I want to Retire Early How Much $ do I need

[TRCM]

I assume you mean monthly on those numbers.

If you have two pensions totaling $3000, That’s equivalent to 900K in a retirement fund IRA/401K withdrawn at a 4 % rate.

900,000.00 x .04 = 36k/12= 3000

Thanks.....yes, monthly....

I was thinking more like 600k-700k....but 900k is definitely better....and now that I see the formula, no need to google stuff.

So, if I use that number plus what my 401k & IRA should have in them, I'll be doing good......should effectively have 1.5-1.6 mil by then.......

Healthcare should be a lot less too due to being retired military.

[fishon396]

Tough to answer to many variables but you could spend a million or close to it before your full retirement age.

[dean c]

Thanks.....yes, monthly....

I was thinking more like 600k-700k....but 900k is definitely better....and now that I see the formula, no need to google stuff.

So, if I use that number plus what my 401k & IRA should have in them, I'll be doing good......should effectively have 1.5-1.6 mil by then.......

Healthcare should be a lot less too due to being retired military.

Your in good shape! Those pensions never run out and don’t require a return on investment. Don’t forget Social Security...for most folks that’s another equivalent to 500k in a retirement vehicle at 4 percent. (Based on a 20k SS benefit) that also never runs out! (Well...we hope anyway!)

[Garfish]

Health care is what kicks your Ass! I retired at 50 and had to go back to work. The unaffordable health care ruined my plan. I’ll continue to work just enough hours to keep my health insurance and work until I’m 65.

Smartest thing you can do is to find something to do at the county or school level that will provide health insurance and apply for a job. I am afraid inflation ( with all this money the gooberment is printing and giving away) is going to be a killer in the next short run. It'll make the price of a FULLY equipped Ranger and Denali today look like chump change.

[go-fish]

keeferfish, IMO, if you can't carry your current health insurance into retirement. Plus some kind of early retirement pension. Or millions that you can tap. You sould be waiting.

[mossie3]

I would have never been able to retire if not for the affordable healthcare act, as I have a preexisting condition (take blood thinner) and was uninsurable. It's also very affordable as my taxable retirement income is under the $49,961 threshold.

[cwilt]

I'm not gonna have anywhere near that much in my 401k....but I will have 2 different pensions paying 1500-1600 each......does anyone know how much that would equate to in a 401k ?

TRCM...I am almost identical to your situation. One civil service and one military pension with a TSP thrown in. 49 now and time is going quick.

[davidsa]

for a bunch of fisherman in a virtual lounge, most of what is posted in all replies has merit. I do not think one size fits all. I can only share some ultra conservative thoughts with you. Note- if one likes work then why quit. I do like my job but I like free time more. now on to finances. You might be ready to retire if

1- You can roughly fund your annual expenses off 4% of your retirement investment. This implies your nest egg will be same or bigger when you die then when you started retirement
2- You have enough cash or highly liquid assets on hand to make it to 59.5. If you have enough cash or liquid assets to make it to 62 when you could start to draw SS you are golden. For some a pension payment might be part of your assumed liquidity but not as good as cold hard cash or bonds
3- If you have kids and could spend at your current rate until you die without going bankrupt you are golden. Your expenses will drop when kids off the payroll.
4- Finally, I think it matters what you plan to do in retirement. I don't expect to suddenly double my budget but some may want to do this for exotic travel.

Here is the thing. if you asked me when I was 24 if I would like to retire at 53 with the portfolio I have today, I would say yes. I valued free time over possessions. As i aged, somehow my priorities got messed up without ever really thinking about it. In self reflection, when one can go they should unless they like working or have a job where they can work part time. Tomorrow is not guaranteed no less 80. I see people passing or having serious illness in the 50's.

[CatFan]

At a minimum I'd need to feel like my investments would outpace my expenses (including insurance) at a specified ROI, say 6%... So take what you expect to spend each year, divide by 0.06, and that's a good starting point.

I would not retire early in a position where the expectation would be for my retirement account to start dropping annually due to my withdrawals.

You’ll work a long time waiting for that, then leave a big estate.

[TRCM]

Your in good shape! Those pensions never run out and don’t require a return on investment. Don’t forget Social Security...for most folks that’s another equivalent to 500k in a retirement vehicle at 4 percent. (Based on a 20k SS benefit) that also never runs out! (Well...we hope anyway!)

I figure between the 2 pensions and SS....I should have 4500-5000 per month...which is what I am living on now....I should be good, and not have to even touch my 401k....and can use the IRA for fun stuff as desired.

TRCM...I am almost identical to your situation. One civil service and one military pension with a TSP thrown in. 49 now and time is going quick.

I didn't start until I was 52 (had no choice), but since then, I've been maxing out my 401k & IRA every year, and making sure I have at least enough in savings to get me by for 3-4 months...

You got a few more years to fix it than I did/do.....so use it !

[printman71]

My logic, I am debt free, have $750,000 in cash (taxes already paid), Can draw $3100 monthly of SS, I am 67 and might make it until 80, so 13 more years.
So... $750,000 over 13 years is $58,000 form the cash, plus roughly $30,000 yearly from SS (after taxes), gets me to $88,000 yearly.
That's my budget. Still working at the moment.

[Jwags13]

I'd rather work less when I am young than have all the free time in the world when I am old.

^^^^This is my thinking exactly.

[RangerRic]

I'd rather work less when I am young than have all the free time in the world when I am old.

We all think that way when we are young.

[ColdSVT]

Marry a rich woman or one who makes a shit load of money lol

[yetti462]

retirement is for quitters.

[aikenyounggun]

There has been some good advice - but please go to a real financial site to get great info.

People love to say that “59.5 before you can withdraw without penalty” - but that in untrue. There is a loophole where you can get to that money penalty free.

The firecalc.com suggestion was good. A good rule of thumb, mentioned earlier, is that 25 times your annual expenses is what you need to retire. That is why spending less money is so powerful to speeding up retirement.

There are entire communities on the internet who are joined around retirement early. Often called FIRE - or Financial Independence Retire Early. Tons of wonderful information

[Fishingfarmer]

I'd rather work less when I am young than have all the free time in the world when I am old.

I can see the benefit both ways. You can enjoy life more when you are young, since you don't have as many pains or responsibilities. You still have a job to go to, which can throw off big plans and events.
working hard when young you will give up your youth, but then you can enjoy time without having a job to go to. You might die young and miss out, but that won't really matter since you are dead. It's not like you will be sitting underground worrying about what you should have done. I'm on the 2nd plan.

[Fishingfarmer]

A lot of good advice. Another thing to think of is where are you going to live? New York or California budgets need to be way more than northern wisconsin or other states. Lakefront, country, suburbs etc.

Theoretically I would like to have enough money to live comfortably and be able to buy a piece of land when needed. Live off the interest, which will leave the kids some money or give me a cushion in case crap hits the fan. I really should have invested more when younger, but I bought land and also put money into college accounts. Now the kids have more money than I do!

I would think a couple mil would be required if you want to leave a nest egg. If you want to spend it all, then a million might be enough.you will still have ss, and it will still collect interest, but finish as it is spent.

[smith64a]

I see a lot of people putting numbers and equations out there. But one thing you must consider is the difference in gross and net! Depending on what state you retire in and how your money has been saved/invested makes a big difference on what your taxes will be!
One last thing to consider is what your spouse will be left with should something happen to you.

Best of luck!

[Garage Dog]

Be sure to factor in enough for bait