According to current actuarial tables, I have a life expectancy of 36.36 years (which also means I passed the halfway point a few years back… shudder).
A lump some of $300,000 will NOT last me over 35 years. So if you’re giving me that dough and forcing me to retire, even if I were on my own and leaving my wife to cover for my kids so I have just myself to consider, it’d be a very tough go of it.
This annuity calculator tells me that $300,000 spread out over 36 years with an average tax-free yield of 5.0% comes to $17,267/year. I don’t think I could live very well on that amount anywhere in the US, but I guess maybe abroad is a possibility. (I also think an after-tax yield of 5.0% is incredibly optimistic.)
If I were to set aside $100,000 to buy property somewhere and assume a 2.5% yield, I’m down to an income of $8,283.23/year to pay for property taxes, utilities, food and everything else. Urgh.
Now, if you’re allowing me access to my current life savings and 401(k) and all that as well as the flat $300,000, but not counting the equity I have in my house (which would go to supporting my abandoned wife and kids in this scenario), I’d be in a much better position - to the point where I could in fact entertain the idea of retiring somewhere with property and a small fixed annual income somewhere in the continental US. But then I’d still worry a ton about inflation.
Retire to New Zealand? $300k - not enough. Dogs - yes.
The thing about NZ is its a developed nation with first world costs. Healthcare is free but the cost of living is relatively high because most technology is imported. Its the most remote OECD country which gives good security from invasion and disease.
It is possible to live cheaply in a provincial town.
What’s the cost of living in rural New Mexico? I always loved northern New Mexico-if you settled in a small town in the montains, the COL probably would be pretty low.
I’d split my time between Alberta and Arizona, like a good Snowbird. I don’t think I’d buy property in Arizona though, in spite of how cheap it might be - too much hassle with non-resident property ownership. I’d just rent a place each winter.
