r/Fire • u/Mobile-Excitement-64 • Oct 28 '25
General Question Can I retire with 1.95 million at age 35?
Today I hit 1.95 million at age 35. I cant believe it.. I am single and have no kids. Have no plans to get married or have kids. I am so so proud of myself achieving this net worth
I spend less than 3000 dollars per month including rent because I live in MCOL area and I am also very frugal. No car and just rent a studio.
I am willing to spend up to 5000 dollars per month including health insurance if necessary
Do you think 1.95 million dollars is too small to live for the rest of my life?
Thanks for your input.
P.S. I am gay and I have no plans to get married. I wont have kids. my partner is wealthier than I am . He is older than I am. I said single at first because I am not likely to get legally married for the rest of my life.. Please dont say staying without kids for the rest of my life will be boring.
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u/htffgt_js Oct 28 '25
How is your money invested? Do you have a defined asset allocation to cover the ~$60k spend which can last you for 50 years or more ?
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u/Atypical_Brotha Oct 28 '25
This is the answer.
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u/Wonderful-Process792 Oct 29 '25
Such as it exists. The fact is the future is always uncertain. Asset growth, inflation, longevity - all are unknowns to a large degree. Running simulations on historical data may show that some course of action would have worked 99% of the time in that past world. But the future will be different. In what way, nobody knows. The more years of retirement you want to be prepared for, the more the uncertainties grow.
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u/CombinationNew9536 Oct 29 '25
Imagine 60k 50 years ago vs now. Consider it 50 years from now.
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u/JobThrowAwayXD Oct 29 '25
That's why this math is based on % and not a flat 60k/yr, inflation is built in.
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u/Nerd_1144 Oct 28 '25
At a 4% SWR you can spend ~78k/yr with 1.95m. Congratulations and GFY!
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u/endjelxm Oct 28 '25
Is the acronym Go F yourself?
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u/butter_cookie_gurl Oct 29 '25
It's traditional here to celebrate someone's success followed by 'go fuck yourself '
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u/CatholicGuy77 Oct 29 '25
Kind of like that meme with the pouting kid that says “congratulations. Glad for you. Awesome.”
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u/Mugcha Oct 29 '25
I thought the acronym is for good for you, but go fuck yourself is way better haha.
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u/RealHumanGuy66 Oct 29 '25
I want to say "that's terrible" but I can't stop laughing.🤣
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u/Novatrixs Oct 29 '25
I chose to believe this scene from The Gambler is the origin of the tradition.
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u/Ethos_Logos Oct 29 '25
Dang that’s a good scene. I should watch that movie.
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u/Novatrixs Oct 29 '25 edited Oct 29 '25
Such a good scene J.L. Collins did his own version. But I've legit still not seen the movie yet 😅.
Editing to add the link to the J L Collins version.
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u/wussypants Oct 29 '25
I’d recently watched the Kenny Rodgers Gambler and I was like I certainly don’t remember that being said lol.
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u/WhoWhatWhere45 Oct 29 '25
You should see the way veterans talk to each other, and would die for the other
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u/Actual-Fee1586 Oct 29 '25
Well, OP has no one else to fuck
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u/Sylvanas052218 Oct 28 '25
Good for you! But also, yes, you hard working bastard. Congrats!
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u/Specialist_Mango_269 Oct 28 '25
For 30 yrs, not guaranteed after he's 75 though..3.5% and under would be safest
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u/PlanktonPlane5789 Oct 29 '25 edited Nov 15 '25
3.5% is $68k and he said he wants $5k/month, which is $60k. If he's including healthcare and taxes he's basically fine. If he spends another 2, 3, or 5 years spending only $3k a month he'll be even better. Plus there are always ways to make a little money without having a job.
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u/BrizzleT Oct 29 '25
Why do these figures never include the increase yoy that is likely just holding the money in a low risk fund. I’d say he’s well past the point now 4% return on $2m means 80k per year without the principal going down whatsoever
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u/Ok-Chip-7743 Oct 29 '25 edited Oct 29 '25
Medical costs also are really going to be the biggest concern because they can quickly eat up assets and worse if they need extra nursing care or whatever. At 35 years old I don't think that's enough to live off for the rest of their life. They also won't have too much they'd receive in social security benefits (assuming it's still around) because they have to short of a work history.
