4 ms·

If you are unsure then sit on it for a few years. That is barely enough money to retire comfortably the rest of your life. If you truly feel giving it away ma

by edoo 8y ago

If you are unsure then sit on it for a few years. That is barely enough money to retire comfortably the rest of your life. If you truly feel giving it away makes the world a better place then why not. Chances are though you using it to better your life and find your niche would further enrich those you came into contact with. Do not feel guilty about having money that you actually earned. It is not like you got rich off the violence of regulation.

maaaats 8y ago
> That is barely enough money to retire comfortably the rest of your life. Barely? Using the "safe withdrawal rate" of 4% after inflation if the money is invested, one could spend 320k a year and probably not run out.
- edoo 8y ago
  I assume the OP has to be making about at least $130k salary, approximately $200k in total compensation. That gives 42 years at the current lifestyle at a lifespan of 85 years. That assumes wages track inflation. Lifespan should be higher by then too. I'd consider maintaining lifestyle as comfortable retirement.
  - joshmlewis 8y ago
    This is if you just let it sit in an account instead of investing it. The parent comment is saying if you invest it you will be able to take 4% each year and still keep the nest egg in tact.
    - edoo 8y ago
      Wouldn't you need about 4% per year to break even with inflation? Can you safely invest at 7-8%?
      - maaaats 8y ago
        You can search for "the 4 percent rule" or "trinity study" if you're curious about more. But basically, stock markets over long time average 7-8%. Subtracting inflation gives you a rule of thumb of 4% that historically would have worked. Of course, the future might not match. But the studies also use a fixed withdrawal rate throughout. One could further mitigate the risk by having a small side-income some years, reducing spending in down-years etc. Also, how much money one needs post-retirement is often less, for instance if the mortgage is paid down, not housing kids any more etc.
        edoo 8y ago
        So last year based on new treasuries issuance the neutral rate was 6.2% before unbacked credit emissions like student loans.
arbol 8y ago
Is this trolling? How much money do you spend per month lol?! The OP could buy a 1M house and still have enough left for $14.5k per month salary for 40 years...

by edoo 8y ago

maaaats 8y ago

> That is barely enough money to retire comfortably the rest of your life. Barely? Using the "safe withdrawal rate" of 4% after inflation if the money is invested, one could spend 320k a year and probably not run out.

edoo 8y ago
I assume the OP has to be making about at least $130k salary, approximately $200k in total compensation. That gives 42 years at the current lifestyle at a lifespan of 85 years. That assumes wages track inflation. Lifespan should be higher by then too. I'd consider maintaining lifestyle as comfortable retirement.
- joshmlewis 8y ago
  This is if you just let it sit in an account instead of investing it. The parent comment is saying if you invest it you will be able to take 4% each year and still keep the nest egg in tact.
  - edoo 8y ago
    Wouldn't you need about 4% per year to break even with inflation? Can you safely invest at 7-8%?
    - maaaats 8y ago
      You can search for "the 4 percent rule" or "trinity study" if you're curious about more. But basically, stock markets over long time average 7-8%. Subtracting inflation gives you a rule of thumb of 4% that historically would have worked. Of course, the future might not match. But the studies also use a fixed withdrawal rate throughout. One could further mitigate the risk by having a small side-income some years, reducing spending in down-years etc. Also, how much money one needs post-retirement is often less, for instance if the mortgage is paid down, not housing kids any more etc.
      - edoo 8y ago
        So last year based on new treasuries issuance the neutral rate was 6.2% before unbacked credit emissions like student loans.

arbol 8y ago

Is this trolling? How much money do you spend per month lol?! The OP could buy a 1M house and still have enough left for $14.5k per month salary for 40 years...