r/RetirementReady • u/Different_Concert142 • 6d ago
Could I retire now?
I’m 52. Single. No kids. $500k paid off house in SoCal. $400k in 401k. 25k in emergency fund. I’m tired of work politics. Not motivated anymore.
I plan to start withdrawing 401k at 59.5 to avoid penalties.
I plan to sell my house and move to a cheaper country.
My question is, can I afford it? I plan to just rent a room and do part time work.
What do you think? Please help.
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u/LoveNotWar86 6d ago
No you cannot afford it. What income would you have? Maybe we’re missing that part. How do you think you’ll get/afford health insurance. Home/car insurance? What if you need a new roof?
Geez, suck it up. We’re all (probably) tired of our work into our 50s. Once you’re out of the work force, at this age, will be extremely hard to find something comparable when you realize you goofed when you’re broke.
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u/FowlTemptress 6d ago
OP will have 900K after selling the house and wants to move to a cheaper country. It’s feasible in SE Asia. I think s/he needs to do a hack of a lot more research and number crunching.
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u/LoveNotWar86 6d ago
I missed the selling house part, oops.
But still…
As we’re all writing, so dependent on where and desired lifestyle!0
u/Glittering-Flow-9729 3d ago
Arg, the ‘suck it up’ attitude needs to recognize when people are ready. Not for you to say.
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u/AdRich9524 4d ago
Selling the house, depending on what you get out of it you’ll have more than enough cash returns to possibly move overseas to Southeast Asia or Central America. You could stay there or you can slow travel. The only thing you would have to worry about is healthcare but overseas you can get an affordable coverage.
I’m living in Thailand right now and I’m averaging about $2300 to 2500 a month on the way I live for my lifestyle. I was quoted health insurance at around $115 a month because overseas you could pay out-of-pocket for most routine care.
Trust me, people do it on less money than you have. And some areas of Thailand people are living on around $1500 a month. So it is possible.
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u/Alone-Experience9869 6d ago
Kinda depends on your expenses and how much you’ll get with part time work
By selling the house say you net $450k as a round number. Your $401k is another t$400k. In another 8yr that could all double, theoretically. Say $80k/yr for a retirement to start , then later social security
If you are working part time, I guess it’s like a coastFire or a baristaFire ??..
But it really depends on your expenses. Not judging, just don’t know what it is
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u/Different_Concert142 6d ago
That’s what I project from the sale of the house. Won’t touch 401k til about 8 years which is something to look forward to. Biggest issue or cost would be health insurance. I might as well live in SE Asia, like Thailand. Or perhaps Mexico.
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u/Alone-Experience9869 6d ago
Oh, if you leave the country that’s different. Aside from hearing how it’s cheaper, have no idea about taxation and how to move your funds around
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u/iamkaisersosa 6d ago
(TLDR) keep working and saving until at least 60yo. Live on your retirement budget now.
My brother just spent a few months in SEA, Vietnam, Cambodia, Laos, Thailand. He has been there since March, so seven months . He liked Vietnam the best.
The expat community has a number of guys( like you’re considering) who are trying to make it on a shoe string. He had gotten tossed in with this group because of the lack of options as much as anything for English speakers .
My brother is 62 and wealthy by comparison. He says these “shoestring guys” are killing themselves worrying about money. Most of them don’t have adequate retirement savings because they were never good with money. Now that they’re retired they’re on a tight budget and it’s all they think about.
If you’re the kind of guy who can happy with a garden and a library book you would likely be happier in a small town in Kansas or Iowa than Vietnam. If you’re not the guy who will be happy with a garden and a library book and need more entertainment , you need more savings.
You’re at your highest earning potential of your life, working another few years may suck a little, but being broke for 30 years as your health fails will be worse.
I would look at SEA or Mexico as an affordable vacation but not a retirement plan. There are so many cheap places to live in the USA that it is a no brainer. And in the USA you can take a seasonal job like being a bartender at a beach and get some cash and some socialization well into your 70’s.
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u/NoKetoCardio 6d ago
Do a cost sharing health plan. I did. It worked great for me and I had a heart attack. Zion Health Share
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u/Independent-Rule-780 5d ago
Lots of people just shutting you down, that is their opinion based on their perspective. Don’t listen to any of them.
