TDFFFreak Posted January 6, 2006 Share Posted January 6, 2006 I am reading a very good book titled THE NUMBER by Lee Eisenberg which discusses how much money people need for the 2nd half of their life to be able to do what they want to do with their life. He also discusses how the average individual has a hard time talking about money and this "number" because most haven't given it much thought if any. My question to all of you: How much money would you need now, considering your current financial situation, to quit working (assuming you would) and live comfortably for the rest of your life? I think my minimum number is 5 mil after taxes. The key is that I could be comfortable, but not living to the hight of luxury. Have the few things I really want (nice house, kids education paid for, etc.) and live off the interest of the rest without drawing down the main account too much over the years. I may do some work, but the key is that I don't have to if I don't want to. If I wanted to live a very high standard of living, I would need about 10 mil after taxes. Quote Link to comment Share on other sites More sharing options...
cliaz Posted January 6, 2006 Share Posted January 6, 2006 Personally, at age 65 I figured at the rate of inflation and the cost of goods, I had figured that (assuming I live to 85) I would need 2.7 million to live comfort. I'm 32 right now so I still like going to asian massage parlors and getting happy endings, picking up crack wh0res and trailer trash sluts (jk), so I'm thinking, oh I don't know...$10 million. So I could invest some of it and live off the interest. But I would have to factor in additional life ins. for the wife and kids, set up a trust fund for the twins and college fund as well. I might have to bump it up to 13 or 15 million though. Quote Link to comment Share on other sites More sharing options...
wiegie Posted January 6, 2006 Share Posted January 6, 2006 I am reading a very good book titled THE NUMBER by Lee Eisenberg which discusses how much money people need for the 2nd half of their life to be able to do what they want to do with their life. He also discusses how the average individual has a hard time talking about money and this "number" because most haven't given it much thought if any. My question to all of you: How much money would you need now, considering your current financial situation, to quit working (assuming you would) and live comfortably for the rest of your life? I think my minimum number is 5 mil after taxes. The key is that I could be comfortable, but not living to the hight of luxury. Have the few things I really want (nice house, kids education paid for, etc.) and live off the interest of the rest without drawing down the main account too much over the years. I may do some work, but the key is that I don't have to if I don't want to. If I wanted to live a very high standard of living, I would need about 10 mil after taxes. 1250862[/snapback] Considering that I like my job and probably already live more comfortably than 99.99% of all other human beings who have ever existed, I'd say my number is $0. Quote Link to comment Share on other sites More sharing options...
yo mama Posted January 6, 2006 Share Posted January 6, 2006 I am reading a very good book titled THE NUMBER by Lee Eisenberg which discusses how much money people need for the 2nd half of their life to be able to do what they want to do with their life. He also discusses how the average individual has a hard time talking about money and this "number" because most haven't given it much thought if any. My question to all of you: How much money would you need now, considering your current financial situation, to quit working (assuming you would) and live comfortably for the rest of your life? I think my minimum number is 5 mil after taxes. The key is that I could be comfortable, but not living to the hight of luxury. Have the few things I really want (nice house, kids education paid for, etc.) and live off the interest of the rest without drawing down the main account too much over the years. I may do some work, but the key is that I don't have to if I don't want to. If I wanted to live a very high standard of living, I would need about 10 mil after taxes. 1250862[/snapback] The amount of assets is only the first part the equation. The nature of the assets is the next. $5 million in cash, sitting under your mattress, isn't as great as it sounds. $5 million in West Texas desert "ranch land" isn't all that useful, either. $5 million invested in the right income producing assets (rental income property not subject to a mortgage comes to mind) is obviously the way to go. Invested moderately well, $5 mm should earn at least $350,000 a year, after taxes. Not sure what y'alls annual expenses are like, but that'd be just fine by me. Put that in an annuity-type investment, where you're drawing down a small fraction of the principal each year, and that number goes up. (Though, the game plan then becomes dying at the same time the annuity runs out). So another factor to consider is estate planning: is a secondary goal to preserve as much of the assets as possible for the next generation (or your mistress, or whoever). If so, that'll change your investment strategy and reduce the after-tax cash flow that would otherwise be available to you if you let the next generation earn its own jack. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted January 6, 2006 Share Posted January 6, 2006 somewhere between 5-10 at. Quote Link to comment Share on other sites More sharing options...
