- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: For those saying $3MM net worth at age 45 would not be nearly enough to retire...
Posted on 3/26/25 at 12:56 pm to DarthRebel
Posted on 3/26/25 at 12:56 pm to DarthRebel
quote:
Taking out $120,000 year is great now, but you need to go into the future with that number. Inflation is a thing. The buying power of $120,000/yr going into the future
2035 - $89.246
2045 - $73,241
2055 - $57,241
the "4% rule" accounts for inflation.
You are supposed to increase your withdrawal to match inflation each year.
1
Posted on 3/26/25 at 12:59 pm to PNW_TigerSaint
quote:
Saw more than a few people on the OT thread this morning state or imply that retiring at 45 yo with $3MM in net worth would be "bold." For those that share this belief (not saying it's wrong), I have some questions to obtain additional context. Do you not own your own home outright in this scenario? Either way do you count it as part of the $3MM? Are you single? Have a family? Is this money just to take care of you or do you have minor children and a spouse to support in your 40s? If you do have a spouse does that $3MM figure include their capital as well or are you assuming separate finances as some do in case of divorce? What is your current monthly spend that $10K (4% rule) in passive income wouldn't suffice? I get that $10K per month in 20 years won't be worth nearly as much, but are you spending that much now?
I’ve got way too much debt right now and a lot of my net worth is tied up in the company my wife works for. I’ve got at least 8 years left so 51 would be the earliest but it depends on what the PE firm does and if they do another 5 year chapter or if it’s sold.
We are entering our best earning years and our net worth is starting to increase rapidly so it would be crazy for me to shut it down in 4 years.
Posted on 3/26/25 at 1:03 pm to PNW_TigerSaint
I am currently 41 with about 1.5m in retirement accounts, stocks/brokerage and cash
Owe about $190k on $750k house - 8.5 years remaining
2 daughters - 1 freshman in college 1 hs sophomore
Goal is to get daughters through college and off the payroll by late 40s and pay off house which is only debt and then see where we stand.
I absolutely want to hang up my corporate sales job by 50 , then do something I enjoy for a decade or so that has health insurance benefits.
That’s the plan at least …I’ll probably get hit by a bus after Auburn wins the natty in basketball…lol…be just my luck !
Owe about $190k on $750k house - 8.5 years remaining
2 daughters - 1 freshman in college 1 hs sophomore
Goal is to get daughters through college and off the payroll by late 40s and pay off house which is only debt and then see where we stand.
I absolutely want to hang up my corporate sales job by 50 , then do something I enjoy for a decade or so that has health insurance benefits.
That’s the plan at least …I’ll probably get hit by a bus after Auburn wins the natty in basketball…lol…be just my luck !
This post was edited on 3/26/25 at 1:07 pm
Posted on 3/26/25 at 1:08 pm to PNW_TigerSaint
quote:seems dumb in my opinion.
retiring at 45 yo
Posted on 3/26/25 at 1:09 pm to masoncj
quote:
2 daughters - 1 freshman in college 1 hs sophomore
Posted on 3/26/25 at 1:09 pm to VABuckeye
quote:Likely at ordinary income rates.
make and draw 4% a year you are drawing $120k a year without touching your principle.
Posted on 3/26/25 at 1:12 pm to Big Scrub TX
Also, what are you end-of-life are calcs?
In the 4% scenario, the $3M is never growing...but medical costs certainly will.
It's highly plausible that in 30 years or whatever, a quality private care facility could be north of $25K/month.
In the 4% scenario, the $3M is never growing...but medical costs certainly will.
It's highly plausible that in 30 years or whatever, a quality private care facility could be north of $25K/month.
Posted on 3/26/25 at 1:15 pm to Big Scrub TX
Should be the 12% bracket with standard deduction for a married couple. 
Posted on 3/26/25 at 1:16 pm to Big Scrub TX
quote:
In the 4% scenario, the $3M is never growing
But if that retiree is willing to take on some risk with a portion of his money he/she could draw 4% and have a portfolio that is still growing.
Posted on 3/26/25 at 1:23 pm to masoncj
My dad is still working. He refuses to retire. He makes really good money, pays cash for everything, and just loves his job. He turned 75 last year. He told me 65 is the sweet spot in his opinion. Old enough to pretty much do whatever you want if you invested wisely, and young enough to still enjoy it.
This money board is the outlier for society. Most people don't have this level of savings at 40 or 45. They start playing catch up later in life.
This money board is the outlier for society. Most people don't have this level of savings at 40 or 45. They start playing catch up later in life.