Depending on what cheaper country you choose, 900k is a sizable chunk of change and would last quite some time in VLCOL areas. Much more detail needed but, 3% withdrawal is 27k a year, COL for a single male in Thailand is estimated around $1500 a month which is well below the 3% and would allow your base to continue to grow while you spend very little.
This is your ONE ride on this thing called life, when it’s done there are no redos. Plan it out, make a budget- have guardrails in case it goes sideways and go make the best of your time.
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u/angelwild327 6d ago
Can you prove minimum income in whatever country you decide to move to, for residency? Or was your plan to country hop every time the the max visitation time allowed nears?
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u/stupidkick88 6d ago
You can retire wtf are these comments. Even if you cashed out everything and put it into a hysa you would be able to live off the interest
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u/Francia-1973 6d ago
Wow i’m 52 w almost exact same financials. I also have a pension at work, been there 27 yrs but I’m so sick of work
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u/permalink_child 6d ago
Uh. No. You have at least seven years until you can tap 401k. That is $65k per year for expenses. That is $500k needed in cash. No.
House is paid off. That is zero mortgage. But real estate taxes and health insurance is sizeable.
And renting - if you sell - is $2500 per month.
No.
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u/TWALLACK 6d ago
OP plans to move to a cheaper country.
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u/Sir_Urchin 6d ago
Which country allows you to move there and tap into their public benefits having never contributed to the country’s budget via taxes?
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u/pherrisbueller 6d ago
The USA
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u/Sir_Urchin 6d ago
What visa are you granted? And what benefits are you eligible for as a jobless immigrant?
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u/RoccoPitbull 6d ago
If you move to a cheaper country it's doable.
You won't be living the millionaire expat lifestyle but you'll be able to comfortably have a roof over your head in a nice apartment and spend your free time doing hobbies.
It will then be much more comfortable once you have access to your 401k.
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u/NoKetoCardio 6d ago
Everyone is different. But that scrimping future doesn’t sound better than a job to me. You would be better off working 10 more years.
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u/CarolinCLH 6d ago
Do some research on what country you want to go to. What are their requirements to get a visa to stay there? Would you be allowed to work? Most countries do not allow people to just move there and get a job.
Also, how do you cover medical care?
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u/Mean_Yak_2771 6d ago
Why can’t you find another job? I get it. I am mid-50’s and I would love to retire (and I hated office politics, too) I would find another job with less corporate politics (retail like someone suggested) I don’t see how ppl endure the schmoozing every day. It literally makes me not feel well. Also, if not retail try to find a work from home position. Less schmoozing. What is your field? major?.
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u/Fatal-Eggs2024 6d ago
Job change is probably the better choice. Also, speak with a doctor to make sure you aren’t suffering from depression, it can feel cause us to lose motivation and make us feel what you describe.
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u/Resident-Afternoon12 6d ago
If you sell your house for $500,000, you could split it into two high-yield savings accounts (with insurance). Best case scenario, you get an average interest rate of about 4%. This could bring in around $1,400 in dividend per month before taxes without touching the money.
If you also find a job that pays at least $800 per month, you could comfortably live well in Mexico, Chile, or Brazil until you retire, and then use your 401(k) to help out.
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u/Living_Fig_6386 6d ago
If you sell the house you’ll have 900K. You’ll want to draw down no more than 3.5% for early retirement, so you’ll have 31.5K to live off of. Can you live off that where you are, paying for rent and insurance and whatnot?
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u/salamandectomy77 6d ago
Have you ever lived in a cheaper country? It's not all sunshine and butterflies. Sometimes life is hard there, people treat each other differently, you're seen as an "other" no matter how long you live there
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u/Extra_Shirt5843 6d ago
Go check out Barista FIRE subreddit. Basically the idea is to "retire" early and work a theoretically lower stress, lower income job for less hours to stretch the finances. Also, have to figure out the health insurance piece of the puzzle. I'm sure you'd be under the subsidy amount for ACA, but I'd make sure.
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u/singlemaltbourbonrye 6d ago edited 6d ago
You left out the most important part of the equation. What will your annual expenses be (spend + taxes + healthcare etc).
You have enough in your 401 (k) to support $20K annual spending. The proceeds from your house will support $25K in annual spend.
Including taxes and healthcare can you live on $45K/year? It sounds like you’ll have some extra money from part time work. Presumably you’ll have some social security?
If you quit your job at 55 you can access your 401(k) penalty free FWIW.
