Comstock from Photo Images and juststock from Getty Images <\/p>\n
A Reddit user with a net worth of almost $12 million is thinking about retiring.<\/p>\n
His wife quit work years ago, and he wants to join her but wants to make sure his money will last.<\/p>\n
Since he has income from multiple sources including real estate investments, early retirement may be in the cards.<\/p>\n
A recent study identified one single habit that doubled Americans\u2019 retirement savings and moved retirement from dream, to reality. Read more here<\/a>.<\/p>\n How much do you need invested in order to feel comfortable retiring? This is a very common question among older Americans, and one a 54-year-old Redditor is grappling with. His 49-year-old wife called it quits 2.5 years ago and he’s wondering if he can do the same.<\/p>\n To make this choice, the Redditor will need to look at the money he has saved and invested, as well as his spending needs, to determine if his savings can support himself and his family if he retires at a pretty young age.<\/p>\n To see if the Redditor is ready to retire or not, let’s take a close look at his financial situation:<\/p>\n He has a net worth of $11.8 million<\/p>\n He owns $1.18 million in stocks, $10.4 million in property equity, $6.1 million in rental properties, $0.95 million in land, $300K in cash, and a primary home worth $3.3 million\u00a0 <\/p>\n He has around $230K in cash coming in from the rental properties after accounting for all costs<\/p>\n His earnings fluctuate between $300K and $500K<\/p>\n His expenses come to around $200,000 not including taxes<\/p>\n He also said he may have college tuition to think about for around seven more years, but may be able to sell his $3.3 million home when the kids go to school to free up some more money to invest and earn income with.<\/p>\n So, can he leave his job and retire early even though he’s only 54? With the amount he has coming in from the rental properties alone, it’s\u00a0 likely that he would be in fine shape to leave work now even with the added costs of health insurance he’s likely to incur after his employer no longer subsidizes premiums.<\/p>\n That’s especially true since a good amount of his income comes from estate investments and there are many tax breaks available for those within this industry.<\/p>\n The Redditor’s high net worth can make it seem like retiring early is a no-brainer, but the poster still had questions and concerns — and that’s pretty common. Deciding to trade a steady paycheck for the uncertainty that comes with supporting yourself using your investments can be quite a challenge.<\/p>\n To ensure that you are really ready, and to get more peace of mind about your retirement prospects, it’s usually worth talking with a certified financial planner or other expert prior to quitting work. Your financial advisor can help you to make sure you don’t regret your choice to leave your job — especially if you are thinking about retiring at a younger age and have many decades of life left during which your investments will need to support you.<\/p>\n In this case, an advisor could also provide invaluable assistance regarding how to minimize taxes on the income coming in and can also help to develop an effective withdrawal strategy in retirement that takes all of the OP’s diverse income sources into account. By getting this professional help, the Redditor who posted the thread can feel more confident that he and his wife will be able to live comfortably even if he joins her in enjoying their retirement years a little early.<\/p>\n Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit<\/a> have more than double the savings of those who don\u2019t.<\/p>\n And no, it\u2019s got nothing to do with increasing your income, savings, clipping coupons, or even cutting back on your lifestyle. It\u2019s much more straightforward (and powerful) than any of that. Frankly, it\u2019s shocking more people don\u2019t adopt the habit given how easy it is<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Comstock from Photo Images and juststock from Getty Images A Reddit user with a net worth of almost…\n","protected":false},"author":2,"featured_media":209052,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,3714,330,111,139,69,244,245,127392,101965,127393,294,4657],"class_list":{"0":"post-209051","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-getty-images","11":"tag-investments","12":"tag-new-zealand","13":"tag-newzealand","14":"tag-nz","15":"tag-personal-finance","16":"tag-personalfinance","17":"tag-real-estate-investments","18":"tag-redditor","19":"tag-rental-properties","20":"tag-retirement","21":"tag-retirement-savings"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/209051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=209051"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/209051\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/209052"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=209051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=209051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=209051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} Dean Drobot and ChristianChan from Getty Images <\/p>\n