4 ms·

5 million. Invested at a modest, low-risk 2% (which you used to be able to get from a standard savings account), that gives you $100,000/year: quite a decent ba

5 million. Invested at a modest, low-risk 2% (which you used to be able to get from a standard savings account), that gives you $100,000/year: quite a decent baseline.

joeframbach 13y ago
Standard savings accounts usually give 0.5-0.85% for the first 200k or so. More than that, you should look at other investment strategies than standard savings accounts.
- Millennium 13y ago
  I said "used to" for a reason. I picked 2% and the savings account thing just as common points of reference. You're quite right that you need other investment strategies, especially nowadays, but as investment strategies go, 2% remains pretty darn modest and low-risk.
VLM 13y ago
At 2% you can just spend the capital and you'll be good for 50 years. Insert 13 year old HN readers looking horrified and 50 year old HN readers looking rather optimistic. It gets hard to spend lots of money, especially if you are into variety. Yes living 1st class on a cruise ship and touring the world would be expensive, but I'd pretty much sick of it for the rest of my life after about six months. Then its on to camp in each national park for a month, which would take a pretty freaking long time and cost practically nothing other than time. On to the 30ft cruising sailboat until I get sick of that, again not terribly expensive. Maybe tour Europe, rather expensive until I get sick of that. My grandparents ran out of things they wanted to do before they ran out of wealth and health, which is the best way to go. They eventually settled down in a cottage on a rural lake and just enjoyed life. I'd probably end up about the same place.
- Millennium 13y ago
  I'm thinking much the same, but even though maximum lifespan isn't moving very much, average lifespan is trending upward. You never know, and so it's not a bad idea, if you can swing it, to have a strategy that doesn't depend on time. Plus, when the time comes and you no longer need it, you've got something to pass on to your kids and/or give your favorite cause a nice big shot in the arm. Not a bad way to go, really.

5 million. Invested at a modest, low-risk 2% (which you used to be able to get from a standard savings account), that gives you $100,000/year: quite a decent baseline.

joeframbach 13y ago

Standard savings accounts usually give 0.5-0.85% for the first 200k or so. More than that, you should look at other investment strategies than standard savings accounts.

Millennium 13y ago
I said "used to" for a reason. I picked 2% and the savings account thing just as common points of reference. You're quite right that you need other investment strategies, especially nowadays, but as investment strategies go, 2% remains pretty darn modest and low-risk.

VLM 13y ago

At 2% you can just spend the capital and you'll be good for 50 years. Insert 13 year old HN readers looking horrified and 50 year old HN readers looking rather optimistic. It gets hard to spend lots of money, especially if you are into variety. Yes living 1st class on a cruise ship and touring the world would be expensive, but I'd pretty much sick of it for the rest of my life after about six months. Then its on to camp in each national park for a month, which would take a pretty freaking long time and cost practically nothing other than time. On to the 30ft cruising sailboat until I get sick of that, again not terribly expensive. Maybe tour Europe, rather expensive until I get sick of that. My grandparents ran out of things they wanted to do before they ran out of wealth and health, which is the best way to go. They eventually settled down in a cottage on a rural lake and just enjoyed life. I'd probably end up about the same place.

Millennium 13y ago
I'm thinking much the same, but even though maximum lifespan isn't moving very much, average lifespan is trending upward. You never know, and so it's not a bad idea, if you can swing it, to have a strategy that doesn't depend on time. Plus, when the time comes and you no longer need it, you've got something to pass on to your kids and/or give your favorite cause a nice big shot in the arm. Not a bad way to go, really.