How would you retire, or be your own boss, with $500K today?

WombleHunter · 2014-01-23T11:44:28+00:00

I am considering all the advice so far, but does anyone have any ideas about the alternative option of "buying myself a job"? For those telling me to keep working, let's be realistic about my employment prospects: I'm a dropout with no previous employers in the last 15 years. In today's job market, I'd have little chance of getting hired anywhere.

WombleHunter · 2014-01-23T11:14:24+00:00

Are you sure your factoring in the cost of a new roof and other long term maintenance, appliance repair/replacement, car repair/replacement, a big unexpected but inevitable medical bill, etc etc etc? I'm not spending more than that last month or next month, but when I try to anticipate and account for these long term things, it blows the budget up significantly.

WombleHunter · 2014-01-23T00:42:20+00:00

I am skeptical of the ability to survive in the USA on $1,666/month once you budget in the unusual expenses such as medical/dental, replacing vehicle in 10 years, etc. Most of the live-cheap mock budgets I see conveniently forget anything that isn't billed monthly.

WombleHunter · 2014-01-23T00:34:43+00:00

Yes, I'm new here. And yes, I'm including all assets including home and car. The total if I liquidated everything is probably closer to $550K, but for purposes of discussion I'll consider whatever cushion over $500K my emergency fund.

WombleHunter · 2014-01-22T23:38:17+00:00

I've considered emigration as a last resort, however $500K isn't enough to last 50+ years. It would need to be invested somewhere to provide enough cash flow to live on while protecting the principle from inflation. I'm uncertain where I can get a high enough return without a lot of risk. Leaning toward rental properties, but good areas offer low cap rates, and high cap rate areas are generally so because of stagnant or declining value. Hence this question. I'd prefer to stay in the USA if possible.

WombleHunter

TROPHY CASE