The question is prompted by an unrelated topic on another board in which the topic came up.

Just a fun question. No need for complex analysis of investment options, etc. To simplify, let's use annual income rather than a total number since age comes into play. Also, assume it would be indexed to inflation.

Basically, how much annual income would it take for you to consider yourself "set for life" and have no need or desire to work for additional spending money?

Hmmm, lump sum of about $250,000 up front to settle things than about $60,000 a year after taxes and I could be a happy camper.

Don't have a specific number, you can't ever tell what the future holds, but a wise man that I worked for for years once told me "doesn't matter how much you make, always put a bit away every payday, ALWAYS pay yourself first!"

9.2 billion USD and the island of Sardinia

I'm 57, and I would like my retirement date to be 60. I work for a power utility and we have a pretty hood health ins plan. To keep it after retiring, and my property taxes, is close to $30,000 per year.
I would think to cover bills, food, vacationing,
another $50,000 after taxes.
So, close to $100,000.

Option two, sell house, downgrade ins (when I need it the most) find a safe place to live (maybe Taco Bell), $60,000-$70,000.

quote:

Originally posted by dwright1951:but a wise man that I worked for for years once told me "doesn't matter how much you make, always put a bit away every payday, ALWAYS pay yourself first!"

Would you have thought that was good advice if your paycheck bounced because receipts were a little light and he "paid himself first"? It's an often repeated, but seldom practical bit of wisdom which has absolutely nothing to do with the question.

Again, I'm not asking how each of us would get the "set for life" money. I don't care if you saved it, inherited it, or sold your kidney, just a fun exercise of what if.

Figuring on very conservative investments, I'd want $4.7M in the bank to generate replacement income for me & Mrs.BurtonRW w/o having to spend down the principal.

Anyway, I've always subscribed to the probably fake Rockefeller answer to the alleged question, "How much is enough money?", to which he probably did not respond, "Just a little bit more."

-Rob

$200k / yr.

With the house paid off? $20K/yr

Without? $40K.

I'd need to be somewhat frugal, but I could easily get by with those numbers.

Health insurance is a pretty big 'X-Factor'.

Hard to say.

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14,409,596 Rupees

For retirement purposes, at 65 years old, it would be no less than $2M cash (invested), and house paid for.

quote:

Originally posted by Skins2881:
14,409,596 Rupees

I assume you'd also need to own your own bullock free and clear to make that work?

I pay myself a base salary of $60k a year. I try my dangedest to live off of that. At the end of the year we do corporate distributions.

This year the distribution should be $100k+. If we can maintain living off the 60k per year, and maintain corporate distribution to be 100k+ our nest egg should grow rapidly.

We have worked hard to make the company debt free. Now hopefully we can enjoy the fruits of our labor.

I know you said you don't want a lump sum number, but the wife and I are shooting for $2M in our investment accounts so we can retire. House will be paid for.

With a PV of $2M, and a 3% return we would be able to withdraw roughly $7k per month for 40 years. Having $1.5M drops the monthly withdrawal number down to a little over $5k per month.

There are obviously a lot of variables that go into the equations, but it gives us a rough idea.

That does not include SS. We both work full time in corporate America so we will get something from SS...but who know what SS will look like in ~16 years when we would like to stop working.

We save, save, save as much as we can. It really sucks sometimes, but I try to keep my eye on the prize. We would like to live (rent a place) on a island from ~Nov 1 - ~Mar 31 every year when we retire. Then back in CO from ~Apr 1- ~Oct 31. Wash, rinse, repeat.

quote:

Originally posted by Sig209:
Health insurance is a pretty big 'X-Factor'.

Hard to say.

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Once you hit 65, you go on Medicare.

One of the luckier moves I made was to get supplemental F coverage. That covers everything. My premium is up to around $750 a quarter, plus of course the basic deduct from Social Security. I have Part B coverage, and since one of my meds runs about $8500 a month, the other meds I pay for are practically nothing.

When my wife turned 65, we got her in the same deal, around $530 per quarter, but now it pays her gym and Y fees, ~$120/mo. so it's practically free. My gym fees would be paid, too, if I were still healthy enough to go.

I hate to think the hundreds of thousands of dollars of medical attention, exams, tests, lab work, a couple of hospital stays, etc. I have had. I told the insurance guy if I had any influence, I would name my grandkids after him. So far, I don't.

No clue what health care will be so who knows.


If need be, I'll burn my fingerprints off, walk in the hospital and say No speak english. Fix me. Then walk out.

Probably somewhere north of 10 million a year sustained income for me to just say, "Eh, that should be enough."

Otherwise, I'm going to keep pushing towards making more money. Why stop? I don't wish to just be comfortable, or even rich. I'm gunning for F You Rich.

Well, it seems the more I make, the less money I have.

So realistically, I'll require unlimited funds.