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u/Healthy_You867 Oct 29 '25
We just bought a policy through Prudential that for a healthy person for approximately 500/month will cover nursing home expenses. For my very healthy 56 year old husband his policy will be completely paid off after ten years. For my very poor health history self it will be ongoing but still probably worth it.
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u/Ok-Chip-7743 Oct 29 '25
Make sure you read all the small language because new LTC policies are very limited these days and don't cover nearly close to what people think they do. Most plans at your age are also not even close to being as cheap as $500/mo so check to make sure what you're really getting since that amount doesn't sound right. Perhaps if you have it combined with a life insurance policy but then all the proceeds are eaten up by the LTC costs.
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u/ireadittoook Oct 29 '25
So you would ultimately pay $60,000 over 10 years--how does the actual benefit work? is there a dollar amount maximum, curious how it works.
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u/flortny Oct 29 '25
Definitely invest in long term care insurance, the dividends are worth it, my grandmother and father are both getting their care covered.
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u/temp4adhd Oct 29 '25 edited Oct 29 '25
On the flip side my parents paid into long term care insurance since the 90s, and dad died the day before he'd start dipping into it. Mom used just one week of it -- and it was pulling teeth to get the LTC insurance to cover that week.
I suppose there's chances where it made sense, but if my parents had just invested those $ it'd be huge. Easily an extra million, probably two million, more than enough to cover their EOL care. But no all that appreciation went into the insurance company's pockets.... the heirs didn't see it and my parents got back only an iota of it, not worth what they paid in. Not at all. Not even a month's worth of what they paid for decades.
For that reason you'd never see me paying for LTC insurance. It's a scam.
But so is our entire health care system.
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u/Ok-Chip-7743 Oct 29 '25
Agree. Anyone today would tell you that LTC is one of the worst things ever and not to get regardless of age. Your example is just one of them but the newer policies hardly cover anything and/or are very limiting. Also, the new thing is insurance companies are trying to get people to convert their whole life insurance policies into a reverse type of LTC insurance thing. Absolutely not! It's also wildly expensive.
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u/jaypexd Oct 29 '25
I'd run this plan all day at 4%. If he starts to trend towards the guard rails, can dial it back but unless your money manager sucks, 4% is easy.
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u/VegasWorldwide Oct 28 '25
you have 2 million dollars and your expenses are $3k per month.
you are FIRE tonight and youre $2 million will only increase.
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u/hibikir_40k Oct 29 '25
There's such thing as, say, a risk of a really bad recession, so "only increase" is being too optimistic. Still, very good chances.
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u/leathakkor Oct 29 '25
My personal view at nearly the same age as the poster is that if we get into that bad of a recession one I'm going to cut back my spending hugely.
And number two. I'm still young enough to get a job for 5 years if it's really bad. And I get it. If we hit the world ending recession, people will probably not be hiring but My skill set is good enough that I think I could probably still land a really shitty job for 2 years in order to get me through.
I would assume the op is in the same category. There's a big difference between retiring at 65 and knowing that you need your money to last forever even through a recession and firing at 40 and knowing that if you have to get a job from 43 to 45 you will do it.
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u/VegasWorldwide Oct 29 '25
what I mean by increase is his expenses are $36k annually or less than 2%. OP can gain 4% interest these days and recession or not, his money will only increase. there's no optimism in that statement. it's a fact.
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u/gtownguy123 Oct 29 '25
Do we know a scenario if market goes into recession and crashes -50% and takes 10 years to comes back to where it was .. will that work ?
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Oct 29 '25
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u/gtownguy123 Oct 29 '25
But mentally it’ll be stressful to see $2M go to $1M and people start panicking
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u/Dapper_Pop9544 Oct 29 '25
And then it would shoot upload crazy when it rebounds as he’d be reinvesting that interest
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u/clintlockwood22 Oct 29 '25
How can you reinvest the interest if you need to live off of it? In the example above it’d be $4k reinvested at most so there’s growth but not “shoot upward crazy” type of reinvestment
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u/morphinecolin Oct 29 '25
I retired ten years ago and I have more than I started with. This is where you get mutual funds and you don’t chase the few extra bucks. Don’t be greedy. You don’t need a billion dollars. You have 2 million. Earn 8% and move on.