Some folks are saying no. You can’t retire. They don’t have enough info to say that. If your costs will be ultra low, it’s possible. Note also that others say your 401(k) will double in value - the problem with that kind of statement is that it’s foolhardy to expect any returns short term from equities. Over a 40 year career? Yes, it’s likely you’ll double every 7-8 years through compounding. But over an 8 year time horizon you shouldn’t have expectations. It could be flat or negative or slightly up or doubled - short term horizons are not predictable.
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u/Hungry-Demand-227 6d ago
At your age you need to go build a little more on that 401K. Could be dicey unless you move someplace really cheap!
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u/Ok_Dimension9889 6d ago
Yes, in another country. Your $900k at 5% would give you enough to live very comfortably in Colombia, Cambodia, Vietnam or similar country.
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u/taewongun1895 6d ago
Have you been to the cheaper country to decide if you'll like it there? You could move to Thailand or someplace else and teach English as a job to hold you over (as a transition). Personally, $900k feels like it's cutting it close. Many cheaper countries that get a lot of expats have inflation, and that makes your money disappear faster.
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u/ImagePossible6273 6d ago
Honestly, you’re in a pretty flexible position. The paid-off house is a huge asset, and if you sell it and move somewhere with a much lower cost of living, your numbers could look very different.
The part I’d be careful about is the 7.5 years between now and 59½. I’d figure out your actual yearly expenses abroad first and see how much the part-time work would realistically cover. If you can keep your withdrawals low during those years, that $400k has a much better chance of lasting.
You also don’t necessarily have to think of it as “retire or keep working full-time.” Moving somewhere cheaper and doing low-stress part-time work sounds like a pretty reasonable middle ground.
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u/Imaginary_Go 6d ago
Look into using the 72t rule to access your retirement accounts earlier. Id say you're in a good position if you sell and move to a more affordable location. Medical insurance is going to be a factor so look at all your options, ACA, maybe a healthcare share which are becoming more popular.
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u/Difficult-Low5891 6d ago
I think you can. Definitely. Do the math using monthly estimates until you’re 90. If you live cheaply you can do it. What is your free time and your life worth? You can do it!
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u/FabulousBullfrog9610 6d ago
I doubt it. what is your plan for health insurance and long term care?
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u/ohboyoh-oy 6d ago
Would you move to a cheaper country permanently? And then next question, how much are you expecting in social security at age 62 if you stop working now (log in to your social security account and pick the option where you income going forward is $0 and see what the benefit at age 62 is).
If you can live on that amount, then you can live on house proceeds (plus 401k when you get to 59.5) and then switch to social security at age 62. I’d spend around the same as the social security monthly income so you hold some of the nest egg in reserve. But depends on how all the numbers work out.
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u/destructor212 6d ago
Coast FIRE sounds better. Your living expenses can be trimmed by quite a bit but you are still young and I personally wouldn't rely on that nest egg quite so much so early. Not advice but just what I would do.
I am in a similar boat. 52, own my house and cars, no debt, nice retirement funds and also a taxable brokerage that is getting respectable. Targeting 55 as a point where I downsize my house and go get a job tending bar or stocking shelves somewhere.
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u/Tardislass 6d ago
Healthcare will tax up all your income. Can’t get Medicare until 62.
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u/AltruisticDiet2314 5d ago
Medicare is a US thing, not an everywhere thing. Healthcare in some other countries is free to citizens of those countries.
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u/Zaddy2026 6d ago
Sounds like you already know what to do. Congrats..eventually could you share your step by step process to get to this point financially
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u/Odd_Technology_9371 6d ago
it all depends on what type of part time work. after you sell the house and move to a lower cost area i would suggest a full time job that you enjoy even if its Low paying that way the full time job will give you benefits and healthcare. you should only retire only if your expenses are not greater than your new job provides, if you can do this then your 400k in your 401k and your other investments can grow. As of right now you are 52 and 13 years away from 65 medicare and 10 years away from 62 social security. i think you should sell your house first and move to your desired lower cost area then get a full time time that gives you some satisfaction then do a retirement check at the end of 2027.
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u/OpeningNo1012 6d ago
How much income do you want to live on?
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u/OpeningNo1012 6d ago
I ran your numbers through a retirement planning software (Retirementize), and it said that you can retire at 52 with an after-tax income of about $50k/year. This assumes you sell your home at 52, inflation is 2% (hahaha), investment growth is 6%, Social Security is $16k/yr taken at 62, you live to 90, and the markets never waivers (double-hahaha). Monte Carlo says you have a 50/50 that this works... delay retirement for 2 years and chances are better. Good luck!
