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Old 04-23-2014, 09:58 PM
 
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I am a 56 year old widow with grown kids and have just been through 2 years of downsizing stuff/house repair/listing/selling/moving. I bought a nice townhouse that I can clean in about an hour..woohoo !!

My house is paid for and HOA fees are 120/month...I will be able to live fine on 2000 per month..
I have about 580K in retirement investments...No loans or depts..

I worked as a Speech Pathologist before the kids were born and could easily find work because of a shortage in the field...I could do part time, hourly PRN work, or take temporary assignments....

My question is , Do I really need to work with my home owned and almost 600K invested...
SS will kick in before too long..

I have lots of goals, hobbies & adventures that I would love to focus on if I could be free to not work..
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Old 04-23-2014, 10:07 PM
 
Location: Saint Johns, FL
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Certainly it would seem if the 580K is invested well (such as dividend paying securities like AT&T, Realty Income Inc. etc.) you can be generating the 4% return you need to get $24,000 a year until SS kicks in.

The only caveat I would have would be Health Insurance since you didn't mention that.
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Old 04-23-2014, 10:07 PM
 
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Quote:
Originally Posted by kelly237 View Post
.I will be able to live fine on 2000 per month..
I have about 580K in retirement investments...
Will the 2k come from a pension or from these investments?

What is the nature of these investments?
edit to add: and are withdrawals/spend-downs taxable?

You're 6 years from SS. Will your SS + any pension = 2k (plus inflation, you can't live on that indefinitely), or will you have to continue to draw down the savings?
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Old 04-23-2014, 10:10 PM
 
Location: Whereever we have our RV parked
8,783 posts, read 7,701,741 times
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I would first reexamine that $2000 a month. I'm not saying that it can't be done, but first try giving yourself exactly that much to spend for a few months and see if you run out in a couple of months. It isn't that some people can live on the two grand a month, but the question is, can you? Also check and see if you have extra in there for emergencies. Does that number include health care, health, car, homeowners insurance, property taxes? If you're numbers are correct, then I don't see why you can't retire. 2000x12 is $24k a year. Ten years is 240K and that gets you to 66 when medicare and SS kick in. That still leaves you with about 300K. You might do a life expectancy analysis. Figure out how long you might live and take a look at that. Bottom line is, its all guess work.
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Old 04-23-2014, 10:18 PM
 
Location: Los Angeles area
14,018 posts, read 17,735,102 times
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Quote:
Originally Posted by augiedogie View Post
I would first reexamine that $2000 a month. I'm not saying that it can't be done, but first try giving yourself exactly that much to spend for a few months and see if you run out in a couple of months. It isn't that some people can live on the two grand a month, but the question is, can you? Also check and see if you have extra in there for emergencies. Does that number include health care, health, car, homeowners insurance, property taxes? If you're numbers are correct, then I don't see why you can't retire. 2000x12 is $24k a year. Ten years is 240K and that gets you to 66 when medicare and SS kick in. That still leaves you with about 300K. You might do a life expectancy analysis. Figure out how long you might live and take a look at that. Bottom line is, its all guess work.
Very reasonable, but just wanted to point out that Medicare kicks in at age 65, not 66.
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Old 04-23-2014, 10:36 PM
 
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Good idea to test out that 2000 per month ...I have just downsized and everything (utilities/upkeep/taxes/ins) are all less than before..

No pension type $

Investments are diverse..

Health Insurance is 300 per month at this time...

It's the extras that I may want to work to cover..Trips, house renovations, new car ect...
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Old 04-23-2014, 10:43 PM
 
Location: Haiku
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Quote:
Originally Posted by kelly237 View Post
My question is , Do I really need to work with my home owned and almost 600K invested...
SS will kick in before too long..
The conservative answer to that is 'yes, you need to keep working'. Even if we assume you have accounted for all expenses (did you account for taxes and health insurance in that 2000?), it would still be on the edge of recommended financial parameters. The math is simple: average of 4% return on investments, per year. You will see it does not quite cut it.

The non-conservative answer is "it depends". Some of these things would need to fall in place for you to make it work:
- you would likely need to rely on some other income, like employment. Only you know how employable you are and whether you want to take that path.
- your investments would yield more than 4% on average. They may well yield more. Or less. It is a huge gamble to bet that the stock market will be a bull market the next 10+ years.

One more thing - wait to claim SS until at least 65. It is a huge mistake to claim at 62.

When I was 57 I wanted to retire badly but it always looked too iffy to me so I put it off for 5 years. I am glad I did. My nest egg is way bigger, living less on the edge, and able to do more because I have more money.

My recommendation is to put it off.
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Old 04-23-2014, 10:45 PM
 
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Quote:
Originally Posted by kelly237 View Post
No pension
That's shaky, long term. When and how much are you expecting to get from SS?
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Old 04-23-2014, 10:52 PM
 
8,080 posts, read 13,460,711 times
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Quote:
Originally Posted by biscuitmom View Post
That's shaky, long term. When and how much are you expecting to get from SS?
at about 65 and about $1700...

twobyfour
I agree with you..I am young enough to do some per diem/ contract work and still have my flexibility.
That will help pay for extras and leave more invested for the years I can't work..

I have learned the lesson that we can't know what hardships are around the corner..
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Old 04-23-2014, 10:53 PM
 
10,816 posts, read 8,061,664 times
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Quote:
Originally Posted by augiedogie View Post
2000x12 is $24k a year. Ten years is 240K and that gets you to 66 when medicare and SS kick in. That still leaves you with about 300K. You might do a life expectancy analysis. Figure out how long you might live and take a look at that. Bottom line is, its all guess work.
The downside of your scenario is almost 1/2 her nest egg is gone before she reaches Medicare and SS FRA.
Not a pretty picture, and that's assuming she has no tax liability on the $24k.

Her investments might or might not outpace inflation, like you say that's guess work.
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