Jun 22, 2021
11:10:33am
11:10:33am
Especially if you have kids and a house payment.
Let's be generous and say you earn 4%, net of all fees (I think a tough ask in this environment with where yields are, but still)..
That gets you $96k a year. Let's say taxes eat 25-35% of that depending on the state you live in, we'll round you to $75k after taxes (and we won't mention tithing...)
$75k / 12 = $6,250 a month
Now, if you don't have kids and your home is paid for, then I think you are fine. If you do have kids and a mortgage payment, that would be really tough.
**Edit: I don't think it would be really tough to live on this, I just don't think the assumptions are realistic. You're banking on 4% with incredibly low yields today. In order to get 4% in today's market you are investing in high yield bonds and taking a lot more risk, and you are not investing your principal in stocks and growing it.
Let's be generous and say you earn 4%, net of all fees (I think a tough ask in this environment with where yields are, but still)..
That gets you $96k a year. Let's say taxes eat 25-35% of that depending on the state you live in, we'll round you to $75k after taxes (and we won't mention tithing...)
$75k / 12 = $6,250 a month
Now, if you don't have kids and your home is paid for, then I think you are fine. If you do have kids and a mortgage payment, that would be really tough.
**Edit: I don't think it would be really tough to live on this, I just don't think the assumptions are realistic. You're banking on 4% with incredibly low yields today. In order to get 4% in today's market you are investing in high yield bonds and taking a lot more risk, and you are not investing your principal in stocks and growing it.
Originally posted on Jun 22, 2021 at 11:10:33am
Message modified by Mr. Rumsfield on Jun 22, 2021 at 11:13:04am
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Alright, alright, I'm man enough to admit I was wrong on this one (Mr. Rumsfield, Jun 23, 2021 at 11:14am)
In discussing "Can I retire off 'X'" conversations, understanding how volatility impacts withdrawals is very important. (RdF3, Jun 22, 2021 at 2:09pm)
96k a year would work right now, but how many of you are factoring in inflation? (JohnnyComeLately, Jun 22, 2021 at 12:22pm)
It seems most people don't realize how much health insurance/care would actually cost if their employer didn't (RdF3, Jun 22, 2021 at 11:36am)
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6/22/21 11:11am
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What will $96K be in 30 years? Most likely it will be equivalent to $50K or a little less in today's dollars
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