Anonymous
Post 10/01/2018 11:10     Subject: Re:how much money would you have to have in the bank to feel like you never needed to work again?
$10m, enough to replace our $250k HHI for the next 35 or so years.

I'm 33, DH is 40. We've got an infant.
Anonymous
Post 10/01/2018 10:54     Subject: how much money would you have to have in the bank to feel like you never needed to work again?
I like my job so to quit now (I'm 40), I'd need enough that I could live an even better life without it. So it would probably be $50 million or so. But that's so I wouldn't want to work, not so I would never need to work.

I calculated that for me to live another 50 years with an inflation adjusted allowance of $250k/year and not to reasonably worry I'd be destroyed by either bad investments or inflation would be about $15m. Quite a lot!

That said, I also have a child with disabilities who may never work so I have to take him into account. So realistically $25m to account for his subsistence and care. May not have this but will probably be close if DH and I each retire at 75 as planned. And probably don't need this much except in the worst possible case.
Anonymous
Post 10/01/2018 10:42     Subject: how much money would you have to have in the bank to feel like you never needed to work again?
$2.5 million - following the 4% rule, we could then safely live on $100k year, which I think would be very doable for us, even if we were buying a health plan in the Marketplace. If Obamacare gets repealed, then I guess I'll be working until Medicare kicks in.
Anonymous
Post 10/01/2018 10:00     Subject: Re:how much money would you have to have in the bank to feel like you never needed to work again?
Anonymous wrote:When we were both about 52, DH's company was sold and at that point we totaled about $15 million and I would love for him to have retired as $15 was beyond our wildest dreams. He did briefly but was bored because all of his friends were working so he co-founded and invested in another company at around age 54. That bet really paid off and he mostly retired at around 62 when I said "it's time to enjoy life" and he agreed. His last deal was great but the additional money hasn't changed our lifestyle. Honestly, if between age 52 and 62 his health had suddenly gone south it would have been so sad because we didn't need the money. Luckily it all worked out.


I think i know who you are....
Anonymous
Post 09/30/2018 23:30     Subject: how much money would you have to have in the bank to feel like you never needed to work again?
oh, and people in my family seem to tap out around 75-80
Anonymous
Post 09/30/2018 23:25     Subject: how much money would you have to have in the bank to feel like you never needed to work again?
6 million. 2 college kids, not sure what they're planning for grad school. Self employed 50 yr old. put aide 1 million for the kids' schools etc, and then 5 mill should give me 25 yrs of 200k income. Move out of DC, to a lower tax state, and I'm good as the equity in my house could get me mortgage-free housing most other places
Anonymous
Post 09/29/2018 00:53     Subject: Re:how much money would you have to have in the bank to feel like you never needed to work again?
Anonymous wrote:
Anonymous wrote:My wife was a SAHM throughout our marriage. We got married young, and had four kids before turning 30. At 53, without about $4.3 million and college completely behind us, I stopped working. I'm now 57 with a net worth of $5.8 million. We have found that this is plenty of money.


What was your hhi before you stopped?


We hit six figures sometime in the mid 1990s, and the last ten years I was working we averaged about 650k a year (before taxes). We paid for college out of current income as the kids went (no college savings plan). Bought the family home in the burbs for around 350k in the early 90s and sold it 18 years later for $1.1 million. "Downsized" at that point (close to a decade ago) for a much smaller house in the city. Paid around the same as what we sold the old house for, but the new place has a basement rental that more than covers the mortgage. The house is worth about $1.7 million now. We sent the kids to good public schools, avoiding the whole private school rat race, and our kids either went to UVA (in state) or to well regarded privates offering substantial merit aid. Bottom line: we were smart about money but not at all frugal. We took very nice family vacations every year and paid for very nice weddings. It worked out well for us. Obviously we aren't living on anywhere near $650k a year now, but we haven't had to cut back on our lifestyle in any meaningful way because we never lived like we made that much money even when we did and we don't have any kid expenses anymore.
Anonymous
Post 09/28/2018 18:19     Subject: Re:how much money would you have to have in the bank to feel like you never needed to work again?
Anonymous wrote:When we were both about 52, DH's company was sold and at that point we totaled about $15 million and I would love for him to have retired as $15 was beyond our wildest dreams. He did briefly but was bored because all of his friends were working so he co-founded and invested in another company at around age 54. That bet really paid off and he mostly retired at around 62 when I said "it's time to enjoy life" and he agreed. His last deal was great but the additional money hasn't changed our lifestyle. Honestly, if between age 52 and 62 his health had suddenly gone south it would have been so sad because we didn't need the money. Luckily it all worked out.


