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How much money invested/saved could allow you to retire?
Posted on 2/9/14 at 8:32 am
Posted on 2/9/14 at 8:32 am
At what age?
Ex: $5 mil at 40..
A 5% return on that would net you 250K pre CGT.
Ex: $5 mil at 40..
A 5% return on that would net you 250K pre CGT.
4
Posted on 2/9/14 at 8:39 am to LSUAlum2001
With no mortgage and something near $2mill I could retire now. If I didn't have a mortgage, I could maintain my current lifestyle at about $45k per year. I would need enough for interest to exceed that number so my money could continue to grow.
This post was edited on 7/31/14 at 10:14 pm
Posted on 2/9/14 at 10:04 am to eelsuee
most estimates are you need 70-90% of your current income if you plan to keep up your lifestyle
I plan to reduce lifestyle. Best retirement advice I was given last year is
"start to live life as if you are already retired- invest the rest"
Think on that
I plan to reduce lifestyle. Best retirement advice I was given last year is
"start to live life as if you are already retired- invest the rest"
Think on that
Posted on 2/9/14 at 10:40 am to eelsuee
quote:
I could maintain my current lifestyle at about $45k per year. I would need enough for interest to exceed that number so my money could continue to grow.
today you could but if you're retiring at 33 it would take probably double that to maintain your lifestyle in 30 years....even more in 50 years.
Posted on 2/9/14 at 11:34 am to 756
quote:I am not saying you should go out and just blow money on stupid crap but you only live once.
start to live life as if you are already retired- invest the rest"
Think on that
Posted on 2/9/14 at 12:05 pm to eelsuee
quote:
With no mortgage and something near $2mill I could retire now at 33. If I didn't have a mortgage, I could maintain my current lifestyle at about $45k per year. I would need enough for interest to exceed that number so my money could continue to grow.
This. All you'd need to do is net 2-3% annually on your nest egg.
I'd probably work a little...maybe part time or freelance work just to keep busy and demonstrate some work ethic to the kids.
Posted on 2/9/14 at 12:36 pm to LSUAlum2001
I'm not so much trying to hit a number as I am trying to create passive revenue streams. I would be 100% content when my passive revenue stream was around $100,000 per year and my house was paid off.
As far as money in the bank, I really haven't given it much thought. 5 mil at 40 I could definitely do whatever I wanted(within reason) for the rest of my days.
As far as money in the bank, I really haven't given it much thought. 5 mil at 40 I could definitely do whatever I wanted(within reason) for the rest of my days.
Posted on 2/9/14 at 12:39 pm to saderade
quote:
but you only live once.
I always laugh a little when people say this. What does this mean? Is driving a 45k truck "living"? Am I missing out in life by not having a $500,000 house?
I just don't get it. I guess everyone has their own definition of "living". That just isn't mine.
Posted on 2/9/14 at 1:06 pm to eelsuee
Does that keep up with inflation though?
Posted on 2/9/14 at 1:28 pm to I Love Bama
quote:
I always laugh a little when people say this. What does this mean? Is driving a 45k truck "living"? Am I missing out in life by not having a $500,000 house?
No.
But that aren't the only ways to spend money.
How much does a world tour cost? Etc
Posted on 2/9/14 at 2:44 pm to jimbeam
quote:it doesn't mean I will have no income for the rest of my life. But even excluding that, if I could net 4% after tax (probably long term capital gains), I could spend spend 2.5%($50k) and reinvest the other 1.5% ($30k). Even if that didn't keep up with inflation, my money would last a LONG time. Straight out of my arse, but I might make 20 year before my normal spending started cutting into principal (which would be well over $2mill by that point). And a long time after that before interest plus a little principle would have all the money spent.
Does that keep up with inflation though?
This post was edited on 7/31/14 at 10:14 pm
Posted on 2/9/14 at 6:05 pm to LSUAlum2001
Posted on 2/9/14 at 7:30 pm to Bertrand
The question posed is based upon you having everything currently paid off: House (whether its 200K or 500K), cars, etc..
All of your typical accounts payable would be typical monthly bills like utility, fuel, phone, insurance, etc. Add those up, plus your EOY property taxes/home owners insurance, and go from there.
Say, the total of these bills are $2K/month, so you have at least $24K just for that. How much would you want to spend per month in your retirement? Another 5-6K?
If its $6K, then that's another $72K per year and $96K total for the year.
If you had $2.5 mil and managed to receive a 5% return on it, you would see your $2.5mil stay at least $2.5mil in spite of you spending ~$100K per year.
All of your typical accounts payable would be typical monthly bills like utility, fuel, phone, insurance, etc. Add those up, plus your EOY property taxes/home owners insurance, and go from there.
Say, the total of these bills are $2K/month, so you have at least $24K just for that. How much would you want to spend per month in your retirement? Another 5-6K?
If its $6K, then that's another $72K per year and $96K total for the year.
If you had $2.5 mil and managed to receive a 5% return on it, you would see your $2.5mil stay at least $2.5mil in spite of you spending ~$100K per year.
This post was edited on 2/9/14 at 7:33 pm
Posted on 2/9/14 at 7:46 pm to I Love Bama
quote:It was more of a response to the guy saying live like you are retired. Everyone has different opinions on that and it really depends where you live. Bu I certainly don't want to act like I am retired in my 30s.
always laugh a little when people say this. What does this mean? Is driving a 45k truck "living"? Am I missing out in life by not having a $500,000 house?
I just don't get it. I guess everyone has their own definition of "living". That just isn't mine.
Posted on 2/9/14 at 10:21 pm to LSUAlum2001
$2.5 million at 60.
(Won't happen, though. $2 million at 65 is a maybe.)
(Won't happen, though. $2 million at 65 is a maybe.)
Posted on 2/9/14 at 10:36 pm to Ace Midnight
$1.5 at 55.
Done.
Now for some fun.
Done.
Now for some fun.
Posted on 2/9/14 at 11:32 pm to LSUAlum2001
quote:
If you had $2.5 mil and managed to receive a 5% return on it, you would see your $2.5mil stay at least $2.5mil in spite of you spending ~$100K per year.
I've started "planning" for retirement and like someone else mentioned I'm significantly more in favor of generated income than I am of living off the returns of a nest egg.
That's a fvck-ton of money, and I don't believe in leaving stuff for my kids to get spoiled off.
Posted on 2/10/14 at 6:18 am to eelsuee
quote:
I could maintain my current lifestyle at about $45k per year
No you couldn't. Well, I know I can't. My income is around 55K, retired, married. Insurance is a killer and if you have any health problems, well lets just say 55K is not enough.
Insurance over all for home, cars, health = to a easy 17K a year.
Then out of pocket health care for me = an easy 5K. Don't forget that 21% taxes too! That leaves nothing left to spend for us. One would do better living off the government.
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