Posted on 3/26/25 at 1:38 pm to masoncj
quote:
I am currently 41 with about 1.5m in retirement accounts, stocks/brokerage and cash
Owe about $190k on $750k house - 8.5 years remaining
2 daughters - 1 freshman in college 1 hs sophomore
all that and had wife and kids by age 23. That stretching the limits of reality right there.
Posted on 3/26/25 at 1:53 pm to PNW_TigerSaint
quote:
you not own your own home outright in this scenario? Either way do you count it as part of the $3MM?
Your home isn’t part of your net worth for the purposes of retirement calculations as far as I’m concerned.
quote:
What is your current monthly spend that $10K (4% rule) in passive income wouldn't suffice? I get that $10K per month in 20 years won't be worth nearly as much, but are you spending that much now?
As others have mentioned, people with that kind of money at that age are probably spending over $10k monthly already. Tack on private insurance, taxes, etc and most people would have no business retiring in that scenario. The 3-4% rule is a gross withdrawal, so you’re netting closer to $8,000/month on the high end.
Lastly, if you have that much at that age, you’re probably 10 years away from having over $6mm and now you can do some real damage with that income and timeline.
Posted on 3/26/25 at 2:03 pm to notsince98
quote:
all that and had wife and kids by age 23. That stretching the limits of reality right there.
But not impossible. I have a buddy that had first kid at 19. He has 3 kids all graduated college. He is a grinder and a saver. He has two houses paid off worth in total 2.5 million.
He is a VP of a major company and is worth at least 7-8 million.
When they were in their 20s they lived like paupers. No in early 50s they do what they want.
Posted on 3/26/25 at 2:30 pm to PNW_TigerSaint
How much is liquid? How much is tied up in your home? Selling assets to live off of is not necessarily a good retirement plan.
$3 mill in interest bearing assets or additional passive income should be fairly safe.
$3 mill in interest bearing assets or additional passive income should be fairly safe.
Posted on 3/26/25 at 2:31 pm to VABuckeye
quote:
I take it you will be withdrawing from investment accounts until 59 1/2 to avoid penalties?
I will only be drawing from my Brokerage which is VTI, BRKB, and QQQM and some cash.
I will not be touching 401k, Roth, or HSA until it is time.
The whole point of maxing tax advantaged accounts is so you can retire early and enjoy yourself. Not sure about others on here but have been in corporate America since I was 24 and its not mentally or physically healthy. Everyone should want to get out as soon a possible. If I have to get a part time job to bridge I am fine with that as well. If not its even better.
Posted on 3/26/25 at 2:32 pm to slackster
quote:
Your home isn’t part of your net worth
Then you are not discussing net worth. Net worth includes all assets and debts.
Posted on 3/26/25 at 2:36 pm to ronricks
quote:
I will only be drawing from my Brokerage which is VTI, BRKB, and QQQM and some cash.
That's waht I figured.
Posted on 3/26/25 at 2:44 pm to JohnnyKilroy
quote:
the "4% rule" accounts for inflation.
Oops, that is true.
Posted on 3/26/25 at 2:59 pm to notsince98
My wife and I had an unexpected surprise our senior year at Auburn
Had our daughter when we were 22 years old and our second one we were 25 and we were through dealing after that
Been very fortunate in my career, which has been sales based to have a really good income, but to save a good bit of that as well
I posted here before and a lot of folks don’t agree with this, but I think getting married early and struggling financially starting out can lead you closer together as a couple
That certainly not the case for all, but it was for us
When you don’t have a nickel to your name and your 23 or 24 with a 1 year old all you’ve got is each other and that was enough for us
Had our daughter when we were 22 years old and our second one we were 25 and we were through dealing after that
Been very fortunate in my career, which has been sales based to have a really good income, but to save a good bit of that as well
I posted here before and a lot of folks don’t agree with this, but I think getting married early and struggling financially starting out can lead you closer together as a couple
That certainly not the case for all, but it was for us
When you don’t have a nickel to your name and your 23 or 24 with a 1 year old all you’ve got is each other and that was enough for us
This post was edited on 3/26/25 at 3:02 pm
Posted on 3/26/25 at 3:04 pm to Boss
That’s exactly right
This generation is having their fun in their 20s and 30s
We basically had none of that but will enjoy our 5060s and 70s God willing
This generation is having their fun in their 20s and 30s
We basically had none of that but will enjoy our 5060s and 70s God willing
Page 2 of 7
Popular
Back to top
Follow TigerDroppings for LSU Football News