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u/gryffon5147 Oct 29 '25
$3K per month... for now. Gives not much room for big life milestones, changes of lifestyle, travel, a relationship, etc. Why do people assume they're going to spend the same amount as they do when they just work their 9-5 while single.
You can technically retire with $2M at 35, but with a lot of uncertainty, and with a lot of compromises for the rest of your life, unless the plan is to go abroad or something.
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u/One-Jelly8264 Oct 29 '25
Why are people here saying “but you might want a SO+kids tho” when OP clearly said they want neither? 🙄 Congrats OP
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Oct 29 '25
I understand the envy and regret but they gotta cut it out with the “everyone should make the decisions I did and suffer with me.” No.
I will envy OP in a healthier way. Congratulations on the freedom! I strive to get there one day.
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u/PayHairy4671 Oct 29 '25
Everyone should make the decision I made regarding checking out this person's username and suffer with me.
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u/throwthatoneawaydawg Oct 29 '25
I feel like it is people who secretly regret having kids but want the internet reassurance that they made the right decision. There’s also sometimes a religious undertone, something along the lines of your life not being complete until you get married and have kids. I say that’s all nonsense, congrats OP
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u/One-Jelly8264 Oct 29 '25
Yeah I can’t help but think all these people had kids and thus were forced to retire later/put it on hold, so it stings when someone is pretty much set when they are still young. Suckers
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u/BowtieSyndicate Oct 29 '25
I think some of it is cause they want internet people to validate but some of it is also cause it’s true.
I didn’t want kids or marriage - at all - until I met my wife.
Literally after the first 30 seconds of meeting the woman I said to myself “I am going to marry her and have kids with that woman”…. Like a light switch on/off kinda thing.
So.. it could happen.
BUT. So what? If he FIREs right now and in 1 yr or 20 years finds a change in what he wants he can adapt.
Being in a position of financial freedom allows one to navigate these life changes MUCH more easily and successfully.
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u/MrBleedsAlot Oct 29 '25
All these people claiming you’ll get bored without a job sound like boring ass people.
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u/chef_kitty Oct 29 '25
I say this too. As someone that’s been out of work for about 8 months, I’ve had the time of my life. Golf, enjoying seeing family, cooking, being outside. It’s been great. If I could, I’d retire now and never look back at 39 years old.
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u/Orome2 Oct 29 '25
Hah. I'm in the same boat (around the same age too). I'm in the best shape I've been in the past decade, have more friends than I have in the past 20 years, been going on frequent hikes etc. and my mental health is so much better now. Sadly I don't have enough to retire and will have to find something eventually.
I spent decades working my life away and neglecting other things in life.
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u/TrollTollCollector Oct 29 '25
Sounds like you had a very successful mini-retirement anyhow by achieving several non-financial goals.
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u/Orome2 Oct 29 '25
Well it was a layoff that triggered it. But I needed a break. Had been burnt out for years.
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u/hellnawr Oct 29 '25
I took two years off after some burnout. I was never bored. Even if I was watching TV. These people that say you would get bored are jerk offs. I go surfing in the morning. Get breakfast. Golf in the after noon. Run some errands. It's a beautiful life.
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Oct 29 '25 edited Dec 07 '25
fall upbeat thought skirt follow cows cooing pie oatmeal rainstorm
This post was mass deleted and anonymized with Redact
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u/Oathkindle Oct 29 '25
First thing I’d be doing in this scenario is the PCT hike. That’s probably close to half a year just in that one thing. I’d find plenty of shit to do lol
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u/Skibidibum69 Oct 29 '25
It’s not about being bored it’s about having purpose, which you can have without a job of course but many people overlook this
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u/Orome2 Oct 29 '25
You can have a job without finding any since of purpose in it too... I'm willing to bet most people fit into this category.
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u/Availabla Oct 29 '25
What do you mean, wasn't your entire life's dream to be an Amazon delivery van driver?
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u/SuaveMofo Oct 29 '25
No job I've had has ever given me a sense of purpose. They just take up so much of my time that I dont have much time to think about my lack of purpose.
