How Much $$$$ to Retire at 35?

[davidI]

Originally posted by Sugarphreak

In either case, you have to use low/no risk investments. I reject the idea that you can go high risk forever. With so much exposure, it would only be a matter of time before your assets get wiped out by some sort of global economic meltdown otherwise.

I like this FIRECalc tool. It models outcomes based on historical US Stock Market performance.

You're right you can't go high risk forever but with time on your side you can certainly invest more aggressively in your early years.

http://www.firecalc.com/

[max_boost]

lol ya but the dow is at 21k and tsx at 15k. where do you see it in 30 years?

or where you all putting your money? someone help me grow mine lol

[davidI]

Originally posted by 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...

Depends on what makes you happy.

I've been living out of a backpack for the last decade and found the happiest societies are those that focus on friends, family, physical activity, good food / diets, and nature - rather than physical possessions.

I like comfort but also enjoy the stress-free life minimalism brings. Less upkeep, maintenance, and stress when you have less stuff.

When I hear multiple properties and multiple cars I just imagine depreciating assets that will eat up my spare time and limit my freedom.

Everyone has different perspectives on what an enjoyable life is like, though.

[timdog]

it's really pretty simple - your cost of living x 25. for some people this could be $50k x 25 if lets say you live a simple lifestyle and have no mortage, for others it might mean $150k x 25. whatever you want to live on annually, multiply it by 25 and you will basically live off the investment returns forever, even if you lived to 150 (this does account for inflation as well, assuming a 7% rate of return on average and 3% rate of inflation).

http://www.mrmoneymustache.com/2012/...or-retirement/

[davidI]

Originally posted by max_boost
lol ya but the dow is at 21k and tsx at 15k. where do you see it in 30 years?

or where you all putting your money? someone help me grow mine lol

Cash.

More because of tax laws and personal circumstances though. This bull cycle will eventually come crashing down to reality, like all those before it, and that will be my time to establish residence in Spain and begin investing again.

[jwslam]

Originally posted by timdog
it's really pretty simple - your cost of living x 25. for some people this could be $50k x 25 if lets say you live a simple lifestyle and have no mortage, for others it might mean $150k x 25. whatever you want to live on annually, multiply it by 25 and you will basically live off the investment returns forever, even if you lived to 150 (this does account for inflation as well, assuming a 7% rate of return on average and 3% rate of inflation).

http://www.mrmoneymustache.com/2012/...ly-retirement/

That's literally the same math as this

Originally posted by Manhattan
Look up the 4% rule if you haven't already. It's the amount you can safely withdraw each year from your investments with a 99% likelihood that you'll never run out of money. e.g. If you can live comfortably on 50K a year divide that by 4% to get 1.2 mil of investments. Change that to 80K a year and you'll need 2 mil.

[max_boost]

Originally posted by davidI


Depends on what makes you happy.

I've been living out of a backpack for the last decade and found the happiest societies are those that focus on friends, family, physical activity, good food / diets, and nature - rather than physical possessions.

I like comfort but also enjoy the stress-free life minimalism brings. Less upkeep, maintenance, and stress when you have less stuff.

When I hear multiple properties and multiple cars I just imagine depreciating assets that will eat up my spare time and limit my freedom.

Everyone has different perspectives on what an enjoyable life is like, though.

yup. down sized to condo.
3 cars to 1 car.

excess cash left over....now what? i feel like i need to do something like buy a TT-RS lol i don't trust myself buying anything on the market other than the index XIC and IYY although i hope Aphria explodes

[suntan]

Originally posted by davidI


Cash.

More because of tax laws and personal circumstances though. This bull cycle will eventually come crashing down to reality, like all those before it, and that will be my time to establish residence in Spain and begin investing again.

We're in a 117 year bull cycle!

[timdog]

Originally posted by jwslam

That's literally the same math as this

yeah i actually posted the wrong article. edited with one that is more focused on the 4% rule

[Manhattan]

Originally posted by davidI


Cash.

More because of tax laws and personal circumstances though. This bull cycle will eventually come crashing down to reality, like all those before it, and that will be my time to establish residence in Spain and begin investing again.

