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Hey first thing, is congrats! Second is get with your financial planner, if you don't have one find one. They will help you set yourself up where all those an

Hey first thing, is congrats! Second is get with your financial planner, if you don't have one find one. They will help you set yourself up where all those answers become easy for you. And there are a lot of little headaches to work through, such as if you don't claim any income (employment) you need to establish different methods to use the banking/credit system. There are lots of solutions, including sort of claiming retired, but generally it is smarter to set up an LLC, use it as an investment vehicle and take money out through there, being either self-employed or employee so you can manage taxes etc. But no one here can give you real advice without knowing all the details and even then it is usually specific advice based on what they have gone through. My best advice is find a good financial advisor and let them help you. Yes that does cost a little bit of money, but it isn't much all things considered. The best advice I ever got was when I was early 20's and got a small but still decent payout was to hire a financial advisor/planner so I didn't blow it all in the first year. Just my 2 cents based on my experience and the advice I have gotten over the years. If you are under 40 and netted less than $10M you can't retire yet (at least not in kick back and coast forever way I think of when I think retire), if you are between 40-50 than $5-7M is a solid number but still not where you can just do whatever and not manage your finances fairly closely. Anything less than $5M, specifically if you have a family or plan to, you still need some form of a job to pay the everyday bills and keep your sanity. Anything in the 7 figures gives you a sense of security and a lot of flexibility. Last point, if you are married, calculate what happens if you divorce and see if you'd still be comfortable after giving up 50% basically -- not saying it would happen, but you should just do the math.

undefined3840 7y ago
You are way overshooting. Of course you can comfortably retire with less than $10M under 40! The money is still working for you, presumably, through dividends on investments, etc.
- icedchai 7y ago
  He should read up on the FIRE movement and 4% rule. If you can live off 4% of your invested net worth, you're probably good. It all depends on your expenses.
  - undefined3840 7y ago
    Yeah unless you are an extreme outlier and have expensive tastes you should be able to live off that very easily.
  - robocat 7y ago
    I still have passive income, although more unpredictable then dividends. So very hard to translate that into a 4% rule.
    - icedchai 7y ago
      Oh, sorry I misread. I thought you had an exit with a lump sum or something.
robocat 7y ago
> if you are between 40-50 than $5-7M is a solid number but still not where you can just do whatever and not manage your finances fairly closely Yet how many people have anywhere near that amount when they reach 65?
- davismwfl 7y ago
  Not enough people have these amounts at retirement. But something I find interesting, is far more have 750k-2M than you think do at retirement age and still struggle. And the rule of thumb has been 10x saved in retirement accounts based on your last few years average income, will let you maintain a similar standard of living during retirement (but rarely works that way in real life). Many medical expenses are not fully covered (ask an older person about this), even people who have 10x are not "safe" as just one medical problem could wipe out most of their savings/income. And talk to a financial planner and an attorney, as depending on how you setup your savings it may or may not have any protection at all, most of the time it doesn't when you are living on it. Why do you think everyone moves to Arizona or Florida etc from NY, NJ and CA etc after they retire. Most move because they have to try and lower their cost of living because what they saved isn't enough even after retiring at 65 or 70. I live in Florida and see it all the time with the influx of people coming in. My point to the OP was if you want to "retire" which to me means never work a day again, than you need to have a lot more stashed away to deal with the unexpected than you realize. If you are 25 $10M to retire will make retirement pretty easy, $5M will mean you need to keep your cost of living low and watch your spending, but you can do it. Add 2 kids, college and maybe one divorce in there though and you are quickly staring down a nest egg more like $1-2M. Then add in a fairly minor (cost wise today with insurance) medical emergency like a heart attack and even with insurance you could still be paying $10k and upwards of $100k easily. Now factor in after that heart attack your life insurance rates and number of medical visits and medication bills is going to skyrocket, so you may easily start spending an extra $15k/year. Just a point on the medicine part too that I have seen multiple times, my mom had a medicine she needed and the cost is roughly $1200/month, but if you can show hardship then you can get a major break from the manufacturer (like free to $30/month for 24 months). Guess what you can't do if you have assets, you'll never get the hardship discount so you will be stuck paying full costs, or nearly the full cost as you can usually find some discounts (so add another $14k just for one medication). Hopefully that explains why financial planners will give you different numbers depending on what you tell them your goals are, which is also why I highly recommend people find a real financial planner and not wing it from the internet. BTW: I am familiar with the FIRE movement and while I agree with parts of the thought process (especially saving and living below your means), it isn't going to work for the majority of people. And while it would protect you from one moderate car accident and/or medical problem which usually coincide, you'd could easily be nearly broke afterwards. Then what do you do, try and come back into the work force 10 years into your "retirement" with out of date skills and fighting age discrimination (it still exists everywhere). Not saying don't do it, just don't be naive about it.

