Retired at 52 baby. That was over 6 years ago. Best decision I ever made. Plan is to take SS at 62. If the markets return an average of more than 3.5% I can delay that date. So far this year the market (I use S&P500 as my benchmark) has done much better than 3.5%! Life is good.
The problem with the 4% or 2.3% or whatever percent withdrawal rate you look at is that these rates, too, can and should be variable depending on your needs. You mentioned "going back to work at 85" because you can't keep taking out the same amount....but data shows that during the "no-go" years you really don't spend as much. Like you said, staying on budget early in retirement and protecting your retirement nest egg for early retirees is key. The Rule of 55 (or 72T) and SS are huge bend points for early retirees. If at least half of your nest egg can last to at least FRA, most folks that actually do pre-planning will be golden.
If I had SS I could retire earlier than I think, but because I work for the state and no WEP/GPO repeal I might have to work longer. At least my spouse will have a regular benefit.
IMHO, the RUclips retirement influencers need produce do a hypothetical SSI break even video. This would be for projected SSI for a 62 year old with a projected (promised?) FRA benefit of $3K who would receive the non-reduced benefit if they take SS between 62-66 years BUT if taken between 67-70 they have a 25% reduction. So the new FRA benefit (near 2030-33) is reduced to $2250/month. This will become an important planning consideration.
Seems most of us will never retire. 4% withdrawal rate is too much...ok. so 2.3% is a safe withdrawal rate. Even with a million dollars thats ....thats poverty level. SS will help for sure, but even so your still not living a good life. I may be off my rocker but Im not working for 40, 50 yrs to eat hamburger helper out of my mobile home.
These examples are Way too high! How many of US have $1,000,000 at 50? If they Do I doubt they take financial advice from Utube? These examples don't help most of us?
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Retired at 52 baby. That was over 6 years ago. Best decision I ever made. Plan is to take SS at 62. If the markets return an average of more than 3.5% I can delay that date. So far this year the market (I use S&P500 as my benchmark) has done much better than 3.5%! Life is good.
I am also the computer guy :)
The problem with the 4% or 2.3% or whatever percent withdrawal rate you look at is that these rates, too, can and should be variable depending on your needs. You mentioned "going back to work at 85" because you can't keep taking out the same amount....but data shows that during the "no-go" years you really don't spend as much. Like you said, staying on budget early in retirement and protecting your retirement nest egg for early retirees is key. The Rule of 55 (or 72T) and SS are huge bend points for early retirees. If at least half of your nest egg can last to at least FRA, most folks that actually do pre-planning will be golden.
Great comment Dave!
2.3% also doesn’t account for the RMDs. I may be mistaken but I believe at 73 my RMDs will be well in excess of 2.3%, more like 4.21%.
2.3% seems really low. Would last 43+ years, assuming inflation and market returns wash, also doesn’t factor social security.
Thanks for watching!
Great information.
Glad it was helpful!
Go go jepi retired at 400k. Living off dividends. Good months reinvest the extra back. Bad month few less beers at the catina.
If I had SS I could retire earlier than I think, but because I work for the state and no WEP/GPO repeal I might have to work longer. At least my spouse will have a regular benefit.
IMHO, the RUclips retirement influencers need produce do a hypothetical SSI break even video. This would be for projected SSI for a 62 year old with a projected (promised?) FRA benefit of $3K who would receive the non-reduced benefit if they take SS between 62-66 years BUT if taken between 67-70 they have a 25% reduction. So the new FRA benefit (near 2030-33) is reduced to $2250/month. This will become an important planning consideration.
Wow, great idea 💡
Just here to say, "GO SOX" :)
I see you Rob
Seems most of us will never retire. 4% withdrawal rate is too much...ok. so 2.3% is a safe withdrawal rate. Even with a million dollars thats ....thats poverty level. SS will help for sure, but even so your still not living a good life. I may be off my rocker but Im not working for 40, 50 yrs to eat hamburger helper out of my mobile home.
Agreed
Over achiever broccoli eater. Only if my wife cooks it. This is why I want 2 million so it’s a 3% plan and not 6%.
Eat that 🥦 !
These examples are Way too high! How many of US have $1,000,000 at 50? If they Do I doubt they take financial advice from Utube? These examples don't help most of us?
Hey Joseph! I have plenty of examples that are much much lower. Feel free to check out our full catalog! Thanks for commenting
400k in my 401k at age 36! I work in a warehouse as well. 19 more years until I can call it quits.
not realistic @ 50
What is not realistic, planning?