To live a moderate life style?
2007-03-04 05:05:36 · 7 answers · asked by TD1HOGY2K 1 in Business & Finance ➔ Personal Finance
you will need a lot the cost of living goes up every year
2007-03-04 07:34:57 · answer #1 · answered by bernadette d 2 · 0⤊ 0⤋
You need to have invested about 10-12x the amount you want to live on per year. For example, if you want $100k to live on, you need over a million invested. This way, if you invest in decent mutual funds & earn 10-15% on your money, you can ideally draw off 10% or a little less to live on & leave a little in there to make up for inflation. How much it will cost YOU personally to live, of course, depends on what you consider a reasonable lifestyle. Finally, I know there is no accounting in here for what you might receive from Social Security. That is because I have serious doubts about whether there will even BE Social Security when I retire (I'm in my 30s). Besides, Social Security doesn't pay most people nearly enough to even live a modestly good lifestyle. My cats require more upkeep than I could ever get out of the government, for crying out loud!
Best wishes!
2007-03-04 05:18:20 · answer #2 · answered by Tom's Mom 4 · 0⤊ 0⤋
Once you retire, you probably want a fairly stable income from your retirement savings without having to spend a lot of time managing the money. You might also expect to comfortable on an annual income of 80-90% of what you earn now, since your expenses will go down.
So if you earn $50K/year now, you will probably want $45-50K after retirement, and assuming conservative investments at that point (lower gain but lower risk) you can expect to earn 5% on your money, and will therefore need about $1,000,000 invested to spin off $50,000 a year at 5% without ever running out of money.
If you start investing regular dollar amounts out of all earnings (10 or 10%) at a young age, it's actually quite hard not to end up with a million!
Good luck...
2007-03-04 05:15:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you want to get an actual number, you are going to have to factor in a lot of things. Do you just want to replace your current income with a no-principal-loss investment portfolio?
Download the free calculator at the URL below and put in your age, current investment level, expected ROI, and an inflation rate.
It will tell you what kind of spending power you will have in the future based on your best estimates today.
Good luck!
2007-03-04 05:16:01 · answer #4 · answered by Ethan 3 · 0⤊ 0⤋
If only there were an easy answer to your question!
There are so many factors involved... You really should look into some online calculators. I've linked one below, but there are many available on financial web sites.
2007-03-04 06:05:45 · answer #5 · answered by ISOintelligentlife 4 · 0⤊ 0⤋
There are four styles:
1) Millionaire Style.
2) Employed Style. (100% of your current salary)
3) Unemployed Style. (50% of your current salary)
4) Mexican Style. (You move to Mexico. This is the most popular style)
2007-03-04 07:30:09 · answer #6 · answered by Anonymous · 0⤊ 3⤋
one million dollars
2007-03-04 05:14:02 · answer #7 · answered by katie d 6 · 0⤊ 1⤋