Waiting out the next crash might work or it may work severely against you. I think Buffett said something about being more dangerous being out of the market than in. But I agree equities aren't cheap right now and you see a lot of smart managers holding boat loads of cash.

[davidI]

Originally posted by suntan
We're in a 117 year bull cycle!

Or the 20 year inflation adjusted version...

[Buster]

Originally posted by max_boost


yup. down sized to condo.
3 cars to 1 car.

excess cash left over....now what? i feel like i need to do something like buy a TT-RS lol i don't trust myself buying anything on the market other than the index XIC and IYY although i hope Aphria explodes

Just do that. Active management is basically pointless nowadays. Trying to actually trade or pick stocks or whatever is largely a low percentage play.

[BavarianBeast]

Originally posted by Buster


Just do that. Active management is basically pointless nowadays. Trying to actually trade or pick stocks or whatever is largely a low percentage play.

Maybe if you suck at investing.

[you&me]

Originally posted by davidI


Depends on what makes you happy.

I've been living out of a backpack for the last decade and found the happiest societies are those that focus on friends, family, physical activity, good food / diets, and nature - rather than physical possessions.

I like comfort but also enjoy the stress-free life minimalism brings. Less upkeep, maintenance, and stress when you have less stuff.

When I hear multiple properties and multiple cars I just imagine depreciating assets that will eat up my spare time and limit my freedom.

Everyone has different perspectives on what an enjoyable life is like, though.

That's fair enough and all, but then what's the point of this thread? I get the impression that you already have enough $$$ to go "retire" in one of these less possession-centric societies...

All I'm trying to say is that in my mind, retirement is the end game. Something to be done once (and only once) everything else you want is in place and taken care of... Needs are entirely different and something that gets addressed much earlier in the journey to retirement.

In my mind, I might need $500 a month for utilites and $1,000 a month for groceries (or whatever), but that doesn't sound enjoyable at all... If I don't have anything else to do (i.e., I'm "retired"), then I'm going to want to be able to go out for dinner when ever I want and where ever I want and order what ever I want... Or go on vacation... Or go golfing... Or whatever else. At the same time, I have a wife and kids and friends and family here, so I can't just bum around on a beach for pennies a day.

[you&me]

Originally posted by BavarianBeast




Maybe if you suck at investing.

I liked it better when your post read: "Tell that to my bank account"

[mr2mike]

Originally posted by suntan
We're in a 117 year bull cycle!


» Click image for larger version

With that graphic, can you be my portfolio manager?

[Buster]

Originally posted by BavarianBeast




Maybe if you suck at investing.

I meant in the public markets, where the data is very clear on this.

Small business investing, and private investing is a different ball game obviously.

[quick_scar]

Originally posted by BavarianBeast




Maybe if you suck at investing.

We can't all pick them like you

[suntan]

Originally posted by davidI


Or the 20 year inflation adjusted version...

Whoa, when did you learn that the 2000s were called the "lost decade"?



Did you notice my graph started in the year 1900?

[Xtrema]

Originally posted by Sugarphreak

Seriously, just thing about how stupid are you going to feel if you retire with the bare minimum to eat....

Not your call but your body's call. You ability to wine and dine frequently diminishes with age.

https://en.wikipedia.org/wiki/Gout

I probably need to run a marathon every day in my 50s to eat like I was in my 20s and 30s.

Originally posted by 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?

You always want to set a bare minimum line so anything about it is just gravy and you feel better about it.

Originally posted by Tik-Tok


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.

Dual income, no kids and not upgrade from their starter homes? Definitely possible if you were able to prosper in the oil boom of last 15 years.

But yeah, I know many that think the boom will last forever and upgraded too fast and thinking $800K house is the norm and become a slave for house.

Originally posted by davidI
I've been living out of a backpack for the last decade and found the happiest societies are those that focus on friends, family, physical activity, good food / diets, and nature - rather than physical possessions.

I like comfort but also enjoy the stress-free life minimalism brings. Less upkeep, maintenance, and stress when you have less stuff.

When I hear multiple properties and multiple cars I just imagine depreciating assets that will eat up my spare time and limit my freedom.

Everyone has different perspectives on what an enjoyable life is like, though.

You are not alone and I'm slowly also coming around on this conclusion.

https://www.forbes.com/sites/travisb.../#b88b28965208