If you could have any amount of money, right now, what do you think is the minimum it would take for you to comfortable retire, for good?
2006-12-13 10:22:50 · 4 answers · asked by T S 3 in Business & Finance ➔ Other - Business & Finance
I would need 1 million. I want $50,000 annually to live off.
A simple formula : Take any amount, divide it by 2 and then drop a zero.
$1,000,000.oo divided by 2 = $500,000.oo DROP a zero = $50,000.oo.
Can you live off $50,000.oo a year?? If so then you will need to have one million dollars in an investment account and NOT a bank savings account.
Simple simple
2006-12-13 11:19:44 · answer #1 · answered by Kitty 6 · 0⤊ 0⤋
Assume you retire at age 65 and live till age 85, and need $40K a year to live. Lets say you want to leave your money to your family when you die. Then assuming 4% return on your investments you will need $1 million in savings. That leaves your savings untouched for your heirs. If you want to go to zero balance, you need $40K x 20 years or $800K less the diminishing return on your savings. Again assuming a 4% return over 20 years you initial balance would need to be about $525K then when you die at 85 you would be in dept of about $750.
Again you need solid investments and no plunge in the market.
2015-03-02 05:17:53 · answer #2 · answered by Wingnut 2 · 0⤊ 0⤋
This depends on if there is just you, or whether you have a family. It also depends on the lifestyle you are use to living.If you are a loner, some people can rest comfortably with a nestegg of about $100,000.While other loners who like to live extrvagantly need something around $250,000.
2006-12-13 10:27:22 · answer #3 · answered by WC 7 · 0⤊ 0⤋
About $3mm dollars.
2006-12-13 10:33:24 · answer #4 · answered by dapixelator 6 · 0⤊ 0⤋