Thanks in advance for any help I get on this subject. Me: 43 yrs old / 100k -120k salary depending on overtime/ 415,000 in 401k =I invest 20%/ 100,000 in crypto mostly bitcoin and xrp/ About 30-40k debt/ Will take social security at 62 or whatever age is the earliest when that time comes
I am planning on leaving country maybe Vietnam, Cambodia, Thailand, or Indonesia. I would like to be able to freely spend about $3000 a month in total during retirement. My job is physical and I feel my body telling me it’s almost time. I would truly appreciate any help in figuring out when is the earliest I can retire based on info above.
Retiring as soon as I can make the math make sense….
byu/Bornfly1 inpersonalfinance
Posted by Bornfly1
16 Comments
Pay off that note, then ask again.
Why are you buying bitcoin when you have 30-40k in debt?
Not any time soon. You’ll need at least 900k with no debt saved.
Taking x25 annual expense as a general starting point (preferably more), you need at least $900k to draw from (at 4% SWR) to be able to freely spend about $3k a month.
So you have some way to go still
$3000/month is a lot for those countries you listed potentially moving to. I can get by in Vietnam comfortable with just $1000/month assuming I’m not living in Saigon and going shopping every day
In /r/financialindependence and /r/Fire you’ll very quickly come across the idea of a safe withdrawal rate. The most commonly cited specific rate is 4%, which is very conservative for most retirees (when it was first proposed in 1994, it had a 100% success rate for every 30-year period since the Great Depression), but it’s at least a *start* of a rule of thumb (it’s not prescriptive, though). Many people suggest <4% for early retirement, but you’ve got plenty of reading ahead of you. Google “ERN retirement” for a great series on it.
Anyway, 4% is 1/25, so if you expect to spend $36,000/yr, then when you’re at about $900,000, you’re in the right neighborhood.
That should happen in about 8½ years if you get 5% real returns and save 10% of your $120k salary (Google Sheets/Excel: `NPER(5%,−12000,−515000,900000)`.
What is the interest rate on your debt?
Do not underestimate what you will need for medical/health insurance!
Why do you have $100k in crypto and $40k of debt? Unless the debt is very low interest, that’s bonkers. Also, is crypto 100% of your non-401k investing? If so, you’re putting yourself at a ton of risk prior to retirement. That 100k would look a lot better as 40k debt payoff, 30k HYSA, 25k index funds, 5k crypto.
3,000/month equals about $900,000 invested. If you got average returns in an S&P index fund that’s 7-10 years to double. So, by 50 you could have around 800 k$. By 57 you should have enough to reach your target (~1.6 million possible).
I doubt know the situation in other countries, so I can’t speak to that. Crypto to me seems very risky and born of desperation which often leads to losing a lot of money. If you want to retire early, a big impact is to reduce costs like eliminating debt. $3000 or 36k$/year seems low for a decent lifestyle though. Possible, but pretty barebones and more likely to fail with any medical issues or unexpected problems.
Another option is to go for a bit longer or switch to a lower pay/more easy job which at least pays a little but which you could work longer without a concern .
Not a crypto guy here but that’s me. Keep up the good work. And get rid of that debt if you can.
Have you been to any of the countries you listed? I’ve been to them all. Not sure I would consider retiring in Cambodia. But that’s just me. Not that I didn’t like it. I did. It just doesn’t have the infrastructure of its neighbors. That could appeal to you, of course.
Like others have said @3k/month, you could live like a king in these countries. The cost of living is quite low. But these are large countries, with significant differences, not just between them but between regions and between urban and rural.
What I would suggest is to make a little investment in yourself. Do a little research and figure out what exact places in these countries appeal to you. And then go visit. Talk to expats. See what their lives are like. What works for them, what doesn’t. How they manage their visa situation, their medical needs, anything else that may be of concern to you.
Best of luck to you. Seems like you’re on a great path.
Yeah so as it stands you probably can’t withdraw more than 1,500 a month and 20% of your assets are in gambling.
Be a smart expat and don’t get scammed
Knock out the debt and keep saving you will bring fine at 50. Everyone here with the 4% stuff is kind of forgetting about your social security at 62. That will help lower what ypu need to withdraw or you can add that to health insurance costs. You can get an account on the social security administrator website to get estimates on what you will get.
How are you planning on accessing the money in your 401k at 50?
If you want $3000/mo post tax you are going to probably need 1.5 million or so.