4% is the safe withdrawal rate based on the Trinity study. And you can actually

Jul 7, 2020
2:58:44pm

Baron AKA "Dear Leader"

do more if you vary your withdrawal rate. But my assumption was based on the fact that median income is 60k and most people get to retirement with basically nothing so $1 million would make them set.

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Baron

Previous username: jarocho
Bio page: Baron
Joined: Sep 1, 2006
Last login: May 4, 2024
Total posts: 94,189 (32,760 FO)

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Messages

Author

Time

POLL: At what point would you consider yourself “set for life”?

blackandblue

7/7/20 2:40pm

Most people (not cb) easily at 1 million. Most if not everyone on CB by $3

Baron

7/7/20 2:43pm

$1M? Maybe if dividends were higher or there was even a touch of interest from

crack

7/7/20 2:45pm

You could basically live off $40k for the rest of your life without running out.

Baron

7/7/20 2:52pm

I think you are right. But I just don't see how living on $40k when I am 50

crack

7/7/20 2:55pm

4% is the safe withdrawal rate based on the Trinity study. And you can actually

Baron

7/7/20 2:58pm

Thanks. I will take a look at the Trinity study. I haven't heard of that before.

crack

7/7/20 2:59pm

Here is a blogger talking about it:

Baron

7/7/20 3:02pm

Thanks.

crack

7/7/20 3:06pm

I wouldn't consider myself "set for life" if I have to live a lifestyle that's

Scratch

7/7/20 3:03pm

Yes. I agree.

Baron

7/7/20 3:05pm

4% is too high when you have such low interest rates on your savings.

scott715

7/7/20 4:08pm

No it isn't. It is very conservative.

Baron

7/7/20 4:12pm

RE: No it isn't. It is very conservative.

scott715

7/7/20 8:58pm

What a dumb article. Look at my link who looks at the numbers not

Baron

7/7/20 9:03pm

That wouldn't even cover my SF rent.

ReyOso

7/7/20 3:14pm

For 50, that seems low. If 65 or 70, then yes.

blackandblue

7/7/20 2:48pm

You are right on the $1 million number. I made some assumptions that may not be

Baron

7/7/20 2:53pm

$3 MM won't even cover my yearly yacht expenses.

Broda

7/7/20 2:49pm

What reputable financial advisor says you’re set w/ $1M at 50?

BYU'01

7/7/20 6:28pm

A million at 50 is totally fine if you are planning on working until 65

LaserCoug

7/7/20 9:12pm

Now.

grandpacoug

7/7/20 6:28pm

Assets quickly liquidated? Or assets in total?

immacougar

7/7/20 2:43pm

I wouldn’t include primary residence in this since I don’t consider that an

blackandblue

7/7/20 2:45pm

I'd look more at what kind of monthly cash flow you have, not money in the bank

CougarHut

7/7/20 2:45pm

Next assumption- your only cash flow is coming from this total sum.

blackandblue

7/7/20 2:46pm

You'd still want a nestegg for emergencies

CougarHut

7/7/20 2:49pm

$1mil a year is easy. That’s 50k/yr without touching principal. Income goes up

valleus

7/7/20 2:48pm

assuming all debts are paid, i agree with you.

blueaussie

7/7/20 2:53pm

Net worth is assets - liabilities. You don't have 1mil if you owe half of it.

TailgateU

7/8/20 2:19pm

yeah, but depends on your age. 50k/yr will not be much for someone in 60 years.

viper

7/7/20 2:55pm

It’s not even much right now.

JohnnyComeLately

7/7/20 2:56pm

Where are you getting a risk free 5% return these days?

crack

7/7/20 2:57pm

Historical return of an index fund is above 5%/yr for the past 100 years. So if

valleus

7/7/20 3:04pm

$50k a year is "set for life: or "just scraping by?"

Plato

7/7/20 3:39pm

It makes me wonder how much money kids costs me.

Belboz

7/7/20 3:56pm

You want to be a grandpa that spends some money on grandkids. Don’t be scraping

blackandblue

7/7/20 4:23pm

Mine are all rolled together. I have 2 grandchildren already.

Belboz

7/7/20 5:28pm

It is not hard to live well on 50k a year. 50k a year provides a decent house,

valleus

7/7/20 4:56pm

Not when your family's health insurance premium is $22,000/yr

Plato

7/7/20 5:52pm

If you make 50k you can get health insurance way cheaper than that

BYUFootballisBack

7/7/20 10:31pm

$1M probably isn't going to provide enough income to live on

Doctor Rosenrosen

7/7/20 2:55pm

$3M and debt free

Croweater

7/7/20 3:07pm

One can survive with that.

Archaea

7/7/20 3:08pm

<< Deleted >>

Croweater

7/7/20 3:10pm

The reason people set higher numbers is the current coupon rates are so low,

Archaea

7/7/20 3:07pm

Of course it depends on what the $3MM is. House? Bank account with lousy interest? Stocks?

hitechcpa

7/7/20 3:13pm

It's all fungible.

TailgateU

7/8/20 2:22pm

A million at 50 makes me feel good about being ready to retire in a decade or so

LaserCoug

7/7/20 3:23pm

One of the toughest parts for a lot of us around that age

Belboz

7/7/20 3:53pm

If I had a million, I could theoretically live off the interest, so I guess that would be "set for life"

RUNBYU1

7/7/20 3:26pm

You can live off $10,000 per year? That is impressive

Croweater

7/7/20 3:51pm

Average index fun is 5% return per year over the past 100 years = $50,000 per year. No mortgage, car payments, etc. so

RUNBYU1

7/7/20 3:55pm

Calling and Election.

lyrok

7/7/20 3:35pm

Home paid off and $1M would do it. There are a couple of part-time gigs I am

DC12

7/7/20 4:11pm

Props to all of you who can or do live off of 50k/year.

blackandblue

7/7/20 4:48pm

And that's cheap!

Plato

7/7/20 4:51pm

My wife says 3 million, but I've seen her Amazon addiction in action, so I'mma

DeekLyfter

7/7/20 7:37pm

$30M+

Cougstreak

7/8/20 12:28pm

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