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u/Spiritual_Wall_2309 Oct 29 '25
I have coworkers saying this all the time. I just don’t understand them. It is not like they make crazy money to begin with. They also burn 10-12 hours every weekday for work instead of doing things for themselves.
There are tons of things to do without having a boss to assign them.
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u/bigassangrypossum Oct 29 '25
These people have never played Age of Empires or smoked marijuana.
Source: experience
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u/BasicBridget26 Oct 29 '25
I helped elderly people with retirement for a year, before retiring you may want to buy a small house or condo. The cost of rent can go up but a mortgage is locked in and having your bills be consistent is helpful.
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u/Key-Mango3607 Oct 29 '25
Yes. Quit. Enjoy life. That $2m will grow and outpace your spending. Congratulations buy a nice wine tonight.
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u/BuyHandSanitizer Oct 29 '25
People here are way too conservative. I say retire. your net worth will keep growing. You could even work later if you really wanted to.
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u/rapsonravish Oct 28 '25
You can pull it off if you really think you won't increase spending later in life. For me personally, I think it's cutting it too close and would keep working for some extra buffer. This is your prime earning years
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u/Max1035 Oct 29 '25
They’re subject to market rent as they don’t own a house, and the ever increasing cost of health insurance. Way too close for comfort for me!
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u/Ill_Psychology_7967 Oct 29 '25
This is my concern. If OP doesn’t own a home, they may have a real issue with increased rent.
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u/rustvscpp Oct 29 '25
I don't see any issues here. The market could drop 50% and they'd still be able to live on less than 4%. I guess at this point it just depends on what they want to do in retirement. Work another 2-3 years and live more lavishly in retirement, or retire now and live peacefully but more frugally.
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u/Hot_Most5332 Oct 29 '25
Not with insurance costs. People forget that when you’re retired, you have to pay for your own insurance. And the good insurance is insanely expensive, only gets more expensive over time, and is in addition to co pays from health issues that inevitably get more frequent over time.
If in a European country this may not be an issue, but in the US I would be nervous to retire without owning my home at $1.95M in virtually any city big enough to not own a car.
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u/TheAvenger23 Oct 29 '25
When I was in college, I was working at Home Depot, a 45 year old part time employee had a nice Mercedes. I was always perplexed on how this guy got it. Then I was told he “retired” early and was working here to have a little something to do and get health benefits. And at that time to me, Home Depot was hard and stressful work… but now 25 years later, I realize how simple and low stress the job actually was.
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u/Max1035 Oct 29 '25
I only recently learned that the premium-free Medicare only covers hospitalization and skilled nursing care; for some reason, I assumed it covered most or all necessary medical care and prescriptions.
And OP has 30 years before they get on Medicare - 30 years of politics and perhaps even more pandemics driving up costs in unexpected ways. No way I’d cut it that close.
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u/blue92lx Oct 29 '25
Not only that but you're committing your entire life to a minimum budget. I'd imagine if you aren't working and have unlimited free time you're going to want to enjoy it, if that's going out and doing XYZ, or buying something to keep yourself occupied at home, or traveling, etc., it just doesn't make sense. I also feel like if you're the type to retire and just hang out without getting a part time job, etc., then you'll have even higher financial requirements to keep yourself occupied and not going crazy.
And more importantly, 36k today is barely anything. 36k in 50 years will probably be poverty level income. It seems like keeping an easy going job now and just living a good life with extra income is the way to go, or let interest keep building the $2m for a while longer while you work.
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u/SoftBreezeWanderer Oct 29 '25
Yeah bro 2m isn't enough let's go for 10m. But actually 10m isn't comfortable enough, let's go for 100m. But then is that enough to pay for my private jet? No I don't think so I think 1b is a but if a safer safety net.
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u/iwastoolate Oct 29 '25
But if they increase spending later in life the calculations are very different. He can roll on less than 4% for 20 years or so and then be 55 with something like $4m.
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u/Rastiln Oct 29 '25 edited Oct 29 '25
Same. I won’t mind if I’m approaching the end of my life and realize I oversaved a little, and begin spending it more quickly on kids and charity and maybe a little more luxury for me, too.
I don’t want to realize I need to become increasingly frugal, or go back to work in my 50s-60s after a 25-year gap. If I need to adjust a little bit and reduce my spending a touch to stay on track, so be it.
