Re: How much money do you need?
I would need about 3.9M after taxes in order to safely say I will never even think about working again (at least not for financial reasons).
This assumes that my family and I could live off of 100k/year (a significant raise compared to my current income) for the next 70 years. I assumed that I could earn an average of 6% on my investments (I consistently do much better than this) and I assumed that the govt would take 25% of my investment earnings and that inflation would be about 2.5% annually.
This is a very safe estimate. If I take 10 years off my life expectancy (assume I'll only live until 87 instead of 98), and assume 8% returns and 2% inflation (still pretty conservative) then I'll only need 2.4M.
2-3M is a pretty good estimate if your lifestyle can be supported by 100k/year.
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