Earning 200,000 Dollars Annually From a Trust Fund. Can I Retire at 50?

"Retirement already appears financially realistic once the second trust opens up in the next few years. Both trusts have the potential to grow over time, further increasing the amount available for withdrawal. A 5 percent annual draw from the 10 million dollar trust alone provides 500,000 dollars per year. The Redditor also noted that the current trust provides about 200,000 dollars in tax-free distributions, which brings the total to roughly 700,000 dollars per year."

"He currently earns 500,000 dollars annually, and his wife brings in another 160,000 dollars. They are both in their late 30s and expecting a child, and together they are wondering whether retiring by age 50 is within reach. Beyond the trust fund, he has built up 2.3 million dollars in taxable investments, 250,000 dollars in a 401(k), and 100,000 dollars in cash."

A late-30s couple has combined earned income of $660,000 and substantial trust access that could enable retirement by age 50. The individual currently receives a 5 percent draw from a $6 million trust that yields about $200,000 tax-free. In roughly four years a $10 million trust will allow 5 percent withdrawals (about $500,000), and a future $20 million trust is expected after a relative passes. The couple also holds $2.3 million in taxable investments, $250,000 in a 401(k), $100,000 in cash, and $800,000 in home equity with $1.7 million mortgage. Current annual spending is about $300,000 in a high-cost area, so additional trust distributions would more than cover expenses.

Read at 24/7 Wall St.