T_bone65 Posted January 6, 2006 Share Posted January 6, 2006 I will take 5 mil give it a try and if I don't like it give it back. Quote Link to comment Share on other sites More sharing options...
Kid Cid Posted January 6, 2006 Share Posted January 6, 2006 The amount of assets is only the first part the equation. The nature of the assets is the next. $5 million in cash, sitting under your mattress, isn't as great as it sounds. $5 million in West Texas desert "ranch land" isn't all that useful, either. $5 million invested in the right income producing assets (rental income property not subject to a mortgage comes to mind) is obviously the way to go. Invested moderately well, $5 mm should earn at least $350,000 a year, after taxes. Not sure what y'alls annual expenses are like, but that'd be just fine by me. Put that in an annuity-type investment, where you're drawing down a small fraction of the principal each year, and that number goes up. (Though, the game plan then becomes dying at the same time the annuity runs out). So another factor to consider is estate planning: is a secondary goal to preserve as much of the assets as possible for the next generation (or your mistress, or whoever). If so, that'll change your investment strategy and reduce the after-tax cash flow that would otherwise be available to you if you let the next generation earn its own jack. 1250923[/snapback] I have no next generation. Therefore, my last dollars will be spent on the massive overdose that takes me out. Quote Link to comment Share on other sites More sharing options...
yo mama Posted January 6, 2006 Share Posted January 6, 2006 (edited) I have no next generation. Therefore, my last dollars will be spent on the massive overdose that takes me out. 1250937[/snapback] I guess post-mortum charitable planning isn't something we need to discuss with you then... Edited January 6, 2006 by yo mama Quote Link to comment Share on other sites More sharing options...
cliaz Posted January 6, 2006 Share Posted January 6, 2006 I have no next generation. Therefore, my last dollars will be spent on the massive overdose that takes me out. 1250937[/snapback] no no no, take 50k with you to vegas, get a bunch of Samoan chicks dressed up like catwoman, 3 lbs of butter, 1 goat, 66 chickens, 6 pounds of spam, one 80 year old mute(guy or girl, doesn't matter since they are there to keep score.), two twinkies, a dolphin (and it's trainer, you never want to get stuck with one that doesn't have a trainer.) 2 baboons, a stack of pancakes and 14 rolls of duct tape. Go to town and go out that way, much more fun than an overdose. Quote Link to comment Share on other sites More sharing options...
rocknrobn26 Posted January 6, 2006 Share Posted January 6, 2006 no no no, take 50k with you to vegas, get a bunch of Samoan chicks dressed up like catwoman, 3 lbs of butter, 1 goat, 66 chickens, 6 pounds of spam, one 80 year old mute(guy or girl, doesn't matter since they are there to keep score.), two twinkies, a dolphin (and it's trainer, you never want to get stuck with one that doesn't have a trainer.) 2 baboons, a stack of pancakes and 14 rolls of duct tape. Go to town and go out that way, much more fun than an overdose. 1250971[/snapback] Chit after the Samoan chicks, I'd never live long enuff to get to the butter. Quote Link to comment Share on other sites More sharing options...
cliaz Posted January 6, 2006 Share Posted January 6, 2006 Chit after the Samoan chicks, I'd never live long enuff to get to the butter. 1250979[/snapback] prolly a good thing, butter and baboons with duct tape don't mix too well. Quote Link to comment Share on other sites More sharing options...
tonorator Posted January 6, 2006 Share Posted January 6, 2006 no no no, take 50k with you to vegas, get a bunch of Samoan chicks dressed up like catwoman, 3 lbs of butter, 1 goat, 66 chickens, 6 pounds of spam, one 80 year old mute(guy or girl, doesn't matter since they are there to keep score.), two twinkies, a dolphin (and it's trainer, you never want to get stuck with one that doesn't have a trainer.) 2 baboons, a stack of pancakes and 14 rolls of duct tape. Go to town and go out that way, much more fun than an overdose. 1250971[/snapback] cliaz - you are outrageous! Quote Link to comment Share on other sites More sharing options...
