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Author: Rebecca Payne

  • I’m 57 years old with $650,000 stashed in my 401(k) — but I absolutely hate my job and I’m ready to throw in the towel ASAP. Can I actually afford to quit and retire early?

    I’m 57 years old with $650,000 stashed in my 401(k) — but I absolutely hate my job and I’m ready to throw in the towel ASAP. Can I actually afford to quit and retire early?

    Patricia can see her retirement on the horizon. It’s tantalizingly close — she’s just turned 57 and stepping away from work has been made more tempting by the fact that she absolutely hates her job.

    She’s ready to get out now, and put her happiness first. The only problem? She’s not sure if her $650,000 retirement savings will last.

    Patricia is facing perhaps the most hotly debated question for Americans approaching retirement age: how much do I need to have saved to retire comfortably? It’s a conundrum facing millions of American baby boomers, all of whom will be over 65 by 2030. Even choosing which method to calculate how much you need can be overwhelming.

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    The answer to when you can safely retire depends on several factors specific to an individual’s unique circumstances.

    Be realistic about what your retirement will look like

    Before retiring early, there are a few things Patricia should consider. If she sets a 25-year timeline for her retirement, her current savings would only allow for a modest $26,000 a year withdrawal. (Americans feel that they’ll need at least $1.46 million to retire on, according to a 2024 study by Northwestern Mutual.)

    That amount does not include Social Security, but Patricia is not eligible to begin collecting until she is 62, and starting before she reaches the full retirement age will reduce her benefit. Since she was born after 1960, she will not qualify for a full benefit until she is 67.

    Patricia can apply for Medicare when she is 65, but she should consider the cost of health insurance in the meantime if she is no longer covered by her employer’s plan.

    Another vital consideration for retirees is whether they will be able to afford long-term care, should they need to move to a nursing home. There is a misconception among many Americans that Medicare covers long-term care; Medicare covers some skilled nursing facility care, while Medicaid covers nursing home-level care — but there are income and asset guidelines.

    Retirees should also take into account any debts they may have accrued, and the possibility that other, unforeseen expenses may arise, such as home repairs and medical bills.

    Patricia also needs to do what many of us avoid: honestly consider how long she’s likely to live, and what her current lifestyle and overall health could mean for her future.

    The current life expectancy for someone Patricia’s age is about 80 years. She also has to plan for the possibility that she could live longer than the average life expectancy.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    How to make an early retirement work for you

    Before opting for early retirement, Patricia should make sure that the money she already has saved is working for her. She should consider her current and future tax brackets, and whether Roth conversions would be beneficial.

    If her plan to draw down her retirement savings is based on the 4% rule, she should remember that it is based on a 30-year retirement, a balanced portfolio of stocks and bonds, and that the creator of the rule has said recently that given the current economic situation, 4% may be too conservative.

    Retirees should also take into account the cost of living in their area, and whether they would consider retiring somewhere more affordable.

    If early retirement is a nonnegotiable for Patricia, she should consider outside-the-box solutions to stretch her retirement savings. That could include downsizing and living more modestly, setting up a rental unit within her home to establish passive income or even considering a cohousing arrangement with other older adults — which could not only be a wise financial decision but also improve Patricia’s quality of life as she ages.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘Our families are being poisoned’: US military families launch lawsuit over lead and mold exposure in residences — and say they were lied to over the unsafe conditions of their homes

    ‘Our families are being poisoned’: US military families launch lawsuit over lead and mold exposure in residences — and say they were lied to over the unsafe conditions of their homes

    “Our houses are not our safe place.” That’s the message U.S. military families are hoping Congress will hear, as they sound the alarm on unsafe military housing they say is making their families sick.

    “Right now, our families are being poisoned,” Jackie Talarico, of Key West, Florida, the wife of a U.S. Navy cryptologic technician, told ABC News.

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    Talarico and other military families are reporting shocking conditions in the rental housing provided by the United States Armed Forces. Her family is one of hundreds that are now suing a private company that manages homes for the military.

    A ‘nightmare’ situation

    Another military wife, Antoinette Reeder, from San Diego, California, who spoke to ABC News, has test results that she says show the mold found in her home was also found in her blood. “I’ve had my doctor ask me several times, ‘When are you moving?’” she told ABC.

    According to ABC, a recent poll presented to Congress said that “more than half of the military families who responded had negative experiences, saying that they were living with mold, lead and other issues.”

    It’s a situation Talarico calls “a nightmare.”

    “We were told there was no mold in our house. We were told there was no lead. We were told there was no asbestos — and they lied.”

    Her family and nearly 200 other current and former tenants in the Florida Keys are suing Balfour Beatty Communities, alleging the company "systematically failed to properly repair and remediate significant problems in the homes, including water damage, mold, structural defects, HVAC, plumbing issues, electrical problems and the presence of lead paint and asbestos."

    In a statement obtained by ABC News, Balfour Beatty said, “We are aware of the complaint and intend to defend ourselves vigorously.”

    Balfour Beatty is one of about 14 private companies that manage military housing, under a deal that began in 1996, when the U.S. Congress approved the Military Housing Privatization Initiative (MHPI).

    The MHPI gave the companies ownership of more than 200,000 military homes across the country. In exchange for agreeing to take on the military housing stock, which was at the time in need of an estimated $20 billion in repairs, the companies were given 50-year contracts. The deals also had the provision that the military could not overrule the housing companies on how properties are managed and maintained.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    What to do if your housing is unsafe

    Although this situation involves military families, landlord disputes involving unsafe housing can be common for many Americans.

    Here’s what you can do if your landlord is failing to maintain standards and you think your housing has become unsafe.

    Residential leases in most jurisdictions include an implied warranty of habitability. According to the Legal Information Institute, habitability is “defined as property in substantial compliance with the local housing code,” meaning your landlord is required to keep the property in compliance.

    When dealing with an issue with your landlord, remember to always keep extensive documentation. Keep detailed notes about the issues that include dates and times, save copies of any notifications you send or receive in writing, and keep track of any phone calls between you and your landlord. Make sure that if you are documenting phone calls, you check the laws in your state for recording phone conversations.

    Notifying the landlord in writing is often required, and you can contact your city or county code enforcement office to learn more about what standards landlords must meet. You can also seek out help from local tenants’ rights organizations or legal aid clinics. The National Low Income Housing Coalition has a database of state and local tenant protections.

    The military families taking their landlord to court are a reminder of the collective power tenants can have. If your neighbors are also facing similar issues, consider banding together as a tenants’ association or tenants’ union — your collective power may sway your landlord to meet your demands for safe housing.

    “Our service members give so much every day, and put so much on the line for our country,” Talarico said.

    “One thing they should not have to sacrifice is their children’s and their families’ life, health and safety — when they do that every day for the rest of America.”

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.