How Much Would It Take? (pay, million, dollars, income)

[docryan]

I know someone who in their late 20's had already secured their retirement. Their motto was suffer now to benefit later. In their early life a relative taught them about investing and how to live off of very little, each pay raise they invested or put it away cause they realized in a brief time they'd already have spent that money & before you knew it someone would never know they got a raise.

So here they are they could retire now or back then at 29, they would be paid off a percentage of the interest the savings/investments earn around $50K a yr rest of interest is reinvested but they want to work maybe 10 more years and they won't say what net worth is either, so I've always wondered just how much of investment would it take to be paid $50K annually, I tried to do ruff math but couldn't figure it out.

That being said would you work again if you were assured that amt, only thing would be a total system crash to negatively effect your finances. Would u stop working as they're gonna do?

[chet everett]

Use any annuity calculator:

Annuity Calculator - Bankrate.com

Withdrawal Amount: $50,000.00 Annual Growth Rate: 4%
Interval Between Withdrawals: Yearly Length of Annuity: 60 years
Starting Principal: $1,176,421.48

Not saying your pal did not amass over a million dollars, but maybe our assumptions are different.

Here's all the math: Calculating The Present And Future Value Of Annuities

[bradykp]

i'm willing to call B.S. unless your friend's salary is incredibly high. i certainly could have done things differently and saved even more money, and i'm sure it changes things that i'm married and purchased a home, but we've done quite a lot of saving, nearly 20-25% of our annual income. amassing a million by age 29....i dunno. that said, i'm about 1/3 of the way there, so it's not impossible.