Would it take for your either in savings or income producing assets to walk away from the corporate world? and at what age?
What number
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Last: 6 yr ago by YouBet
I'm 33. Right now, $5MM at 55 would do it. Figure I could do anythi g I wanted with that amount and not have to worry about running out of money.
I struggle with what that number would be right now to leave work at 33.
I struggle with what that number would be right now to leave work at 33.
say 45?
I think healthcare would be the big ? for most.
I think healthcare would be the big ? for most.
I use the "Simple Wealth, Inevitable Wealth" method:
Assuming 3% inflation, 8% market growth, you need to have assets which you can live off 5% of (8%-3%=5%). Plug in your own values.
Example: for a $100,000 retirement income (in today's dollars) you need minimum of $2,000,000 in assets today ($100,000 divided by 5%). This retirement income level will grow with inflation.
This plus margin and some other contingency funds is my basic strategy.
Assuming 3% inflation, 8% market growth, you need to have assets which you can live off 5% of (8%-3%=5%). Plug in your own values.
Example: for a $100,000 retirement income (in today's dollars) you need minimum of $2,000,000 in assets today ($100,000 divided by 5%). This retirement income level will grow with inflation.
This plus margin and some other contingency funds is my basic strategy.
Cyp0111 said:
say 45?
I think healthcare would be the big ? for most.
That's such a big question that I'm not able to wrap my head around the answer to your original question. A big ticket health scare makes one guy's $5MM very different than another's.
I would love to know what people are doing or plan to do regarding healthcare if they are out of the employer based insurance game for potentially three or four decades.
DRE06 said:
I'm 33. Right now, $5MM at 55 would do it. Figure I could do anythi g I wanted with that amount and not have to worry about running out of money.
I struggle with what that number would be right now to leave work at 33.
$5MM at 33 is conservatively $200,000 a year for the rest of your life, i think I could probably squeeze my four luxury car lifestyle into 200k a year
Always interesting to see different strategies and value estimations. I've been roughly following Warren Buffet who says expect a 6-7% growth over the long term after inflation and other minuses.BenTheGoodAg said:
Assuming 3% inflation, 8% market growth, you need to have assets which you can live off 5% of (8%-3%=5%). Plug in your own values.
Not saying one is wrong over the other, just interesting. I'm going to check out that book as well.
I run most of my models at 5% to be conservative.
I run probabilistic models. Using consensus, research-based, forward looking capital market assumptions (GMO, Research Affiliates, Mercer, Goldman, etc...) a 4% spend rate still works okay if your time horizon isn't longer than ~30 years and you aren't seeking more than a ~50% confidence level. Materially increase either of those and the safe spend rate quickly drops to ~3%.
I tend to think these models are a bit conservative, but that it the only way to err when talking about running out of money being the alternative.
I tend to think these models are a bit conservative, but that it the only way to err when talking about running out of money being the alternative.
Pretty much spot on with the book (8-10% growth before inflation). I like the method in particular because it got me thinking about what my retirement income should look at retirement age.
At 3% inflation $100,000 income today is closer to $250,000 in 30 years and continues to inflate after, so your retirement asset goals should be more reflective of that moving target. Of course, no one can absolutely predict market growth or inflation, but you can use historical figures to give you a good basis.
At 3% inflation $100,000 income today is closer to $250,000 in 30 years and continues to inflate after, so your retirement asset goals should be more reflective of that moving target. Of course, no one can absolutely predict market growth or inflation, but you can use historical figures to give you a good basis.
At 39 and about 1.2mil equity in rental property. I could do it now but I would have to make side income. I could refi some of my properties into longer loans to increase cash flow but it would cut down on my current paydown rate and cost me in the future. 1.5 mil if I did side work during the year and lived about the same as now and don't think it would be too tight. 2 mil and could definitely leave my job but may not be able to do the traveling and other things I would want like vacation property, etc. 3 mil, I can leave my job, have a nice vacation property (or two), and not have to work on the side. I been saying 6 more months for a while now but people keep showing up calling me daddy so it pushes it back each time.
lol. awesome
I left the corporate life...well never actually worked in corporate life other than subway and circuit city. I've worked for small law firms and now have my own. I've pretty much resigned myself to the fact that I'll never be able to actually retire.