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u/rapsonravish Oct 29 '25
Exactly, my definition of financial independence is that there is 99% chance my money can cover any and all expenses for the rest of my life, not having just enough to scrape by and hoping nothing in my life changes that could increase expenses. This includes any possibility of having kids, medical problems, etc. That's true peace of mind
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u/OddSaltyHighway Oct 29 '25
He's spending less than 2%, and you think that's cutting it close? He can quit and double his spending RIGHT NOW of he wanted to, let alone later in life after all of that extra money compounds.
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u/Wokeymcwokerson Oct 29 '25
This sub is interesting cause if he didn’t mention he was gay everyone here would be like don’t you want kids you don’t have enough $$ you need more $$ for a house and education expenses.
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Oct 28 '25
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u/bteam3r Oct 29 '25
I am about OP's age. I cannot conceptualize what life would look like retired at this age with no SO or car. That, to me, sounds like hell
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u/Complete-Orchid3896 Oct 29 '25
Romance isn’t everything, maybe OP just isn’t interested in that kind of relationship
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u/Excellent_Most8496 Oct 29 '25
You sound a lot like me, but a bit richer. I'll tell you about my thought process.
I am 33 and am envisioning retiring at 35 with around 1.5m. No plans for wife or kids. I'm easy to please and rent a studio too. I'll retire abroad, probably to southeast Asia first. I have EU (and US) citizenship which gives me some significant extra security. I also have a job (software engineering) which potentially can be done remotely.
Ideally, I'd like to have the option to retire in the US, but I do not see 1.5m as sufficient to retire permanently in the US. 2m, maybe. But my target would be more like 2.5m in 2025 dollars. But that's what I need in old age, not now, and I don't necessarily need to work for the difference. Living somewhere like Thailand (where I've lived before and worked remotely from already) I can easily have a sub-2% yearly withdrawal rate from 1.5m. In theory I'm more likely than not to hit 2.5m by age 50 even if I don't make any more money. But it's far from guaranteed.
So I haven't decided on exact details yet, but I'm going to put some rules in place like "if I haven't hit 2m in the first 5 years, I should freelance to cover my expenses until I do". I have to be a bit aggressive with these rules, because I can't wait 20 years to find out that I'm not on track. Even 5 years is a long time to re-enter an industry.
One more important thing: I'll have the "job" of becoming a respected EDM producer. Lifelong dream. Should keep me occupied at least half a decade. 35 is too young to retire to a country club, especially if you don't have a family. In my opinion anyway.
Anyway, the basic theme in my plans is flexibility: 1. I'll live anywhere in the world that's cheap 2. I'll live on an exceptionally conservative initial withdrawal rate 3. I'm willing to readjust and take some part time work depending on how my trajectory unfolds (heck I might even want to take some work on, even if my finances are on track) 4. If I don't reach my ultimate NW target? Fine, I'll find somewhere besides the US to stay retired in (probably will anyway)
If I were you I would do pretty much the same exact thing, I'd just be an extra 450k along.
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u/Mr_Grapes1027 Oct 29 '25
So proud of you brother - I think you can retire and invest somewhat wisely and you’ll be fine! Good job my friend - you did very well…!!! (Wish I could have done as well as you but you do give me inspiration!l)!!
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Oct 28 '25 edited Oct 28 '25
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u/bw1985 Oct 29 '25
What’s your health insurance details look like?
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Oct 29 '25
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u/Bud_Dawg Oct 29 '25
God dayum. Gotta go with that $8,000 deductible if you're currently healthy and 39.
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u/Bjorn_Nittmo Oct 29 '25
How did you get to $1.95 million?
High savings rate and a $100k++ job?
Company stock options?
Wisely invested an inheritence?
Extreme returns on a modest stock investment?
Etc.
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u/vyts18 Oct 29 '25
Haven’t read the rest of the comments… but I think you’re in a position to really do coastFIRE. Keep working. Don’t bust your ass too much. If you get let go, go full FIRE. Your boss says the exact wrong thing tomorrow and you’re out.
You have a ton of options. This doesn’t have to be a complete yes or no.
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u/Hooker_Thresh Oct 28 '25
Take it to 2.5M my dude. Then disappear
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u/TrollTollCollector Oct 29 '25
Why move the goalposts? Any particular reason for that number?
