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re: Can a person retire at 55 with 750k potfolio?
Posted on 4/28/26 at 11:16 am to Everyday Is Saturday
Posted on 4/28/26 at 11:16 am to Everyday Is Saturday
You don’t need the money to last 30+ years and if you’re flexible and can reduce spending in down markets.
Does 6% work for everyone, of course not, but it may be great for those with a pension or higher social security income.
Does 6% work for everyone, of course not, but it may be great for those with a pension or higher social security income.
1
Posted on 4/28/26 at 11:36 am to Paul Allen
quote:
You don’t need the money to last 30+ years
While I hear your point, be careful with such one-sized-fits-all statements (6-7% without context).
If I’ve learned nothing else about personal finance, it is as surely personal as the sun rising in east.
Agree on flexibility in down markets. Essentially avg less than 6% with timing / flexibility built-in.
The portfolio allocation (eg, equities exposure) glide path over retirement timeline is critical.
Hear your point about pension / SS allowing higher than ‘4% rule’ withdrawals. I think this is particularly important for OP. Get to SS (and pension, if there is one).
To OP, Don’t shackle self to 4% (bridge with SS or other cash flow) and don’t miss your precious time!
You have option to go back to work. Not more time!
This post was edited on 4/28/26 at 11:48 am
Posted on 4/28/26 at 2:01 pm to Everyday Is Saturday
I really appreciate all the good responses and understand what many have said. I figured I would get blasted on here.
Will see how it goes.
Will see how it goes.
Posted on 4/28/26 at 2:21 pm to HeyNow
quote:
I get it, this is the Money Talk Board. But some of us value time more than money.
You don’t have to value money to still not wanting to go broke. Being broke sucks, and you are one bad health diagnosis from being broke if you retire.
Posted on 4/28/26 at 3:04 pm to CPA Yung Boi
quote:
you are one bad health diagnosis from being broke if you retire.
Health ins discussed above. Is critical!
Interesting how a CPA mind thinks about it:
Fear of being broke is prioritized. You are one bad health diagnosis from being broke with less or more than $750k portfolio, if bad is as bad as you say, no?
Curious, in your view:
What is the portfolio value that mitigates this broke risk? Above and beyond OP’s health coverages.
How do you value time? ie, what is Present value (PV) of OP’s remaining ambulatory life?
Presume via your post that you value broke risk more than you do OP’s remaining ambulatory life or life in total.
This post was edited on 4/28/26 at 3:07 pm
Posted on 4/28/26 at 3:22 pm to Everyday Is Saturday
8 pages in, and nobody has tried to sell him an annuity yet.
I'm impressed.
Google AI-
I'm impressed.
Google AI-
quote:
For a $750,000 investment at age 55, a typical immediate lifetime annuity payout ranges between $3,300 and $4,000 per month. The exact amount depends primarily on gender and whether the income is for a single person or a couple.
Estimated Monthly Payouts (Age 55)
Annuity Type Estimated Monthly Income
Single Life (Male) $3,705 – $3,825
Single Life (Female) $3,577
Joint Life (Couple) $3,317
This post was edited on 4/28/26 at 3:56 pm
Posted on 4/28/26 at 5:32 pm to deeprig9
Annuities aren't a fit for most people, but OP might be a good candidate.
If those AI numbers are correct, he'd be drawn almost as much from the annuity as he does with his current job he hates.
Based on the sources of money he'd be annuitizing, much of that payment would be taxed as ordinary income, which he's also paying taxes on with his income now.
He could annuitize it, but continue to work for another year. Use the annuity payments solely to pay your bills to adjust to that budget. For the next year's W2 income from the job, save 100% of that in a high yield savings account to get around $40k of rainy day fund.
Then retire at 56 with money in the bank and $3700 coming in monthly, and when SS kicks in a few years later, your budget loosens up tremendously. You are really just trying to ride it out until Medicaid kicks in.
You aren't worried about expenses for children or a spouse, or anything but yourself.
You are a candidate to consider an annuity.
If those AI numbers are correct, he'd be drawn almost as much from the annuity as he does with his current job he hates.
Based on the sources of money he'd be annuitizing, much of that payment would be taxed as ordinary income, which he's also paying taxes on with his income now.
He could annuitize it, but continue to work for another year. Use the annuity payments solely to pay your bills to adjust to that budget. For the next year's W2 income from the job, save 100% of that in a high yield savings account to get around $40k of rainy day fund.
Then retire at 56 with money in the bank and $3700 coming in monthly, and when SS kicks in a few years later, your budget loosens up tremendously. You are really just trying to ride it out until Medicaid kicks in.
You aren't worried about expenses for children or a spouse, or anything but yourself.
You are a candidate to consider an annuity.
Posted on 4/28/26 at 5:39 pm to deeprig9
quote:medicare. and that is my strategy. i retired at 59. i need to make it to 65 for medicare (and 62 for SS) and i'll be fine. so i am deliberately keeping my income at 25,000/year so i qualify for the health ins subsidy. and i am doing my part by leading a healthy lifestyle.
