How Much $$$$ to Retire at 35?

[Manhattan]

Originally posted by holden
I read a study that says in this low-interest environment it is closer to 3.5%.

Most investors tend to assume whatever is happening now will go on forever but markets are cyclical in nature. Interest rates have been on the decline since the 80's to the rock bottom/negative rate territory we're seeing today. My guess is interest rates are more likely to gradually increase in the next couple decades.

EDIT: I assumed OP is single w/o kids so 50K/yr should be damn near lavish.

[HiTempguy1]

Originally posted by BavarianBeast
You don't need more than $2m to retire at 35 comfortably if your not a fucking idiot.

2 mil at 4% interest and 1% inflation is $6250/month for 50 years Assuming no debt, uh, yea, I could race cars all year long on that budget!

Originally posted by ExtraSlow
Commence dick-measuring contest regarding current and projected net worth . . . now!

My Beyond Baller epeen is so small

[Tik-Tok]

Originally posted by Xtrema


Monthly for 2 ppl:
$2000 for cars
$500 for utilities
$300 for prop tax
$1000 for food

you still have $4500 left over for a annual trip somewhere. It is doable if house is paid off and have no more liabilities like children.

How soon you can retire is what your expectation your retirement will be. It's pretty simple if it's just single or couple. Get exponentially harder if you have kids or your retirement involves hookers and blow.

That's assuming no mortgage, which is normal for a 65+ year old to not upgrade housing, not so much for a 35 year old.

[killramos]

Originally posted by Tik-Tok
Beyond Ballers, where 50k a year is comfortable living

Living? I thought that was just a car budget...

[Tik-Tok]

Originally posted by killramos


Living? I thought that was just a car budget...

Lunch budget actually

[suntan]

Originally posted by Manhattan


Most investors tend to assume whatever is happening now will go on forever but markets are cyclical in nature. Interest rates have been on the decline since the 80's to the rock bottom/negative rate territory we're seeing today. My guess is interest rates are more likely to gradually increase in the next couple decades.

EDIT: I assumed OP is single w/o kids so 50K/yr should be damn near lavish.

Nah, high interest rates are over. We may in fact never see them again.

Demographic pressure. Once a country's population is mostly old people that's it. Game over man.

[flipstah]

My Marth of $3mm for retirement isn't based on dividends and shit. Just income to live off of.

LIKE A BOSS. NOT A PAUPER.

[Buster]

You can immediately tell in these threads who has kids, and who doesn't. haha.

But seriously, if you are 35, you likely didn't make fuck you money (or just retire and make ends meet money) by working a job. I don't know many people who have done this, that aren't pro athletes. I know almost none that have done it with kids. One couple I know that came close to doing it at 35 working jobs as their primary income did it working for Google and Microsoft as dual incomes - and no kids. I know a few traders who have done it. But its rare enough to not be considered relevant for the purposes of this discussion.

Usually if you get to a point where working is optional at 35 (assuming you didn't just use Daddy's capital) got there by building businesses or having invested in high-return small business start-ups. In either of those cases, you don't generally see "retirement" as you tend to manage your portfolio relatively actively. You essentially are acting like a member of a board for a few things.

In other words, if you are a werkin' person, grinding for the Man, then you aren't getting there. If you have gotten there, you likely aren't retiring anyway.

Having said that, the number I hear thrown around when this comes up in discussions is $10 million. Generally, you should be able to drive $350M-$450M off that, if you swapped it into relatively passive portfolios. But if you are 35, and have accumulated $10 million, most of that probably happened in the last 5 years of your career - just generally the way it works. So I've never seen someone, who is generating $1MM - $2MM a year in net worth increase just shut it down. They have alternatives to hire people to manage their business, etc. Would you retire at 35 with 10 bucks in the banks, if you could retire at 45 with 30 bucks in the bank?

[davidI]

I'll admit I'm surprised at some of the comments. I liked this article today:

This survey, also of more than 1,000 adults and conducted by Harris Poll, examines the cultural relevance of the old adage "time is money." Turns out most Americans (59%) do equate the two, while a significant minority (30%) favor money and a very tiny minority favor time (11%).

As the news release announcing the findings puts it, "the survey explores whether Americans are more likely to opt for extra money in their pockets or extra time on their hands."

While I have often made the case for applying one's work efforts to saving for the future, that should not be mistaken for the notion that people should become workaholics. To the contrary, the whole purpose of saving for the future is so that we can achieve financial freedom, and what greater hallmark of freedom is there than control over our time. Thus, according to this view, time is more valuable than money. Money is just a convenience, a medium through which we manage our economic lives. Because we all have material needs, we must give up some of our freedom in order to obtain money. But freedom is, or should be, the ultimate goal.

https://seekingalpha.com/article/406...-digest?page=2

I'm definitely on the Time > Money side of the spectrum.

[flipstah]

For some cases, time is a by-product of money; paid off mortgage, no car loan... No liabilities give you freedom.

Chicken vs. the egg.

[you&me]

Some of the replies in this thread are downright depressing. Who the fuck wants to "retire" so they can scrape by on $50k / year?

I think Buster's on the right track... Personally, the only reason I can see even considering retiring is once I have piled up enough capital to make multiple passive investments that generate fuck-you income (assuming no other debts). First you need your home paid off, vehicles (multiple!) paid off, perhaps even a vacation property... Then you need enough income to maintain those cars & properties, use them, travel and otherwise keep yourself busy... I don't think many people realize how expensive it is to keep yourself entertained when all of your friends are still going into the office...

[killramos]

My opinion on the time vs money debate:

Ask anyone, no matter how little or how much they have going on in their lives. They will always complain they are too busy. Your perception of busyness scales.

No matter how much free time you have you will convince yourself are busy and stress about it; So might as well be actually ridiculously busy and make lots of money while you are at it.

[davidI]

Originally posted by flipstah
For some cases, time is a by-product of money; paid off mortgage, no car loan... No liabilities give you freedom.

Chicken vs. the egg.

Perhaps I'm not understanding your point but this is the whole point of Financial Independence.

[Buster]

Originally posted by killramos
My opinion on the time vs money debate:

Ask anyone, no matter how little or how much they have going on in their lives. They will always complain they are too busy. Your perception of busyness scales.

No matter how much free time you have you will convince yourself are busy and stress about it; So might as well be actually ridiculously busy and make lots of money while you are at it.

although people often mistake busy and hard work for productive tasks that generate wealth.

Frankly, I think we are often given the bad advice that "hard work" is sufficient...or even important.

[max_boost]

Even with no mortgage, my min expenses per month are around $3k (no kids). If it came down to it I'm sure I can cut back even more but that's no fun.

I don't think I can build a portfolio to generate income to live off of so I will wait for min income and then go do some cash jobs to get by haha I think working is okay as it gives you some sort of routine.

$75k gross per year would be a sweet spot so I guess i need a 2mill portfolio and i need another 1.9 to hit that haha

[Sugarphreak]

...

[ExtraSlow]

$65k/yr for a person with no mortgage and no kids is pretty fucking baller to me.

[Sugarphreak]

...

[Tik-Tok]

Originally posted by ExtraSlow
$65k/yr for a person with no mortgage and no kids is pretty fucking baller to me.

Again though, a mortgage is inevitable when you're only 35. There's little chance you'd have it paid off already, and even less chance you're never going to move (and upgrade) for the rest of your 50 years of life.

[max_boost]

Originally posted by Buster


In other words, if you are a werkin' person, grinding for the Man, then you aren't getting there. If you have gotten there, you likely aren't retiring anyway.