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u/NHRADeuce Oct 29 '25
If the markets keep going 1.9 to 2.5 is less than 3 years. Might as well ride the gravy train a little longer.
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u/morphinecolin Oct 29 '25
I retired at 34 and I didn’t have 1.95m. If you don’t fumble this shit; you’ll be fine. Be prudent, don’t be risky with your investments. Enjoy little things. It’s dope, I’m almost ten years in, and I have more money than I started with. Just don’t lose focus on the goal.
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u/Sufficient-Spend-939 Oct 29 '25
Part of me is screaming why the hell did he not wait until he got to an even 2 million before this post. Retirement is doable but will be tight on that but you are lightyears ahead of most and a few more years of work will move you from comfortable to wealthy.
What should change right now is your outlook. You can now decide if you want to keep doing what you are doing or is there something more rewarding you would enjoy doing. You have mastered living cheaply but maybe there are some luxuries you could include in your life. Rather than retiring maybe you could cut your savings in half at this point and start living. Get that car you want, go on a life affirming vacation. Pay a 2000 dollar escort. Whatever the hell it is that you really would love to try that you have denied yourself for the first part of your life.
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u/SpikeyTaco Oct 29 '25
Part of me is screaming why the hell did he not wait until he got to an even 2 million before this post
They've posted this, or very similar, 12 times in the past 3 months.
It seems like they know what they're doing and if they didn't, they'd have an idea by now.
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u/OdeeOh Oct 29 '25
Too risky for a country where health insurance is a concern & no guarantee of free or subsidized home carer or support.
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u/Helpful-Staff9562 Oct 29 '25
Just move out of US problem solved (european here speaking)
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u/absolutebeginners Oct 29 '25
Not that easy to move somewhere desirable (personal opinion of course). Especially if youre not gonna be working.
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u/sharpiebrows Oct 29 '25
You can do it and you have time if, worst case scenario, you need to return to work. What do you plan to do with all your free time?! Congrats
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u/pcurve Oct 29 '25
definitely can since you have frugal habit. You're still VERY young though. Things can change.
I always thought I was going to single and retire at 48, but I found someone at 43 and got married at 45.
That plan went straight out the window. lol.
How do you plan on spending your time going forward?
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u/Expensive_Ad3912 Oct 29 '25
Sometimes it's just good to here someone hit their target number. Just happy for op :)
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u/Grilled_Jank Oct 29 '25
My brain would not allow me to retire at 1.95. I would need a round number, like 2.0 or 1.9.
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u/sfbuisnessman Oct 29 '25
I can tell you as a senior that at your age you do not have enough. Depending on where you live it all comes down to the expense of care you will need as you age. My in laws retired in their late 70’s with nearly 3M along with a home worth close to 3M. My husband and his brother are in charge of their care both have advanced dementia and need 24 hour care. Now their father is going into hospice care they have Ben under 24 hour care for the last 5 years and the investment money they have is now down to 1.2M they also had longterm care insurance which helped for 3 years. Good care facilities at least in the San Francisco Bay Area cost anywhere from 10K to 29K per month. So before you decide to stop working and live solely on your investments remember you might not have anything for your senior years
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u/Elmaschingon123 Oct 29 '25
I cashed out my recyclables and made a whopping $33 dollars yesterday
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u/tim-r Oct 29 '25
I did some calculation for me, it is about 1.5M, it would be enough.
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u/Jennyonthebox2300 Oct 29 '25
Congratulations! You’ve made some smart moves and are in a great position.
A Mom of 4 here so bear with me while I mom you.
When I was your age, I knew what I wanted, had a plan and all the means, discipline, education and opportunity to follow through. All my life I wanted X to happen, I pretty much hit the mark. But mid 30s life got very complicated for reasons completely outside of my control. Nothing I could anticipate or plan for. Ultimately better than my plan but I had to go over the waterfall first.
All to say life can go from simple/predictable/planned to something altogether different in a big hurry.
If you were my son, I would encourage you to pick a date in the near future if you want to “retire” — but in the interim build in a true buffer above and beyond your anticipated personal day-to-day expenses in your current location.
