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Old 07-03-2019, 02:25 PM
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Voyager is offline
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Join Date: Aug 2002
Location: Deep Space
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Originally Posted by bump View Post
I'm just trying to think of what it would take for me to quit working. I don't think it would be just a mere continuation of my current lifestyle; I'm young enough to expect to continue to make more money through the remainder of my career, and I also expect that if I was to come into some kind of windfall (that's effectively what we're talking about here), some proportion would go toward "fun stuff"- new vehicles, home renovations/new home, some sort of travel fund, college funds for my children, etc...

Then, what's left over would need to do the following:
  • Provide me at least the standard of living I'm used to now, and probably significantly better.
  • Have enough size to do the above, even in the face of a couple significant market crashes/economic downturns a-la 1987 and 2008.
  • Have enough spare cash to support some further "fun" buying in the future.
  • Enough to do all of the above without substantially dipping into the principal. My thinking is that this sort of windfall money isn't for ME; it's for the family. And as such, it would need to be something that could be passed down substantially intact, even after my wife and I's immediate wants and desires are taken care of.

It's the second and fourth bullets above that warrant such a high number. My goal wouldn't be to time it exactly so that I made my current salary and my bank account hit $0.00 the moment I gasp my last. Rather, it would be to have enough money to do what I want to do in the style I'd like to do it in, AND retain the vast majority of the fortune in some kind of trust(s) for descendants.
As for point 2, if you diversify adequately you can take money out of cash and bonds during a downturn, and preserve equities until they go up again. I bet you are more aggressively invested now, but that is something worth changing if you plan to retire on it.
As for 4, I'm lucky in that neither of my kids needs any money from me, and what they get in 30 years when I kick off probably won't affect their lives much. The money we got from our parents, hardly gigantic, when right into savings. Targeting 0 left is not a good plan since you might screw yourself by living too long.
You need a lot more than $2 million to be sure, since you have college expenses and longer to live off it. But if you have enough money you get access to better investment classes.
The other thing to count is maintenance expenses, like a new roof or new pipes. (ouch). But those are trivial when you have even $5 million. It is a bit scary when I make more money from investments in a month than my yearly salary when I started to work. Which was a good salary.
Sure anyone can overspend for fun - look at Nic Cage. So if you want to spend every night in a penthouse, the answer has to be an infinite amount of money.