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> 1000 people at $1000/month for life could probably be funded with around $1B. You wouldn't need quite that much. An initial investment of $300k would be suff
by nybble41 6y ago
> 1000 people at $1000/month for life could probably be funded with around $1B.
You wouldn't need quite that much. An initial investment of $300k would be sufficient to pay out $12k per year indefinitely one individual, assuming a modest 4% annual growth. So for 1000 individuals you would only need about $300M, not $1B.
- scarmig 6y ago4% is very optimistic; early retirees usually aim for 3%, and even models with that withdrawal rate fail over long enough time periods. You'd want it to be well-funded enough that there's no question it could commit to the payouts indefinitely (so that people don't act more conservatively than they would knowing it might fail). On top of that are costs of administration and study. The number I ended up with was actually around $600M, and I figured might as well round up.