How much money does it take to retire wealthy and live of intrest?
 

Compound intrest etc, anyone did any calculations yet?

Well that'd depend on a number of variables, not the least of which is what your level of spending will be.

Tell us a figure you want/need per year and we can give you the figure you need to have that in interest each year.

Otherwise it would depend on a great deal of variables.
Plan on having everything paid off, mortgage etc.
Plan on not getting sick ever?
Plan on living in one location (current, etc)?
Wanting to not work at all again?
Playing keep up with the jones'es or ok with having just what you need?
Going to be putting kids through school?
and the list can go on.

Just an amount to live VERY comfortably and never have to worry again.
How much would you need - 10 million USD?

More than enough to be comfortable.

Ok and how would you make sure of that.. get 6% yearly from your bank?

With 8 million invested in low risk mutual funds etc... you could live off of 500 grand per year for 30 yrs. Just a ballpark guess

If you have $10mil, hire a stock broker and tell him to go nuts.

I woulnd't risk that, he might fuck you over or something

Want super safe, just use insured individual municple bonds.

i like such threads, so here's a bump

$2 million at 5% will give you $90,000 per year income for the rest of your life...

If you can't live comfortably on that, drop the coke habit.

Couple mil if you can live a fairly average lifestyle.

the interest depends on how much money you have. With 500K you may get 2% in US. But if you have 1Million you can negotiate that % and get it up to may be 3%.
Now, how much do you need to live comfortably? and, did you calculate medical expenses in that amount?

forget about 3%. Mutual funds will pay Waaayy better. And long tem investiment, the risk is pretty low if you're smart about where you put the money.

As for comfortable lifestyle, that depends on your definition. 12,000 square foot house or 2000 sq ft? In L.A.(Los Angeles) or LA (Louisiana)?

2%? it's fairly easy to find 4%+, if you shop around you can buy some bonds or other low risk investements at rates 6-7% So even with only 2 million, you get 120-140k per year, which is more than enough to live quite comfortable life. If you are willing to take on some risk, you can probably achieve similar spending income but with only ~1.5 million.

Shit. Go live in a cheap place like Thailand and live like a fucking king for 1/4 of what you would need in the USA or Europe.

$1mil for every 10 years you have.

One Million Dollars!!!

http://www.gazette.uwo.ca/2004/March...%20Dr.Evil.jpg

I'd be worried about living on intrest these days. Banks may go bust. And at todays intrest rates, if you have enough to live on intrest, you have enough to live. Get a checking account.

More than I got.

You might like this book

This is a catch 22. If you make 300k a year and think "wow i am balling." You spend even 100k after tax you would only save 50k. 50k a year savings needs to grow to 3 million for it to spin of 10% revenue to replace your 300k a year. I takes about 20 years of savings to get there. So people making less then a million a year never really get to just live on a beach unless they can live on much less then they are making now.

So you'd suggest taking your savings out of an interest earning account and putting it into a chequing account that earns no interest?

How on earth did you come up with that idea?

If you have 10million to play with?
8 million in pretty much guaranteed bonds/government backed investments. at 4% thats $ 320k a year
1 million in a little riskier mutual funds at 6% that's $60k a year
500k in stocks you believe in at 7% growth $35k a year
500k in high risk stocks/investments at 10% on a realistic growth $50k
= $465k a year
Should be a good amount to live on - if you're good with spending on the first few years and let it compound, you should be good for your lifetime I'd think.

*am I being too optimistic with the '%' ?*

It should be enough for me to buy a small island, a yacht and build my own island resort.. :pimp

With usually anything more than 1 mill, you can get higher % of interest from the bank/credit union. And if you are smart, you can live off the interest. The problem is that most people save a million or so and think that they are truly rich, when they are not.

Or try the Philippines. $90K a year gets you a nice condo in the nice part of town, eat out at decent restaurants daily, and still have cash left over. Make sure you factor in TAXES though... so that $90K will probably be $60K or less after taxes. Still a decent amount to semi-retire on. :thumbsup

$100,000.

:1orglaugh :1orglaugh :1orglaugh

Well it will always depend on what kind of life are you gonna be living. Couple of millions would be fine if you can live a fairly average lifestyle.

:thumbsup

it all depends on what you are spending...

Man the figures you guys are throwing around are staggering... And damn it must suck to have to pay taxes :1orglaugh

I wouldn't want to retire in the USA... A place like here or a similar country like Panama would be awesome, once you buy a place you can live comfortably on the beach for like $20k/yr... A million in cash with no interest will take care of that for the next 50 years.

If you take that money and only rely on Bank interest, your kids will be broke. Don't forget the tax man comes every year, and if you are not generating income, you can litterally get taxed, broke!

You can out $100,000 in a REIT and live on that, about 6-12% a month. But its high risk. If there is a default, you end uo with property you don't want, or an unfinished constructuion project.

ill never retire, ill be working til the day i die :)