner?

at 42 I've $500k in stocks, $65k in savings, $320k in 401k/ira, a total of $885k. also, no debts and no mortgage.. at current job i am able to save $100k/yr. which at 45 would give me $1.2-1.3M (of save + invested earnings)

i would like to retire at 45 and believe I would live on 4k/month after taxes.

at 65 i'll get a pension of $2.5k/month, also should get SS if it is around.

I'd like to move overseas and travel similar to the couple at www.retireearlylifestyle.com

Any thoughts, or advice guys?

what would you retire on in your mid 40's in order to travel and see the world.. Also, have a PhD in Physics, so i could always if i needed to teach at a university to keep my mind active and supplemental income.
Welcome aboard readysoon. If your spend estimate is accurate, it sounds like you have a workable plan. Have you tried Firecalc? (link at the bottom of the page).

I see you have discovered the Kaderli's. They occasionally post here as well.
Welcome Ready Soon. I am in a similar boat as yourself, so numbers are not so far off. I think the 4K per month sounds good. Major variable there is Health Care Costs. If you assume that the rate increases 8% per year.....it gets rather high before you hit 65.

I am assuming the 2.5K/month pension is going to be inflation adjusted? If so v.nice.

As Gumby stated, firecalc is very helpful. You may already know this, but I figured I would share. Implicit in firecalc, but not explicit, is that the timing of your retirement relative to the stock market cycle is key. The scenarios that go poorly are when you retire at the top of the market. So if the market really starts to take off, you may want to use a lower SWR rate to account for the likelihood that your assets are relatively highly valued (and thus potentially overvalued). There are a bunch of articles on this topic.

I am also thinking about the supplemental income aspect of part-time work. If you can reduce your drawdown by 1-2% you are absolutely golden.

Good luck!
.... and believe I would live on 4k/month after taxes...
Welcome to the board.

You need to be pretty sure about your budget. It is best if you've tracked your spending and made adjustments to account for changes when you stop working. For example, less commuting costs, more medical & travel costs.

At 45, you should be using a very conservative SWR or even a variable SWR based on the performance of your portfolio. See Bob's site for more on this.

All the best.
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