What's your "number"?
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Anonymous
The magic number of net worth that lets you retire? We are at $3 million, 2.2 million of it liquid, but we're not quite 50. DH wants to retire immediately  We still have two kids to raise and put through college though, and without his job we lose our health insurance.
What's your magic number? |
Anonymous
| $6M, but we are younger (30s). |
Anonymous
| $6 million?!?! Crap. I guess we're never retiring. |
Anonymous
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We have a number that would let us retire in our 60s, but we haven't even bothered to think of one for sooner than that.
Plus, we're lucky enough to have jobs that, while they aren't perfect, are interesting, and challenging (but not physically demanding) so I'm not sure I'd want to retire in my 50s. |
Anonymous
| Net worth is currently 5.5 mil (inheritance) and neither of us are planning retirement earlier than we would have otherwise (mid 30s now, HHI just under 200k). |
Anonymous
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I figure I would need about $3 million for my wife and I to retire the way we would like to. Let's see, we're at $350k and I just turned 50 so it's all pretty academic.
For the OP, I think there are (at least) two parts of it. One part is how much money do you need to declare 'we do not need any more income.' Three million would provide a nice monthly check and various types of insurance without touching the principal. This first part provides you a tremendous amount of freedom. The harder part is the second one; what do you want to do if you have many options? Retire but stay in the area to babysit your grandchildren while they are little? Keep working because you love it, it has meaning and you want to build up family wealth to pass on, perhaps to donate to an important cause or to take care of a family member who really needs it? Move to a rural setting and spend 20 years writing a book that no one will buy but will bring meaning to your life? Play golf and travel? If you can answer the second part, the question of how much money you need will take care of itself. |
Anonymous
OP said $2.2 million liquid. Let's assume the rest is a paid for house. About the most you can get without taking significant risk is 3.5% right now. That's 75K per year. Back out the cost of health insurance for a family, say 15K per year, and you are left with median family income of 60K. There's worse things, to be sure, but the multi-millionaire OP is going very far without spending down principle. It's appalling, really. |
Anonymous
| I meant NOT going very far, sorry! |
Anonymous
| Not sure. We have about $2.5 million in retirement savings not counting a decent amount of equity in 2 houses and separate college savings that is/will fully fund private college. I would like to be closer to $4 million by 65, which should be quite do-able. I dont plan to sell the houses, at least not for a while, so i don't look at that equity as an asset to fund retirement. We will inherit some money from one parent, none from the other. No way would I feel comfortable retiring now (at 50). Too many potential years to fund. |
Anonymous
| $5M. Use $1M to pay off a home (may move, but would add equity from current home to the next) and finalize college fund. Live off the remaining $4M. |
Anonymous
Good point about the numbers. $60k would be totally awesome for me (with insurance and a paid off house) but the OP still has kids to raise and get through school. Sounds like they need to keep working for a while longer. |
Anonymous
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$7.5M ideally, future dollars
We have $1.5M at 32 yo, we are adding about $100k a year now, I'm hopeful that's sufficient + salary growth over next 30 years to get there. |
Anonymous
Did you have help getting to 1.5 at 32? |
Anonymous
| To live a luxury retirement, $22M. We are mid 30s now. |
Anonymous
Yes, my grandma left me $300k when I was in my mid 20s. The rest is a combination of shit dumb luck and a high income at an early age. |