Can I retire on $500K?

Me | 8/19/2019 | Me

[freedumb2003]

Can I retire on $500K?

Soon to be ex-wife and I had the last of all our blow-outs. 25 years married, no kids, own the house outright, $1.7 MM (maybe 2), zero debt, 60-something.

Reached out to Cordell Cordell the only law firm I know of that will take care of the man side of things.

soon to be ex-wife does not work.

[fireman15]

I don’t think there is a return point for the marriage. Maybe something will change but I doubt it. But thank you for your kind and thoughtful words.

Thanks for the response and not taking my post badly... I just have too many friends now, who have basically destroyed the remainder of their lives because they couldn't learn to compromise with their wives. The wife of one of my best friends who died a few months ago came by the house for BBQed chicken yesterday. I thought that they were very close, but she was relieved that he was gone. She sold their house and all of his crap and bought a new house and a new car and seemed happy and was planning on taking some trips.

He was very frugal and had amassed a small fortune, but he wouldn't even let her buy expensive hamburger, and they never went on vacations. While he was a hoarder and had tons of new tools still in the boxes when he died. The truth is she kind of seems to remember him as a bit of a monster.

[DIRTYSECRET]

The real question: Do you want to get laid? My answer is Thailand. Philippines is too conservative.

[woodbutcher1963]

Here is an example of a house in Slovenia:

This is right on the border of Austria and Italy in the Alps.
https://www.sloveniaestates.com/property-details/soca-area-wonderful-old-house-with-land-and-views-994

$194,000 US dollars approximately.

Keep in mind Melania Trump is from Slovenia.

[SamAdams76]

Without going into details, a divorce a long time ago not only decimated my finances, but made me a little bit nuts, regarding saving money. People can’t take what you don’t save.

I've seen that story play out so many times. Man works his whole life, builds up a nest egg, only to have it mostly taken away from him in divorce court. Not saying that divorce is always the woman's fault but it's the man who gets taken to the cleaners pretty much every single time.

So as I approach my own retirement age, I can only keep saying "Keep the wife happy, keep the wife happy, keep the wife happy..."

[Enlightened1]

That is too low. You want at 3.5 million or seven times that amount.

How many years do you plan to live after retirement? Most people say 30 years, and you know prices will go up over that time.

500k divided by 30 = 16,666.66 a year divide by 12 = $1388 a month. That is before Capital Gains taxes of 15%.

While it is okay now. It is not good in the long haul.

$1300 Pension
$1388 Retirement
$2861 Social Security

$5549 a month.

Which is great above. However, you will pay Capital Gains on your 500k (15%), plus taxes on Social Security and your Pension that are not guarantees to last. Why do I say this?

We are likely 12 months out from a 2008 that is on steroids. The negative yields we saw a week ago is a harbinger of a recession or depression from 8 to 24 months out the last 7 times in a row. The BIG ONE in other words.

Normally we average a Recession every 6 years. That is normal, and it is part of a seasonal cycle. We cannot go up in one direction forever. Right now we are on the longest growth period in history (11 years) and we are way overdue for a Recession and Depression.

We have been in fake economy since 2008. The Fed did not fix anything in 2008. They just set us up for a bigger fall with the TARP, QE I, II, III, infinity, etc.... On top of that the Fed never raised interest rates when Obama was in office.

Now that President Trump is in office. We cannot raise the interest rates without killing the economy. This is when interest rates are at an all time low. The economy lasted as long as it did because of President Trump. He has done an outstanding job despite all odds. However, the fuse on our economy was lit a long time ago. It was lit in 2008 and was set up for the fall when Nixon took us off the gold standard back in 1971. Although most will argue that we were set up before any of us were born. This was under President Woodrow Wilson.

Nevertheless, I expect the Globalist to try to crash the economy in August of 2020. For the record it is NOT President Trump’s fault. Our economy has carried on because President Trump who is that awesome and that great. Furthermore, I think he knows this and there is a plan (crypto/digital assets) that will get us out of this mess. However, there will be a lot of pain in between and the filthy media, the Globalists, the Establishment, Hollywood, the media and Academia will attempt to blame President Trump in order to defeat him in 2020. Of course it is total B.S. and President Trump has done an OUTSTANDING job.

The Establishment who created this mess will try to blame President Trump.

Why is the above so import. It is because it will impact your retirement.

The Fed is talking about negative interest rates and they are quickly running out of QE bullets. Negative interest rates and accelerated deflation is what you see before a crash.

This will impact your Pension and Social Security. Even your 500k retirement would be impacted. Trust me on this. You need at least 3.5 million.

Split the 1.8 million evenly. DO NOT let her get the majority of it. That is bad news for you.

I am not a financial advisor and this is for entertainment purposes only. I suggest to get at least 1 full bitcoin and look into getting some XRP. Store in the Coinbase offline Vaults that are FDIC insured.

You can set up your account here. www.coinbase.com

Good luck!

[mass55th]

I never had investments, but have a pension and SS. Plus I have Medicare and a secondary health insurance that basically covers my prescriptions. The secondary insurance through my employer pays little or nothing towards doctor appointments, procedures, etc. You don't mention how old you are, or what type of insurance you rely on. I'm 72, and have been retired since I was 56. I have two sons who I have helped financially over the years. My youngest son is out of work after cancer surgery, and having chemo treatments now. He's been borrowing from his 401k, and his wife works, but I have been helping them until he can go back to work, and starts earning a paycheck again. I've never owned a home, and living in Rome, NY, my rent is very cheap. So is the cost of living here.

Whatever you decide to do, I wish you well, and a very long, happy, and healthy retirement. Mine hasn't been so healthy, but I feel very lucky it's been as long, and as satisfying as it has.

