I agree with most of what has been said above

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Oct 9, 2019
2:51:41pm

Taxrulz 3rd String

I agree with most of what has been said above

Like others have mentioned:

1) What is the current age(s) of the individuals?
2) Are they planning on taking Social Security early, on time, or postponing for a larger benefit?
3) What is the health insurance situation?
4) Do they have mission plans? If so, where and what is the expected cost?
5) What is their spending habits?

I would highly recommend using a retirement calculator, here are couple after a quick search:

Retirement Calculator | How much do you need to retire? | Nerdwallet

Calculate how much you’ll need for retirement, determine what your savings goal should be, what age you can expect to retire, and whether you’re saving enough in your 401(k) or IRA for retirement.

https://www.nerdwallet.com/investing/retirement-calculator

Vanguard - Retirement income calculator

https://retirementplans.vanguard.com/VGApp/pe/pubeducation/calculators/RetirementIncomeCalc.jsf

As someone who is reasonably sophisticated in financial matters, I would have a serious conversation about retirement and expectations so that they can make sure that this is a realistic scenario before they quit their job and make other decisions which could adversely affect them.

Best of luck!

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Taxrulz

Bio page: Taxrulz
Joined: Jul 30, 2011
Last login: Jun 1, 2024
Total posts: 562 (131 FO)

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Messages

Author

Time

Have a family member that is planning on retiring soon with $400k in a 401k and

WhirleyPop

10/9/19 2:35pm

How frugally can he live? Can he live on $20k - $25k annually plus SSI?

Pimpin4Paradise

10/9/19 2:37pm

Bottom line is that many people think that's a huge chunk of money, but it's not. He should be pretty

Pimpin4Paradise

10/9/19 2:38pm

Is there a multiplier one can apply to their 401K balance to estimate how much

StarMan

10/9/19 2:44pm

It all depends on your assumed rate of return and whether or not you'd like to leave any $ to heirs.

Pimpin4Paradise

10/9/19 2:47pm

4% rule.

Creekster

10/9/19 4:01pm

Not if it is continuing to grow each year.....

grandpacoug

10/9/19 4:04pm

There's a lot of issues with the 4% rule and how it was constructed. Not a

molodyets

10/9/19 6:04pm

I agree, but the poster asked for some sort of general rule

Creekster

10/10/19 9:58am

Depends on their spending habits.

WJCougar

10/9/19 2:37pm

Good answer. I RV'ed fulltime for 6 years and met folks living on way less.

grandpacoug

10/9/19 2:40pm

What kind of rig were you in? Towing a vehicle?

Tokolosh

10/9/19 2:48pm

First two years in a MH. Last four years in 40' fifth wheel with four slides.

grandpacoug

10/9/19 2:51pm

What were your favorite spots throughout your 6 years? How long would you

StarMan

10/9/19 2:59pm

When we first started, we were checking out many different places in Western

grandpacoug

10/9/19 3:58pm

It all depends on cost of living and age. But I'd be uncomfortable w/out $1M+.

JohnnyGJR

10/9/19 2:37pm

How old is this person? Do they qualify for SS? Any dependents?

Jericho

10/9/19 2:37pm

yikes

Mayor of Cougartown

10/9/19 2:38pm

With social security and low cost of living location

Baron

10/9/19 2:39pm

Depends on the person. My dad would last 3-5 years max on that.

cougfanz

10/9/19 2:39pm

If they're getting Social Security too, they'll be OK- not

10/9/19 2:39pm

The best question is, what will their annual expenses be in retirement?

10/9/19 2:41pm

Only if they plan to die soon

Slim

10/9/19 2:42pm

are they old enough to qualify for a reverse mortgage?

Mayor of Cougartown

10/9/19 2:42pm

Statistics suggest that most people do it on much less, actually.

CosmoK

10/9/19 2:43pm

25x annual expenses is a good rule of thumb, regardless of income level. SS can mitigate that number.

10/9/19 2:53pm

I live in a community with 140K retirees. Much less is required For living.

grandpacoug

10/9/19 2:53pm

140k? Is this a city in Florida?

Breaded Hamster

10/9/19 3:09pm

It is. Called The Villages, FL. Several CBers have come to visit. Over 50 golf

grandpacoug

10/9/19 4:01pm

Crazy how low those dues are for that type of golf access..

cougfanz

10/9/19 4:05pm

My parents lived on that or less - no bills except for taxes, utilities, tithing

Monomachos

10/9/19 3:19pm

They will be moving in with you in five years

Pony Zale

10/9/19 2:43pm

Depending on how much their house is worth. They may want to consider downsizing

AFewThoughts

10/9/19 2:43pm

With a decent SS benefit it will be better than most retirees

CSoul

10/9/19 2:45pm

Sell the house and downsize

SUAVO

10/9/19 2:50pm

I agree with most of what has been said above

Taxrulz

10/9/19 2:51pm

Stock market goes down and, poof, it's gone.

rockhound

10/9/19 2:54pm

RE: Have a family member that is planning on retiring soon with $400k in a 401k and

cheezedawg

10/9/19 2:57pm

Need at least 3-4 mill

Mr. Belding

10/9/19 3:09pm

I will let this bad advice go based on the recent trauma.

Baron

10/9/19 3:19pm

Is it legal to retire without 401k in your 401k?

10/9/19 3:20pm

Tell them to look up

warp

10/9/19 3:40pm

Way short. I wouldn't do it and I believe he will regret it. Or his kids will.

10/9/19 4:36pm

Move to southern Portugal and retire on the beach. That's plenty.

jvquarterback

10/9/19 4:45pm

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