$5 million is a good place to start financial independence not a finishing point. That means you don't tap into the $5 million but rather semi retire or "coast" with a part time gig while your nest egg grows. The USA is in big trouble looking 10 years out with a massive national debt exceeding 150% of GDP. That means the US dollar may purchase a lot less in the future and inflation isn't likely going to 2% anytime soon.
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I still like going to this circus on a part time basis. Maybe, when you no longer are forced to work a 1.0, 2.0 or 3.0 FTE job you will re-consider the benefits of a gig you actually like to go to 2 days per week or 1 week per month.
Why not build in a cushion? Sure, $5 million may be enough money but this is a good field to keep working if you don't hate your job. If you do hate it, find another job. The real advantage of hitting your "number" like $5 million or $8 million, is the luxury of saying F U to anything you don't like doing. Call? F U.
The Impact of U.S. National Debt on Investments | U.S. Bank
As the national debt continues to grow, investors need to be prepared for its impact on investment markets, interest rates, and the economy.www.usbank.com
Coast Fire allows you to scale back considerably while your nest egg grows. Once you reach $5 million in assets that's the prudent thing to do because the economic future may not be as bright as the past.
Had nothing. Grew up on wrong side of the tracks. But parents refused food stamps. Just worked 3 jobs the old fashion American way.
i don’t count the house especially ur primary home.
Why not count home in net worth? It's an asset you can sell and turn into cash... Do you then exclude the mortgage in the calculation as well?
Work for VA for 5 years to get fed insurance?
The Va is perfect for docs or even crnas around age 57. Do 5 years and most
Correct. U can play around with the numbers and adjust the ages on marketplaces.
Yes, $3,000 with a large deductible up to $5,000 per month. One of the biggest reasons you should consider part time work is a healthcare plan
Many on this board haven’t truly factored in all the costs they will be absorbing once retired. The smart decision is to keep working at a level so your benefits like healthcare are still in place or you have access to a quality plan at a reasonable price.
I don’t count my personal residence in my retirement portfolio because I need a place to live. Second and third homes or rental properties do count in the portfolio. I separate total net worth from my retirement portfolio because net worth includes my home. You can’t spend your primary home but you can sell rental properties or second homes. If your plan is to downsize from 1.7 million to 1 million then you certainly could add 700,000 to your retirement portfolio.
More likely is the printing of dollars continues with the Fed buying up the debt. This leads to a devalued currency and higher inflation. The US govt continues to honor its debts but the dollar isn’t worth much in terms of buying power. The middle class becomes a lot poorer and that $5 million becomes 2 million in terms of purchasing power.
So you moved your money to TIPS?
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but youll be getting medicare for very low cost, youll be getting maximum social security, you wont really need to contribute to 401k - i dont see benefits as important beyond medicare age.. per diem work maybe with benefits in cash
Blade is talking those in the age 55-65 range. Who don’t have Medicare
Many employers offer healthcare at 0.5 FTE. Everything is negotiable even if you pay your employer the full cost of healthcare around 18,000-21,000 per year.
I’ll only be working 17 weeks or less total per year as I approach Medicare. I’m pretty sure 35 weeks of PTO allows a lot of time off for travel or activities. Why work at all? Because I want to
Once you hit your number, add in a million for a cushion, plus reduce the withdrawal rate to 3 percent. This way you have secured your retirement so you no longer need to work another day and you will likely die with a larger portfolio than the day you retired.some food for thought as well
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Spend Your Principal in Retirement | White Coat Investor
If you're scared of spending money in retirement, particularly your principal, here are some effective ways to push through the worry.
Psychology says people don’t want To spend 30k on health insurance premiums alone plus the deductible. Because there is no benefit to them.
This seems way low. Maybe a since income PCP.
Where did this come from, how recent is the data? What does it look like compared to 10-20 years ago?
White Coat Investor from 2023
I am 30+ years in this field and have enough to retire comfortably tomorrow. I work because I want to and not because I have to. I have a reduced working schedule and more work available if I choose to schedule it. I like my time off. I still do a 401K deduction because its available to me. I no longer bother with an HSA or Roth but I certainly recommend them and have used them for many years. I just can't see myself retiring completely because I still like going into work but at the same time, I can't see myself ever returning to a 1.0 FTE regardless of what my investments do.
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