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Old 12-03-2019, 10:39 AM
3,017 posts, read 1,972,002 times
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I wouldn’t consider retiring this young with that small of an amount of money.

But it would be a heck of a start.

Old 12-03-2019, 11:22 AM
Location: Omaha, Nebraska
7,859 posts, read 4,556,515 times
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Originally Posted by Trekker99 View Post
Isn't the 4% 'guideline' only for a 30 year retirement horizon?
That's what it has been tested for, yes. It may fail over longer time periods.

The OP would be very foolish to retire in his/her 30s with so little money. But a sabbatical or a career change, that's doable with that amount in the bank (assuming it's not in retirement accounts where the money can't be accessed).
Old 12-03-2019, 11:39 AM
53,890 posts, read 43,218,733 times
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A couple considerations.

1) Assuming this guy can keep his taxable income low like with Municiple bond investments etc. they are "poor" and thus would get virtually free healthcare courtesy of Obamacare which doesn't have an assets test so scratch that issue. My friend retired at 40 basically because of that one feature. He is now "poor" and gets virtually free health insurance.

2) There are some 5% yield muni bond funds out there but if you figure long-term inflation is half that....then you are looking at 2.5% after inflation return. So in order to keep your "real dollar" purchasing power you're probably needing to take out only 2.5% in that scenario in order for your principal to grow to offset inflation.

That means only about 800k x 2.5% = 20k per year in current dollars in perpetuity.

Not sure where you live but with property taxes, upkeep and possible other costs that could leave you in a pickle especially if you have any dependents (otherwise what's up with the 3 bedroom house?).

So, my advice is if you're going to do this you may need to shrink your housing costs greatly but that would also boost your cash pool with the sale.
Old 12-03-2019, 11:43 AM
Location: Massachusetts
10,087 posts, read 11,153,887 times
Reputation: 14103
That sounds like a great initial investment to start building a solid nest egg.

Would I retire on that much? No way. At least not if you take in mind the sort of activities and adventures I like to go on and how I fund them.

Besides that...I actually like my job.
Old 12-03-2019, 12:18 PM
Location: Formerly Pleasanton Ca, now in Marietta Ga
6,264 posts, read 4,502,505 times
Reputation: 8657
Originally Posted by mathjak107 View Post
why you asking now after all these years of supposedly not working based on your prior posts
You beat me too it. That was one long thread where he said he had it all figured out. It looked feasible, but pretty lean and not much room for any bump in the roads. Maybe he is starting to see a few chinks in the armor and has doubts now about his calculations and projections.
He already has a thread where he feels he an buy a new car every year up to 70k value and do it with 5k to 6k a year.

If he does that it’s a healthy bite out of his living expenses . Most responses to that auto thread indicated it wasn’t feasible and his numbers were off. Maybe his retired early life is panning out quite like he thought.

Last edited by aslowdodge; 12-03-2019 at 12:30 PM..
Old 12-03-2019, 12:45 PM
Location: Tennessee
25,707 posts, read 19,098,897 times
Reputation: 30584
Let's say I get $800k tomorrow.

Payoff for my mortgage is about $95,000. That gets it down to about $705,000.

Property taxes are about $1,000 annually for city/county. Water/sewer/trash is about $55/month. Power/internet about $150/month. Auto insurance for my Cherokee is about $50/month. With careful food purchasing, I could get by one $200/month or so there. At 33, I don't have any medical problems, but would buy insurance.

It could likely be done in my area, but would require careful planning and budgeting. My townhome is not really suitable for older people (lots of stairs).
Old 12-03-2019, 01:50 PM
Location: US
19,239 posts, read 18,861,480 times
Reputation: 15120
Originally Posted by eddiehaskell View Post
How do you invest?

$0 debt. 3br home paid for. Car paid for.

How much do you live on per year?

Can you have fun?

$800k isn't enough to retire IMO. You'd likely be in trouble by the time you become a senior unless you move to a low cost country now and are very good at minimizing expenses.
Old 12-03-2019, 02:01 PM
4,803 posts, read 1,266,291 times
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Originally Posted by eddiehaskell View Post
How do you invest?

$0 debt. 3br home paid for. Car paid for.

How much do you live on per year?

Can you have fun?
Early 30's... too much life left with too many unknowns. $800k gives you a nice head start to a fully funded retirement, especially if you're able to keep saving at that rate. But don't pull the plug just yet.

Don't try to retire at 30. It's largely a myth, and people really just switch industries and eat up some of that nest egg in the next 5 years or so while they get their next venture off the ground. Such accounts are easy click bait for people who hate their line of work or just don't want to work.
Old 12-03-2019, 02:02 PM
7,991 posts, read 12,064,020 times
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Originally Posted by eddiehaskell View Post
How do you invest?

$0 debt. 3br home paid for. Car paid for.

How much do you live on per year?

Can you have fun?
If I had half that and a paid off house, I'd retire today.

But I plan to play music all day, and I'm already good, so if I had the next however many years to work all day on it, I'd definitely be able to make some $ off it.

If I planned to jerk off all day and travel to Hawaii and Europe 3 times a year, then no, it's not enough.
Old 12-03-2019, 02:06 PM
2,823 posts, read 2,506,020 times
Reputation: 3378
How did OP acquire 800k in assets in early 30s? If it was through shrewd saving and climbing the career ladder... then just keep at it for another decade and you'll have 1.5 to 5 million depending on how things progress, and that is getting to a number that you could feasibly retire comfortably, even on the low end in a low cost of living area if you don't fancy expensive restaurants, exotic vacations, designer clothes, fancy cars, etc.

If OP is actually just relatively lazy and is plugging away at a $15/hr a job with no real upward career mobility and this came through a windfall by way of lottery, inheritance, etc. then I'd be even less likely to recommend retiring this young.
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