Anonymous
Post 04/19/2024 07:46     Subject: Can 29yr old live off $1.5 million w/working?
Anonymous wrote:
Anonymous wrote:Why did the brother get more inheritance? OP you never answered.


This


Clearly the parents knew they raised a dud and favored him.
Anonymous
Post 04/19/2024 07:03     Subject: Can 29yr old live off $1.5 million w/working?
No, that is not enough. As others have said, it isn’t enough at 65 let alone 29.
Anonymous
Post 04/19/2024 06:47     Subject: Can 29yr old live off $1.5 million w/working?
Anonymous wrote:
Anonymous wrote:It’s perfectly doable if you don’t want to live a lavish lifestyle. The average America worker will never earn 1.5m over the course their working lifetime.


But the average American worker is paying into SS and Medicare. 29 yo who stops working at 29, is probably not doing either of those things.

Even better then, more cash in his pocket.
Anonymous
Post 04/18/2024 21:32     Subject: Can 29yr old live off $1.5 million w/working?
Anonymous wrote:Sounds like a whole lot of none of OP’s business.


True . . . until Deadbeat comes knocking on his door.
Anonymous
Post 04/18/2024 20:49     Subject: Can 29yr old live off $1.5 million w/working?
Sounds like a whole lot of none of OP’s business.
Anonymous
Post 04/18/2024 20:44     Subject: Can 29yr old live off $1.5 million w/working?
Anonymous wrote:
Invest the 1.5 mil in vtsax or VT and withdrawal 3%/yr. More than enough (45k) to have a decent lifestyle, and even though this guy is a slug, he should be able to date women significantly better than your average woman in the US.

IN THEORY. Look up Sequence of return risks.

Very familiar with sequence of returns lol

What withdrawal rate would you use?


For those who don’t know sequence of return risk:

Sarah, a retiree who begins her retirement with a $1 million investment portfolio. Sarah plans to withdraw $40,000 annually for living expenses, adjusting for inflation each year. She has a well-diversified portfolio consisting of 60% stocks and 40% bonds.

Scenario A, the early years of Sarah's retirement experience positive investment returns. The stock market performs well, and her portfolio grows by 8% in the first two years. As a result, her portfolio balance after the second year is approximately $1.166 million.

However, in Scenario B, the sequence of returns is unfavorable. The first two years of Sarah's retirement see negative investment returns, with the portfolio declining by 10% each year. After the second year, her portfolio balance drops to around $810,000.

Even though Sarah will be withdrawing $40,000 each year no matter what, there is sequence risk due to the amount she will be reducing her overall portfolio. In Scenario A, where positive returns occur early in retirement, Sarah's portfolio experiences growth, and she withdraws $40,000 annually. In contrast, in Scenario B, the negative returns in the early years, coupled with annual withdrawals, lead to a more significant reduction in the portfolio balance. For Portfolio A, she would still have over $1,000,000 after the first two years; for Portfolio B, she would at less than $750,000.

How to mitigate sequence risk 😂 Consider working as late as you can in order to contribute more to your retirement account, particularly in your peak earning years.
https://www.investopedia.com/terms/s/sequence-risk.asp



Great explanation.
Anonymous
Post 04/18/2024 20:44     Subject: Can 29yr old live off $1.5 million w/working?
Anonymous wrote:It’s perfectly doable if you don’t want to live a lavish lifestyle. The average America worker will never earn 1.5m over the course their working lifetime.


But the average American worker is paying into SS and Medicare. 29 yo who stops working at 29, is probably not doing either of those things.
Anonymous
Post 04/18/2024 20:36     Subject: Can 29yr old live off $1.5 million w/working?
It’s perfectly doable if you don’t want to live a lavish lifestyle. The average America worker will never earn 1.5m over the course their working lifetime.
Anonymous
Post 04/18/2024 20:25     Subject: Can 29yr old live off $1.5 million w/working?
If not materially driven, you can do this. See it as a windfall, withdraw a small amount as needed (less than 4%), and work a job you love. Be a teacher, a ski school instructor, a freelance editor, anything to add some income and a sense of purpose.

If FIRE is that sense of purpose it may work too but not sure this guy is focused on that stuff.
Anonymous
Post 04/18/2024 19:45     Subject: Can 29yr old live off $1.5 million w/working?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:He should get a vasectomy, sell the house and move to Thailand ASAP. He’ll be fine on 4% a year

Until he pisses some gangster off and gets whacked


Hah this is actually good advice. I'm surprised more single guys aren't expats. I know several people living in Colombia on 20-30k per year.



Actually, the best advice of the entire thread. OP's brother needs to sell the house and move to another country.


+1

Invest the 1.5 mil in vtsax or VT and withdrawal 3%/yr. More than enough (45k) to have a decent lifestyle, and even though this guy is a slug, he should be able to date women significantly better than your average woman in the US.


IN THEORY. Look up Sequence of return risks.


Very familiar with sequence of returns lol

What withdrawal rate would you use?