[Vermont Lt]

They also cannot take what is difficult to find or prove. That little nest egg you add to every week, turns into a couple dozen eggs by the time you are 60.

[Manuel OKelley]

Not all sates do alimony and many only as last resort with a cap of 5-10 years. Consider making amends for a bit, move to the right state give it a year or two and then divorce there maybe?

https://guyvorce.com/blog/2018/05/07/greatest-nastiest-states-alimony/

[Vermont Lt]

Medical costs are the BIG thing. I could be happy in my RV on top of a mountain. As long as I have my dog and a decent book, I am fine. But toss in a couple of $100,000 operations and that will put a crimp in your day.

[SamAdams76]

If u live long, taking it (SS) no earlier than full retirement is the best move for u.

Agreed. Though I did have a co-worker retire about 10 years back and he also took SS early - at the age of 62. He told me flat out that he didn't expect to even live to full retirement age so he was going to enjoy life while he could. He based that on being overweight, a heavy smoker and a heavy drinker.

He lasted about three years. So I guess he made the right decision in that regard. Though it's a shame he couldn't change some life habits to get in a few more years of fishing and golf.

Speaking for myself, I'm going to try and hang in there until I'm 70 so I can max out (still about 13 years away).

[MayflowerMadam]

“But toss in a couple of $100,000 operations and that will put a crimp in your day.”

$100K if you’re lucky, once you add in all the accessory treatments, procedures, prescriptions, etc.

[dfwgator]

He lasted about three years. So I guess he made the right decision in that regard. Though it's a shame he couldn't change some life habits to get in a few more years of fishing and golf.

What was the quote by Mickey Mantle, "If I knew I was going to live this long, I would have taken better care of myself."

[woodbutcher1963]

https://www.realtor.com/international/si/piran-piran-piran-120020193360/

This is the higher end of Slovenia. Might be out of your price range.

[SamAdams76]

Reliable retirement investment is 5%, so $500k nets $25k/year.

Plus his stated pension/SS income of $3,600/mo adds another $43k for a total income of $68k.

So with no house, no debt, I would say freedumb2003 is in good position for a Jimmy Buffet lifestyle at some gloriously low-rent beach community (they exist outside the upscale metro areas).

Just don't get yourself married again!

If you are capable of making $80K as a computer consultant "out of your suitcase" however, I would continue that as long as possible before signing up for SS or dipping into the principal of the $500K.

[setter]

I see those all the time on my towns FB page.

Especially embarrassing when you see more and more men wanting help putting together a outdoor bolt together gym for their kids. A guy posted recently he would pay $200 for someone to put together a trampoline.

[EVO X]

I have a $1300/mo for life pension from a State job I had a few years back.

You need to check with that states retirement system. If you were married the entire time you worked for the state, it is likely she would be entitled to half of the annuity or lump sum payout.

[RegulatorCountry]

Relocate to a lower cost of living state and I’d say you could live fairly comfortably on what you describe. Seems I recall your relocating from CA to TX several years back. You should be OK there if you’re not in the larger cities, but there are less costly locales.

Or, if you’re the adventurous sort there are various countries in Central America in which you could live very well on that amount. The historical political instability of these countries would put me off of that personally, no matter how well I could live on my retirement income there I’d prefer to live, putting it bluntly. Others are not disturbed by this, think such concerns are paranoid and overblown.

Your call, ultimately. You can be modestly comfortable in a lower cost of living area of the US, or be very prosperous by local standards in a potentially unstable tropical “paradise” somewhere south of Mexico.

[Trump Girl Kit Cat]

I found myself in this situation hubby traded me in for a younger model after 23 years no kids, however I worked my entire life, just wanted him to go away didn’t ask for a penny I am AMAZED that women do this to men but I guess it happens all the time!!! Why would anyone want to continue to fight and drag things out over money I don’t get it!!! FINALLY going to get some peace in your life you will be fine AND the freedom is AMAZING however with no kids I have found that working part time has helped keep me social and active!! I think in the end you will do the same working a few days a week is GREAT and is a little extra income!!! Good luck don’t worry about retirement ENJOY your new found freedom, you can also go where ever you damn well please so investigate some small towns around the country with a lower cost of living!!!

[snoringbear]

“A ton of details are missing in order to give a meaningful reply. But other than that, yes.” * Yeh, agree. But, if you want to protect your $500K And not spend it down, let’s you invest it so it willl earn about 5% that converts to about $2,100/mo pre-tax. Also, if your little nugget is pre tax and you split a 401K with her Roll it into a IRA. If it’s, post tax money put as much allowed in a Roth IRA as the earnings are not taxable. There are lots of variables on how to manage your finances, age being a big one. So, I suggest you find a financial planner to provide guidance. Btw, you won’t have to split your SS with her but she will be eligible to file off of your earnings if she wants to when the time comes. If she remarries she can choose who ever provides the most favorable pension. She doesn’t have to inform you. In fact, you will never know unless she chooses to tell you. Get and advisor, best investment you will make 😉

[KC_for_Freedom]

There is some good advice on this thread. We did four years of RV living while our nest egg grew in a the market. Life on the road was rewarding and kept costs down while our son went to college. He is out now and working and debt free while our portfolio grew about 10% a year. The RV ended up costing 4K per year though one can buy a cheaper mobile home.
Pay attention to the rules about SS, I earned too much and had to repay the SSA, but after a certain age you can go back to making money and still draw the monthly SS.

Pay attention to where you live, it was much cheaper in Texas than CA but the weather is better in CA. If you like a foreign country, life is very affordable in Costa Rica.