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The difference is that I would be providing a real job for someone who needs it.
I could care less about investing, stocks and all that nonsense and I don't have to have anyone report to me if I don't want them to. Hence the reason others are paid to do the job, I'm not sure what is so confusing about what I have stated.
I answered a question in regards to the thread and my response is being picked to death for no particular reason.
My answer may not be appropriate for anyone else but it is my answer and what I would choose to do which I thought was the entire reason the question was posted as it was. If you disagree great but disagree in silence.
Picked apart only because the number you gave ($200k total) seems unrealistically low as a number to completely stop working.
Also, the point of a discussion board is the discussion. If you don't want people to comment, then you shouldn't be posting.
Picked apart only because the number you gave ($200k total) seems unrealistically low as a number to completely stop working.
Also, the point of a discussion board is the discussion. If you don't want people to comment, then you shouldn't be posting.
I suppose it could be done on $200k if the "paid off home" mentioned by OP is a 10-unit apartment bldg where you live in 1 and have tenants in the other 9.
Of course there are countless variables to consider, and of course there isn't a one-fit-all answer to the above question....so, the question is directed at YOU!
Assume your house is Paid off.
How much would you need in the bank (401k/cash/bonds/stocks/etc.) in order for you to retire on 1/1/2015?
How old are you and which state do you live in?
Are you asking how much I would need such that I would stop working, or are you asking how much I would need to be able to stop working? There's two very different answers to that question.
Assuming my house was paid off, just property taxes and maintenance to take care of, I'd only need about $20k/yr to be able to retire. At 3% drawdown, that works out to $600,000. Would I stop working? No.
Now, at 6.67 milion, $200k/yr at 3%, I really wouldn't see much advantage to still working and would rather just enjoy my time than work more. I'm in my late 20s in California.
If the money can still be invested then I would need 600k. I'm 25 and I own my current home outright. The 600k would generate me 18k a year with very little risk and that's more than all I would need.
Not sure you considered all the cost factors involved. Even if your house was paid off, you still would need major medical. If your staying single for the rest of your life, you probably could get by with 5k a year, but with a family, medical coverage could easily cost you 16k a year. That would put a major dent in your fixed income.
For me, a realistic amount would be 2 million dollars, at a conservative rate of return of 4% on the stock market, that give me 80k a year, 72k after capital gains taxes. I'd budget 20k for medical insurance and another 10k for property taxes, leaving me with 42k to live off of. It be a tight budget, but it's doable.
First, this is a strange question for people who are in their 30s, who are in the accumulation phase for retirement and still expect 20-30 years left in their career. Even if I suddenly had a $50 million winfall, I wouldn't stop working completely. I wouldn't know what to do with my time!
We are in our mid-30s. Even assuming a paid off house, given the high property and state income taxes where I live, the cost of retiring at this age is insanely high (>10 million).
First, this is a strange question for people who are in their 30s, who are in the accumulation phase for retirement and still expect 20-30 years left in their career. Even if I suddenly had a $50 million winfall, I wouldn't stop working completely. I wouldn't know what to do with my time!
We are in our mid-30s. Even assuming a paid off house, given the high property and state income taxes where I live, the cost of retiring at this age is insanely high (>10 million).
If I got 50mm I'd stop working for some time and travel. If I got bored I might start something up business wise but more than likely it would be free financial coaching
First, this is a strange question for people who are in their 30s, who are in the accumulation phase for retirement and still expect 20-30 years left in their career. Even if I suddenly had a $50 million winfall, I wouldn't stop working completely. I wouldn't know what to do with my time!
We are in our mid-30s. Even assuming a paid off house, given the high property and state income taxes where I live, the cost of retiring at this age is insanely high (>10 million).
That's because you lack imagination!
There's plenty to do if you have that kind of cash and free time!
First, this is a strange question for people who are in their 30s, who are in the accumulation phase for retirement and still expect 20-30 years left in their career. Even if I suddenly had a $50 million winfall, I wouldn't stop working completely. I wouldn't know what to do with my time!
We are in our mid-30s. Even assuming a paid off house, given the high property and state income taxes where I live, the cost of retiring at this age is insanely high (>10 million).
The question is, is your current job your favorite thing to do, of all the options out there?
For many of us, the answer is "no". For many others of us, the job may be usually enjoyable but also carry mundane tasks we don't like (This applies to me.)
Not sure you considered all the cost factors involved. Even if your house was paid off, you still would need major medical. If your staying single for the rest of your life, you probably could get by with 5k a year, but with a family, medical coverage could easily cost you 16k a year. That would put a major dent in your fixed income.
For me, a realistic amount would be 2 million dollars, at a conservative rate of return of 4% on the stock market, that give me 80k a year, 72k after capital gains taxes. I'd budget 20k for medical insurance and another 10k for property taxes, leaving me with 42k to live off of. It be a tight budget, but it's doable.
I'd be able to get a very cheap bronze plan, if not free. At this low income I would definitely qualify for subsidies.
Of course things change but the question was phrased as what would it take now to get you to retire. 600k is my response. If situations changed and I had a family I would readjust and return to the workforce. However, if tomorrow 600k appeared in my brokerage account I would be putting in the two weeks' notice.
You need 42k to live off of after medical expenses, property taxes, and assuming your house is paid off (what was assumed by the OP's directive? Holy!! That's a lot of food, vacations, car payments, and toys. If that's what it's for, great. Have fun. But if it's what you need to just "live" then living is very different between me and you.
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