Possible to retire at 40?

[SpaceMountain]

I am 39 yrs. old, single and have roughly 1 million in stock mutual fund (Vanguard) investments. 250K of which is in IRAS. (half a ROTH and half a Traditional)

I also have a home valued at $300,000. No more mortgage or any other debt.

I am in good health...........for now.

Yes, I know healthcare costs will be an issue down the road.

Any thoughts?

Lastly, I live a simple inexpensive lifestyle.

Can I make it?

Thanks in advance

 

[LineTamer+]

possible if you could live on 5% withdrawals...or $50,000 a yr.
not a chance if you need anything over 7% or 70 g's a yr.

Cant touch the IRA money for a long time, 27 trs maybe, so that 250,000 should double evey 10 yrs hopefully. But then you ill be taxed on 100% of that (not the roth)

 

[8ate]

..

..Why not "work" at whatcha really enjoy; then you will still have some income; might even have a blast starting a new company; and making a few billion..

But, seriously; whatcha gonna do?? Sit around and watch tv; get an rv and cruise??

wtf; sounds boring to me..!!

jmho

congrats on your finances..!!!

gl

uppy: :nono5:

 

[Brooklynbomber]

here is the problem with that scenario IMO

The true inflation rate now is right at 10%, not the 2.5% that is falsely reported by the gov't through numbers manipulation.

That $1m stash you have right now may look fat, but in another 10 years, due to the falling US dollar, it will be cut in half. In 10 years a million bucks will be no big deal.

The only way you can succeed is by getting a high rate of return on your investments....at least 15% average a year, likely you'll need 20%, which is of course is difficult.

 

[Dubpoet]

You can't make it till 65-67 for medicare and ss. You may think you can live of 40-50k but a simple mri, cat scan, small surgery can cost big money. Get an easy goverment job with great benefits! Live simpy off your salary and grow your money. You could easily have 5 mill at 50 then maybe retire.

 

[quantumleap]

Contact a financial professional. He or she can walk you through scenarios of your financial future.

 

[skinnylarry]

buy I.G.T ,,,,, gambling related stock will explode in next few years

 

[al_corona]

you can make it man.

take that 1 mill and move to costa rica, you will live it up

 

[D2bets]

I suppose it's possible, just depends on your budget. You can run projections. Your're going to want to be able to live off the income from your investments for awhile, not touch principal. If you can live off 50K/year you can probably do it. What are you going to do with yourself though?

 

[Seymour]

No you cannot retire on a mil - at around 3 to 4 mil you can.

 

[Illini]

No you cannot retire on a mil - at around 3 to 4 mil you can.

Sure you can. With a paid off house, anyone can live on 30-40K a year. Probably better to keep working and let it grow, but of course he can retire if he really wants to and is adequately insured.

 

[Dubpoet]

adequately insured


Bypass surgery at 50 with cost 140k

 

[guychance]

Why ask anyone? You seem to be doing just fine yourself.
Invest the money and see if you can live off 4% of total investment. If the answer is yes..Then you're set-up for life. Odds of you running out of money base on a 4% withdrawal rate is 1%... Your money needs to be invested fully in index funds. Keep fees low and stay ahead of inflation...ope: I wish I was in your shoes...

 

[pooty]

what they're telling you is that you still need to work. not hard work but something you enjoy with benefits

 

[sunnyblue100]

Depends on where you live, what kind of lifestyle you want and how you invest your money.
It's always nice to have a business in which the money works for you.

 

[Starbuck]

If I was going to retire right now I would at least make sure I have about 5 million in stocks or in the bank. Anything less I would wait till I reached that limit. As another one said the American dollar is going down and will continue. Just look at how many people have a million dollars now. It topped over 30% in the last year. 5 million to be safe if not more. With the 5 million in the bank and if you can do around 8-10% a year with investment you can live quite a nice life. Also the 10% on investments is very doable as well.

So let's look at worst case scenario here and you only do 8% a year on your investments. Your yearly return on all your investments would be roughly $400,000. Now if you need that much to live on for a year then your probably spending a little too much...lol. If I retired today I would live easily on $100,000. So that means you have $300,000 left over to leave in your investments and make even more money. Three years down the road you brought home roughly $100,000 and put close to another million in the bank. Now yes there is always the taxes and blah blah, but I am not going to calculate all that.

I think you could do it with 1 million, but again depends on the lifestyle you have, but I would like the extra insurance there so that's why I say I would wait till around 5 million. You ask any broker or financial adviser what a comfortable number would be and almost 90% of them would say anywhere around 5 million. Bright side is this wouldn't even count what social security you might get as well. Any money from social security will just be a plus for me as I won't be expecting anything from that.

 

[sunnyblue100]

Guess we should also consider the $ depreciation factor if you consider to live out of u.s after retirement.

 

[PatsFan1283]

I think its definitely doable. Depends on what your goals/needs are. However, you wanna keep working atleast part-time so your money can continue to grow and to reinvest some of what you save.

Say you pull 60k out of a million a year. Save atleast 15 of that. If the guy has no kids, no wife and is willing to keep investing his money to grow his nest egg then he can easily retire at 40.

As an aside, Jdog you said the true inflation rate is 10%? I agree it is not 2.5% but definitely no higher than 4-5. People tend to look at items that go up in value sharply and think inflation is worse than it is. There are tons of items that have seen flat/modest gains also. There are also some things like Home Ownership where the price keeps going up, but you only pay a 1 time fee of one price so that inflation doesn't really effect a consumer if they already own a home.

Anyway, just my two cents...