5 ms·

$5M is definitely not retirement money if you're only 30 years old. I figured at that age you'd need about $15M, and even at that you'd need to make sure you i

by hrabago 16y ago

$5M is definitely not retirement money if you're only 30 years old. I figured at that age you'd need about $15M, and even at that you'd need to make sure you invest it properly to at least keep up with inflation. I've always thought that FYM and retirement money are two different concepts. If I had FYM, I can quit my job. I would still be looking for what's next, but I can take my time. (Usual disclaimers apply re: deadlines)

CapitalistCartr 16y ago
I'd have no problem extracting 250,000 in annual income from 5 million, after it's been invested for a year. Whether or not that's enough t decide to go walkabout depends on the person.
- jmillerinc 16y ago
  What would your strategy be to get that 5%?
  - adammichaelc 16y ago
    Tax free municipal bonds.
    - jerf 16y ago
      Come back and tell me about dumping all your money into tax-free municipal bonds in two years.
      - adammichaelc 16y ago
        <neutral question> What is the reasoning behind your comment?
        jerf 16y ago
        See btilly's comment that mentions them. There is a lot of chatter about bankruptcy. It's still just chatter, with a small number of exceptions. Let us all hope it stays that way. Mind you, I'm not guaranteeing they'll all go away, but it won't take very many bankruptcies for your returns to go below inflation. (Or worse.) I might invest in specific municipalities, if that's possible for a mere mortal investor, but I wouldn't think it's necessarily a safer assert class than anything else right now.
        gwern 16y ago
        Here's one recent link (far from the only long-form article I've read; reminds me of some of the articles I read before the tech and housing bubbles burst): http://www.city-journal.org/2010/20_2_municipal-bonds.html http://www.city-journal.org/2010/20_2_municipal-bonds.html
deleted 16y ago
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usaar333 16y ago
$5M is surely retirement money at 30. At benchmark inflation that is $1.5M when you are 90 years old. If you can earn just 1% a year (in real terms) on that cash, you'll be fine. (At $100k annual expenses, you'll drop 1% per year. That'll still last a lifetime.)

by hrabago 16y ago

CapitalistCartr 16y ago

I'd have no problem extracting 250,000 in annual income from 5 million, after it's been invested for a year. Whether or not that's enough t decide to go walkabout depends on the person.

jmillerinc 16y ago
What would your strategy be to get that 5%?
- adammichaelc 16y ago
  Tax free municipal bonds.
  - jerf 16y ago
    Come back and tell me about dumping all your money into tax-free municipal bonds in two years.
    - adammichaelc 16y ago
      <neutral question> What is the reasoning behind your comment?
      - jerf 16y ago
        See btilly's comment that mentions them. There is a lot of chatter about bankruptcy. It's still just chatter, with a small number of exceptions. Let us all hope it stays that way. Mind you, I'm not guaranteeing they'll all go away, but it won't take very many bankruptcies for your returns to go below inflation. (Or worse.) I might invest in specific municipalities, if that's possible for a mere mortal investor, but I wouldn't think it's necessarily a safer assert class than anything else right now.
      - gwern 16y ago
        Here's one recent link (far from the only long-form article I've read; reminds me of some of the articles I read before the tech and housing bubbles burst): http://www.city-journal.org/2010/20_2_municipal-bonds.html http://www.city-journal.org/2010/20_2_municipal-bonds.html

deleted 16y ago

[deleted]

usaar333 16y ago

$5M is surely retirement money at 30. At benchmark inflation that is $1.5M when you are 90 years old. If you can earn just 1% a year (in real terms) on that cash, you'll be fine. (At $100k annual expenses, you'll drop 1% per year. That'll still last a lifetime.)