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You "could" do it, but that's not enough money to live comfortably without working.
Everyone is different, but in my mind, I wouldn't consider something like that unless I had $10 million (or more) in cash. In the most conservative scenario, a 1% return is $100k. Obviously, you'd likely see a higher return though you'd also have some capital gains taxes. With $10 million and no debt, you're living on 6-figures, growing your principal and aren't too limited with lifestyle choices.
We probably could live comfortably overseas on that much (30kish per year?) if we had too, but I sure wouldn't have retired knowing savings allowed that as only option going forward with all the unknowns of geopolitics over the coming decades of life. We didn't quit until we had enough to maintain our exact same expenses as we had living in USA, and then some for buffer.
Always give yourself options, what you're happy (or need) with in life at age 30 might be a lot different 25 years later.
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).
What happens if you need a new roof? Boiler (if you have those)? House needs to be resided? Those are all things that have finite lives (siding like 30ish years, roof 18-20 years, boiler 10-15 years) that aren't necessarily cheap but would be a big chunk on that low an income.
I've never lived in a low COL city/town but I can imagine it being doable. Some people do next to nothing with their lives and don't spend any money unless it's absolutely necessary. Loners especially can make this happen. No SO or friends to spend money with or on. That 800K can last a long time for the social outcast in a low COL for sure.
What about a partner or a child? Even a dog could add considerable expenses. Vet bills for illness or surgeries are expensive.
You are planning for a future for one person.
It seems so lonely.
Perhaps this person with $800k already has a 4 year old they love with all their heart. What changes?
My desire is to live “America-middle-class” with complete ownership of my time and thoughts.
A free mind is nothing to take lightly so please don’t envy me too much. I respect the wisdom freedom allows such a young mind to harvest so early in life. I also appreciate the patterns and connections in the fabric of life it allows me to see.
I will say though - I don’t think extreme early retirement is the path for everyone. There’s still a battle to prevent the brain from consuming itself.
Last edited by eddiehaskell; 12-03-2019 at 06:51 PM..
Yeah, I think you could do it. I also live in a low cost area (NC).
I can have my true “living” expenses down to less than $10k/year. Anything over that is mine to do as I please.
If I did nothing other than “free” activities I could reinvest $10k+ per year to grow my future income.
I too can be a minimalist. I have some outside encumbrances at the moment but within 2-3 years I could easily just be back to only having to financially care for myself.
In the rural area where most of my family lives I could pretty easily get by on 20k a year. I'm a simple guy, simple tastes for the most part so I get where you are coming from.
Personally, if I were you I would keep working and if you hate your job then find something fun to do that produces income.
The big wildcard for you is healthcare and at any moment it's possible with the political winds swirling that Obamacare could go away or they could institute an asset test for qualifying instead of just income and then you'd be swinging in the wind. (you might be healthy now but maybe not in 20 years etc. and then you'd be really over a barrell)
Best of luck.
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