> Can you retire on $40k a year?
Maybe in Europe.
No, in the US. Not even close. Even with a paid-off house. Certainly not before "retirement age".
Health care is the reason.
Maybe in Europe.
No, in the US. Not even close. Even with a paid-off house. Certainly not before "retirement age".
Health care is the reason.
So do your mega-backdoor ROTH conversion and take out of that and it doesn't count against the insurance-company subsidy.
My out of pocket maximum is something like $7000/year. That would be painful on $40k/year, but we're talking about someone with a $1M nest egg, so unless you hit the maximum every single year, its not impossible to cover. Spending $47k/year for a couple years instead of $40k isnt going to financially ruin someone with $1M.
And sure, you may not be missing payments thanks to the $1m in the bank, but if you start eating that principle too early (=before you're 60ish years old, at a minimum) you might find yourself needing to get a job after being out of the work force for (say) 10 years and while possibly dealing with serious, chronic health problems. I'm not sure how disability works when you haven't worked for a few years due to retiring, and have six-plus figures in the bank still, but my guess would be "it doesn't", until you are, in fact, ruined.