Early Retirement at 50?

[toganet]

Looking for insight/opinions on retiring at 51. I have ~$2.5M invested in a 7/12 portfolio. Living debt free and own house. Looking to live of $100k a year. May work a little here and there to keep busy. Would like to hear any thoughts/concerns.

[COEE]

You probably have enough money, depending on your expenses.
 
The more important question is probably what you are going to do, keep yourself occupied, get fulfillment out of life.

[imma]

Health status and Medical expenses must be accounted for.

We retired 59 and 52, and took out a high deductible HSA; but our annual out of pocket limit was 12-13k. Both were in decent health at the time. Now, seven years latter, medical expenses and health insurance cost are our major sector expense by far. Wife is still on the HSA for another 6.5 years.

2.5m and debt free is a good position to be in at retirement.

What is a 7/12 portfolio?

[Marty998]

7Twelve Portfolio is a portfolio with 12 equally weighted funds that collectively cover 7 different asset classes: US Stock , non-US Stock, Real Estate, Resource/Commodity, US Bond, non-US Bond, Cash. The portfolio apparently measured up to S&P 500 performance with less volatility/drawdown despite it's lower exposure to stock.

Togant - Looks like you are financially set and secure to go for it. Congratulations!!!

You seem to have enough cash-cushion plus stable investment to weather prolonged downturn. Combining US Bond, TIPS and cash, it'd amount to 625K or 6 years of expense. How have you accounted for other income (e.g., Social Security). Also, do you plan to maintain 7/12 during your consumption phase?

[Waterbug]

You seem to have enough cash-cushion plus stable investment to weather prolonged downturn. Combining US Bond, TIPS and cash, it'd amount to 625K or 6 years of expense. How have you accounted for other income (e.g., Social Security). Also, do you plan to maintain 7/12 during your consumption phase?

[RichMoose]

Looks like you have a tidy sum. You may need to account for income taxes (especially if it's in an IRA and penalties since you are under age 59 1/2). There is enough to move from the working stiff to the idle retired.

As the Cap'm would say 'Welcome aboard!"

[thesinecure]

I'm retiring later this year in my mid-50s. The one recommendation I would offer is to ensure that you have health care costs appropriately budgeted.

For my planning, I budgeted an amount for insurance and out-of-pocket expenses that was substantially higher than what I have been spending (by several multiples). I assumed my budget was going to be significantly more than enough. As my retirement date approaches and we have started shopping for health care coverage, I'm finding insurance costs alone are going to surpass my budget. It doesn't derail my plans, but it's eye opening when your "worst case scenario" wasn't bad enough.

[FIREin2018]

Consider building a substantial CD/bond ladder to live off of so that your income remains low enough to get the Obamacare tax credits (in taxable accounts). The cost of catastrophic health insurance (that pays next to nothing) is huge without ACA. Your mileage will definitely vary depending on your situation, requirements, and outlook.

[Maco]

Consider building a substantial CD/bond ladder to live off of so that your income remains low enough to get the Obamacare tax credits (in taxable accounts). The cost of catastrophic health insurance (that pays next to nothing) is huge without ACA. Your mileage will definitely vary depending on your situation, requirements, and outlook.

If ACA is still around, I'm hoping we'll begin to benefit after 2019.  Until then, we're logging substantial income as I exit equity compensation positions in my current employer.

[lhamo]

Thanks Marty,
A 7/12 portfolio.  Are there any funds that do the leg work of assembling the composites?  Maybe a Robo advisor process?

Seems to equate to SPX per 20-year performance.