How Long $500K Will Last in Retirement in Each State.

[DigDog]

Oaxaca? Ah yes the legendary state of the mythical Mexican Oaxaca weed. In the old days the wise ones would tell tales of hippies going down there to get the legendary weed but they ended up staying down there.

Anyway I could be convinced if they had reasonable internet.

*wears wise old hat*
Those are not legends ... i saw them myself. I saw the hippie colony at Zipolite with my very own eyes, as i did toke the mystical Weed Of Oneness.

*removes hat*
but you can forget about internet!!

 

[s0me0nesmind1]

You forgot the crazy president who's liable to have you executed for using any drugs you might want to use.

As much bad publicity as we hear in the states - I had a coworker or two that lived in (and still visits and has family) there - From what he told me law abiding citizens are incredibly happy at what has been happening.

Kinda hard to judge through the lens of living in the states, no?

It's a lot like Mexico - they have tried to fix their shit. It's not going to happen without some hardcore brute force. Not trying to make this political, but when everyone saw Trump get elected you only ever heard "I'm moving to Canada!". Just saying

 

[Alpha One Seven]

It would be pretty stupid to try to live of 500k and not have it invested so you can live off it indefinitely. I suppose there are people that are that stupid though.

 

[Timorous]

It would be pretty stupid to try to live of 500k and not have it invested so you can live off it indefinitely. I suppose there are people that are that stupid though.

$500k @ a 3.5% withdrawal rate is $17,500 a year . If you paid off your mortgage and your car chances are that is a very liveable amount of money for a couple with grown up children.

On top of that if you look at 30 year models on average your portfolio will increase faster than inflation so you end up having more spending power down the line as well as the option to increase your withdrawal rate so your portfolio increases with inflation.

Even a 4% rate to start with would more than likely result in your portfolio growing above inflation and you get $20,000 a year to begin with.

No idea at all why someone would have their nest egg and draw from it directly rather than having it invested.

 

[DigDog]

The av yearly wage in Oaxaca is $3400, according to G, but my more reasonable estimate is "less than $10k".
A buildable waterfront lot with utilities is $70k. A house in the town is even less.
The cost of living is practically irrelevant, you would only notice spending if you eat at restaurants every meal.

But what really matters is that people are NICE. Go stay a week, watch the anger and tension disappear.

 

[Exterous]

Why do so many people focus on retirement, when working less (20-30 hours / week) seems like a much better way to go? You won't end up getting bored and starting a FIRE blog simply because you've got nothing else to do or feel a lack of purpose, and you'll provide yourself with the income you need to stay at break-even while the rest of your pile keeps compounding.

I'm at a point where I still work full time, but only under the condition that it's extremely flexible (work from home, spread my hours out, lots of PTO, etc). My next step will be to simply work less (~25 hours a week), while maintaining work flexibility and vacation time. I could probably work like that indefinitely.

Not every company is going to want people to do part time work - certainly not enough for this to be something most people can consider.

Seems like these annual expenditures are on the high end. I'm anticipating $30-36k/year in expenses (assuming I'll have a paid-off house) during retirement, but I also don't take fancy vacations, buy new cars every two years, or need all the latest gadgets and eat every meal out.

I'm curious what the Median numbers would be because averages can get thrown off. I'm targeting much higher than those averages for the first part of our retirement before it tapers off as we become less mobile.

 

[purbeast0]

$500k @ a 3.5% withdrawal rate is $17,500 a year . If you paid off your mortgage and your car chances are that is a very liveable amount of money for a couple with grown up children.

On top of that if you look at 30 year models on average your portfolio will increase faster than inflation so you end up having more spending power down the line as well as the option to increase your withdrawal rate so your portfolio increases with inflation.

Even a 4% rate to start with would more than likely result in your portfolio growing above inflation and you get $20,000 a year to begin with.

No idea at all why someone would have their nest egg and draw from it directly rather than having it invested.

You'd really want to live off of $17.5k a year?

After working my whole life I plan on living a pretty good life style once I'm done, not one where I have to be frugal and cheap and worry about eating a $100 meal with my wife.

 

[s0me0nesmind1]

You'd really want to live off of $17.5k a year?

After working my whole life I plan on living a pretty good life style once I'm done, not one where I have to be frugal and cheap and worry about eating a $100 meal with my wife.

Same... Also as much as I love my kids, I have the hopes of leaving them with nothing but a paid college education... the rest I want to have spent (ideally).

 

[Dr. Detroit]

Fancy cars, designer clothes, expensive meals, latest tech gadgets, and high-end hotels sure do set a lot of people back from retiring early. So much so, that people don't care about retiring early and would just rather work til there 65.

Once you remove the expenses that having a full time job requires, shop the ads, meal plan, take up some fun low cost hobbies and move to a state with great ACA subsidies along with low taxes - how much money do you really need?

Some folks would rather pinch pennies and live frugally than spend another day at work. Its all about your priorities.

Me, goal has been to retire at 45.

 

[Alpha One Seven]

The av yearly wage in Oaxaca is $3400, according to G, but my more reasonable estimate is "less than $10k".
A buildable waterfront lot with utilities is $70k. A house in the town is even less.
The cost of living is practically irrelevant, you would only notice spending if you eat at restaurants every meal.

But what really matters is that people are NICE. Go stay a week, watch the anger and tension disappear.

If I had anger and tension from the place I live, I wouldn't live there. Home is where I go to relax and unwind.

