Hey everybody
First time posting - been reading for a long time and learning a ton. Really happy to see this group!
47 years old US citizen living and working in Hong Kong. I would like your input about whether we can retire in the next couple of months.
Nest egg of US$3.5 million (excludes the value of primary residence that is fully paid for). No debt. No pensions or Social Security or 401K. Living with partner who is not working. No kids and none planned. 1 dog!
Estimated expenses per year in retirement: US$90K per year
Nest egg of US$3.5 million divided up in:
- 76% in equities in taxable accounts (90% of which in Vanguard Total Stock / Total International/ Emerging Market index funds, 10% in individual US equities)
- 15% in bonds in taxable account (all in Vanguard Limited-Term Tax-Exempt Fund, small amount in iBonds)
- 9% cash (60% in USD online bank CDs, rest in HK dollar cash)
My questions:
1. I think I have enough to retire but … am I right to think so? I want to resign ASAP after 20 years in the same stressful job, and itching to do something more in line with my interests, but might not earn much (if any) money. Ran Firecalc scenarios for 50 years which show 100% success of cycles
2. The US$90K per year is a conservative estimate. This US$90K includes a US$10K per year I added as buffer for healthcare and other unexpected expenses - but I am not sure how to estimate long-term healthcare costs, future US taxes from equity investments, as well as home maintenance costs. How do you all estimate these and should I add more? (P.S. in Hong Kong there’s a basic healthcare net that can take care of basic needs for very little cost, although it is not the highest quality or most immediate care)
3. Any the risks to my situation if I retire very soon?
Thanks for listening and considering.
LR
First time posting - been reading for a long time and learning a ton. Really happy to see this group!
47 years old US citizen living and working in Hong Kong. I would like your input about whether we can retire in the next couple of months.
Nest egg of US$3.5 million (excludes the value of primary residence that is fully paid for). No debt. No pensions or Social Security or 401K. Living with partner who is not working. No kids and none planned. 1 dog!
Estimated expenses per year in retirement: US$90K per year
Nest egg of US$3.5 million divided up in:
- 76% in equities in taxable accounts (90% of which in Vanguard Total Stock / Total International/ Emerging Market index funds, 10% in individual US equities)
- 15% in bonds in taxable account (all in Vanguard Limited-Term Tax-Exempt Fund, small amount in iBonds)
- 9% cash (60% in USD online bank CDs, rest in HK dollar cash)
My questions:
1. I think I have enough to retire but … am I right to think so? I want to resign ASAP after 20 years in the same stressful job, and itching to do something more in line with my interests, but might not earn much (if any) money. Ran Firecalc scenarios for 50 years which show 100% success of cycles
2. The US$90K per year is a conservative estimate. This US$90K includes a US$10K per year I added as buffer for healthcare and other unexpected expenses - but I am not sure how to estimate long-term healthcare costs, future US taxes from equity investments, as well as home maintenance costs. How do you all estimate these and should I add more? (P.S. in Hong Kong there’s a basic healthcare net that can take care of basic needs for very little cost, although it is not the highest quality or most immediate care)
3. Any the risks to my situation if I retire very soon?
Thanks for listening and considering.
LR
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