AssetBuilder Inc. Registered Investment Advisor - Simple Investing. Smart Future.

Scott,

 I can retire from my pennsylvania state job in 9 years at age 50. My non-inflation indexed pension would be 60% of my $60,000 salary. Healthcare may also be provided but the cost is going up every year that by the time I retire, the state's plan could be $200-400 a month. So, I may opt out of it. I also will have an inflation indexed national guard pension of $300 a month plus the military healthcare plan which both start at age 60. I have $340,000, $300,000 of which is invested in a couch potato portfolio. $100,000 of it is tax deferred. Hopefully, I will have $500,000 by age 50. My $70,000 home is paid off. Upon retirement, I would consider selling my home and living in another country, teaching english or something else that would probably not pay much.

   My question is, is this a realistic goal with my assets, or will inflation, currency appreciation, and healthcare costs eat away at my fixed pension and make it unreasonable to retire at 50 and live in another country? 

Civi68,

It's a big gamble to retire at age 50 simply because of the number of years you're likely to be retired---30 plus.

Think about it this way, you're talking about spending as many years retired as you're going to spend working. Now compare that to what people expected only a generation ago--- to retire at age 65 and, perhaps, have 10 years of retirement. So they worked 45 years, or more, to have 10 years of retirement.

The problem we all face is that the years of working have remained constant (actually they've shrunk, since most people now retire at 62) while the years of being retired have grown with life expectancy.

All that said, YOU are the lynchpin in your desire to retire. Adapt and live modestly, here or abroad, and you'll do OK, particularly if you earn money teaching english in another country.

Scott