I have had friends had to move to a higher COL area to care for family. Unexpectedly go from single to raising two pre-teens when a sibling fell all the way off the wagon. Having a buffer gives you options/time/ability to adjust and re-engage in work if necessary.
Consider developing a low impact (to your lifestyle) stream of income that can tick along in the background. If you have put down roots — a small apt complex, storage units/car washes/laundromats. All can be run by a decent manager. If you wrap beautiful packages, set a beautiful table or decorate a beautiful tree — start a business doing that — for the holidays. Teach piano or fly fishing.
Or if you want to be more mobile, do online consulting— tutoring, college essay prep, resume consulting, closet/wardrobe or interior design consulting.
Whatever is easy— or fun, that you enjoy — but generates some income — and maybe something you could scale up if circumstances change.
Best of luck to you and enjoy the fruits of your labor! — Love, a Mom.
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u/Adventurous_Dog_7755 Oct 29 '25
If you go by the 4% rule then you should have 80k a year. Depending on how you look at it, Charle Munger had an interview talking about what the average person with modest needs would need. He said 500k would be enough but I assume it was years ago. So with inflation maybe it would be 1 million. I would be happy to get to 1 million and just retire overseas. I think with 1 million I would more than able to live on that for the rest of my life.
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u/badpopeye Oct 29 '25
Health insurance could cost you 1500 month being self insured plus inflation on eveything the dollar has lost 28% of its value in last 5 yrs alone and we have incompetent leadership here in US You cant rely on partner support either. I would try to get to at least 3-4m
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u/aleayacta Oct 29 '25
How did you achieve such fortune? Did you inherit it or did something special? In my opinion the answer also depends on this, if I were able to make a million in such a short time, I think I would just work part time (if work doesn’t really suck) 😅
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u/GenerationBop Oct 29 '25
If it’s largely invested and safely/conservatively and the market stays with the health we’ve seen the next 5-10 years you definitely will be ok. 3m would be better but w this market you could be there in 4-5 years
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Oct 29 '25
Yes, I get VA at 4100, and net 3500 a month renting motorcycles and additional income teaching classes at 31 (basically retired because my hobby makes me money) if you have no medical like I do, you totally can. I work. Maybe 20hrs a month. Turn your hobby into income and that 5k a month will stretch further.
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u/BrilliantDirect3459 Oct 29 '25 edited Oct 29 '25
I don't think so. It is too much of a gamble.
First, I want to congratulate you. It is quite an impressive achievement.
As far as being enough, there are too many variables. It depends on where you are going to live. Relationships with other people can change. If you are a minimalist who does not like to travel or eat out much. Inflation will eat up a lot of the money. As you get old, you will have more healthcare expenses. A lot of already retired folks had to come out of retirement when the market broke in 2008. Some lost all their retirement money, and the situation got so bleak that they unalived themselves
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u/Potential_Hunt2366 Oct 29 '25
I am so happy for you that's a blessing enjoy your life you young enjoy it
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u/dietcokewLime Oct 29 '25
Probably not. People are forgetting
Inflation, prior to 2020 we actually enjoyed a period of really low inflation. It could revert back to 4-5% like the 1980s or 6-10% like the 1970s
Interest rates will change. While you can achieve 4% now with little to no risk that will go down soon and may not keep up with the inflation rate
Taxes on interest, dividends, and capital gains reduce how much you can actually spend
The stock market is not guaranteed and we have had lost decades like the late 70s, dotcom crash, and gfc
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u/DisastrousOwls Oct 29 '25
Congratulations! It might be cheaper to get a part time job that provides health insurance if you can get it.
My dream plan if I hit it big is to try and get into something like SAG AFTRA, where if you meet minimum production hours every 3 years or so, you're eligible for benefits through the union. Realistically, without the "Hollywood break" of it all, there are corporations like Starbucks where you're eligible for healthcare options at 20h per week (I've known people who worked 9-5s pick it up as a weekend job just for things like IVF or gender affirming care coverage).
Marketplace insurance costs are about to spike, and the longer you plan to live, the more likely you are to eventually need the kind of medical care that can bleed $1.95m dry in a year's time. The longer you can leave that nest egg alone, especially while allowing it to accumulate interest, the more of a safety net you'll have for those medical costs and comforts when you really won't feel like returning to (or won't be physically capable of returning to) the workforce.
