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How much money would make you set for life?

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How much money would make you set for life?

Old 08-18-06, 04:18 PM
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How much money would make you set for life?

I remember as a wee lad there were McDonald's games that had a top prize of $100,000. Back then I remember my grandfather saying that it would be enough to set you up for life. But I got to thinking....that wouldn't even pay all the college tuition for my 3 boys, forgetting about room & board costs. And that doesn't even get to my life. And has Thor ever got back over the 10k mark after getting married and buying a house? And what amount would keep a good income for life? Since I know $100,000 wouldn't do it, what would?

I'm talking about being able to be comfortable without working. That means health insurance of $800-$1200 a month as well. And property taxes, and car expenses, and other little crap.

Would a million do it anymore? I think 2 million could, but anything below that?
Old 08-18-06, 04:25 PM
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i'd say $2 million just to be safe....you offering?
Old 08-18-06, 04:25 PM
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1 million would be like making 20k a year for the next 50, so that would not do it. 2 million would be good.
Old 08-18-06, 04:26 PM
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I think one million could still do it if you were smart with it and didn't splurge on much. I know plenty of people that live off of less than $50,000 a year. With $1 million, I would think you could easily pull that much from the interest and still grow your capital, assuming you invested it wisely.
Old 08-18-06, 04:27 PM
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$2 million would do it, $2.5 million for extra comfort. I've actually put thought into this recently for morbid personal reasons.
Old 08-18-06, 04:27 PM
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I think 2 million would work for me, too. Unless I didn't have a house yet, in which case I'd need another million to have a house I wouldn't need to upgrade down the road.
Old 08-18-06, 04:30 PM
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No way. $2 mill will not be even close if you want to maintain your standard of living and not touch the principal. Assuming you go with safe choices of course. $2M @ 6.5% = $130K. IRS takes its toll, and if you want to keep your purchasing power you need to reinvest whatever the CPI was. Is $50K/year being set up?
Old 08-18-06, 04:31 PM
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Heck, I'd take the hundred grand if it were all I could get. Invest it and make it grow.

I also doubt that I'd quit working -- but I might work only part-time. Therefore, I'd say $3 million, just to be safe.
Old 08-18-06, 04:42 PM
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100 Billion Dollars!!!!!!!!!!!
Old 08-18-06, 04:43 PM
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Originally Posted by kneijst1
100 Billion Dollars!!!!!!!!!!!
Thank you for your input, Winthrop Rockefeller.
Old 08-18-06, 04:47 PM
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For me it would have to be about 6m+ to let it go for the rest of my time.
Old 08-18-06, 04:48 PM
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Originally Posted by maxfisher
I think one million could still do it if you were smart with it and didn't splurge on much. I know plenty of people that live off of less than $50,000 a year. With $1 million, I would think you could easily pull that much from the interest and still grow your capital, assuming you invested it wisely.
I diasgree with your math. I think you are being overly optimistic about the return you would get, and haven't factored in inflation. I think pulling $50k a year out and still hoping to grow the fund at a rate greater than inflation is unrealistic.

I think $2million would do it easy for me. If I got $1m, I would probably work for a few years and let the capital appreciate then quit.
Old 08-18-06, 04:49 PM
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$2,000,000.

If you only get 6% (which seems low to me) per year = $120,000, then reinvest 50% per year ($60,000) to overcome inflation. That would give you the equivalent of $60,000 2006 dollars every year for the rest of your life. I could easily do that, and would happily do so.

If I could get 8% return per year, I'd only need $1,200,000 to do that.

Old 08-18-06, 04:50 PM
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Originally Posted by elperdido
No way. $2 mill will not be even close if you want to maintain your standard of living and not touch the principal. Assuming you go with safe choices of course. $2M @ 6.5% = $130K. IRS takes its toll, and if you want to keep your purchasing power you need to reinvest whatever the CPI was. Is $50K/year being set up?
Depends on one's location, obviously. That amount would only pay rent in some places.
Old 08-18-06, 04:53 PM
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Good point. It definitely depends on where you live, as well as your current set-up in life. I'm in my 20s with no kids, so I'm not really thinking of what it would cost to support them. Probably best to sell them off as they come.
Old 08-18-06, 04:53 PM
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I could probably do it on $2 mil but would prefer $3 mil.
Old 08-18-06, 04:57 PM
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Shit, I could blow $100,000 in about 15 min. So I really don't know how much money would be enough. Couple hundred mill probably.
Old 08-18-06, 05:09 PM
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$5 million returning 5% per year tax free would keep me going ok for a while. Save some money now for when that return becomes too little.

Maybe $10 million to keep me living in the manner of which I'd like to become accustomed.
Old 08-18-06, 05:13 PM
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$2 million will not even get you a nice house around here. I would probably need $15 million to feel comfortable. I'd still work though.
Old 08-18-06, 05:15 PM
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I have 4 kids and expensive taste. In today's dollars, I would feel set with a rock bottom minimum of 6 million net worth including residence. But that supposes a substantial inheritance for each kid.

Since I don't have the 6 million, I am working on finding a compromise between making the money and working on that pesky desire to leave them each with a big inheritance.

Yeah, and I would still work too. No matter what net worth. I consider giving my kids the example of working is more important than leaving them money.

Last edited by Big Quasimodo; 08-18-06 at 05:18 PM.
Old 08-18-06, 05:21 PM
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Originally Posted by uberjoe
$2 million would do it, $2.5 million for extra comfort. I've actually put thought into this recently for morbid personal reasons.
Originally Posted by uberjoe
Good point. It definitely depends on where you live, as well as your current set-up in life. I'm in my 20s with no kids, so I'm not really thinking of what it would cost to support them. Probably best to sell them off as they come.


thinking about killing the SO huh?
Old 08-18-06, 05:23 PM
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Originally Posted by Duh Vuh Duh
Mother just died at a young age, so my father is redoing his will and such. I was thinking about what the circumstances would be "in the event of..." Like I said -- morbid.

Last edited by uberjoe; 08-18-06 at 05:26 PM.
Old 08-18-06, 05:33 PM
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$1M is enough if I moved to someplace like the Philippines or Jamaica. There was a website, I can't remember what it was, that showed how much you needed to have to retire comfortably outside of the US. The Philippines and Jamaica IIRC were at the low end of the list with only $150K needed.
Old 08-18-06, 05:36 PM
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Originally Posted by Jeremy517
$2,000,000.

If you only get 6% (which seems low to me) per year = $120,000, then reinvest 50% per year ($60,000) to overcome inflation. That would give you the equivalent of $60,000 2006 dollars every year for the rest of your life. I could easily do that, and would happily do so.

If I could get 8% return per year, I'd only need $1,200,000 to do that.

Can you tell me the secret to avoid paying 'Hacienda'? Don't be greedy and share your secrets to pay 0% to the IRS.
Old 08-18-06, 05:37 PM
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I'd say 58 bucks, give or take.

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