Frankly, I assumed you were. And I also think you and I have been "arguing" all day. I actually don't disagree with you on a theory level. It is just that the OP is looking for practical advice, and is probably worried that his dead beat brother is going to come knocking at his door one day. And that is probably accurate.

I think a Fire person could make it work, maybe, because they are into lifestyle is figure out how to make it work. But how many of the early FireGuys have conceded that with a wife and kids it absolutely doesn't work if you want to give them a quality of life.

So Lazy Brother Guy (and anyone else) needs to understand what he is actually getting himself into by ceasing to work at age 29. EVEN with 1.5MM.

Long way of saying that you are arguing about the theory. I am arguing about the practicality.
Anonymous
Post 04/18/2024 19:38     Subject: Can 29yr old live off $1.5 million w/working?
Invest the 1.5 mil in vtsax or VT and withdrawal 3%/yr. More than enough (45k) to have a decent lifestyle, and even though this guy is a slug, he should be able to date women significantly better than your average woman in the US.

IN THEORY. Look up Sequence of return risks.

Very familiar with sequence of returns lol

What withdrawal rate would you use?


For those who don’t know sequence of return risk:

Sarah, a retiree who begins her retirement with a $1 million investment portfolio. Sarah plans to withdraw $40,000 annually for living expenses, adjusting for inflation each year. She has a well-diversified portfolio consisting of 60% stocks and 40% bonds.

Scenario A, the early years of Sarah's retirement experience positive investment returns. The stock market performs well, and her portfolio grows by 8% in the first two years. As a result, her portfolio balance after the second year is approximately $1.166 million.

However, in Scenario B, the sequence of returns is unfavorable. The first two years of Sarah's retirement see negative investment returns, with the portfolio declining by 10% each year. After the second year, her portfolio balance drops to around $810,000.

Even though Sarah will be withdrawing $40,000 each year no matter what, there is sequence risk due to the amount she will be reducing her overall portfolio. In Scenario A, where positive returns occur early in retirement, Sarah's portfolio experiences growth, and she withdraws $40,000 annually. In contrast, in Scenario B, the negative returns in the early years, coupled with annual withdrawals, lead to a more significant reduction in the portfolio balance. For Portfolio A, she would still have over $1,000,000 after the first two years; for Portfolio B, she would at less than $750,000.

How to mitigate sequence risk 😂 Consider working as late as you can in order to contribute more to your retirement account, particularly in your peak earning years.
https://www.investopedia.com/terms/s/sequence-risk.asp



Anonymous
Post 04/18/2024 19:27     Subject: Can 29yr old live off $1.5 million w/working?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:He should get a vasectomy, sell the house and move to Thailand ASAP. He’ll be fine on 4% a year

Until he pisses some gangster off and gets whacked


Hah this is actually good advice. I'm surprised more single guys aren't expats. I know several people living in Colombia on 20-30k per year.



Actually, the best advice of the entire thread. OP's brother needs to sell the house and move to another country.


+1

Invest the 1.5 mil in vtsax or VT and withdrawal 3%/yr. More than enough (45k) to have a decent lifestyle, and even though this guy is a slug, he should be able to date women significantly better than your average woman in the US.


IN THEORY. Look up Sequence of return risks.


Very familiar with sequence of returns lol

What withdrawal rate would you use?
Anonymous
Post 04/18/2024 19:13     Subject: Can 29yr old live off $1.5 million w/working?
Anonymous wrote:Why did the brother get more inheritance? OP you never answered.


This
Anonymous
Post 04/18/2024 19:11     Subject: Can 29yr old live off $1.5 million w/working?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:He should get a vasectomy, sell the house and move to Thailand ASAP. He’ll be fine on 4% a year

Until he pisses some gangster off and gets whacked


Hah this is actually good advice. I'm surprised more single guys aren't expats. I know several people living in Colombia on 20-30k per year.



Actually, the best advice of the entire thread. OP's brother needs to sell the house and move to another country.


+1

Invest the 1.5 mil in vtsax or VT and withdrawal 3%/yr. More than enough (45k) to have a decent lifestyle, and even though this guy is a slug, he should be able to date women significantly better than your average woman in the US.


IN THEORY. Look up Sequence of return risks.
Anonymous
Post 04/18/2024 19:00     Subject: Can 29yr old live off $1.5 million w/working?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Why do so many people think he needs a car? He doesn't plan to work so there's no commute. Perhaps the house he inherited is walking distance from any shops he might need. Or biking distance.


I mean, I’m car free. But is he really going to sit in his house for 60 years? Seems doubtful.


Do YOU just sit in YOUR house? Is that a requirement of being “car-free”?


Yes honestly, I feel constrained sometimes. I take ubers regularly. And I am a 40+ mom who works. Hard to imagine most 29 year olds just taking the bus around for the rest of his life. the people I know who live off the grid you already know that about them. This 29 yr old just sounds lazy. I think we all know he has a car or will spend $$ on uber.