2007-11-12 01:45:48 · 9 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Already got the answer to that one.... I worked out that a Million would do me... at 5% interest... (minimum)... that would give me £50k a yr. After tax, that would be ok for me to live a very comfortable lifestyle.
Are you gonna give me a Million Pounds then ??? !!
2007-11-12 01:55:47 · answer #1 · answered by Sam G 5 · 1⤊ 0⤋
If you invest not just bank you can get by on 25 times your cost of living. That gives you a safe withdrawal rate of 4% increased by inflation each year for about 30-35 years. You can withdraw less and have it last forever.
Banking you would need to earn interest of your cost of living plus inflation. So if cost of living were 10K per year and inflation were 3% you would need a million.
Assuming 4% interest income get 5% and you could take out 20K per year.
2007-11-12 09:59:41 · answer #2 · answered by shipwreck 7 · 1⤊ 0⤋
Dependant on the life stye you choose to live. If you had $1 million dollars and were able to earn 6% you'd be able to take $50k per year out and still have principal grow by $10k per year. Personally, I believe that $2 million with a 6% assumption will give ample $$$ to live on relatively nicely.
2007-11-12 10:09:32 · answer #3 · answered by thebigm57 7 · 0⤊ 0⤋
Depends on what your needs are for current living expenses.
If you can live on $5/month, your investment requirement is much smaller than if you need $150,000/month for your living expenses.
SO, as it is, you do not provide enough information for an adequate answer to be given to your question.
2007-11-12 09:54:19 · answer #4 · answered by me 7 · 0⤊ 0⤋
How much interest do you need to live on?
2007-11-12 09:59:20 · answer #5 · answered by npk 7 · 0⤊ 0⤋
The safe withdrawal rate is about 4%.
You have to remember that if you are paying a financial advisor and are paying high investment costs, that cuts into your 4%.
This should help you:
http://firecalc.com/firecalc.php
2007-11-12 10:38:44 · answer #6 · answered by Anonymous · 0⤊ 0⤋
figure out it your self == take the amount of money you require to live happy and say it is 5 dollars you would need 100 dollars 0r if the figure is 5000 it would be 100000 dollars!!!
2007-11-16 12:10:12 · answer #7 · answered by mister ed 7 · 0⤊ 0⤋
I can tell you using some what-if interest rates, but what would your monthly income requirement be?
2007-11-12 10:24:27 · answer #8 · answered by truttman 3 · 0⤊ 0⤋
Dunno, but I'd love the chance to find out !!
2007-11-12 09:53:42 · answer #9 · answered by carqueen1 4 · 0⤊ 0⤋