You are really just trying to ride it out until Medicaid kicks in.
and you're right, annuity is something to look at (i am looking at it myself). in any event, working until you are "SURE" you wont run out of money is analogous to waiting until you are SURE you can afford it to have children. in my experience, both lead to some manner of regret
Posted on 4/28/26 at 7:59 pm to deeprig9
Per OP:
So inflation and longevity risk ain’t the worry. You make a great point on annuities.
Not for me and my experience with Insurance sales people make me want to kill myself. Kidding.
quote:
My greatest fear is dying young and not enjoying a few years of freedom.
So inflation and longevity risk ain’t the worry. You make a great point on annuities.
Not for me and my experience with Insurance sales people make me want to kill myself. Kidding.
Posted on 4/28/26 at 11:12 pm to KCRoyalBlue
Move to Lake Ouachita and be a part time striper guide.
Posted on 4/29/26 at 4:30 am to Hawgleg
Is the $50k you could live on gross or net?
- what are your monthly net income needs exactly?
What is your estimated social security?
How's your mental and physical health?
What's your home worth?
Is you IRA/401k all traditional?
With 0% capital gains tax, you could bridge your income needs tax free between now and the next 5+ years before you can draw on IRA and 401k.
Your 401k/Roth could grow to $400-500k before SS. The longer you could delay this the better.
It's possible. Health insurance is going to be your wildcard.
I don't know your skill set, but finding a part time job that offers medical insurance over the next 7 years (until ss) could vastly improve your quality of retirement.
Big companies like Walmart, Lowe's, Starbucks, UPS, Chase, Bank of America all offer medical insurance for part time employees.
- what are your monthly net income needs exactly?
What is your estimated social security?
How's your mental and physical health?
What's your home worth?
Is you IRA/401k all traditional?
With 0% capital gains tax, you could bridge your income needs tax free between now and the next 5+ years before you can draw on IRA and 401k.
Your 401k/Roth could grow to $400-500k before SS. The longer you could delay this the better.
It's possible. Health insurance is going to be your wildcard.
I don't know your skill set, but finding a part time job that offers medical insurance over the next 7 years (until ss) could vastly improve your quality of retirement.
Big companies like Walmart, Lowe's, Starbucks, UPS, Chase, Bank of America all offer medical insurance for part time employees.
This post was edited on 4/29/26 at 4:33 am
Posted on 4/29/26 at 5:12 am to Hawgleg
Is that 50K gross or after taxes?
Posted on 4/29/26 at 7:28 am to CPA Yung Boi
And valuing time does not mean you want to go broke, or will go broke because you retired early. You can value time more than money, and still have enough money to be content and make it just fine. Nobody said money isn't important. Of course it is. It's just that some of us don't desire as much money as others in order to call it quits. I, too, am an accountant.
Posted on 4/29/26 at 8:13 am to LSU6262
quote:
I don't know your skill set, but finding a part time job that offers medical insurance over the next 7 years
Is that a thing? I thought the entire premise of part time (from the employer's side) is so they are not required to pay benefits.
What companies offer benefits for part time work?
Posted on 4/29/26 at 8:17 am to lsu xman
Most people describe spending in after tax dollars.
Posted on 4/29/26 at 9:00 am to LSU6262
s the $50k you could live on gross or net?
- what are your monthly net income needs exactly? 50 Gross I can live comfy
What is your estimated social security? 1800.00 per
How's your mental and physical health? Mental Fine Phys need to loose some wt
What's your home worth? 150K
Is you IRA/401k all traditional? No 180k Trad 70 Roth
250k Stocks mostly Apple
250k Mutual Funds
- what are your monthly net income needs exactly? 50 Gross I can live comfy
What is your estimated social security? 1800.00 per
How's your mental and physical health? Mental Fine Phys need to loose some wt
What's your home worth? 150K
Is you IRA/401k all traditional? No 180k Trad 70 Roth
250k Stocks mostly Apple
250k Mutual Funds
Posted on 4/29/26 at 9:13 am to Hawgleg
quote:
50 Gross I can live comfy
You keep saying this, but you aren’t currently paying for healthcare. You may spend 20% plus of that 50k just on premiums.
You clearly want to do this, and good for you, I’m not poo pooing it. But you need to be realistic and prepared if you are.
Posted on 4/29/26 at 9:20 am to Simple Solution
quote:
Sell the house. Move to Thailand
2K/mo goes very far in Southeast Asia. I'd look into Thailand, Phillipines, or Vietnam. You can start by taking 2-3 week vacations to test the water. Explorer the world for cheap(minus expensive airfare). You might like it more than Ark.
Posted on 4/29/26 at 9:53 am to Everyday Is Saturday
quote:
Time! Don’t take it for granted.
I agree with this, but with some reservations.
As someone that is now paying for their in-laws living expenses due to their poor financial planning and bad decisions, I can tell you that running out of money is a real concern for people.
The OP is too young to retire with 750K.
Posted on 4/29/26 at 10:04 am to Hawgleg
quote:How lean are you planning on living? Like grow your own food lean? I am 56 and recently changed my retirement goal age upward to accumulate more. I always considered inflation, but now it and healthcare are my primary concerns. I dont want to be running the AC at 80 to save cash when I am 75, so I am going to stay in the game a bit longer.
House and vehicles paid for. no dept
Can live easily off 50k a year.
Possible?
250k stocks
250 M Funds
250k in Iras and 401k
15k cash on hand.
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