Can I retire early with 200k and

 Can I retire early with 200k and make the rest of my life? I own my home.

This question reminds me of a 93 year old who lives on my street. He hasn’t worked since he was in his mid thirties and his mother died leaving him an inheritance. He figured he wouldn’t live to this age but last year at 92 had to get a job to cover his property taxes and insurance so he wouldn’t lose his home that he paid off decades ago. He had to sell his car, he couldn’t afford to buy gas or pay insurance anyway. I give him a ride to the food bank once a week or he wouldn’t be eating. He is now forced to work 40 hours a week as a greeter at Walmart. He’ll probably drop dead at work one day. He is miserable. $200k is nothing, it might get you through 3 or 4 years.

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The 93 yo should get a reverse mortgage on his home. Working as a greeter at Walmart keeps him active, and allows him to interact with folks, probably keeping him alive.

Not working since his 30’s, he probably has memories of many enjoyable times he had, while others were getting their buts kicked at work every day.

love this perspective

Me too 🙌

Exactly! Sounds like a good life to me anyway.

Amen brother. You totally nailed it. I’ll work in some fashion till I die. 200k as just spend it 200k ain’t nothing. But if you know how to use the 200k to create something, well then it can go a long way.

Pure stupidity and a lazy and ignorant person

Lol

Perfect response

I retired 9 years ago and so far have not touched one dime of our retirement savings. At this rate, how long do you think my money will last? Debt is the retirement killer, not lack of funds.

Same here. I’m fortunate I have a pension and social security. Haven’t touched my retirement savings of about 500 grand since retiring 9 years ago. House paid off, no debt and I live well within my means.

Very few companies offer pension …usually companies that have been around for a very long time. But is too costly because they have set up a separate fund. 90-97% companies just offer 401k or something similar is cheaper and put the responsibility unto the employees. A couple companies i know still offer it (accompanied with 401) but these are like in Upper Midwest, in VA area , very old hospitals, etc. But they are limited.

Most people don't get pensions anymore in the U.S. Boomers were the last group where the majority received them.

Not entirely correct. Anyone retired military, teachers, government employees etc still pay into retirement pensions. I know several who get both pension and social security.

That's why I said “most.” The majority of workers today do not fall into those categories.

“Most” boomers didnt get pensions either.

Right. Their parents might have (mine did). But most Boomers. Nope.

Nurses, union workers in quite a number of industries.

Boomer & no pension. Unions & government workers get pensions

I have pensions from two different not-for-profit hospitals where I have worked that I will receive in retirement. There are still some out there, depending on your industry and employer.

I don’t know the percentages but there are many companies still offering pensions, UPS, post office and other federal employees, military, teachers just to name a few.

None of those are companies. UPS drivers get a pension because of the teamsters union, not because of the company.

I get a pension, and my company never had a union. Just because your company doesn’t offer one, don’t assume many don’t.

Many don’t. 14% of private industry jobs offer a pension. Throw in public (government) and it goes to 19%. Most jobs these days just offer 401. The two jobs I had with pensions were union, one auto industry and the other defense (shipbuilding). The first wasn’t very stable (layoffs) and the second wasn’t a very good pension, had horrible pay and benefits and working conditions. My current employer dropped pension over 20 years ago and currently has a 401 full match and pretty good benefits otherwise, though they have a reputation for layoffs (hoping my 22 years there have put me in a safe spot, but nothing is guaranteed)

They are trying to get rid of them. Pensions are why USPS almost went bankrupt.

USPS only struggles because Congress has stolen money from its retirement fund years ago and requires funding of pensions 75 years into the future.

most boomers don’t get pensions either. But there’s plenty of self funded retirement plans you can get. Self employed have always had to get a 401k or something like it to fund their retirement. And there’s plenty pension plans that some got years ago were always a consideration of the total wage package - not just a freebie like you might think. Also if you left your job you often left your pension behind too which is why people started using 401k’s instead. Everyone including boomers worked for what they got. There’s no free ride.

100% correct.

Anybody can get a pension, if they want it! It's now called an annuity.

what are you using to pay for expenses if I may ask?

My guess is pension from the job he had plus social security.

Don’t forget the RMD’s (Required Minimum Distribution).

The way you are going the money will last forever, but you wont! Get out and spend it, enjoy yourself.

And no retirement income is the retirement income killer. Have not needed to touch my $210,000 except to continue my cd’s.

Until the next stock market crash.

Depends on how frugal you want to live and NOT work

I don’t understand this one if he hasnt worked since his 30s and made it all the way to his 90s that’s good. How did he make it for 60 years on 200 K?

The two hundred thousand dollar number is from the OP question, not from the gentleman in his 90’s story line. It didn’t state how much the old gentleman inherited. He lived without having to work for 60 years. That is likely why he is living so long.

The 90 year old is not the original poster.

jfc!

This makes little sense unless outside of the US. Here I would think he'd be an ideal candidate for a reverse mortgage at 93.

The example of the man in his 90s is a biased and fear-based anecdote, no more. He had 60 yrs to make changes, which even a small change would hv corrected his prospects. Just because 90 yr old is incompetent has no bearing on what 200K who ownes his home, he could retire on 1/2 that amount. R u a financial advisor?

I love that you’re challenging fear mongering ❤️

Plenty of fear mongering anecdotes on both sides of the equation. “I know someone who worked until 70 but then dropped dead so you better retire early” and “Social Security won’t be around in a couple of yard so take it right away” to “I know someone who retired early and ran out of money when she turned 72 but could no longer work, lost her house and starved to death.”

See a professional financial advisor or even better a Certified Financial Planner, come up with a plan and stick to it.

was thinking the same and 92 with a paid home ??How about a reverse mortgage 🤔🤔

Yes, his house has to be quadruple in value.! I retired with about 180,000 in my 401(k). It will run out when I’m 75. But I bought a house at 60 for $78,000. Now the assessment is 115,000. So I figure when my 401(k) runs out. I have plenty of credit to use to stay in my home. I have no debt except for my house, but I do need to buy a new used car. The credit I use could be paid off once I sell the house then I plan on going into a senior housing that’s prorated.

Luckily, I’m not high maintenance. Right now I have a part-time job for $600 a month at a high school.. I also have Social Security and a pension from the post office.

So this young man’s question is hard to answer because we don’t know if he has a pension or other assets besides his house. Also, is he married ? That would bring in money for living expenses..

Never let your friends or loved one get a reverse mortgage!!!!!

Why not?

Why not?

In 2008 the Great Recession triggered by the stock market crash resulted in a big drop in home values across the country. My neighbor had a reverse mortgage and the valuation of her home dipped below the amount of the loan and the bank repossessed the house. She wound up living in a friends basement and the house was sold at auction. No one thought that could happen but it did.

Right because you lose equity in your home.

Why?

Yes I'm sure they are!!

Why didn’t he sell his house and rent ?

Rents are very high right now, but there is prorated senior housing. Which is very comfortable at his age.. also there are people around to socialize with. Also, the buildings are very secure. That’s my plan for the future.

Rent rates are 2400 +++ for a 3,2 home, 1 br cheaper, but rents r sky high. He should have worked while younger

Yes, he should’ve worked when he was younger. This whole story doesn’t make sense. But there are prorated places that are a lot less than just a regular apartment. My friend was living in one.

If he sold his house, had would have to rent. The cost of his rent would negate any income from the rental. When you rent, you're at the mercy of a landlord. Better to keep the house, rent a room, get a reverse mortgage-anything is better than selling his house. Maybe he likes keeping busy.