Here’s an interesting question in my mind. How much money would you want to retire early, say 45-50ish early?
If you want to explore this sometime, like @Poker Zombie , I too have a spreadsheet we can review.
Here’s an interesting question in my mind. How much money would you want to retire early, say 45-50ish early?
I have a definite number in my mind, just curious what others think. I’ve got a mathematical idea although I never actually rant it by my financial advisor. (At least partially because I’m not even close to it currently.)If you want to explore this sometime, like @Poker Zombie , I too have a spreadsheet we can review.
That should be pretty damned safe unless you live the caviar lifestyle! Of course you do live in NY so that’s like $5M in other parts of the country.$15-20mm. Just to be safe.
curious to know what that is.I have a definite number in my mind, just curious what others think. I’ve got a mathematical idea although I never actually rant it by my financial advisor. (At least partially because I’m not even close to it currently.)
Well, I’m assuming 40 more years of life, I have a one-year-old, and health insurance without an employer wouldn’t be cheap (and getting more expensive if Trump and complicit Republicans achieve their goal of destroying our country). I think $8-10mm is doable, but also don’t forget about inflation.That should be pretty damned safe unless you live the caviar lifestyle! Of course you do live in NY so that’s like $5M in other parts of the country.
Without being blatantly obvious depends on your lifestyle.Here’s an interesting question in my mind. How much money would you want to retire early, say 45-50ish early?
Mine was based off of the idea that if I withdrew at a clip of 2.5% from the principal I could probably do it in perpetuity. (Which is what I never ran by my financial advisor.)curious to know what that is.
Well, I’m assuming 40 more years of life, I have a one-year-old, and health insurance without an employer wouldn’t be cheap (and getting more expensive if Trump and complicit Republicans achieve their goal of destroying our country). I think $8-10mm is doable, but also don’t forget about inflation.
Especially in a country where your financial well being is hugely dependent on your ability to use money to make money.bit of a tangent, but it's always surprised me that you can graduate from high school in the US w/o a class in personal finance.
the difference between always getting behind and always getting ahead is pretty small.
-gc
Agreed. But I’d want to factor in at least 25% cushion to account for dramatic situational changes, including (a) inflation, (b) abrupt, ill-considered, intentionally harmful and irresponsible tax law changes, (c) catastrophic health issues, and (d) Murphy. Plus, I live in NYC and that shit’s spendy.Mine was based off of the idea that if I withdrew at a clip of 2.5% from the principal I could probably do it in perpetuity. (Which is what I never ran by my financial advisor.)
Assuming that to be true I came up with $6M. At that point you could theoretically take $150K a year indefinitely. Obviously everyone has different levels of financial need and comfort, but that’s the minimum I would want to start thinking about walking away from work.
Mmmm Caviar...That should be pretty damned safe unless you live the caviar lifestyle! Of course you do live in NY so that’s like $5M in other parts of the country.
Yeah that last part is particularly significant for you IMO. Not a particularly friendly place for early retirement unless you are doing it with surplus.Agreed. But I’d want to factor in at least 25% cushion to account for dramatic situational changes, including (a) inflation, (b) abrupt, ill-considered, intentionally harmful and irresponsible tax law changes, (c) catastrophic health issues, and (d) Murphy. Plus, I live in NYC and that shit’s spendy.
While you would have a lot of time on your hands to spend the money a lot of your current bills should disappear (kids, mortgage) so you shouldn’t need that much in “retirement”At that point you could theoretically take $150K a year indefinitely. Obviously everyone has different levels of financial need and comfort, .
Have you seen my poker room sir? Don’t underestimate my ability to chew through cash. :While you would have a lot of time on your hands to spend the money a lot of your current bills should disappear (kids, mortgage) so you shouldn’t need that much in “retirement”
Lol. I’m in my late 40s and I’ve got 23 years on my mortgage and a one-year-old. I’ll be in my mid sixties when she graduates high school and gets a full ride to Harvard. (At least she’d better...I’ll have been retired since 55 living on @Mr Tree’s fantasy $6mm and ain’t nobody got money for Ivy League tuition.)While you would have a lot of time on your hands to spend the money a lot of your current bills should disappear (kids, mortgage) so you shouldn’t need that much in “retirement”
Mine was based off of the idea that if I withdrew at a clip of 2.5% from the principal I could probably do it in perpetuity. (Which is what I never ran by my financial advisor.)
2.5% is a fairly low/conservative percentage for a perpetuity. The majority of the funds hopefully would be growing and if not pacing at least mitigating the effects of inflation. I do agree though that inflation is a non negligible consideration.As @DrStrange pointed out, we've recently been in a world of lower than normal inflation. Historically normal levels are 3%, and we could easily see a period of 4-6% in the next 40 years. Inflation would dwarf that 2.5%. Plus, as noted the rate of inflation does not account for the fact that as you age you draw more from the Medical Services basket of the GPI, which means your personal cost of living will actually go up more than the "normal" cost of living.
And quite frankly, I suspect that $150,000 a year will be jokingly small looking in 40 years.
Here’s an interesting question in my mind. How much money would you want to retire early, say 45-50ish early?
I don’t know. I’m not worrying too much over $15M!i'd say between $3M and $15M, depending on lifestyle. on either side you've got to start worrying some.
-gc
I’m laughing on the outside and crying on the inside.Who needs to save for retirement... I’ve got social security
I joked with Paulo recently that I was going to buy a huge chunk of Paulsons or TRKs and hold them as an invested commodity as a hedge against inflation. Chipes are the new gold!Really, how much money would any of us have, if we could sit at home all day in out 40s, scouring eBay and Craigslist looking for chip deals, knowing we could take a 4 day roadtrip to pick them up wherever they were?
I don’t know. I’m not worrying too much over $15M!
That’s what K&R insurance is for.if you have too much, you become a target. that's all..... not as easy to travel everywhere, etc....
-gc
My big game plan is sneaking my family into a STATE that actually wants to take care of its citizens. That or my kids somehow hitting it big.