dreamrver wrote:
to all of you who was able to retire early how did you know that you had enough to do so. did a financial person say your good to go, or did you just figure it out on your own. I am 50 years old just finished 31 years on the job, I like to think I put my time in, I would like to start the full time adventure sooner than later but can not convince myself I have enough. seems everything I read they say you need a million dollars invested, I do not believe so, am I wrong ?
I sympathize with you having gone through what you are RVD, we found ourselves in exactly the same predicament for the past few years. Caught in that "one more year" syndrome, like a Deer in The Headlights.
For some it appears $500K has been enough to retire on but they might be due to collect SS/pensions within 5 years or have other pensions from service or work that kicked in at 55 or even younger to supplement. Some have a skill they feel they can easily fall back mobile into if the proverbial hits the fan. For others with $2million invested they are nervous as who really knows how long the money has to last.
These low interest rate environments we find ourselves in the past many years, have skewed everything we planned for based on the old typical 8% return adage we started our planning around many years ago. Whilst none of us are alone, it is little consolation stepping into an unknown with so many variables. It doesn't help when one reads of others having to hang up the keys due to running out of money either.
There just comes a point where you have to take a leap of faith, just because the longer we put things off who knows what could happen. Based on your calculations of what's due to you and when, how long you have to make your nest egg last based on what realistic return you can get (ideally estimate on the low side for caution), what you anticipate your life expectancy (good luck with that one!) to be, and what exit plan you have. Basically have an A plan and also a B back up plan just in case.
No one has a crystal ball, either RVers or SnB retired folks. However, with adequate planning plus budgeting and allowing maybe an extra 50% expenditure for your first year out there, for most it appears to work out. We've just finally made the decision set the launch date and have trusted that within a couple of years we'll get a good feel where we are at. In addition we are putting 5 years expenses out of the market so we hopefully aren't forced during negative or high volatility times to sell any of our investments at a loss.
Will our plan work or not? Who knows! We've just done the best we think we can to prep for this new phase in our lives and covered as many bases through our research and knowledge as we can. If all else fails we'll end up on our daughter's doorstep as paupers in a couple of decades.
It Takes No More Effort To Aim High Than To Aim Low - Reach For The Stars
