I have a $1300/mo for life pension from a State job I had a few years back. SS if I go early would be $2300/mo but I don't know if that is split.
I am seriously thinking going "Jimmy Buffet" on life and just finding a tropical climate and doing computer consulting out of a suitcase.
This is the broadest audience I can reach without giving my RL name away.
Anyone doing OK on $500K?
That all depends on WHERE you are or plan to retire to.
South Texas, yes.
South Philly? No...............
A ton of details are missing in order to give a meaningful reply. But other than that, yes.
I’m getting ready to retire on pretty much nothing but SS and we should be fine. In fact, our monthly cost of living should be about half our SS payments, if that. The key is paying off your house and living in an area where living is rewarding and cheap. In our case, it’s 32 acres in south central KY. Our property taxes are just a few hundred a year.
I also worked in IT and will end up getting close to the max SS payment.
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’m interested in what other FReepers have to say. Good luck to my FRiend
Reliable retirement investment is 5%, so $500k nets $25k/year.
Please make a large contribution to FR before you get to court. :-P
I retired on less pension than you have and about the same 401k, not eligible for SS yet so I work 3 days a week.
It can be done if you are frugal.
Move to the Philippines and live like a king - literally. :)
Sorry, slightly more pension, not less.
It is possible if you are careful with money.
The only advice I would give is do not take social security early! It’s a big difference between taking it early, at full time etirement age or even taking it at 70 would give u 20-30% more than taking it early. If u live long, taking it no earlier than full retirement is the best move for u. Good luck to u...u r in a good position financially. There are many people living on much less than u have access to.
Figure out a way to get some cash flow to replenish any losses from the drain.
You will get 1/2 of all total assets.
And you will pay alimony for the rest of her life, about 50% of your historical gross earnings.
I’ve been through this twice.
Whether you pay Cordell x2 or go in without an attorney will not change the outcome. It’s a formula.
If you have no other income, $500k is not that much.
But, if combined with Social Security, a pension etc. IT’S PLENTY.
After all, you’re expenses are not about 25% of what they were with her as your wife. Whomever she is.
Yes, TWICE.
Not enough information on expenses, lifestyle, health insurance situation, life expectancy, and investments to add much insight. Also, how many years can you earn 80k/yr after taxes?
Assume you have no place to live, 500k in the bank, 1.3k/mo pension and clear 80k/yr after taxes. Sure, in some places that would be very possible, others not so much. And, need insight into your expenses and whether you are an implosive spender or frugal. So many questions that are needing to be addressed.
The question is really a dollar “mass balance” over some unknown period of time. The unknowns here are many, too many.
I don’t understand the question.
You will be getting your pension and SS an doing side contract work possibly.
House is paid off.
You’re not gonna LIVE off the 500k.
I own my house in Florida outright, very healthy, and I could live on the $700/month of Social Security I could get at age 62.
Enjoy your life & money.
I am living quite well in Spain on a good bit less than that. I don’t do any side jobs and I’m not collecting SS yet, which would be about the the same amount as you. We bought a house but you could just as easily rent. We know 2 Americans who rent a frontline seaside Penthouse apartment for about 1500 Euros/month plus they have the option of being able to walk away on a moment’s notice if things ever turned ugly here, or even if they just want to try living somewhere else. We live about 600 meters away from the beach with a lovely sea view. We own our house but still we would leave it in a heartbeat if we had to. Hopefully we won’t ever have to. We haven’t regretted our move for a minute. I even still get to vote for DJT come next election.
Bottom line: on the money you have you could live like a King.
Like others say, more information is required. But so long as you are mostly debt free, live within your means, and you have $3600/mo in SS and pension coming in, the $500K principal should be fine. Just don't touch it until you absolutely have to - as long as you are still working, just let it grow.
Whatever you do, take no debt into retirement. Estimate your living costs going forward, add in a bit of cushion. Remember 500K today will not be worth 500K in 20 years, probably will have a purchasing value of less even with dividends or interest accumulated.
What I did is leave my 401, IRAs alone. Living on pension. The big kicker is I am in good health. That is why I left my 401 and IRAs alone, they are my fall back if my health goes away.
Good luck
You couldn’t rely on $500K alone. The best yield, blue-chip dividend stocks are paying only 2-3% (oil sector is a bit higher) but that would only give you $10-15K/year in dividend interest. It also exposes you to a very high stock market.
CDs and bank interest is crap, thanks to global central banks
your pension is a help as will social security coming as well. Without a woman or kids around, life will be inexpensive.
I personally enjoy working, so I’m not at your age, but God willing, I will keep going well into my 60s. I would keep working, but that’s me.