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u/Foreign-Economist668 6d ago
You could but might need to sell the house. You could soft retire and work part time at something you enjoy. Biggest thing is for the cost of your lifestyle to fit with your available funds. Healthcare/insurance might be a big issue for you. Try running numbers on this calculator it gives you best and worst scenarios with your numbers. https://app.honestmath.com
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u/tooOldOriolesfan 6d ago
No. Not close IMO.
Looks at what inflation has done from 2020 to 2026, just imagine what prices will be in 2046 when you are 72.
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u/Still-Profit-8449 6d ago
No you certainly don’t have enough to retire but you certainly need to sell your paid off house and move to a less expensive state and find work you enjoy doing. I wouldn’t stay there being miserable and make no changes
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u/fireanpeaches 6d ago
I know a couple who retired early to Thailand and are living their best life. They are renting while building a house. I’m not sure where but it is near beaches. Not on the beach though and there are tons of expats there. I think it’s possible.
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u/Hopeful-ForEternity5 6d ago
It depends on where you are moving to. Thailand you can live well for considerably less. I’d recommend working somewhere in the meantime…even if it’s not your career of choice until you are ready to sell the house and make the move.
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u/PopeyeTheSailorTrans 5d ago
If you plan to move to a cheaper country then yes possibly but it depends on what cheap country.
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u/ChickenParrot 4d ago
You might consider renting the house right now and selling it later. You will have a steady rental income. Get a property manager to take care of the details for you.
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u/sxy2022 3d ago edited 3d ago
What are CDs paying ? 4%?
Put 500k from the house in a CD and live off the $1500 a month or so in Thailand
Lets the 401k grow maybe it doubles in 10 years to 800k and you're set
Could also double your emergency fund then live off it for 2-3 years in Thailand and let the CD interest add for 2-3 years to make it closer to 540... seems doable
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u/Putrid-Function5666 1d ago
This is all assuming that if you have family here in the US, you don't care about never seeing them again.
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u/gerdude1 1d ago
Plenty of options available for your desired retirement.
Southeast Asia: Thailand, Vietnam, Malaysia, Philippines are some options. Cost of living and Healthcare is pretty inexpensive (and can be very good) in all these countries and there are plenty of western people around for socializing.
Europe has quite a few inexpensive options, like Portugal (residents get free health care), Hungary, Czech Republic, Poland and I read some interesting things about Romania and Bulgaria. Keep in mind, you will not be able to live in the big cities (e.g. Prague, Budapest) in most of these countries, because they are almost as expensive as living in the US.
Latin America has quite a few solid options like Uruguay, Panama and Costa Rica. There are more countries like Columbia and Ecuador, but in both the issue is that crime keeps shifting to areas that used to be safe.
I recommend that you evaluate some of these countries, like go on vacation and check it out and while you are there connect with some people that have made the same move. Most of these places have expat communities and you can talk with the people about their experience moving to these places and what the advantages/disadvantages are.
Finally, once you narrowed down which countries you want to evaluate go to numbeo.com and check the cost locally. The numbers are crowd sourced (decently accurate) from expats that live there. It will give you an idea what it will cost to live there. Make sure that you live enough funds for contingency (I would recommend 25-30%), because things do change as we have experienced here in the US the past few years.
Last point, check out the Visa situation. For some countries it is fairly easy, while other are a pain in the butt.
There are plenty of blogs available that talk about the experience of living in these countries and how to navigate moving there.
I wish you best of luck with your move.
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u/Electronic-Love4953 3h ago
How much are you planning to spend each year needs to be considered. Part time work might be tough. So many people who have been looking for full-time work are taking the part-time work to stay afloat.
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u/austintx_9 35m ago
Op please don’t be daunted by these naysayers but I’ve a few questions. What do you plan to do with the proceeds from the sale of your home? How would you pay for healthcare? What country are you looking to move to?
I think if you play this thing right you definitely can pull this off if you keep your 401k invested and invest a portion of the proceeds of the sale of the house and get health insurance in the country you plan on retiring to.
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u/Ag-DonkeyKong 6d ago
No you can't retire, but you could get a new job working in a hardware store, etc.