scoaste wrote: ↑
Tue Sep 04, 2018 1:03 pm
To make the best financial decisions to retire early.
Total other assets approx $600K, almost all tax deferred. To carry the house... as in utilities, maintenance, etc? I think you hit it about right.
So at a 4% withdrawal rate you can live off $2000/month. This has to include all your carrying costs for housing, so if those right now are $800 (adding in utilities and allowance for maintenance) that leaves $1200/month for everything else. Can you live on that?
Read up on 72t withdrawals if you don't know what they are. With what you've written you can very roughly take out around $30k/year from your retirement accounts. This will be taxable as ordinary income, and the amount you take out cannot be changed until age 59, so if you want this method to fund the entirety
of $2k/month expenses you don't have much margin for error right now.
With what you've said, I'd work for another year or two before doing anything drastic, unless you're confident you can cut your monthly expenses to well under $2000.
If it were me with $850K of total net worth, though, I'd buy a $150k house and live off something like $1500/month, which would be a withdrawal rate of barely 2.5% of liquid net worth of $700k. And I'd have to work some months to spend that $1500, like by blowing it gambling or something.