How much money would you need to retire right now??

[captZEEbo1]

I think some of you guys are WAY overestimating how much you need. Like let's say for some unknown reason you really think you'll spend 80-100k/yr as is (which is what you based your number on). Okay that's a shitload. When you are in the typically retired stage (75) and probably have 10 years to live left or so, you will STILL be getting 80-100k/yr PLUS you will have 1M in the bank besides that. This figure is much too high at the end of your life, no? Or am I missing something b/c of inflation?

[jackdaniels]

The biggest misconception in this thread is that you need to live on the interest alone (well, aside from the guy who thinks he can get 30% per year in interest on his money [img]/images/graemlins/confused.gif[/img] ). What you want to do is die broke. That's right, spend every single penny you have accumulated. In fact, "The last check you write should be to the undertaker - and it should bounce!" (NOTE: this quote was taken from a book called " Die Broke " - I haven't read it so can't recommend it).

If your goal is to "retire", you should ask yourself what exactly you mean by that. For most people that means not HAVING to go to work (many retirees still do) while being able to sustain the lifestyle to which you have become accustomed. Conservative estimates show that maitaining a $50,000/year income, after taxes, for 35-40 years will require $1,000,000 in capital - WHICH WILL BE USED UP DURING THIS PERIOD. I haven't done the math on the above but in my quest to answer the exact question in this thread, I was given that figure.

[durrrr]

i came up w/ 7mil, minimum. I'd want more.

[Shajen]

This advice is good, if you don't want to leave your family any money.

I gave the correct answer last time we had this thread. [img]/images/graemlins/grin.gif[/img]

The answer is $5 million, for me.

Emigrant Direct has a 4% annual percentage yield on their savings account.

Couple this with Roth IRAs, 401ks, stocks, bonds, etc, and you could live comfortably on the $200k or so you'd make off this in interest alone.

Any less and I think inflation would get you. Obviously, more would be better.

[cdxx]

[ QUOTE ]
You can expect about a 1% return on average, and that's not including taxes.

[/ QUOTE ]

your interest may not be taxed at the normal rate, for example dividents and/or capital gains.

[moondogg]

[ QUOTE ]
Emigrant Direct has a 4% annual percentage yield on their savings account.


[/ QUOTE ]

Keep in mind that the APY for savings accounts is not guaranteed over time either. When I opened accounts with Netbank and ING, they were paying over 5%. Over the last few years though they dropped to about 2%. Their working their way back up, but another recession (of which there will be many during an extended retirement) will probably knock them back down again.

[Shajen]

yeah, I'm aware of this, I was merely giving one example of how you can make a 4% return (as of right now) without doing a damned thing with the money.

Good comment though.

[ggbman]

I think about $3 million would be good for me, if i really hated my work i would do it with 2.

[Nicholasp27]

[ QUOTE ]

CDs barely get 3% right now and u never wanna lock them for more than 6 months at a time which lowers ur rate....

[/ QUOTE ]


emigrant direct gives u 4% and u can withdraw at any point in time that u'd like

ing is currently at 3.5%

every time the fed raises the rate, up goes the savings as well

about 6 years ago, when the rates where higher, ing was offering over 6% and u can withdraw it anytime, unlike cds

[Nicholasp27]

keep in mind that there are lots of ways to make money with that much capital other than stocks, etc

u can buy pre-construction homes in new neighborhoods, rent them out for 2 years and then sell them in the final phase once the builder has upped the price by 20%

u can buy homes/duplexes/small apartments and rent them out...with inflation, in 10 years your note will be much smaller than the rent you bring in minus maintenance and admin and taxes

u can buy some office/retail buildings and rent them out for however long in the same manner

both the homes/duplexes/apartments and the office/retail will increase in value

and u aren't taxed on real estate gains until u sell, and even then u aren't if u put it back into real estate within 90 days...so u can start off with a 100k pre-construction house...rent it out for a few years, sell it and buy a bigger home, rinse and repeat until u have a multi-million dollar estate a few decades later


buy land; low taxes and no maintenance...if u buy in the proper areas, u can make a good return

buy land and build a subdivision

etc etc