[quote=ice9]Investments are currently worth about 1.2M. I carry a mortgage, with about 100K in equity.
I think my target is 1.5M.
Obviously I won’t be living in a McMansion and driving a BMW. But I don’t want that. I want to take up ultrarunning, and spend more time with my kids/wife/dog. Live somewhere with low property tax, and no HOA.
Might need to return to Canada, as health insurance will be expensive.[/quote]
NO, in my humble opinion that is no where near enough to retire at 40 years old. The thing is chart on paper a best case AND worst case scenario. What happens if you live to be 90 years old or older?
Not even living a high roller lifestyle, you have to account for emergencies. I think you also mentioned you have kids and have to account for what if something happens to them?
I’m NOT saying to be a worry wart, but still you have to plan for these types of things.
I assumed you had your primary residence paid for with no mortgage and absolutely NO debt at all.
Also, I’m not sure where in Canada you are planning to go to but real estate prices there are really expensive in many cities. I’d think if you were going to retire at 40 you’d plan to have a home fully paid for with no debt on it.
The health care system in Canada is much better than the USA but still, you should investigate it further as I know several people that are living in Canada and have private insurance.
I know in my experience, health care was a big worry for me. Once I left my company, it was the first time in a while that I had to go out and buy private medical insurance for my family. I pay about $1,500 a month in medical and dental insurance for my 2 kids, my wife and I. I ended up going with Kaiser Permanente and so far I’m happy with them.
Still, healthcare is so screwed up in this country I still worry sometimes if there is some big health problem or getting dropped, etc.
My two kids I want to have college fully paid for them so they don’t have to struggle with college loans like I did. so that is another big expense socking money each month away for them assuming college will be super expensive by the time they enter in 15 years. I also am budgeting as if they make it to an Ivy League (hey a parent can dream!)… So really trying to take advantage of the power of compound interest.
Also, I think you have to also consider what kind of lifestyle your wife and kids might want. For some people they plan these drastic changes and it’s really tough for wife/kids to adjust to having tons of disposable income to not much at all. Or going from a normal life to a “Survivorman” type of lifestyle. So be fair to what they might want as well.
I went through some of the same thoughts you are going through last year but I can tell you NO way I’d even dream about it if I was in your shoes having debt. I haven’t had any debt for many many years.
If you’re only 40 then I’d have to think your kids are still fairly young? Maybe I’m wrong there and you started when you were younger.
Personally I’d shed ALL your debt before you start thinking about something like this and also have enough to have your primary residence totally paid off before you entertain thoughts like this. JMHO.
