How much money would you need to *retire*

Discussion in 'Community' started by Mr. Anderson, Jul 18, 2003.

  1. Mr. Anderson Moderator emeritus

    Mr. Anderson

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    #1
    After seeing the 'how much do you earn' thread it got me thinking about what it would take to not have to hold a job and do what I want, not ever worrying about money.

    Unfotunately, for me and my family it would require several million dollars. Investing things correctly and living off the interest and earnings would be the way to go - you just need a big enough cache of cash ;)

    Back in the late 90s there was an article about employees at AOL and other really active stock companies that had set a limit to their stock options and when that was reached they'd bail. The average was $7 million. I'm thinking most of them had wished they hadn't held out.

    D :D
     
  2. wdlove macrumors P6

    wdlove

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    #2
    My wife figures that she will have to continue to work after retirement age. She plans to work as long as physically possible. We don't have any saving so it will contiue to be paycheck to paycheck! I have always had a great fear of gambling!
     
  3. patrick0brien macrumors 68040

    patrick0brien

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    #3
    -Mr. Anderson

    The last I heard, if averaged across the entire country's ecomomies of scale, the "price of entry" to true financial independace, meaning you could earn $100,000/yr is $3.6m invested evenly across index funds, treasuries, bonds, and real estate.
     
  4. MrMacMan macrumors 604

    MrMacMan

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    #4
    I will never retire, I mean maybe 25 Million.

    But I mean retirement would really bite for me, I would have nothing to do.

    It would be a hell of alot.
     
  5. eyelikeart Moderator emeritus

    eyelikeart

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    #5
    I honestly don't know...retirement is an intimidating thing to get into for me. I set it up last year, but haven't contributed consistently to it. :(

    As for when I want to retire, I don't know. I hope to continue loving my work in the future, and maybe not having to. My dad turns 72 this year and still goes out of town every couple weeks on business. ;)
     
  6. jelloshotsrule macrumors G3

    jelloshotsrule

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    #6
    wow. 72 and still getting his freak on eh....


    oh i mean, "business trips". right... yeah...
     
  7. WinterMute Moderator emeritus

    WinterMute

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    #7
    Given that you could make around £100K out of a well invested £1million, I reckon a mill would do nicely, realistically maybe 2 or 3 for comfort and spending cash, but after you've spent a few £100K's you'll run out of things to buy, this is about retirement, not living like a king.

    Let's say enough to keep up with major Apple hardware upgrades and enough to pay for the 20-year old mistress I would probably have to have...:D

    Hey, I got an image to protect, y'know?
     
  8. Rower_CPU Moderator emeritus

    Rower_CPU

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    #8
    As others have said, it depends on what you plan on doing during your retirement. If you're going to be going on cruises all the time, you're going to need more than someone who's going to sit at home for the rest of their life.

    Also, like wdlove said, many people are continuing to work after their retirement for financial reasons, and for something to do.
     
  9. Mr. Anderson thread starter Moderator emeritus

    Mr. Anderson

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    #9
    Well for me, retirement would be not having to worry about a job, but that wouldn't mean I wouldn't do anything :D

    I'd be able to do 3D animation and spend most of my time on the computer as I like, not have to deal with what other people want.

    $3 to $4 million would work for me :D

    D
     
  10. Abstract macrumors Penryn

    Abstract

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    #10
    It would cost alot. If you're in your 20's and 30's, we may actually live well beyond our 100th birthday, especially if we find a truly effective way to fight cancer, and find a cure for Aids, etc. In this scenario, you would have to work until you're 75 or so in order for your money to last until your death. You can't possibly retire at 60 or 65 and live until you're 107 years of age!! You wouldn't have enough money.
     
  11. eyelikeart Moderator emeritus

    eyelikeart

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    #11
    hehe...I doubt it...whenever I talk to him he's going to bed early...
     
  12. Mr. Anderson thread starter Moderator emeritus

    Mr. Anderson

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    #12
    Ah, that's why you have kids ;)

    But I see myself working as long as I can see the monitor and move the mouse.

    I just won't drive when I'm 85....

    D
     
  13. Veldek macrumors 68000

    Veldek

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    #13
    Well, I think I could pay 500,000 to 600,000 EUR in a life insurance that will pay my monthly income equal to now and with almost 2% increase every year. So this should be enough to retire at once.

    Of course, I would need some more because as I don't work anymore, I need some hobbies to waste my time.
     
