10 mil. Enough to absorb all but the worst shocks to the stock market, continue to grow if desired, or pull $500,000/yr interest at a conservative 5% growth. $500,000 year means you could afford the Lamborghini, but you still gotta make payments.
IMO $2-3 million today is about the “millionaire” of yesteryear, someone we used to call rich but not crazily so. $10 million is actual passive wealth that is enough to live very well without touching the principal.
If you want it to run indefinitely then you need to let the principle grow with inflation as well, so with 5% growth and 3% CPI you have $200k to spend each year (which will also scale with CPI)
Edit: you’ll also have to choose more risky investments to stay above CPI, which means the stock market rather than fixed interest, and means your pot of money can change quite a bit with market shifts, and you may need to downsize expenses in some periods or risk eating into your principle if you can’t trim your lifestyle
Yes, I understand that and stated that the amount could be allowed to continue to grow as one of the choices for the investment. There was no need for me to get into the details and make it a financial lesson in respons to a hypothetical fantasy amount of money.
3 thoughts of school:
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Actually never working at all from my 30s onward, probably around 10 mil €.
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Quitting my job and getting into lazy investment to get a passive income, around 1.5 mil €.
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Playing into me being passively suicidal, if I loose my job and the number hits zero, I’m just killing myself. Technically that would also mean I don’t have to work again.
Number 3 is the most realistic one.
- Playing into me being passively suicidal, if I loose my job and the number hits zero, I’m just killing myself. Technically that would also mean I don’t have to work again.
Dude, if you really want to do that, don’t waste your life pointlessly: rob a few banks and give the money to charities, Luigi a few billionaires, and play cat-and-mouse with the cops until they find you, and then make sure they suicide you, not you.
Nah man. Finding your peace in a forest, surrounded by nature with nothing to your name, that’s where it’s at.
I agree. I live out in the sticks myself - not with nothing to my name, but I certainly haven’t saved anything for old age - and I have few needs. But this is not the thing OP was envisioning. And while I think it’s a terrible idea on its face, I just remarked that they could off themselves more productively if that’s what they really wish.
Technically that would also mean I don’t have to work again.
But if you are dead, you will never feel comfortable again. Technically that does not fulfill OP’s question. 😉
What is more comfortable than returning to the void from whence we’ve came?
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Impossible to answer with all this AI BS that’s about to implode & take down a significant chunk of the economy with it.
700k and I’d be choosing to be dirt poor in monetary value.
But I’d have freedom to live. Not lavishly, but I’d be free. Read books. Exercise. Creat art. Love, maybe.
There are many things in life that are both valuable and nearly costless. That’d be better than what I do now.
💯 👏
1 million. Getting 3% back on investments will give me $30,000 a year. That far more than what I currently make. Also, less laundry, less eating out, and not burning so much fuel commuting to work and home.
Don’t forget inflation. That 30K isn’t going to buy you much in twenty years.
The general rule is that you need to cover inflation plus what you want to withdraw. That way your income goes up as inflation does.
put the money in a standard index fund. take $25k per million out first year. increase that dollar amount by 2.5 percent annually to account for inflation. should last indefinitely unless some moron in a white house blows up the country.
I’m retiring soon. That should add enough to cover inflation.
Wildly jealous. Enjoy!
OP should probably have asked for the ages of people responding. One million takes an old person beyond the grave but might fall short for a 20 year old.
probably 7 million, minimum.
1 million for a house, furniture, car, debts.
then about 6 million into one of those savings accounts that give like 3% interest but are heavily restricted on transactions and such, and just like once a year pull the interest out and live off that… should be more than enough to cover a year of decent living if you arent stupid… and any money left over at the end of the year can be put back into the account to slowly increase the base amount and thus how much you get in interest every year.
i retired at 35 and am now 60, i have nothing like what people say they need here. i have been investing since i was 19, i have a gf, a modest cottage in a small town in Australia, no debts and we travel thru SE Asia 8 months a year.
There’s people living on way less with really interesting lives out there who don’t work.
The late game is the problem for me, how do you’ll manage it?
manage what ? sorry I’m not sure i understand?
I think they mean once your age related issues catch up.
move to any country other than the US
Can still be hard.
Then that’s what the millions will solve.
He’s in Australia. Age pension plus healthcare.
2M. I’m also older so this should be enough.
2 500 € per month multiplied by months of, say, 50 years.
2 500 € * 12 * 50 = 1 500 000 €.
Would not be a rich life, absolutely not, but would leave me with enough money to live even if the part I’d invest was to be lost.
2.5 million and I quit my job. 100k/year passive income. I’m learning to cook, probably adopting a child or 2.
I wouldn’t stop working.
With ~500k I’d take a few months of leave, reduce my hours to working 6h/4d/week, and only take the shifts I want to. I need to keep some rhythm otherwise I stop functioning.Yeah I’d do the same, if I had no mortgage all I would need is enough to eat and get a few trips in a year. I could do that part time charity role.
enough that I can huck most of it in a trust and still be able to live off the interest. Yes, this makes it hard to tax, (I see taxes as rent, not theft, so this would be an UNfortunate side effect) but it also keeps me from “discovering” people to whom I’m apparently distantly related, suddenly appearing at my doorstep looking for handouts.
I’d also probably move somewhere remote, where the locals are few, don’t really care what you do as long as you keep to you and yours, and aren’t murdering people.
Millions, certainly. Probably about 2 of them, if we had that today I would be pretty confident. That is not likely to actually ever happen, or at least not before it wouldn’t be enough.
ETA: I am near 60 & husband just past that so we don’t need to plan for as long. It would be more if we were younger.
$300,000
High yield savings account would get you a little over 1k$ a month from interest alone. I already live on less than that. I’d just live off the interest.
