How much money would you need so you never need to work again and could live comfortably?

Question

Unfortunately I don't have alot of money, but I was wondering how much you would need so you could live comfortably from the interest?

What is the best way to invest this much money so you could get a regular income from it?

Also, what is the minimum amount of money you would need so you can invest in shares?

Anyone know of a beginner website so I can learn about investing?

Thanks for your help.

Answer 1

How much you need would be directly attributable to how much you can comfortably generate in a year.

Personally, I used to think $4 million, then $1.2 mill, but now I'm thinking I need much much less because I know I can make much much more in any given year!

As for investing, there's a pretty loaded question! There's lots of ways to get regular income. One of the easiest is with covered calls. I know several people who just live off of the income generated from this monthly process.

Try compoundstockearnings.com for more info.

As for getting started learning about investing, here's what I recommend.

You ask a very broad question, so be prepared for a pretty long answer. Just take it in chunks!

How to invest depends on what you already know. We'll assume that you're beginning.

A good primer is How to Make Money in Stocks by William O'Neil. You can get it cheap just about anywhere. It’s widely available new or used.

Another good one is one of Jim Cramer's books.

But books will only get you so far. At some point, you'll also want to get at least a little training. There are some great education companies if you want to make the investment. Investools.com or optionetics.com are both very good companies as is tmitchell.com

For free, you can start by visiting thestreet.com and investopedia.com. That'll get you a pretty good primer so at least you'll understand what the markets are and what a stock is, etc.

If you get a chance, watch Mad Money on CNBC. Don't trade any of his picks. Just use the show to get you to understand some basics and get a feel for the market itself.

Next, subscribe to something like investorsbusiness daily or something like that that can help you identify good stocks.

Once you understand stocks, go to 888options.com. It's a website that'll help you understand options (what they do, how they work, etc). You don't need to trade them, but the more you know, the more you'll see how options can really be the safest way to invest (once you're educated).

I know that’s a LOT to absorb. Just take it one step at a time for now. Start with a book or two to give you an idea of where to begin.

If you're starting with a smaller amount of money, you'll probably want to save up at least a few dollars so you don't get eaten up by commissions (around $10-15/trade). When you have say $200 or so, you can put it into an ETF or into a growth stock. Meanwhile, you can always papertrade to practice (highly recommended).

Start slow, then as you figure things out, you can buy more shares.

Congrats again on getting started. If you have any questions, please let me know.

Hope this helps!

Answer 2

How much risk can you take? If you want to take no risks at all then 2 million in a goverment bond paying 4% will give you a comfortable £80,000 a year. An index linked bond would protect you from inflation but the returns would be variable. Riskier again would be corporate bonds and equities, but potential gains (and losses) are greater. Property can give you income but requres a bit more active management and can be harder to turn to cash in emergencies.

You could start buying shares with £1 but remember that if you are not very savvy to only put down what you can afford to lose, give the investment a few years to grow and to set yourself a stop-loss ie sell if you lose 15% (it's very hard for a share to recover 15%)

Have a look at www.thisismoney.co.uk

Answer 3

Assuming one is a careful investor and you wish to live comfortably but not extravagantly, about $2,000,000. That will provide plenty to live on and enough to conpensate for the ravages of inflation during future years, wich is more of a concern than current living expenses.

A decent book for beginning investors is "Investing for Dummies". It is a good place to start. Your library might have a copy. If not most book stores carry it. About $20.00--3 cups of Startbucks.

You can start investing in mutual funds with about $500 if it is a fund with a front end load. You can then add $50 a month or so. Funds with front end loads (sales charges) are not as bad as some people would make them out to be. They generally have lower expense ratios than no load funds. And some have very good track record.

If you want to buy direct shares in companies, you can also do it with a small amount of money through Sharebuilder, but I think mutual funds are better for beginners. They have less specific risk than investing directly in stocks. If you do not believe that, ask someone who invested in World Com or Enron.

