10 million. Maybe I’d take 5 if i was going to leave the country, which I might with that much.
$1 Million.
Everything I’d be paying now, I’d be good for 15 whole years. By the time those 15 years end, I’d be in my 50s. But I’d have all of the time between now and then to like, develop skills that are of use to me.
10 mil. Enough to absorb all but the worst shocks to the stock market, continue to grow if desired, or pull $500,000/yr interest at a conservative 5% growth. $500,000 year means you could afford the Lamborghini, but you still gotta make payments.
IMO $2-3 million today is about the “millionaire” of yesteryear, someone we used to call rich but not crazily so. $10 million is actual passive wealth that is enough to live very well without touching the principal.
If you want it to run indefinitely then you need to let the principle grow with inflation as well, so with 5% growth and 3% CPI you have $200k to spend each year (which will also scale with CPI)
Edit: you’ll also have to choose more risky investments to stay above CPI, which means the stock market rather than fixed interest, and means your pot of money can change quite a bit with market shifts, and you may need to downsize expenses in some periods or risk eating into your principle if you can’t trim your lifestyle
Yes, I understand that and stated that the amount could be allowed to continue to grow as one of the choices for the investment. There was no need for me to get into the details and make it a financial lesson in respons to a hypothetical fantasy amount of money.
700k and I’d be choosing to be dirt poor in monetary value.
But I’d have freedom to live. Not lavishly, but I’d be free. Read books. Exercise. Creat art. Love, maybe.
There are many things in life that are both valuable and nearly costless. That’d be better than what I do now.
💯 👏
3.5 million. I’m 31
OP should probably have asked for the ages of people responding. One million takes an old person beyond the grave but might fall short for a 20 year old.
The answer is ‘it depends’ How long do you expect to live and what do you expect to do in retirement. The answer for a 30 y.o. is much different than that of a 65 y.o.
Somewhere between 5 and 10 mil, even at only 1% interest rates that should cover everything I reasonably need
4 million invested with 5% withdrawal rate and 400k in HYSA. 200k per year with 2 years in reserve to buffer any sequence of return risk on the 4M. Adjust spending and rate as needed.
Why 5% withdrawal rate? Also, what do you do with your buffer in a year where the market crashes? Skip adding to your reserve that year and hope for a recovery?
There’s the famous 4% rule that has been amended to 4.7%. I rounded up to 5%. Just a nice even number of 200k per year. With the flexibility the buffer adds and the ability to cut back in a down year I’d be comfortable with the extra .3%.
The buffer is there to live off of in a down year or years and not pull 5% out of the investment portfolio. Either 100% comes from the buffer or it can supplement a much lower withdrawal rate. In a known downturn I could reduce my expenses, minimize withdrawal rate, and fund the rest of the year with the buffer. Essentially I don’t want to pull $$ out of the 4M on a down year that will prevent recovery.
In an up year or a year I didn’t spend the full withdrawal amount, I can replenish. The 5% rate over a long time period will still let the portfolio grow. So if I pay myself 200k per year static, my rate could also naturally decline. There are a lot of factors (inflation, expenses, lifestyle) but that’s the high level framework.
1mil but I’d probably still work. I’d wanna be a fulltime BERRT nurse (Behavioral Emergency Rapid Response Team) and just wander around the hospital at night calming patients down. I’ve done a little BERRT work but most hospitals won’t pay a living wage for someone to do that full time. It’s usually just lumped on the psych unit charge so they can only respond when they’re not busy which defeats the point of an emergency response protocol. Doing that full time and just wandering around the hospital giving fake cigarettes to people with Alzheimer’s and talking people withdrawing into sticking it out through their detox protocol would literally be my dream come true LOL.
2M. I’m also older so this should be enough.
Millions, certainly. Probably about 2 of them, if we had that today I would be pretty confident. That is not likely to actually ever happen, or at least not before it wouldn’t be enough.
5 million euros probably.
I wouldn’t stop working.
With ~500k I’d take a few months of leave, reduce my hours to working 6h/4d/week, and only take the shifts I want to. I need to keep some rhythm otherwise I stop functioning.Yeah I’d do the same, if I had no mortgage all I would need is enough to eat and get a few trips in a year. I could do that part time charity role.
About a million to two million. Enough that with a high interest savings account, I’d be making like $1000/day on the interest. That $1000 a day is my per diem.
You’re gonna have to check your math, homie. $1,000 a day is $365,000 a year. With $2,000,000 in the bank, you’d need a return of 18.25%. That’s not a high interest savings account. That’s investing heavily in risky stocks and getting lucky every time for the rest of your life.
To get 1k/day from 2 mil you’d need an annual interest rate of close to 20% from your savings account. At a more reasonable 4% you’d get around 80k a year or over 200 a day, still a good amount. If you’re using that to live on you’ll want a bit more to beat inflation long term but it’ll be a while before that’s even noticeable.
