The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: 500k...Can I retire Date:  6/23/2006  2:34 PM
Author:  theHedgehog Number:  52367 of 90436

*I may be coming into 500k free and clear. Can I retire with this I am 31 years old.*

That seems a bit on the short side to retire at 31 years old. If you have a wife and kids (or plan to acquire same) then it's practically impossible.

The bigger question is what this money will do to you. If you can manage to see this money as being just another asset, then there's a very good chance that you will be able to manage it to your advantage. However, if you see it as a windfall, as a pot of gold, then there's a very good chance that you will blow through it, and rack up a massive debt, as well.

The good news is the fact that you came to the Fool board and asked your question. That kind of indicates that you won't be buying a new Ferrari for yourself and new houses for your relatives. If you can manage to survive the first 6 months without making any frivolous purchases with it, there's a good chance that you'll be able to hang onto it and have an early retirement down the road. Believe it or not, there's a great risk that you will squander it all just to make it go away. Money, especially this amount of money, can be a burden, because it will change your life.

Good luck, if you come into it! Avoid all the get-rich schemes. Avoid all your relatives and friends who have a hard-luck story or a sure-fire way to make "even more money". Resist the urge to buy the hot stocks. Invest in a diversified portfolio of funds comprised of 4 or 5 asset classes. Do all this, and maybe you can retire at 50.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us