> S&P500 nets you on average a 10% annual return of investment? In the last 10 years, yes. Historically, it's been closer to 7% in real terms (adjusting for in

> S&P500 nets you on average a 10% annual return of investment? In the last 10 years, yes. Historically, it's been closer to 7% in real terms (adjusting for inflation). There are no guarantees that this will be the case for the future. > Does that mean you can "just" invest ten times your yearly living expenses and practically live off idle income? You'll need more than that because there are multi-year periods where the s&p 500 declines. The number that has been bandied around for a 'safe' withdrawal rate is 4% [1], so you'll need closer to 25 times your yearly living expenses. > How does that not completely destroy the economy and Because not everybody is doing it. If they were you wouldn't be getting those returns, obviously. > why isn't everyone doing it? Most Americans have less than $1000 in savings, let alone 10x their yearly living expenses. [1] http://www.mrmoneymustache.com/2012/05/29/how-much-do-i-need-for-retirement/ http://www.mrmoneymustache.com/2012/05/29/how-much-do-i-need...