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Early Retirement at 50?

(12-10-2018, 07:38 AM)lhamo Wrote: 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.

I poked around a bit and found a UIT fund, First Trust FCNMQX, apparently not available through Fidelity, though it wouldn't be difficult to buy the component ETFs (or their equivalents) yourself, listed below.

Check out FPURX for an allocation fund with similar (slightly better?) returns.
Health insurance budget will be at least 10% of your 100k per person until Medicare eligible.

And not that much is deductible.
Thanks for all the feedback. I haven't factored in SS income and would be up and above the 100k inflation adjusted. To early to tell when I plan to take that. About $1M is in Taxable accounts in a 7/12 portfolio. Will draw down on the taxable account and let the other 1.5M in retirement accounts continue to grow (also 7/12 portfolio) over the next 9 years and will tap that around 60. Will continue to consult somewhat post retirement to keep busy.
First, can you move your assets around to get your AGI down to subsidy level? Second, if you consult you can deduct your Health insurance premium. Add an HSA and effectively save more due to deduction.

The average cost in 2018 for a 50 year old in the USA for a Silver plan is $671 per month and Bronze $474. Varies by location. For for a 64 year old $1127 and $797. If ACA goes away my guess is that less broad plans would probably be available (like before ACA). If you consult, you can cut the net premiums by the tax rate and save more with HSA. As an example if in 24% bracket and no state tax, the $474 is around $264 after tax and the $797 to about $510.

Although one needs to budget for both expected and down side, I would assume if you are really sick you might just cut discretionary those years. Health status does matter. In the 14 years since age 50, (excluding glasses, and dental) wife and I have averaged only a few hundred dollars in expenses each year (other than premium) and have not used HSA funds. I have several friends in the same situation. On the other hand, a close friend has some heath issues. Fortunately, even at early retirement he was financially set.
An excellent conversation. I retired at 51 and am now 79. The 7/12 port or something similar should work fine. Just don't get caught up with some single item and buy a lot..

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