Author Topic: 28 with $930k. Can I safely retire?  (Read 308 times)

venicegirl

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28 with $930k. Can I safely retire?
« on: July 16, 2021, 02:07:21 PM »
I'm 28 and my net worth is $930k. 95% of it is in stocks and 5% is cash. I'm originally from Vietnam and would love to move back there or maybe some other cheap countries - like Bali, Indonesia.

  • Do I have enough money to retire yet? I don't want to work when I retire. I'd like to pursue creative projects that probably won't make any money. I'm scared of running out of money though.
  • I'd also love to travel abroad maybe once a year. I estimated that my yearly spending in Vietnam or SEA would be around $22k (already added about 5k for traveling). Is this enough?
  • According to this calculator apparently I've reached my FIRE number? Not entirely sure if it's correct.. Link to the calculator (engaging-data.com): https://bit.ly/3in54Nj

[liIs there such a thing as a FIRE financial advisor who can help calculate if I have enough to retire in another country? Would love some recommendations.[/li]


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gocurrycracker

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Re: 28 with $930k. Can I safely retire?
« Reply #1 on: July 17, 2021, 08:58:35 AM »
You can probably do it now, yeah.

You can post follow up questions here for no cost, or if you want I do some detailed consulting via video chat
https://www.gocurrycracker.com/consulting/

Generally speaking you can spend as much as 4% of your starting investment portfolio each year, or ~$37k, adjusting for inflation each year. $22k is much less than that so you would have significant margin. If you have sufficient work credits to get SS in the future, that is an additional margin of safety. Since you would be retiring extremely early, a maximum spend of 3% is "safer" (your target is currently ~2.5%)
https://www.gocurrycracker.com/what-is-your-retirement-number-the-4-rule/

There are additional risks for living and spending in a different currency than your portfolio, e.g. your income/capital gains in USD and your spending in VND. Currencies can go against each other causing a significant increase in cost of living. Developing economies can also have more dynamic inflation.

With the calculator you are using, there are a couple things to watch out for:
1 - you have it configured for ongoing income
2 - fixed percentage portfolio growth doesn't happen in the real world - use "historical cycles" to get a better picture. This uses actual historical year-to-year return data so you can see what would happen in the worst historical examples

A better tool for #2 is cFIREsim,
https://cfiresim.com/
« Last Edit: July 17, 2021, 09:01:25 AM by gocurrycracker »