undefined3840 7y ago

You are way overshooting. Of course you can comfortably retire with less than $10M under 40! The money is still working for you, presumably, through dividends on investments, etc.

icedchai 7y ago
He should read up on the FIRE movement and 4% rule. If you can live off 4% of your invested net worth, you're probably good. It all depends on your expenses.
- undefined3840 7y ago
  Yeah unless you are an extreme outlier and have expensive tastes you should be able to live off that very easily.
- robocat 7y ago
  I still have passive income, although more unpredictable then dividends. So very hard to translate that into a 4% rule.
  - icedchai 7y ago
    Oh, sorry I misread. I thought you had an exit with a lump sum or something.

robocat 7y ago

> if you are between 40-50 than $5-7M is a solid number but still not where you can just do whatever and not manage your finances fairly closely Yet how many people have anywhere near that amount when they reach 65?

davismwfl 7y ago
Not enough people have these amounts at retirement. But something I find interesting, is far more have 750k-2M than you think do at retirement age and still struggle. And the rule of thumb has been 10x saved in retirement accounts based on your last few years average income, will let you maintain a similar standard of living during retirement (but rarely works that way in real life). Many medical expenses are not fully covered (ask an older person about this), even people who have 10x are not "safe" as just one medical problem could wipe out most of their savings/income. And talk to a financial planner and an attorney, as depending on how you setup your savings it may or may not have any protection at all, most of the time it doesn't when you are living on it. Why do you think everyone moves to Arizona or Florida etc from NY, NJ and CA etc after they retire. Most move because they have to try and lower their cost of living because what they saved isn't enough even after retiring at 65 or 70. I live in Florida and see it all the time with the influx of people coming in. My point to the OP was if you want to "retire" which to me means never work a day again, than you need to have a lot more stashed away to deal with the unexpected than you realize. If you are 25 $10M to retire will make retirement pretty easy, $5M will mean you need to keep your cost of living low and watch your spending, but you can do it. Add 2 kids, college and maybe one divorce in there though and you are quickly staring down a nest egg more like $1-2M. Then add in a fairly minor (cost wise today with insurance) medical emergency like a heart attack and even with insurance you could still be paying $10k and upwards of $100k easily. Now factor in after that heart attack your life insurance rates and number of medical visits and medication bills is going to skyrocket, so you may easily start spending an extra $15k/year. Just a point on the medicine part too that I have seen multiple times, my mom had a medicine she needed and the cost is roughly $1200/month, but if you can show hardship then you can get a major break from the manufacturer (like free to $30/month for 24 months). Guess what you can't do if you have assets, you'll never get the hardship discount so you will be stuck paying full costs, or nearly the full cost as you can usually find some discounts (so add another $14k just for one medication). Hopefully that explains why financial planners will give you different numbers depending on what you tell them your goals are, which is also why I highly recommend people find a real financial planner and not wing it from the internet. BTW: I am familiar with the FIRE movement and while I agree with parts of the thought process (especially saving and living below your means), it isn't going to work for the majority of people. And while it would protect you from one moderate car accident and/or medical problem which usually coincide, you'd could easily be nearly broke afterwards. Then what do you do, try and come back into the work force 10 years into your "retirement" with out of date skills and fighting age discrimination (it still exists everywhere). Not saying don't do it, just don't be naive about it.