This is so true. I know too many stories of someone who had made a ton of money, could have retired at 55-60 but retired at 65-70 and then got seriously ill a year or two later. Retiring too early could lead to boredom but retiring too late could lead to death. Aging becomes very rapid after 60.
Anonymous
Post 09/28/2018 18:14     Subject: Re:how much money would you have to have in the bank to feel like you never needed to work again?
Anonymous wrote:
Anonymous wrote:$5 million seems like the right amount but I think it would be after educations and my mortgage is paid off. I will be around 55 when that happens and we are in pretty good shape to achieve that goal. But if I really like my job at that age I'd probably continue to work. I don't want to be the youngest retiree around.


These are 2 legs of the 3-legged stool. The 3rd leg is healthcare.

Assuming these two items are paid off, then a reasonable healthcare premium would give most people comfort. So $5M would conservatively generate $200k per year, minus local/state/fed income taxes you're sitting at around $120k. Take off another $20k for healthcare and you're left with $100k. That should be plenty without the mortgage (which usually makes up 1/3 of a monthly outlay).


That's a good point which is why I might continue to work a few more years to build more net worth and have a company sponsored health plan. But that gap health insurance gap before Medicare can be very expensive.
Anonymous
Post 09/28/2018 16:56     Subject: Re:how much money would you have to have in the bank to feel like you never needed to work again?
Anonymous wrote:My wife was a SAHM throughout our marriage. We got married young, and had four kids before turning 30. At 53, without about $4.3 million and college completely behind us, I stopped working. I'm now 57 with a net worth of $5.8 million. We have found that this is plenty of money.


What was your hhi before you stopped?
Anonymous
Post 09/28/2018 16:00     Subject: how much money would you have to have in the bank to feel like you never needed to work again?
Anonymous wrote:
Anonymous wrote:1mill would be the bare minimum for me to think about stopping work

now I know is seems low, but I figure with a million bucks I should be able to get 5% return

which means I'd be getting 50K a year on interest

Which means id never have to touch the principal and still get a living wage.

given I'm 46, I figure I got another 40 years I could spend 25K a year form the principal plus the 50kinterest would be 75K a year. totally livable wage. and by the time i'm dead the original amount would be close to zero.

now granted I would not be able to live in the DC area, but i'd be happy out of this area anyhow..

more than 1mill would be better, but I'd be able to it on one mill


lol.. yes.. or just use one of those retirement calculators.

Wow. You may want to go take some remedial math classes before you make any decisions, PP.
Anonymous
Post 09/28/2018 15:43     Subject: Re:how much money would you have to have in the bank to feel like you never needed to work again?
My wife was a SAHM throughout our marriage. We got married young, and had four kids before turning 30. At 53, without about $4.3 million and college completely behind us, I stopped working. I'm now 57 with a net worth of $5.8 million. We have found that this is plenty of money.
Anonymous
Post 09/28/2018 15:27     Subject: Re:how much money would you have to have in the bank to feel like you never needed to work again?
3 million and I would never "need" to work again. I would probably want to work, at least part time, so I could afford a more extravagant lifestyle. But at 3 million.. it would definitely be a choice and not a necessity.
Anonymous
Post 09/28/2018 15:10     Subject: how much money would you have to have in the bank to feel like you never needed to work again?
10 million, and I could just live off interest. Don't touch the principle. Married with one child, we're in our 40s. I kind of like my job though so I'd probably still do it but volunteer
Anonymous
Post 09/28/2018 15:08     Subject: Re:how much money would you have to have in the bank to feel like you never needed to work again?
Anonymous wrote:$5 million seems like the right amount but I think it would be after educations and my mortgage is paid off. I will be around 55 when that happens and we are in pretty good shape to achieve that goal. But if I really like my job at that age I'd probably continue to work. I don't want to be the youngest retiree around.


These are 2 legs of the 3-legged stool. The 3rd leg is healthcare.

Assuming these two items are paid off, then a reasonable healthcare premium would give most people comfort. So $5M would conservatively generate $200k per year, minus local/state/fed income taxes you're sitting at around $120k. Take off another $20k for healthcare and you're left with $100k. That should be plenty without the mortgage (which usually makes up 1/3 of a monthly outlay).