$50 mil, just enough to be reckless and still retire. I’d never work again. Vacations 24/7.
50 million dollars, the ransom for
KelseyChelseaGrammerClinton in 1998.Whatever I need for churnin passive income to be comfortable and do some travel til end of life
10 million. Maybe I’d take 5 if i was going to leave the country, which I might with that much.
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.
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.
💯 👏
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.
1mil but I’d probably still work. I’d wanna be a fulltime BERRT nurse (Behavioral Emergency Rapid Response Team) and just wander around the hospital at night calming patients down. I’ve done a little BERRT work but most hospitals won’t pay a living wage for someone to do that full time. It’s usually just lumped on the psych unit charge so they can only respond when they’re not busy which defeats the point of an emergency response protocol. Doing that full time and just wandering around the hospital giving fake cigarettes to people with Alzheimer’s and talking people withdrawing into sticking it out through their detox protocol would literally be my dream come true LOL.
How shit capitalism is. My friend, if I was one of these $200-300-400-500k passive incomes people have been posting, I would gladly live far more modestly so you could do what you love.🧡
❤️
4 million invested with 5% withdrawal rate and 400k in HYSA. 200k per year with 2 years in reserve to buffer any sequence of return risk on the 4M. Adjust spending and rate as needed.
Why 5% withdrawal rate? Also, what do you do with your buffer in a year where the market crashes? Skip adding to your reserve that year and hope for a recovery?
many got burned on that formula before 2008. 45% of the entire value of the stock market is tied up in the magnificent seven of NVidia and AI. all go poof.
There’s the famous 4% rule that has been amended to 4.7%. I rounded up to 5%. Just a nice even number of 200k per year. With the flexibility the buffer adds and the ability to cut back in a down year I’d be comfortable with the extra .3%.
The buffer is there to live off of in a down year or years and not pull 5% out of the investment portfolio. Either 100% comes from the buffer or it can supplement a much lower withdrawal rate. In a known downturn I could reduce my expenses, minimize withdrawal rate, and fund the rest of the year with the buffer. Essentially I don’t want to pull $$ out of the 4M on a down year that will prevent recovery.
In an up year or a year I didn’t spend the full withdrawal amount, I can replenish. The 5% rate over a long time period will still let the portfolio grow. So if I pay myself 200k per year static, my rate could also naturally decline. There are a lot of factors (inflation, expenses, lifestyle) but that’s the high level framework.
Somewhere between 5 and 10 mil, even at only 1% interest rates that should cover everything I reasonably need
3.5 million. I’m 31
2M. I’m also older so this should be enough.
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.
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.
Please don’t. I mean, first, please don’t. But also think of the people who will be sent to search for you and will eventually find you. And finally, please don’t.
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?
Literally everything in existence is more comforting and simultaneously discomforting than the nonexistent void.
Comfort, as well as discomfort, are things not conceivable nor experienced in the void of nonexistence, since, y’know, they don’t exist (along with everything else).
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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!
