5 ms·

At $1m I might think twice. It may not be enough for me to live on for another 50 years. At $10m I could probably try all kinds of new ideas and still have enou

At $1m I might think twice. It may not be enough for me to live on for another 50 years. At $10m I could probably try all kinds of new ideas and still have enough money to live if they all failed.

mulletbum 10y ago
If you weren't a serial entrepreneur I think $1m is more than enough to invest and live off of for almost all your life.
- xapata 10y ago
  Depends where you want to live and what kinds of things you want to eat. And how much risk you are comfortable with. My desired lifestyle requires $5 million to retire comfortably.
- throwawayReply 10y ago
  At 2% return a million is 20k/yr. That's nice but not "set you for life" nice.
- CydeWeys 10y ago
  It's not. At a conservative safe withdrawal rate of 4% you'l only be living off $40K per year. And that 4% figure is safe but not bulletproof; a lot of people go lower. Most people who plan on retiring early are working on banking multiple millions. See /r/financialindependence for details.
  - maccard 10y ago
    Worth noting that $40k is greater than the median income in the UK, so this would be enough for an awful lot of people.
    - johnward 10y ago
      The US is about $52K for a household. $40k would probably be enough for a lot of people. That's at 4% return on $1m. Where are people getting that consistently and without too much risk of losing a bunch of that money? Then how to you keep up with inflation? In my mind I would still risk it at $1m because $40k isn't enough for me to live the kind of lifestyle I would want to live and ensure I could do it until I die.
      - mulletbum 10y ago
        but at 14 you could still do other things. It isn't like they give you $1M and say you can never make money ever again.
      - CydeWeys 10y ago
        4% is the withdrawal rate, not the return rate. You want the return rate to be higher, ideally at around 7% real returns. You accomplish that by investing most of it in the stock market. You have to withdraw less than the return rate in order to manage risk so that you survive periods of bad returns.
  - mulletbum 10y ago
    40k would get you a nice house and a decent living for the rest of your life in my State/Country. On top of that you could still work, so this math is already suspect depending on your needs.
- deleted 10y ago
  [deleted]

At $1m I might think twice. It may not be enough for me to live on for another 50 years. At $10m I could probably try all kinds of new ideas and still have enough money to live if they all failed.

mulletbum 10y ago

If you weren't a serial entrepreneur I think $1m is more than enough to invest and live off of for almost all your life.

xapata 10y ago
Depends where you want to live and what kinds of things you want to eat. And how much risk you are comfortable with. My desired lifestyle requires $5 million to retire comfortably.
throwawayReply 10y ago
At 2% return a million is 20k/yr. That's nice but not "set you for life" nice.
CydeWeys 10y ago
It's not. At a conservative safe withdrawal rate of 4% you'l only be living off $40K per year. And that 4% figure is safe but not bulletproof; a lot of people go lower. Most people who plan on retiring early are working on banking multiple millions. See /r/financialindependence for details.
- maccard 10y ago
  Worth noting that $40k is greater than the median income in the UK, so this would be enough for an awful lot of people.
  - johnward 10y ago
    The US is about $52K for a household. $40k would probably be enough for a lot of people. That's at 4% return on $1m. Where are people getting that consistently and without too much risk of losing a bunch of that money? Then how to you keep up with inflation? In my mind I would still risk it at $1m because $40k isn't enough for me to live the kind of lifestyle I would want to live and ensure I could do it until I die.
    - mulletbum 10y ago
      but at 14 you could still do other things. It isn't like they give you $1M and say you can never make money ever again.
    - CydeWeys 10y ago
      4% is the withdrawal rate, not the return rate. You want the return rate to be higher, ideally at around 7% real returns. You accomplish that by investing most of it in the stock market. You have to withdraw less than the return rate in order to manage risk so that you survive periods of bad returns.
- mulletbum 10y ago
  40k would get you a nice house and a decent living for the rest of your life in my State/Country. On top of that you could still work, so this math is already suspect depending on your needs.
deleted 10y ago
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