 

[Alpha One Seven]

Fancy cars, designer clothes, expensive meals, latest tech gadgets, and high-end hotels sure do set a lot of people back from retiring early. So much so, that people don't care about retiring early and would just rather work til there 65.

Once you remove the expenses that having a full time job requires, shop the ads, meal plan, take up some fun low cost hobbies and move to a state with great ACA subsidies along with low taxes - how much money do you really need?

Some folks would rather pinch pennies and live frugally than spend another day at work. Its all about your priorities.

Me, goal has been to retire at 45.

I quit working at 37.

 

[Carson Dyle]

I quit working at 37.

I quit at 18.

 

[Alpha One Seven]

I quit at 18.

LOL did you thank your daddy?

 

[Carson Dyle]

LOL did you thank your daddy?

I had no Daddy. I was an orphan and was never adopted.

 

[Alpha One Seven]

I had no Daddy. I was an orphan and was never adopted.

LOTFLMAO You are too funny. I bet you had to walk to school 20 miles away and against the wind and uphill both ways too. Oh yeah... and you LIKED it!

 

[blackangst1]

Planning our retirement in Philippines since our money will go farther and be able to live a more active life doing constant mini trips than staying home in the states avoiding spending money.

Same

 

[Raincity]

Do you or your spouse have family there.

 

[Svnla]

Good luck living with the horrendous city traffic, overcrowding, air/noise pollution, dirty streets, drinking water quality, summer heat/typhoons, very very slow internet.

I haven't been to PH but I have been to numerous big cities in Asia (million and million of residents) and I mostly agree with your assertion except the very slow internet. I was surprise how decent internet and wifi over there. I was able to watch YouTube without any problem by using the mall free wifi.

 

[JulesMaximus]

Planning our retirement in Philippines since our money will go farther and be able to live a more active life doing constant mini trips than staying home in the states avoiding spending money.

You couldn’t pay me to move to the Philippines.

 

[DigDog]

Dirt cheap seafood and dirt cheap prostitution - you could totally pay me to move to the philippines.

 

[Mai72]

You'd really want to live off of $17.5k a year?

After working my whole life I plan on living a pretty good life style once I'm done, not one where I have to be frugal and cheap and worry about eating a $100 meal with my wife.

Yea,

When I hear people talk about living a lifestyle that seems pretty drastic like living under $20k a year, my thoughts are "but what happens when you get sick?" Because you'll eventually get sick. Medicade and Medicare don't and won't cover everythings. Personal insurance the same. I just think it's unrealistic. We live on financial planet. And, things do happen as you get older. My aunt whose 81 has a full time aide. That is $10 an hour that comes out of her pocket. My uncle had Parkinson's disease which required full time assistance. Before his Parkinson's diagnosis he was healthy. He was riding his bike, walking. After Parkinsons I saw his physical abilities slowly deteriorate. What about cancer? You could have your savings wiped out with an illness.

 

[Mai72]

You couldn’t pay me to move to the Philippines.

For me, it would be Thailand or Vietnam.

 

[lxskllr]

Yea,

When I hear people talk about living a lifestyle that seems pretty drastic like living under $20k a year, my thoughts are "but what happens when you get sick?" Because you'll eventually get sick. Medicade and Medicare don't and won't cover everythings. Personal insurance the same. I just think it's unrealistic. We do live in on a financial planet. And, things do happen as you get older. My aunt whose 81 has a full time aide. That is $10 an hour that comes out of her pocket. My uncle had Parkinson's disease which required full time assistance. Before his Parkinson's diagnosis he was healthy. He was riding his bike, walking. After Parkinsons I saw his physical abilities slowly deteriorate. What about cancer? You could have your savings wiped out with an illness.

I expect I'll die, just like everyone else. I'll pay cash til I don't feel like paying anymore, then die.

 

[Scarpozzi]

I'm turning 38 next month. My dad is 71. He had a heart attack at 50.....triple bypass + stints in 1999/2009 and got a pace maker/defib....then had to get it replaced last Fall. Basically, he's got no energy and is struggling to breathe a lot of the time. I think he can make it a while longer, but one bad illness could do him in if his body can't fight it. Seeing how much different he is this year versus the year before last tells me how quickly we can decline when our organs fail.

59 1/2 is the minimum retirement age. A lot of people consider retiring at 62.....and those who retire earlier, often live longer. At the same time, there's an argument that if you stop working, you instantly become more sedentary and waste away quicker. My advice is to assess your health and stay active in your golden years. Don't take time for granted....if you have the means to retire earlier, go for it. If you're under the age of 30 and don't have a retirement account, start investing what you can....even if it seems meager at the time. It will grow. I've had a few smaller accounts triple in value in just 5 years and beat out my 401k performance by 30%.

Compute the lost earnings by halting contributions to your retirement funds and maybe even consider taking a part time job with low stress where you can work with young girls over the age of 18. (roller skating rink, perhaps?) Basically, just eek by with low stress and something to give you a reason to get up in the morning and keep with a routine... The idea is to build relationships and stay engaged with people outside family and church....especially when you don't have work that follows you home (like major projects and stress). I'm tempted to buy a house near the beach when I get older and rent it out for extra income. It may be a something I go for when the real estate/stock market takes its next nosedive.

 

[brianmanahan]

maybe even consider taking a part time job with low stress where you can work with young girls over the age of 18. (roller skating rink, perhaps?)

thats kinda creppy