When you don't start making enough money to really save until you are around 35, it's difficult. I've got a commercial lot that when I build is going to be my nest egg. I'm socking away nearly 20% of my net every year into that, so I have just a bit going into my Ira and side investments.
Ugh.
When you don't start making enough money to really save until you are around 35, it's difficult. I've got a commercial lot that when I build is going to be my nest egg. I'm socking away nearly 20% of my net every year into that, so I have just a bit going into my Ira and side investments.
Ugh.
37. Is probably want $10 mil to retire completely. Even then I'd likely do some consulting.
CS78 said:
I been saying 6 more months for a while now but people keep showing up calling me daddy so it pushes it back each time.
Thanks for the laugh, that's the funniest thing I've read today.
I just received a severance package from my corporate job. I'm not sure I'll go back. A job, yes...but probably not at a massive company again.
Laid off????
Sorry to hear that swimmer. I hadn't heard they were doing layoffs. Pretty widespread?
Yep a lot of people were. Rumor is that there is another round coming
Sorry to hear that.
In a mildly twisted way I'd take a severance forcing me to really reevaluate what i want to do professionally.
In a mildly twisted way I'd take a severance forcing me to really reevaluate what i want to do professionally.
I think for most people it does. My dad started his small business after being part of a downsizing in the oil and gas business 30 years ago. He said he would never let a corporation control his life again.
I would be wary of a 5% withdrawal rate
I would want 5mil, 4% withdrawal rate gives me 200k a year, likely would not spend that much
I would only walk away if debt free & even then I would likely work part time with a family convenient schedule
I would want 5mil, 4% withdrawal rate gives me 200k a year, likely would not spend that much
I would only walk away if debt free & even then I would likely work part time with a family convenient schedule
I'm 43 and gunning for 55 to walk away. On target to do it but need to rein in some spending.
My wife won't ever retire so I could probably retire well before then if I really wanted to.
And number should be around $5M based on current projections and barring a catastrophic financial event. If that happens I simply keep working.
My wife won't ever retire so I could probably retire well before then if I really wanted to.
And number should be around $5M based on current projections and barring a catastrophic financial event. If that happens I simply keep working.
1M is probably good enough
Cyp0111 said:
I think for most people it does. My dad started his small business after being part of a downsizing in the oil and gas business 30 years ago. He said he would never let a corporation control his life again.
I'm not so much worried about a corporation controlling my life..but.. It does definitely restrict your ability to be creative...and sometimes to be effective/efficient at what you do. So much red tape and bureaucracy and trying not to step on other team's toes. Being in a creative role..so much of my time ended up being devoted to jumping through hoops instead of doing things that could actually impact the business. I'm excited to go somewhere that I can be utilized more effectively.
I'm in a pretty good position for someone of my age. A lot of people are more worse off than I, so I'm not desperate to find something/anything tomorrow.
10 million... but not corporate. I own my business and would still work. I love what I do
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I work for a company with 15-20 office employees and another 15-20 field, so it is far from the 'corporate world'. If it were my choice, I'd work here for another 20 years, putting me at 57, and retire. My company pays a healthy % of my salary into a retirement account as 'profit sharing', and that will conservatively be $750k+ in 20 years. Combine that with our own retirement/investments, we'd have $2.5mm+.
That should be plenty for us since my wife has a pension; she'll retire at 56-57 or so as well. I don't want to work until mid/late 60s. That's too long.
That should be plenty for us since my wife has a pension; she'll retire at 56-57 or so as well. I don't want to work until mid/late 60s. That's too long.
I'm 37. Gimme $1MM today, I'll walk away and cut grass for a living.
$1MM in the Roth IRA (tax free distributions)
I'm at $3-4MM to walk away from larger corporate goal and transition into something that although pays less can be done for a longer period of time.
I think a large part of it is to pass along a majority of the wealth to the next generation.
especially if it means working longer in order to be able to give to your kin, and then when you finally retire, you die.SoupNazi2001 said:Cyp0111 said:
I think a large part of it is to pass along a majority of the wealth to the next generation.
I never understand this. I don't expect to get much from my parents and I want my kids to earn it. I will provide what they need to raise them and pay for their college but I don't care about working longer to pass more money on to them.
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