wab said:Two advantages to EER:
1) Health care expenses are fairly low while you're young (we're paying about $300/mo for a family of 3 w/HSA).
2) You're young enough that you can more easily rejoin the rat race workforce than somebody who retires at, say, 65.
While the long-term risks are potentially high, recovery from early failure is relatively easy. I started out with a 50-year retirement. Yikes! But now that I'm 5 years into it, it's only a 45-more-years retirement and my portfolio has grown enough to give me a larger margin of safety. Amazing how that works, eh?
That's true!
We bailed 4-5 years ago in our early 40s and got a catastrophic (5K deductible) health insurance policy that is now $220 per month for 2. The issue at this time is qualifying for such a plan - if you are significantly oveweight or have had cancer, it's tough to get. However, once you are in, I believe that they cannot drop you.
Another thing to consider (if you don't care about leaving the house to the kids) is a reverse mortgage after you turn 62 - that's like another pension. So between whatever SS is, a reverse mortgage and your investments, you should be okay.
That's our plan.