Answer 4

If you make informed decisions and approach your penny stock investments with the same thoroughness that you’d use in your other investments, you too can unlock a whole lot of profit potential. Learn here https://tr.im/dEq7d

It’s absolutely true that penny stock investors can make very quick gains. Synutra International, Inc. (NASDAQ: SYUT) is a great example of a penny stock. This dairy-based, nutritional-products company has jumped from a little Bulletin Board operation to a billion dollar corporation. The company finally graduated from Over-the-Counter status to the NASDAQ Stock Market bringing with it 113% gains in less than two months.

This happens all the time and it’s how some of the best investors in the world became the richest investors in the world. Buying some shares for pennies on the dollar and selling at $10 or $20 is possibly the fastest way from being a hobby investor to a super investor

Answer 5

A good free site for learning about the stock market and how to invest in it is

www.investopedia.com

This site also has a simulator where you can practice investing in the Stock Market using virtual money.

Depending on interest for your living is a very uncertain way to live. The interest rate can change drastically over two or three years. And the interest income you get this year may be cut in half next year.

Also, the amount of money you need to live on comfortably depends on the lifestyle and on the place where you choose to live.

Answer 6

It's not good to paint people with such a broad stroke but having said that I am familiar with all your points. I have friends and acquaintances who are piss poor yet spend money so stupidly. I knew a woman years ago that was a struggling single mother with over a dozen bills in collection. I offered to help her get her finances in order. Turns out all of the bills were between $20-$300 each. We had all but the biggest bill paid off in only 3 months-most were willing to work out very generous payment plans once they heard she was willing to finally pay them. From my experiences it appears too many people just never get taught good responsible financial skills. Often the very folks who are poor came from families that were also poor-again probably from poor financial skills. I believe anyone could make it with low wages provided they make appropriate changes to their lifestyle and buying habits. Then again we live in a very self-centered instant-gratification fast-food type of society. My town used to have a ghetto of sorts not far from a place I stayed one year. I was amazed at how everyone I saw living there had money for expensive smart phones, cigarettes and surprisingly new/supped-up cars (fins, spokes, pipes, etc.). I could go on and on. This isn't to say that all poor do this either-and I'm sure you realize this. But admittedly you've seen about the same things I've seen and we can agree everyone, us included could stand to make better financial choices every day.

Answer 7

Depends upon what are your comfort levels and mind you, these levels have a tendency to go up the more confortably you are living. It is natural. Monkey was OK in its arboreal state but it must needs come down and try to walf upright on hind legs. But then perhaps neither you would have been thee to ask this question nor I attempting to answer it. So you have to first determine your comfort level and then calculate how much it would cost keeping in mind that with the inflationary tendenies in the air these charges are likely to go up. You may have to run to be in the same place.Then your ever burgeoning liabilities-wife, children etc. has to be provided for.The list is like the never ending tale. Coming to investments the markets are unforeseeable and eternal vigilance is the price you have to pay not only for freedom but living at your levels. I am not aware of any site that would guide you in the matter. But keep your eyes open while seeing the financial news on tv and the papers, also you can consult some reputable investment consultants for wise investments and

and always be on the alert which may not go in your ideas of living comfortably but then to avoid discomfort you have to he vigilant.

Answer 8

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Answer 9

i don't know about investing but the government reckons you need to put away about £300,000 for a pension so that you can have an income in retirement of £10,000 a year.

I can't see me ever owning my own home let alone saving that much.

if your from the UK you can check out this site www.moneysavingexpert.com this gives you tips on all sorts of money issues.

i would also recommend that you have a look at the Working Lunch website (a BBC programme) they talk about investments and you can send questions into them. they brake down the jargon into understandable chunks

Answer 10

It all depends on your standard of living. 1/2 a million invested wisely could do a lot. Some places you only need $1000.00 to open an account,then you can add whenever you want.you have to watch how much their fees are. I am doing pretty good With IRA CD right now. you can get monthly checks if you invest $5,000.00 or more or set your own time,3,6,months.