Board 8 > How much money would you need to retire?

(+) Yeah! (+)

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A $2000 check from Uncle Joe

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Anyone under 40 who picks anything less than $5,000,000 has no concept of money

Comedy101 posted...

Anyone under 40 who picks anything less than $5,000,000 has no concept of money

Now thats comedy

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I'm 34 and extremely confident I could live the rest of my life on 2 million dollars, maybe 1 million

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Comedy101 posted...

Anyone under 40 who picks anything less than $5,000,000 has no concept of money

The average yearly return on the S&P 500 is like 7% after inflation. That's $350k per year (albeit before taxes) without even eating into the principle... pretty sure most people can get by with much less than that.

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LordoftheMorons posted...

The average yearly return on the S&P 500 is like 7% after inflation. That's $350k per year (albeit before taxes) without even eating into the principle... pretty sure most people can get by with much less than that.

Yeah but it's not consistent. I think retirement experts usually say that if you retire at age 65, you can safely spend about 4% of your assets per year that you have at the time of retirement per year and avoid running out. Spending more than that risks a drawdown occurring in the market which becomes crushingly severe due to your also spending too much.

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red sox 777 posted...

Yeah but it's not consistent. I think retirement experts usually say that if you retire at age 65, you can safely spend about 4% of your assets per year that you have at the time of retirement per year and avoid running out. Spending more than that risks a drawdown occurring in the market which becomes crushingly severe due to your also spending too much.

Yeah true, though even at 4% everyone needs 5 million is kinda ridiculous!

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Can't vote because I don't know if retiring would include health insurance or not. $2m with insurance. $10m with no insurance.

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I picked 10mil mostly because my job is sweet and 5 mil isnt quite enough for me to feel confidant in wrecking my resume forever

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I could retire now if I want to but my job helps me keep myself sane and active so I would say no set amount, I'll retire when I can no longer physically and mentally work.

4% of 5M is 200k. My cost of living may change due to inflation and medical expenses, but I assure you I get by on WAAYY less than 200k now. I mean, even my sister gets by on less than 200k and she spends money like it's burning a hole in her pocket (and has 3 kids).

My hope is that I can live off my income while I'm working, and my inheritance when I'm done. (My parents are already gone; the money is just accruing interest now.)

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You guys are ding dongs. You don't need to live to a thousand, you need to live to 95.

2 million is absolutely comfy if you're not an idiot with money

It all comes down to how many children you want and how big you want your vacations to be

I've been tracking my living expenses as a casual yuppie and they do not exceed 40k/ year. If I moved out of the city (work keeps me there) it would be way lower

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500k is more than enough to ensure I never seek out a "gotta pay the bills" job and make money doing only things I enjoy. I know that may not fit the traditional definition of "retire," but I'd probably do the same even if I was given $10m.

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$10 million+

I am sure I can live off what I currently have and never would need to work again, but my life would be rather dull. I need my caviar fix.

what is this "retire"

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I think some of you are forgetting the extra 40 (or 50-80...) hours of new free time you'll get from being retired. And guess what, you're going to end up filling those hours with your hobbies. Which will be more expensive than the nothing you pay while you're toiling away at a job.

$5 million gives you enough to buy a house and then be comfortable enjoying your hobbies for the next 40-50 years. With only $2 million I'd be far too concerned that it wouldn't last, especially if some unknown expenses came along.

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I voted 500k because I live frugally and already plan to retire once I manage to save 400k (I'm halfway there right now).

You guys who need millions are crazy to me, I'd need to work until I was eighty to save $2 million. Then again I live in Canada and don't need to plan for eventual sickness.
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Seanchan posted...

I think some of you are forgetting the extra 40 (or 50-80...) hours of new free time you'll get from being retired. And guess what, you're going to end up filling those hours with your hobbies. Which will be more expensive than the nothing you pay while you're toiling away at a job.

$5 million gives you enough to buy a house and then be comfortable enjoying your hobbies for the next 40-50 years. With only $2 million I'd be far too concerned that it wouldn't last, especially if some unknown expenses came along.

If youre saving up millions, it should go without saying that you already own a (probably paid off) house.

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Robazoid posted...

You guys who need millions are crazy to me,

Different lifestyles. I'm frugal like you (I'm a rice and beans guy, and I prefer cheap vacations to lavish ones - the cheap ones are usually funner anyway), but I've seen the type of lifestyle changes that can lead to insanely different spending habits - big city dual-income couples with kids pretty much have no option but to earn like crazy because their expenses will be ridiculous.

My sister and brother-in-law aren't going out for weekly steak dinners, but they are spending like $1,000 a month on their dog. Thousands and thousands a month on their two kids. Their costs are beyond the pale to me, but their daily quality of life is hardly different than mine.

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Robazoid posted...

I voted 500k because I live frugally and already plan to retire once I manage to save 400k (I'm halfway there right now).

You guys who need millions are crazy to me, I'd need to work until I was eighty to save $2 million. Then again I live in Canada and don't need to plan for eventual sickness.

you have to keep in mind it would take a lot more to be able to retire when you're young than when you're already old. like a person that says they need $2 million now wouldn't even need close to $1 million by the time they're 70, let alone 80. also kids are ludicrously expensive. i voted 500k myself but even having 1 kid would probably change my vote to $2m, certainly at least $1m.

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ChaosTonyV4 posted...

If youre saving up millions, it should go without saying that you already own a (probably paid off) house.

I guess I read the question slightly differently. I was imagining a magical money fairy coming down and asking me "how much to retire, right now" rather than, "how much am I going to save before I decide I've got enough to not work anymore".

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None of you seem to be considering living abroad after retirement. You can live pretty comfortably in several countries for $10-15k a year. If you have even 1 million invested and live off the interest that's a really good living somewhere like Costa Rica or Thailand and those countries do have ex-pat communities to keep the language barrier from being overwhelming.

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ChichiriMuyo posted...

None of you seem to be considering living abroad after retirement. You can live pretty comfortably in several countries for $10-15k a year. If you have even 1 million invested and live off the interest that's a really good living somewhere like Costa Rica or Thailand and those countries do have ex-pat communities to keep the language barrier from being overwhelming.

Unless.... you don't want to move out of the country?


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