I don’t think 1.6 million is enough to retire at 36. If you must try, I wouldn’t lock in low returns with a tips ladder, particularly since your social security amount will be low. You’d have better luck with a conventional stock/bond portfolio.
The 4% rule is conservative and spending $40k / year out of a 1.6 million portfolio is a 2.5% withdrawal, almost a perpetual withdrawal rate. With a tips ladder you’d have spend all your $917k after 30 years and only have a relatively smaller portfolio ($700k) to make up for it.
I would try to find a job that doesn’t suck, even if part time and pays less than your old job. With your assets committing to a relative low spend for the rest of your life doesn’t leave much room for error with things like divorce, interest in lifestyle upgrade 10 years from now, etc.
The 4% rule is conservative and spending $40k / year out of a 1.6 million portfolio is a 2.5% withdrawal, almost a perpetual withdrawal rate. With a tips ladder you’d have spend all your $917k after 30 years and only have a relatively smaller portfolio ($700k) to make up for it.
I would try to find a job that doesn’t suck, even if part time and pays less than your old job. With your assets committing to a relative low spend for the rest of your life doesn’t leave much room for error with things like divorce, interest in lifestyle upgrade 10 years from now, etc.
Statistics: Posted by er999 — Sat Oct 12, 2024 8:58 pm — Replies 11 — Views 895