twiley Posted January 6, 2006 Share Posted January 6, 2006 no no no, take 50k with you to vegas, get a bunch of Samoan chicks dressed up like catwoman, 3 lbs of butter, 1 goat, 66 chickens, 6 pounds of spam, one 80 year old mute(guy or girl, doesn't matter since they are there to keep score.), two twinkies, a dolphin (and it's trainer, you never want to get stuck with one that doesn't have a trainer.) 2 baboons, a stack of pancakes and 14 rolls of duct tape. Go to town and go out that way, much more fun than an overdose. 1250971[/snapback] Classic. Quote Link to comment Share on other sites More sharing options...
Kid Cid Posted January 6, 2006 Share Posted January 6, 2006 no no no, take 50k with you to vegas, get a bunch of Samoan chicks dressed up like catwoman, 3 lbs of butter, 1 goat, 66 chickens, 6 pounds of spam, one 80 year old mute(guy or girl, doesn't matter since they are there to keep score.), two twinkies, a dolphin (and it's trainer, you never want to get stuck with one that doesn't have a trainer.) 2 baboons, a stack of pancakes and 14 rolls of duct tape. Go to town and go out that way, much more fun than an overdose. 1250971[/snapback] Ok, you're my manager. Make it happen. Quote Link to comment Share on other sites More sharing options...
Hat Trick Posted January 6, 2006 Share Posted January 6, 2006 I am a lot younger than most of you and I don't see myself needing that kind of cash. My wife is a banker and could invest a mil or so and I'd bet that would last a pretty long time. Now do i have any exact figure, no, but I wouldn't need no stinking 5-13 mil to live out the rest of my life, I guarantee that. Quote Link to comment Share on other sites More sharing options...
Bengal Mania Posted January 6, 2006 Share Posted January 6, 2006 The amount of assets is only the first part the equation. The nature of the assets is the next. $5 million in cash, sitting under your mattress, isn't as great as it sounds. $5 million in West Texas desert "ranch land" isn't all that useful, either. $5 million invested in the right income producing assets (rental income property not subject to a mortgage comes to mind) is obviously the way to go. Invested moderately well, $5 mm should earn at least $350,000 a year, after taxes. Not sure what y'alls annual expenses are like, but that'd be just fine by me. Put that in an annuity-type investment, where you're drawing down a small fraction of the principal each year, and that number goes up. (Though, the game plan then becomes dying at the same time the annuity runs out). So another factor to consider is estate planning: is a secondary goal to preserve as much of the assets as possible for the next generation (or your mistress, or whoever). If so, that'll change your investment strategy and reduce the after-tax cash flow that would otherwise be available to you if you let the next generation earn its own jack. 1250923[/snapback] A very detailed analytical answer, which I would read again if this Friday-afternoon fantasy question were actually worth giving SERIOUS thought to. But there must be a better answer out there for the Friday fantasy crowd....... no no no, take 50k with you to vegas, get a bunch of Samoan chicks dressed up like catwoman, 3 lbs of butter, 1 goat, 66 chickens, 6 pounds of spam, one 80 year old mute(guy or girl, doesn't matter since they are there to keep score.), two twinkies, a dolphin (and it's trainer, you never want to get stuck with one that doesn't have a trainer.) 2 baboons, a stack of pancakes and 14 rolls of duct tape. Go to town and go out that way, much more fun than an overdose. 1250971[/snapback] A-ha, we have a winner! Samoans it is. Quote Link to comment Share on other sites More sharing options...
cliaz Posted January 6, 2006 Share Posted January 6, 2006 hey Samoan chicks are into whatever you tell them. You just got to get over the fact they have more facial hair and prolly taller than you. Quote Link to comment Share on other sites More sharing options...
