I'm 58 With $800,000. How Do I Retire Now?

[@chatdarling2339]

Social security amounts look high, especially if one was a teacher for many years.

[@miragexl007]

I almost stopped when you said the husband was a Teacher... So he has a pension retirement type thing And Good/great health insurance.. So that's different than most of us

[@earlyretirementadvisor]

Great question. For this scenario, I assumed the husband has a pension of $800 per month but no retirement health insurance benefit. Hope that helps ☺

[@Oglulubell]

It’s all about insurance. I can technically retire early but don’t want to pay out of pocket for healthcare. I’m thinking of a part time job just for insurance until Medicaid kicks in. Welcome to Walmart, how can I help you? 😉

[@earlyretirementadvisor]

Ha ha! Let's see if we can keep you from working for Walmart. You probably already know about ACA health insurance for early retirement, but if not, here's a link to one of my videos that covers it. kzbin.info/www/bejne/mXXXn32pbtqBba8feature=shared

[@JohnSmith-ps7hf]

$800k is not enough for two old people. The current FU number is $2.5M per person.

[@scottwilbanks9888]

How much difference would it make if no pension and if spouse was stay at home mom so she didn’t earn her own SS? Would you need 1.6m double that to make up for those two incomes?

[@scottbeefful]

Does that take into account lost interest on the taxes paid up front during the conversions? 90,000 paid in taxes early on could generate $4-5,000 annually in interest or return? 5000 x 20 years is a lot of money. Would that push breakeven out a little longer?

[@earlyretirementadvisor]

@scottbeefful, really good question! Yes, the projections do take the lost interest the would have been earned from the money that was used to pay the taxes for the Roth Conversion.

[@ScottGaler]

How did you arrive at the $7400 figure?

[@earlyretirementadvisor]

That is the “how much can I spend each month with a very low risk of running out of money” amount after factoring in their ages, investments, and Social Security.

[@JSLTRD]

Was that based on a percentage? If so, what percentage and is that based on the entire $800k + $800/month pension or just the brokerage account in the beginning? Thanks for the video!

[@ScottGaler]

@@earlyretirementadvisor Thanks, Mark. I was curious about how you arrived at that figure. It seems higher than expected, based on traditional conservative calculations like the 4% rule.

[@earlyretirementadvisor]

​@@ScottGaler Great observation and question. At the beginning of the plan their withdrawal rate is 9.8%. That would be totally unsustainable if they tried to do that for their entire retirement. However, once Social Security kicks in, their withdrawal rate goes down to almost nothing.

[@earlyretirementadvisor]

@@JSLTRD Great question! Initially, they are taking about $6,600 from their brokerage account with $800 coming from the pension for a total of $7,400 per month. At the beginning of the plan their withdrawal rate is 9.8%. That would be totally unsustainable if they tried to do that for their entire retirement. However, once Social Security kicks in, their withdrawal rate goes down to almost nothing.