for someone who's single, lives modestly and doesn't have any major expenses, what's a realistic amount to have saved before calling it quits at wells fargo? would $1 million do it, or is $3 million closer to what you'd need these days?
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NO $1MM IS NOT ENOUGH IF YOU ARE 58 UNLESS YOU LIVE IN A STATE WHERE THE COST OF LIVING IS VERY LOW.
@rc I imagine that assumes a 4% burn rate, capital preservation (die with principle largely untouched), and ignores social security? Curious on your opinion here: if annual social security is $40,000 would you equate that to $1mm in “assets” throwing off 4%? I’m not challenging you, I’m asking in good faith.
As a target and starting point, you need 25 times your annual spending in retirement. If $1M gets you there ($40k a year), then you're there!
If you have a paidoff house with no major work to be done in the next 20 years, you are good to go. Im 53 and planning for 58 as well with way less than that (retiring overseas).
Makes me feel a lot better at 51 with 4.6. Going to retire.after severance.
Assuming you get healthcare from ACA keeping earned income in 2027 under 48000 . It’s calculated on fire income not pass income . Insurance will be cheap .
Next is debt , if you have none house paid for , car paid for and in good shape and live in an area that has reasonable property taxes it can easily be done . Hopefully in state without state taxes
On 1 million 500k in a bond fund will generate 3k a month of dividends . Put 400 in money market 3.5% another 1k .
48k income earned without hurting principal . Bond fund could decrease in value but very little in a bad year.
Estimate owing 2k in federal taxes taking standard deduction .
If you have modest lifestyle spend smart have no debt you will have no problem gif next 4 years then you get a raise from SS .
Have fun !
It all comes down to your run rate.
Typically they say you can pull 4% of your net if you have it in something like the SP500, which in your case is say 40k. Given the CAPE ratio is 41, tech business models are getting destroyed i would be conservative and do a 50/50 split between a value fund and bond fund. Plus add in your SS you would get at 62, says its 35K, so 75K. Depends on where you live and how you live, I think that's very doable if you own a home. The avg life expectancy of a guy in America is something like 74.5 years, if your lucky and beat out 50% of the other guys you get 16.5 more years of life left. Just leaving this toxic Indian call center will add 2-3 extra years of life where you collect social security. And between 58-65 you'll need medical, if your income recognized is low, jump on obama care, each state has their own site to give you a figure.
It's just math, and it depends on your expenses and risk tolerance. get some software designed for this. I use boldin.com but there are others that may suit you better.
Not even close
The underlying irony of this post is we all work for a company that employs thousands of financial advisors. And do you think Wells Fargo does one thing to help their employees understand and feel prepared for retirement?? If you look at all the benefits to working here that could possibly be provided, basic financial education and retirement readiness should be the easiest amongst them. Airline employees literally fly for free. Haha
And yet our leadership doesn't even bother to provide any sort of resources as standard for working here. Shame
I can retire at 59 but I have to die at 63. YMMV.
SERIOUSLY, why would this question be posted here? This is as personal and unique a question as exists. Run your expenses…. If less than $50,000 before taxes you’re fine. If more, then you’ll need to tap social security at 62.
I’d retire in a heartbeat with $1m…I barely have half that!
@OP with $1mm you could buy 14,000 STRD (preferred stock) that pays $140,000 per year in daily dividends starting Jan 1. This is not financial advice and not diversified, since highly reliant on underlying Strategy stock and Bitcoin strategy. But, it’s an option. Might work for you, at least until social security.
It depends on your personal definition of “retired”. Many others grown tired and have dropped out of the corporate world in your financial position or less.
Does working part time, but not having the black cloud of every-other-Tuesday layoffs, count as “retirement” to you? That scenario is likely to be able to afford health care pre-Medicare. This is my plan but I will be age 59.5 in April 2027.
Short answer: $1 million at 58 is not enough to do nothing for the next 30 years. But, with a sensible plan, you can walk away from the corporate BS and enjoy life.
What does "lives modestly" equate to in monthly/yearly dollars? That's going to guide your answer to the number. Then you have to decide what to do, if anything, with health insurance. If you've collected a couple of years worth of expense data, you could see how that fares and come up with an inflation rate. Come up with a burn rate and a return rate that you need to match the burn rate or estimate your death. Factor in social security income as well, and consider that would all go to your expenses first, so just subtract that amount from the expenses and really what's left is what you need to reason on.
Personally, I've done the calculation and I could quit working today and make it to social security on my savings (I'm in my early 40s). But, my plan is to keep working and once my boomer/silent gen parents are deceased in the next few years, I'll have a decent inheritance, quit my job, sell my properties, and I'll become an expat to a country with a lower cost of living and inexpensive or socialized healthcare and live like a king with my wife. She's on the same page and is well off already, too.
@OP better not voluntarily retire because health insurance is freaking expensive when not subsidized by the company.
Also you cannot get Medicare till 65.
We are just over $4M at 41/46 years old with no debt and I still feel terrified every day that it isn't going to be enough to retire. Picking up a few things at the grocery store somehow costs $100.
If you have a substantial portion in your company 401k, you can use the rule of 55 to access it penalty free before 59.5. if you're a believer in the 4% rule, a million bucks would throw off $40k/year. Could be enough if you have no mortgage and live in a low cost of living area, maybe. $2M would obviously be a lot better. Ideally you'll stay below the ACA income caps so you qualify for subsidies until Medicare comes along.
Depends on two things: 1 - How much you'll spend a year and 2 - how long you expect to live for. PS - Retiring before 65 means you'll need to buy private insurance (unless you meet an exception).
Consider speaking with a financial advisor regarding your retirement savings...or at least, this is possibly the wrong forum for this and belongs on Reddit like r/FinancialPlanning
Good luck!