Guest Cherni Posted January 6, 2006 Share Posted January 6, 2006 I have no next generation. Therefore, my last dollars will be spent on the massive overdose that takes me out. 1250937[/snapback] :morbid: Quote Link to comment Share on other sites More sharing options...
yo mama Posted January 6, 2006 Share Posted January 6, 2006 (edited) I am a lot younger than most of you and I don't see myself needing that kind of cash. My wife is a banker and could invest a mil or so and I'd bet that would last a pretty long time. Now do i have any exact figure, no, but I wouldn't need no stinking 5-13 mil to live out the rest of my life, I guarantee that. 1251000[/snapback] But consider that figure represents total assets. Not sure where you live, but in my 'hood, $1mm might buy you a nice, comfy 3/2 house that needs a little work. If you live in a Meth-Antonio trailer park, obviously that $1 mm is going to go a little bit farther. So regional differences in cost of living is something we neglected to factor in. Edited January 6, 2006 by yo mama Quote Link to comment Share on other sites More sharing options...
skylive5 Posted January 6, 2006 Share Posted January 6, 2006 Considering that I enjoy being retired and probably already live more comfortably than 99.99% of all other human beings who have ever existed, I'd say my number is perfect. 1250922[/snapback] Fixed for my situation... thanks wiegie. Quote Link to comment Share on other sites More sharing options...
twiley Posted January 6, 2006 Share Posted January 6, 2006 But consider that figure represents total assets. Not sure where you live, but in my 'hood, $1mm might buy you a nice, comfy 3/2 house that needs a little work. If you live in a Meth-Antonio trailer park, obviously that $1 mm is going to go a little bit farther. So regional differences in cost of living is something we neglected to factor in. 1251028[/snapback] Good info here. Quote Link to comment Share on other sites More sharing options...
rocknrobn26 Posted January 6, 2006 Share Posted January 6, 2006 No hijack, but are any of you going to have a pension? Just investments? The pension can change the $$$$$ a lot. Quote Link to comment Share on other sites More sharing options...
major-tom Posted January 6, 2006 Share Posted January 6, 2006 no no no, take 50k with you to vegas, get a bunch of Samoan chicks dressed up like catwoman, 3 lbs of butter, 1 goat, 66 chickens, 6 pounds of spam, one 80 year old mute(guy or girl, doesn't matter since they are there to keep score.), two twinkies, a dolphin (and it's trainer, you never want to get stuck with one that doesn't have a trainer.) 2 baboons, a stack of pancakes and 14 rolls of duct tape. Go to town and go out that way, much more fun than an overdose. 1250971[/snapback] Funny stuff - I now have a strange urge to watch Fear and Loathing in Las Vegas. Quote Link to comment Share on other sites More sharing options...
yo mama Posted January 6, 2006 Share Posted January 6, 2006 No hijack, but are any of you going to have a pension? Just investments? The pension can change the $$$$$ a lot. 1251043[/snapback] 401(k), but no pension. Quote Link to comment Share on other sites More sharing options...
TDFFFreak Posted January 6, 2006 Author Share Posted January 6, 2006 But consider that figure represents total assets. Not sure where you live, but in my 'hood, $1mm might buy you a nice, comfy 3/2 house that needs a little work. If you live in a Meth-Antonio trailer park, obviously that $1 mm is going to go a little bit farther. So regional differences in cost of living is something we neglected to factor in. 1251028[/snapback] 1 mil isn't what it used to be just like 5 mil probably won't be as much as it sounds 20 years from now. The key, as was stated earlier, is how you invest it. Age is another huge factor and each individual's current standing is another factor that we all don't know about the other. I would guess that unless anyone here is around 30 or younger and already has several million in the bank with little to no debt, most would need at least 3 or 4 mil to have no worries assuming you aren't living in too high cost of an area. Any less then that and I think if you live a longer life, you may be in for a rude awakening. Remember, I said a comfortable life. That means you don't go and live in a trailer and eat mac and cheese the rest of your life although I am sure that would constitute "comfortable living" by some.... Quote Link to comment Share on other sites More sharing options...
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