What's the number?

[iceman]

I've been thinking about this for a long time. What the number, in the bank, free and clear, not owing shit to anyone, good to go...what's the numberthat you bag it all and live off it for the rest of your life? At what number would you feelsafe?

This assumes a lt, if you're not a peson who could walk away from the system, I really don't care what you have to say. And if you're younger, of course the number would be bigger.

But just say that you're 50, (or so) and you have a pile, but like any pile it could be smaller or bigger.What's the number you need to laugh and walk away. Confidently.

[iceman]

^^damn I suck at typing, sorry.

[Chainsaw_Willie]

$2 million.

[Phill]

Its hard to say, 1 hard currencies are never secure so "bagging" it is never a good idea. You'd definitely want a fair diversity of assets to make sure the number stays the right number and of course you'd need to account for the fact that said array of assets can fluctuate in its own right so add in a little wiggle room there.

Then it all depends on what kind of life you want to live and how much your expenses are. Do you want to support your kids? For how long? Leave them anything? Buy a house somewhere else?

Really only you can know all of this stuff.

[ACHTUNG]

I think my number would be in the $4-5M range.

[The AD]

I think you've got to be reasonably close to the number to even know what the number is. Consequently, I've got no idea. Pretty hard to imagine it's more than $1 million, though.

[Benny Profane]

5 million

Assuming never touching principal and, a realistic 4% for the next ten years, that's about 200 grand a year to live on, before taxes. Which means heli skiing and spontaneous travel, and expensive dope.

But, really, two million.

[Tippster]

Some smart guy told me once that you're done when you can live off the interest accrued by the interest of your investments.

For me at or current expenses that would need to be a nest egg of $20M.

Yeah - not likely.

[The AD]

How can it be that high? Keep in mind iceman's premise included "not owing shit to anyone."

[iceman]

\retty hard to imagine it's more than $1 million, though.

1 Mil to live on 'til death?

not enough.

[huckbucket]

See, that's the thing. If most people knew they had $10M in the bank, they wouldn't live like they make $400K a year (assuming 4%). $10M is a LOT of money.

The real question, as Phill suggested, is what it your standard of living? If "bagging it all" means living like a dirt bag, then I'm retiring tomorrow. However, my wife likes shoes, so I'm gonna be at this thing for a while. My number is probably $2M.

[Tippster]

I changed it higher.

Interest earned on the investment of interest earned on the nut.

Assuming a 5% return we get $20 Million - $1Million - $50k. I can live off of $50k for food and travel, if all expenses (Mortgage, College, etc.) have been paid off as posited, especially since it will increase every year.

[The Duke of Hurl]

5 million.

[The AD]

1 Mil to live on 'til death?

not enough.

You're probably right. It's certainly doable, but you'd probably have to be on the frugal side. $2 million is probably more realistic.

[BigDaddy]

Good question... it's got to be $2 to $5 M at least. Depends on home(s) maintenence, taxes, travel plans, drug addictions, etc.

It's amazing how fast a million bucks goes these days.

[Sirshredalot]

4% before taxes is pretty conservative, but you should be conservative for these kinds of purposes.

I think for me it would be 3-5 million. Not that I would stop working entirely - I'm pretty young. But if I had that banked, I could do pretty much whatever I wanted for a living and try to ram that sum in some aggressive investments.

To get me to quit working entirely and just live off investment income, I would want 8 million in net worth, maybe? At my age, I can't consume all the interest. I would have to roll at least a couple percent per year back into the principle to stay ahead of a half century of inflation, even after I pay for my massive hooker and blow habit.

[Chainsaw_Willie]

I'm single, likely to stay that way, and my needs are modest. $2m would net me $80-$100K/yr in interest income in conservative investments. I could live quite comfortably, travel, and generally have a really good time on that kind of income, and that includes reinvesting some of it. At 44 years old, I'd be plenty happy to never have to work on someone else's schedule again.

[Aldo]

Good question. For all of you unmarried without children types out there some quick advice. If you're interested in attaining this # ever, stay single, you're chances are much better that way.

[Tye 1on]

Funny, just had this conversation, without numbers, with a random older dude i was sitting next to at a beach bar in Ft Myers Beach. He was pretty pissed that he was only earning 2-4% right now, same theory as you, he did pretty well and planned to live off interest income. He sold 3 beachfront parcels in '07, so wasn't really hurtin...

I have no idea, as i've never even thought about it. I'll be working til the late late days, but laughing every day while i ski/bike/kayak/fish/drink a fair amount...life is good.

[XXX-er]

depends on your lifestyle, I went at 49 with what will be 900,000 if you add up all the pension checks plus some assets and no real liabilities

Old people tend to get pretty set in their ways & spending patterns and you do spend less in retirement

Are we to assume the person would just get this amount of money or did they have to earn it because someone who worked for that number would be habituated to ... more work.

[grskier]

I was thinking about this the other day... 2.5M and I'm only in my early 30s... I'd need to do something though... teach skiing a day or two a week and/or something in the summer. I'd go insane not working.

[wooley12]

Amazing thread. $2mil-$20mil to make it to the end? I'm fucked!! Not really, my needs are much less than that.

[dumpy]

The real question is, do your spending habits change and if so, do you spend more or less than you currently do?

I've often argued that I would spend less if not working, less driving, less lunches out, no work clothes to buy, etc. This is especially true in the summer when my days would be spent hopping on a bike and going for a ride. Winter is a whole different story.

On the flip side, in the word of Chappelle, "I'm rich bitch". Heli skiing, hookers, blow, rally cars, lighting Cubans with $50s (gotta be frugal in these tough times, no more $100s), carbon fiber everything, etc would be the new normal. Life would change a lot just based on my own attitude. I hope this wouldn't be the case (except for the heli skiing), but it could very well happen and get expensive real quick.

So yeah, that aside, I'm going to say that for the first time ever, I'm completely with Benny on this one. $5million to live really good, $2million to live pretty good.

[BigDaddy]

Good question. For all of you unmarried without children types out there some quick advice. If you're interested in attaining this # ever, stay single, you're chances are much better that way.

You would think that (and in many cases, it may be true), but in my case, it's probably the opposite.

Getting married made me stop working 24/7, weekends, etc. My wife/family demanded my time and so I had to delegate more, work smarter and get my shit together. I found I actually did better, worked less and made more. I have to give credit, where credit is due.

[Obstruction]

From 50 to the finish line, $5 million. Could prolly do it on $2 million but would have to cut a lot of corners.