Living off investments

Archived From: Finance
  • Page :
  • 1
  • Text Only
Voting History
rated:
Im sick and tired of working!!!

i know people are out there hustling making $$$ but how much money do i need where i can put it in some sort of safe investment and live off the interest/returns on investment.

What do i need to do? How much do i need.

Member Summary
  • Also categorized in:
Thanks for visiting FatWallet.com. Join for free to remove this ad.

depends.....pic?

Familiarize yourself with this tool:

FireCalc

And you'll know more than you'll ever need to know about how to live off a pile of assets.

Generally speaking the good rule of thumb is a "safe withdrawal rate" is 4% of your total assets *at retirement* plus inflation. So it'll likely look something like 4% the first year, 4.1% the next year, 4.22% the next year, etc. Historically that practically never fails for a 30 year cycle no matter how you allocate across your accounts 50-50 bonds vs. equities, 60-40, 30-70, etc. It's not guaranteed particularly if you manage to invest in an idiotic manner, but it's a pretty reasonable assumption.


4% withdrawal rate means that without social security(since early retirement) you need $1 million to produce $40k a year in income and that $40k will increase each year by inflation.

Mastayau said:   Im sick and tired of working!!!

i know people are out there hustling making $$$ but how much money do i need where i can put it in some sort of safe investment and live off the interest/returns on investment.

What do i need to do? How much do i need.


How much income do you need each year?

currently im making 100k a year. im 30 and have 60k in my 401k. not much other savings or assets.

Currently making $100k is not the same as needing $100k per year to retire, or you're doing something wrong.

Read Mr. Money Mustach's blog. I don't agree with all he says and he is probably making a lot of money now with his blog but it is a good blog to show you somebody that retired early. One major concern is health insurance.

http://www.mrmoneymustache.com/

With 60k in a 401k you are way off retirement. Also why so little in savings on a relative high income ?

Mastayau said:   How much do i need.

You need about $2million.

Find yourself a sugardaddy. Problem solved.

I just got out of school 2 years ago, hit 100k this year. Before that i was making 30k while putting myself through college slowly.

Keep spending as though you're a college student making 30k, and you'll get to "your number" a lot faster. Wish I had done this.

Spend less, save more, invest the difference. I second the MMM recommendation - if you can save 50% of your income, you'll be free (or at least MORE free than your currently are, and can afford to take a lower-paid, more enriching job) in no time.

Frankly, if you can't save up somewhere around 40 kilobucks on a 100k salary, I think you're doing something wrong, but that's just my own take. You're taking home what, like 5k+ a month? Unless this is SF or DC or NYC, you should easily be able to bank 2-3 large per month, and with a few minor sacrifices push that up into the 3+ range.

It really depends on your expected post-retirement lifestyle and the age in which you retire. Retire at 60 with a 40K/year lifestyle can be done with a Million but don't try to do that at 45. Also heath-care is a big wild-card but in theroy Obamacare would cover you if you don't have enough income. At this point in time best thing for you to do is 1) try to figure out how to live on less, and 2) save and invest what you don't use to boost up your nest egg.

Mastayau said:   Im sick and tired of working!!!

i know people are out there hustling making $$$ but how much money do i need where i can put it in some sort of safe investment and live off the interest/returns on investment.

What do i need to do? How much do i need.


If you are making $100K as you say you are then you are on a good path already. If you want live off investments you will first need to research investing in rental property and my favorite of all: stocks and options. Another idea is to research something you are passionate about and turning that into a business. Start off with the basics, pay off debt, maximize your 401K, open a ROTH IRA. It takes time but if done correctly you can achieve it.

Mastayau said:   I just got out of school 2 years ago, hit 100k this year. Before that i was making 30k while putting myself through college slowly.Two years out of school and already "sick and tired of working"?

Mastayau said:   I just got out of school 2 years ago, hit 100k this year. Before that i was making 30k while putting myself through college slowly.

You have been out of school two years and you already want out? What field are you in that you can earn $100K two years out of college? Why didn't you resent the $30K/year job? Would returning to it be a possibility? You'd be earning $30K a year more than you would if you retired.

Mastayau said:   I just got out of school 2 years ago, hit 100k this year. Before that i was making 30k while putting myself through college slowly.
So you can save 70K a year?

larrymoencurly said:   Mastayau said:   I just got out of school 2 years ago, hit 100k this year. Before that i was making 30k while putting myself through college slowly.
So you can save 70K a year?

Probably more like 50K after taxes -- but if you can do that you will be well on your way to financial independence.

Peter Gibbons: What would you do if you had a million dollars?

Lawrence: I'll tell you what I'd do, man: two chicks at the same time, man.

Peter Gibbons: That's it? If you had a million dollars, you'd do two chicks at the same time?

Lawrence: Damn straight. I always wanted to do that, man. And I think if I were a millionaire I could hook that up, too; 'cause chicks dig dudes with money.

Peter Gibbons: Well, not all chicks.

Lawrence: Well, the type of chicks that'd double up on a dude like me do.

Peter Gibbons: Good point.

Lawrence: Well, what about you now? What would you do?

Peter Gibbons: Besides two chicks at the same time?

Lawrence: Well, yeah.

Peter Gibbons: Nothing.

Lawrence: Nothing, huh?

Peter Gibbons: I would relax... I would sit on my ass all day... I would do nothing.

Lawrence: Well, you don't need a million dollars to do nothing, man. Take a look at my cousin: he's broke, don't do shit.

stanolshefski said:   larrymoencurly said:   Mastayau said:   I just got out of school 2 years ago, hit 100k this year. Before that i was making 30k while putting myself through college slowly.
So you can save 70K a year?

Probably more like 50K after taxes -- but if you can do that you will be well on your way to financial independence.


More like $30k a year after the extra expenses and taxes required to live in an area that can support a $100k income for a moderate professional.



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

TRUSTe online privacy certification

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2014