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Posted on 3/22/16 at 11:34 am to slackster
quote:Well I think people are saying they want a higher fixed income to never work again because working while you're in your prime is not such a terrible thing. I already make over $100k a year, so of course I'm going to keep working if I only have $100k a year fixed income. Why not work while I'm young and have more than double that income, then retire in my 40s and be very wealthy? I actually like my job.
I'll say this, many people in this thread are going to be sorely disappointed with what they've got when it comes time to retire.
I understand a 30 year old is going to need a much larger number than a 65 year old, but if people are waiting for 100k per year for life before they hang it up they better have a fall back plan.
I won't need $100k/yr in 2016 dollars when I retire. But I definitely want more than that right now.
Posted on 3/22/16 at 11:38 am to WG_Dawg
2M at 5% interest is 100k/ year
that's just living off the interest
so probably something like 1.5M
can we do odd jobs or like substitute teach when we want?
that's just living off the interest
so probably something like 1.5M
can we do odd jobs or like substitute teach when we want?
Posted on 3/22/16 at 11:46 am to SlowFlowPro
quote:
can we do odd jobs or like substitute teach when we want?
yeah whatever floats your boat. I didn't necessarily mean you aren't allowed to work, I just meant that you'd quit your job and never have to work again if you didn't want to.
Hell, I might get bored eventually and work 15 hours a week making subs at publix or wash golf carts or something but it wouldn't be bc I had to.
Posted on 3/22/16 at 11:52 am to SlowFlowPro
quote:We say this myself included, but that's just assuming an automatic 5%, right?
2M at 5% interest is 100k/ year that's just living off the interest so probably something like 1.5M
What if you have a couple of down years where you lose on your investment?
With these "smaller" amounts(comparing it to, say, $200mil), I think you'd be better served in safer, smaller investments, right?
Thus meaning, you'd need more than $2mil most likely.
Posted on 3/22/16 at 11:53 am to WG_Dawg
shite then I could maybe do it for $1M
Conservative investing means a steady $50K/ year
I'd do something bc I'd get bored.
Conservative investing means a steady $50K/ year
I'd do something bc I'd get bored.
Posted on 3/22/16 at 11:58 am to WG_Dawg
15M because I'd like to buy a sizable hunting/farming property
Posted on 3/22/16 at 12:00 pm to WG_Dawg
Pay for house cash, land cash, rent houses\ financed with collateral rate, vasectomy, weed fields, cows in the other fields..... And im not going to 80, dog.... im ok with 70. That gives me an extra couple grand a year.
Posted on 3/22/16 at 12:02 pm to WG_Dawg
(no message)
This post was edited on 4/8/19 at 11:33 pm
Posted on 3/22/16 at 12:03 pm to shel311
5% is very conservative.
And there is principle you can use in an emergency.
And there is principle you can use in an emergency.
Posted on 3/22/16 at 12:06 pm to slackster
quote:
You know how I know you wouldn't make it?
Not a large house. But $150k for a decent house, I think that would be fine.
I have an uncle who owns an incredibly successful financial planning company. I'm sure he would advise against buying the house up front, but I want the security of knowing that it is bought and paid for. Uncle could help me with the rest of the money.
I'd be fine.
I'm talking about the least possible amount I would need to feel comfortable walking away from work forever. $1.85 mil and a house paid for, I'm fine.
Posted on 3/22/16 at 12:12 pm to Dan Bilzerian
First off, what does 'not work' again mean? I couldn't 'not work' at all as I'm only in my low 30s.
Give me $2.5 mil and I'll gladly change careers to doing nothing but enjoy life.
I could do a 30 year bond at 2% with 2 million and invest 500k with stocks to make $45,000/ year and work at something fun as hell like a fishing guide part time for $20k 2-4 days a week seasonally.
When all you need to do is make $20k a year, there's a lot of pretty dang fun, easy, low hour, and low stress jobs out there.
Give me $2.5 mil and I'll gladly change careers to doing nothing but enjoy life.
I could do a 30 year bond at 2% with 2 million and invest 500k with stocks to make $45,000/ year and work at something fun as hell like a fishing guide part time for $20k 2-4 days a week seasonally.
When all you need to do is make $20k a year, there's a lot of pretty dang fun, easy, low hour, and low stress jobs out there.
Posted on 3/22/16 at 12:13 pm to LSUBoo
ITT: People who forget that never working means that you now have 40-60 hours a week you now have to occupy yourself.
Just a hint: If you double the amount of free time you have, you aren't going to be able to live at the same level on the same amount of money.
Also lol at the people who are saying they don't need much because they are 30 and single.
Just a hint: If you double the amount of free time you have, you aren't going to be able to live at the same level on the same amount of money.
Also lol at the people who are saying they don't need much because they are 30 and single.
Posted on 3/22/16 at 12:17 pm to slackster
I'll be the exception. Currently have my first retirement secured and working at a second job. The main thing keeping me from not working is my current plan to be debt free. So.....$200K would do it (and that all has to do with my choice to build a new house in my mid 50s, knowing I would have to work longer. My check from my current job goes entirely to paying off debt).
Posted on 3/22/16 at 12:21 pm to Pelfan8104
quote:
But $150k for a decent house, I think that would be fine.
I have an uncle who owns an incredibly successful financial planning company. I'm sure he would advise against buying the house up front, but I want the security of knowing that it is bought and paid for.
So admittedly I'm pretty ignorant on a lot of financial matters. Why would it be ill advised to purchase a home with cash? I can understand the viewpoint of continuing to make payments for credit purposes, but if you've got enough money that you can essentially buy anythign with cash is credit really that important?
Posted on 3/22/16 at 12:21 pm to SlowFlowPro
2-3 million. I live frugally, wouldn't change it then
Posted on 3/22/16 at 12:24 pm to WG_Dawg
quote:
Why would it be ill advised to purchase a home with cash? I
Interest rates are at historic lows right now. If you can borrow at 3.5% and make 5% on your cash you come out ahead financing than paying cash for the house.
Posted on 3/22/16 at 12:28 pm to yellowfin
quote:
. If you can borrow at 3.5% and make 5% on your cash you come out ahead financing than paying cash for the house
Aah, that makes perfect sense.
Posted on 3/22/16 at 12:32 pm to yellowfin
Plus if you have to leave, it's easier to be foreclosed on and pocket the difference than sell the house to recover something
Posted on 3/22/16 at 1:20 pm to SlowFlowPro
quote:
Plus if you have to leave, it's easier to be foreclosed on and pocket the difference than sell the house to recover something
Another good point.
The idea in many cases is to just keep kicking the can down the road. I'll use a drastic example to prove the point - if you had a $250k home @ 3.5% and $250k in the bank, you could pay off your mortgage tomorrow, and your mortgage would vanish, but how would you make it to the next month? Having cash on hand is a valuable tool.
Homes, vehicles, anything you can finance for low rates makes more sense than paying with cash these days. I cannot quantify the emotional value of paying off your mortgage, but I can quantify the financial impact. Let's assume a $250k mortgage @ 3.5%:
$500,000 invested at 4%, less your monthly principal and interest charge of $1122.61 would grow to $877,600 after 360 months.
Pay off the mortgage now and you'd have $250k left at 4% with no withdrawals and it would grow to that same $828,375.
Is "owning the home" worth nearly $50k in opportunity costs? That doesn't even include the tax benefits of the mortgage deduction.
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