Vacations and weekend getaways average $1,500 a month.
There is no debt. Other that state fed and town current taxes.
You own two good cars and a home outright.
Your have reasonable health.
2006-07-20 08:30:11 · 6 answers · asked by early retiree 1 in Business & Finance ➔ Personal Finance
Need more information about what kind of assets their net worth is made up of to answer this. Can their assets can supply them with the income they need? Are they eligible for Social Security yet? What will each person get every month from SS?
An example, let's say 1.7 million of their net worth is in stocks, bonds and other liquid assets. They could pull out 4% a year, or $68,000 per year to live on, and continue to let the assets grow for future annual pay raises. Will that meet their needs? I doubt it. Not if they want $1,500 getaways every month, and have normal living expenses, and pay for their own health insurance.
If you add $2,000 in SS benefits every month, then, yes, it looks like they'd be fine. Of course it all depends on what kind of lifestyle they are looking to retire in.
The short answer is that there are too many variables and this couple needs to spend time at some good financial web sites, or with a competent financial planner.
2006-07-20 10:59:32 · answer #1 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
No, unless they are 90 and plan to die in a few years.
health coverage for a future heart attack or cancer or even a stroke can be into 100,000 or more very quckly.
It is estimated that more than that needs to be put back just to cover health costs alone if there is no health insurance.
next you said net worth, so mius out the house, the value of the cars and funiture, what is the actual disposable cash ?
Let us assume 2 milion in cash in the bank, interst at 6 percent
( they have to concerve not invest in high risk that can lose value)
That is about 120,000 a year in interest, minis taxes, so that leaves them 90,000 a year to live on.
You said that they would spend 18,000 a year just on vacations and getaways, so it shows they live a better than normal life style, But not most likely the life style they are used to.
but one or two major illnes will wipe them out.
2006-07-20 08:38:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
wow - i certainly hope that the 2 of you can live comfortably on $2 million. so you own your home free and clear and you own 2 cars free and clear, so as long as you don't have twenty-something grandchildren where you give them presents every time they visit and you don't stay at $1K per night hotels, i would think you'd be OK. 1 other question to ask though - are you and your spouse in good health overall and how old are you? Being retired at 55 you may have another 40 years of living, and if you smoked 3 packs of cigarettes a day, you will have some large medical payments coming down the pike.
2006-07-20 08:37:49 · answer #3 · answered by scott p 1 · 0⤊ 0⤋
You have got to be kidding, You made over 2 million dollars for retirement and you cant figure out ,that 2 million is enough . You must have worked for the Gov. You didnt have to think
2006-07-20 08:36:53 · answer #4 · answered by cardog 3 · 0⤊ 0⤋
depends on how old they are and how they are investing the proportion of the 2 million that they aren't currently using...Health insurance is expensive.....
2006-07-20 08:34:35 · answer #5 · answered by ? 2 · 0⤊ 0⤋
yes you can if you invest or get in the money market
2006-07-20 08:34:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