do you need to live off of for the rest of your life? Say you wanted to retire today and live for the rest of your life without having to worry about money, and you wanted a $75k income that adjusts for inflation. Tell me how much you would need in the bank today. If you are thinking that you need to know how old the theoretical person is you are wrong...the answer will follow after we get some guesses:cheers

75000/.06=1,250,000

You can ask 1,000 CFPs and get 900 different answers on this. Or you can go to the "retire early" website and look at their real-data MonteCarlo projector and conclude that no amount of money is enough. Well, it's not quite that pessimistic, but it's eye opening. I think my 6% withdrawl assumption provides around an 80% certainty that I won't outlive my money, if memory serves.

$1 million @ 10% should be OK.

$1 million @ 10% should be OK.


100 Zillion Dollah's :punk

75000/.06=1,250,000

You can ask 1,000 CFPs and get 900 different answers on this. Or you can go to the "retire early" website and look at their real-data MonteCarlo projector and conclude that no amount of money is enough. Well, it's not quite that pessimistic, but it's eye opening. I think my 6% withdrawl assumption provides around an 80% certainty that I won't outlive my money, if memory serves.

LOL you are right about the CFPs, but here is my 2 cents. If you want your money to last your lifetime then you don't ever want to take more than 5%. A safe number is 4%, but 5% is the most aggressive you want to be in my opinion. So, given the example, about $1.5 million would be the least amount you would want to have. If you don't care about spending down assets then you can try it with less:cheers . This will allow you to take an income and still reinvest part of the growth in order to keep up with inlfation so that you don't have to cut your lifestyle.