[USER]

What’s a comfortable net worth to retire around 50 while raising 3 kids in expensive suburbs?

Factors like education, housing, healthcare, and lifestyle are important to consider.

Would love to hear your perspectives!

[Elizabeth]

Retiring at 50 w little kids is probably not a good idea unless you have atleast 10 mil in the bank

[Ryan]

If you are retiring then why stay in a high cost of living area.

[Aaron]

My recommendation is to find your annual expenses and multiply that by 25 to estimate how much you need to retire.

Google “4% rule.” Others will probably explain this better than me, but that’s the gist.

[Robert]

There is absolutely no way for us to answer this question without knowing your income and expenses.

We are here to help each other, but questions like yours, that provide NO information whatsoever, are near-impossible to answer.

If you want intelligent response, submit intelligent questions.

[Bryon]

Conservatively, I would say roughly 5M but it depends on your expenses. If you have a pension or some additional income in retirement, perhaps less. It really depending on what you expenses are.

If you have 5M in net worth, with a 500k paid off house, you have 4.5M generating income. A 4% withdraw rate would be 180k per year.

Using a 4% withdraw rate should mean your investment grow over time thus you can inflation adjust your allowable withdraw each year as your accounts grow.

If your expenses are lower than 180k, you can probably reduce that number, as appropriate.

[Ben]

It really depends when. I think what people aim for is about 2-3 million in today’s dollars for retirement.

With a 3% withdrawal rate that will give you about 60-90k a year(todays dollars).

This is fairly conservative but I am more safe than sorry when it comes to these things.

I myself am planning to retire in my mid 40s and I am aiming for 2% withdrawal rate.

[Jonathan]

Probably $5m but realistically closer to $10m once you factor in inflation. Your money will have to last 40 years.

This is assuming you are already debt free.

[S.A.]

$4 million in investible assets if you live in a large metropolitain city

[Sean]

It’s not networth that matters it’s liquid networth or investable assets.

And it’s not a qualitative decision, it’s quantitative.

It’s based on a multiple of your annual expenses which we don’t know.

[Jennifer]

this is an impossible question to answer without knowing how old your kids are and how much your expenses are each year. Craft a better question and you will get a better response.

Need to know how much you have in savings, investments, equity, etc.

You have not given any information to give an informed answer.

[Steven]

5 million or more. You probably should not retire while raising three kids. Too many variables.

[Ambrose]

No amount of money that is enough, we just have to keep chasing that dream till we achieve it

[Angie]

Take the amount you need to live on in a year and multiply by 25. That’s how much you need invested so you can take out 4% per year to live on.

[Jenny]

Do you own your own house or rent? Are you mortgage free? What are your yearly expenses? Are you planning to pay for your kids’ post secondary?

Are you planning to travel with kids?

We need more info on your lifestyle in order to answer…and networth means nothing as I know ppl with $2mil+ homes…but just because they’re worth $2mil doesn’t mean they can retire if they don’t have $ in investments.

[Russell]

How old are you? If you’re 49, that’s one number…if you’re 29, gonna have to factor in inflation.

I’m in Seattle at the moment. Rent is $3500 a month…so extrapolate from there a need for $140k per year.

If your house is paid off, you can cut that down to $105k. So, if you’re retiring at 50 this year, you can maybe get by on $2.6M-$3.5M…but more will be more comfortable and if it’s many years away you need to adjust for inflation.

[Steve]

Words like “comfortable”, “expensive suburbs” are very subjective. My advice is to know yourself first.

Learn what annual spending you would like and then work backwards from that.

[Elizabeth]

30x your future (Year 1 of retirement) annual expenses in investable assets

[Author]

Posts