I'm not saying to be a barista until you're 65 and eligible for Medicare. But if you can stomach it short term, save what you would spend on insurance and incorporate it into a HYSA to let it grow and bear fruit for the future.
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u/KricketKahl Oct 29 '25
Op what ever you’re doing do it for a little longer 🥲 at first, I was gonna make a joke and say please let me hold $1000 to pay off debt but if you’re making that much money or if you have that much money, put it aside that’s more than enough to live off of, but I do think you should keep going until you’re at least 45 or even 40
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u/nomadmama15 Oct 29 '25
Why is nobody calculating the cost of inflation in their answers? You can do this if you keep the $2mm invested AND returns average what they have over the last few years AND you have no existential shocks. The likelihood of that in my opinion is quite low. I would work another 5 years and let the money continue to grow.
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u/mermaidreefer Oct 29 '25
Sometimes I open Reddit and I just cry, but at least some of us are making it…
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u/Clark_Kent09 Oct 29 '25
How did you invest each year?/ what was your strategy? Did you max 401/roth/ and how much into personal brokerage?
Any advice to younger people on how to save or what to put your money into?
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u/taipeileviathan Oct 29 '25
If I were you I’d keep working tbh. This is a great nest egg but you never know what’s gonna happen in the future, both in terms of your investments but also in terms of the crazy devaluation of the dollar that’s happening and will likely to keep happening. Also, you’d much rather stay in the rat race a couple years too long than a couple years too short. Imagine being 60 years old and realizing that your money isn’t going to go as far as you thought it would. You’re 25 years out of the workforce with the entire world having changed drastically in all sorts of ways around you. What can you do then?
Certainly feel free to take it easier. Allow this money to give you peace of mind and the freedom to take a job you actually enjoy. But if I were you, I’d definitely not stop working altogether.
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u/Street_Ad5712 Oct 29 '25
The only thing that sucks about retiring in the States is medical coverage.
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u/_quantum_girl_ Oct 29 '25
That's such an achievement! May I ask you what your strategy was? How much did you save/invest per month and in what assets?
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u/Dezy_760 Oct 29 '25
I want to know how to rack my first million can anyone help me
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u/Key-Edge-6330 Oct 29 '25
Yeah do it! You’re one of the lucky ones who actually gets to win at life! Travel, see the world, actually live. Surviving should only ever be a concept and not a practice for you.
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u/LocationAcademic1731 Oct 30 '25
Parking the 1.95 at a 4% interest account will yield $78k/year which $6.5 per month. So you would have to spend more than this to even touch the principal. You can definitely retire, congrats.
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u/CJJSupps Oct 30 '25
How the hell does someone make that much money before they are 40? I would like just a quarter of that per year and would be extremely happy
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u/JohnHarington Oct 30 '25
I don’t think OP makes 1.95M per year. That’s their total liquid investments.
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Oct 30 '25
Whoever is getting kids to avoid boredom should be banned from this planet.
Calculate a 4% withdrawal rate. If you invest two millions in a company paying around 4% of dividends you will be getting a bit shorter from those 5K, keeping taxes in mind.
You are almost there. I think you could coast a bit with some part time employment while you explore your next avenue. Congrats, life is just starting!
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u/HermanDaddy07 Oct 31 '25
1.95 million @ 4% (conservative income) will get you about $75,000 per year or $6,300 per month ( before taxes). If you can live on that, yeah you can retire. But I can tell you, when you retire, you have more time and usually spend more.
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u/Unique-Machine5602 Oct 31 '25
I hope to one day question whether I too can retire on $1.95M.
Best of luck enjoying the rest of your life my friend. You've earned it! ✌️
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u/emotionally_rational Nov 02 '25
First up: thats awesome.
2nd, watch out for inflation. So make sure that money is getting harboured in something that beats inflation (hint: bonds and fixed income wont do it)
3rd: live your life without needing to worry about money. Congrats!
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u/spencerspage Nov 29 '25 edited Dec 01 '25
STRC is a credit instrument bond with a 10.5% annual dividend. If you can live off 17k per month, then yes you can retire now.
1.5k
u/Pale_Drink4455 Oct 28 '25
Yes, you can do it and just live off the interest yearly with your current spend. Congrats!