[quote=earlyretirement]Do you have a large nest egg (7 figures +) to plan on taking this early retirement?
Or do you have any assets that will generate cash flow each month/year like rental properties?
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[quote=flu]without a balance sheet (even in vague terms), hard to tell if you’re ready for retirement.
I guess what are your liabilities, what are your assets?
Also, realistically how good is your investment returns? <5% or >5%…
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Fair questions. We have a ballpark figure of the expenses and are working to generate 3-5x as near-passive income to provide some buffer in case of emergencies. As for liabilities it is mostly the mortgage and should be paid off in about seven years.
The stocks and retirement accounts have decent returns. With kid and family obligations taking up time, lately we have reduced our non-retirement stock portfolio significantly. Will venture back to actively managing the stocks in a year or two, but have to see what happens then.
I am aware this is not the typical situation. Was not ‘lucky’ to land a job in established companies to just settle in and ride the wave into management. It will be difficult to change jobs in 50’s and will have to forget about finding one at 60’s. Paranoid perhaps… but probably not too far from reality.
Our idea of retirement is to buy time. In the sense do what you want to do and not because you have to do it. Like one of the suggestions, we plan to start a business that will keep us engaged and hopefully contribute towards the 3-5x cash flow.
Couple of things I would like feedback on are – 50s is too early to traditionally retire. What should one do in terms of health insurance? Are there products/insurance to consider? In our assumptions 401k/roth/ss/medicare/etc are mostly supplemental… I guess my question becomes what are the available tools to replace the traditional retirement funds?
