Ready to Retire?

5 Ways to Tell if You Are Ready to Retire Early

One way to estimate if you're ready for early retirement is to divide your investable assets by your annual expense. I call this the financial freedom ratio. If your financial freedom ratio is above 25, then you're in pretty good shape. You can use the 4 percent rule to withdraw from your portfolio, and chances are good that your money will last for 30 years or more. Of course, if you retire very early, then you probably need to be a bit more conservative and withdraw less until you're near 65, the normal retirement age.
Comment: As for us
  • We meet all of the above criteria except my wife is 2 years younger than I
  • She does not want to retire yet AND
  • I don't want to retire without her
  • So basically we are waiting 22 months (her 65th birthday)
  • And using these months to double down on investments.

1 comment:

  1. On retiring early: Why 'I'll just work longer' is not a good retirement plan

    people over the age of 65 make up only 5.4% of the working population in the U.S.

    The main reason workers retire earlier than planned is unexpected health problems, which more than 60% of early retirees cited as the reason they retired early ...

    Early retirees like Wiley arguably have an even bigger challenge than people who manage to keep a steady income stream in their golden years. The average 65-year-old retiree needs to save enough to sustain himself for another 20 years, according to the Social Security Administration. Having retired early, Wiley’s main goal was to work out a budget that would realistically stretch his savings out for another 30 years — or longer.


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