  14. jefhatfield Retired

    jefhatfield

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    Jul 9, 2000
    #14
    when i turned 18, if i had invested 2k in an ira for ten years, at the rates i was quoted, would have been enough to make me worth a cool million at age 70

    for lump sum amounts of money to live on, to survive, i would need 250,000 dollars...to live ok about twice that

    and to live like a king, over a million would be great

    but for those of you who want millions, all i can say is either one must be very bad with money and investments, or they have very expensive tastes...or they just don't do the math:p
     
  15. robbieduncan Moderator emeritus

    robbieduncan

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    #15
    OK then: all in £:

    Pay off mortgage: ~145,000 outstanding.

    Pay off car: 2,500.

    Buy 2 more flats in central London: ~500,000 (to live off the rent!).

    Investments for a rainy day: ~ 300,000

    So total is less than the magic £1,000,000

    And yes I think I could live comfortably on the rental income from 2 flats. As I would have no other income I would have ~£2,500 pre tax per month to live off, but no mortgage to pay.
     
  16. britboy macrumors 68030

    britboy

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    #16
    I reckon that to be able to have a very comfortable life after retirement, I'll need somewhere between £750k and £1 mil. saved up. With that, I could just live off the benefit, quite happily.

    If I'm going to live to a working age of 75 (not that unrealistic given the constant rise in life expectancy), the to have a pension worth £1 mil I only have to pay in less than £8k a year once I start working.

    Then again, if all I want is a pension of around £75k a year, i only need to put in about £1800 annually...... That sounds like enough.

    Goodness, I really need to get out more :rolleyes:
     
  17. wdlove macrumors P6

    wdlove

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    Oct 20, 2002
    #17
    Working after retirement is a very healthy choice. As Mr. Anderson said it doesn't have to be a regular job. Those that keep active even if it's volunteer work tend to live a longer and healthy life. It's mental and physical quality of life.
     
  18. bbarnhart macrumors 6502a

    bbarnhart

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    #18
    My goal has always been $1.5 million at age 55. In 21 years (when I'm 55) that 1.5 million at 8% will bring $120k or $84k after 30% in taxes, but that will be in 2024 dollars. Then throw whatever social security income on top of that (if there is any left) and I should be doing okay.

    I don't know if I'll be able to make it to my 1.5 million goal by 55 though. See, along the way I got married and had two kids. My wife thinks money is to be spent. She grew up dirt poor and has to make sure that our daughters have everything she never had (sorry for the rant, I'm staring at my newest credit card bill).
     
  19. mactastic macrumors 68040

    mactastic

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    #19
    How much to retire?

    All of it!

    J/K, but enough to not have to work anymore.
     
  20. zimv20 macrumors 601

    zimv20

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    #20
    i'm not giving an amount, but i retired at 33.
     
  21. 3rdpath macrumors 68000

    3rdpath

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    #21
    i decided a long time ago to spread my retirement over my entire lifetime. call it semi-retired for lack of a better term. i watched my father work really hard, make a lot of money, finally buy his lake house and then get ill and die before he could enjoy his "golden years"...life is uncertain.

    so now i work hard when i choose to take a job but otherwise i spend most of my days doing pretty well what i want to do...hanging with the wife and kid, working on the house, puttering in the garden...whatever. sure, i gave up the exotic cars and the designer clothes but what i now own is my "time".

    maybe i read too much thoreau...but it works for me.

    so how much money to retire? not much.
     
  22. GeneR macrumors 6502a

    GeneR

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    The land of delusions, CA.
    #22
    Hmmm. It depends on the method of investment doesn't it?

    These are just rambling opinions and do not constitute investment advice but I have heard that muni's are a good way to go if you got the change. (Avoiding Orange County would probably be a good idea.)

    For example, if you had the money to invest, non-taxable municipal bonds sounds pretty good. At, say, 4% annual through a local municipality for say, $1 mill or $2 would do pretty well for a lot of people.

    $1 mill @ 4% = $40k/year
    $2 mill @ 4% = $80k/year

    And if the muni is a tax free, fixed interest then that would be a helpful chunk of change that's tax free on both the state and federal level.

    Then again, if you could set up a corp for property management, then the same amount may be good for developing equity in housing rentals.

    Just a few thoughts.
     
  23. pseudobrit macrumors 68040

    pseudobrit

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    #23
    A million dollars. I could live on $40-50k a year just fine.
     
  24. Abstract macrumors Penryn

    Abstract

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    #24
    The problem with earning $40k a year, or even $80k per year in interest is that with inflation, your $40k per year is going to be worth nothing. If you retire at 65, say in the year 2040 or so, and you earn $100k in interest every year, well if you're still alive by 2070, that $100k may be chump change and not be able to allow you to live comfortably for very long. :(
     

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