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Why? Standard practice is to plan for a 5% draft off of your retirement dollars to sustain your funds. You are looking at needing an income of 375K in retirement with that balance? Do you make that kind of money now?
Holy cow. I'm 50, and absolutely cannot imagine being retired right now. 3 basic reasons, in order of importance:
1. I'd be bored out of my mind.
2. I actually love my job, and look forward to it every day.
3. I'm not financially set to be retired.
The career I was mentioning to the OP has not gone away, and still offers a 20-year pension.
That's because you didn't - and rarely ever - mention that career. You simply say things like "my employer provides a pension after 20 years" without ever mentioning that you are referring to the military. If you just state that you retired from the military after 20 years, that would prevent a lot of the confusion.
Why? Standard practice is to plan for a 5% draft off of your retirement dollars to sustain your funds. You are looking at needing an income of 375K in retirement with that balance? Do you make that kind of money now?
standard practice was closer to 4% and even that was subject to certain parameters being true. like a 7% average long term return , the gains and losses happening in a certain order and inflation no higher than 3 or 4%.
most of that has gone out the window the last 12 years and we are actually living the failure rate these studies speak of.
That's because you didn't - and rarely ever - mention that career. You simply say things like "my employer provides a pension after 20 years" without ever mentioning that you are referring to the military. If you just state that you retired from the military after 20 years, that would prevent a lot of the confusion.
Most young people (and us, when we were young) imagine 'early retirement' at the 'old age' of 45-50! But, the cost reality of healthcare, raising and educating kids, paying off the mortgage early... and saving enough money to retire for 30-40 years ... doesn't really start to sink-in until the early 40's. In this economy, the realization quickly shifts from "I hope to retire by 50 at the latest" ... to "I wonder if I'll EVER be able to retire."
Yes, 'many' people actually do retire in their 50's, but, usually under somewhat unusual circumstances. Otherwise, I think the notion of 'way early retirement' ... is a lot like the notion of many kids that they will probably play professional sports. Real life and the future speculations of a twenty-something person are generally two entirely different things.
I'm in my late 20's. Childless, not married yet and don't own a home. I do contribute to my ROTH IRA. I would like to retire in my 50's or at least just work part time. And you are right many things can happen in the next 30 years that might make that difficult. Not sure what would happen with healthcare unless I go under my future DH's insurance. Besides working on other streams of income and saving as much as I can, not sure what else I can do. But hey a girl can dream lol.
Most companies don't have pensions anymore so I wasn't even considering that. About that 23 year old who started the other thread I don't blame him. He's young and he's trying to think ahead. Maybe he won't retire early but at least he's thinking about finances at a young age.
The younger you retire, the more moving abroad makes sense because of the debilitating cost of paying for out of pocket healthcare in the US. That is generally the #1 issue people have with retiring early: absorbing the cost of another mortgage for healthcare (which is ridiculous and shame on the US for this!).
The math on retiring at 50 is pretty tough: you need to save a lot and start saving young because you basically lose one doubling of your assets between 50 and a normal retirement, so it's much harder.
Anyone retiring young should consider living abroad options though, it is a much larger advantage to younger retirees rather than older ones, and if done properly should broaden the range of activities one can enjoy during retirement.
Bwahahaa I thought so too, but maybe you are hiding it in TOO PLAIN SIGHT
As others mentioned, I don't think I'd want to fully retire at 50. I'd still find something to occupy my time, but it'd be something I WANTED to do versus HAD to do.
Yeah, but -- the last I heard, the military wasn't accepting everybody that walked through the doors. In fact, I know a guy that was booted after two weeks of boot camp.... he ain't getting a pension. ( they should have never let him in -- he was unstable)
What job accepts everyone? I'm sure even McDonalds turns away people.
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