02-07-2022, 08:24 AM
i read an article, in silicone valley/tech industry that 10 to 12mil seemed to be the magic number for people to just walk away no matter what age
I disagree though I also think there's a "this depends" factor in it. I have 80% of my budget coming from dividends. So you can immediately divide whatever value figure you come up with by 5 - so long as you can make sales without reducing your income relative to inflation.
Then there's location, lifestyle, etc. I like my present lifestyle and don't plan to change it much except for travel. I live in rural Central Indiana. Whatever number I might come up with would be very different if I lived in, say, San Francisco or Manhattan. Indianapolis is a 30-minute drive, Chicago a bit over two hours and I have a car - that's close enough for me to get my fill of "city" whenever I want.
Anyway, my retirement budget is 20% higher than my highest working salary, I have far less than $10m and I have an ample margin of safety to maintain my retirement cash flows. In fact, I have a chunk of change that I shouldn't ever need to touch until the IRS tells me I have to take RMDs.
Whoever says $10m either lives in a very expensive location or has a much more ostentatious lifestyle than I do, or both. I can take that much and turn it into $300k/year dividend income with a 6% annual growth rate pretty easily. If someone needs that much to live on my hat's off to them but it sure isn't me.
I disagree though I also think there's a "this depends" factor in it. I have 80% of my budget coming from dividends. So you can immediately divide whatever value figure you come up with by 5 - so long as you can make sales without reducing your income relative to inflation.
Then there's location, lifestyle, etc. I like my present lifestyle and don't plan to change it much except for travel. I live in rural Central Indiana. Whatever number I might come up with would be very different if I lived in, say, San Francisco or Manhattan. Indianapolis is a 30-minute drive, Chicago a bit over two hours and I have a car - that's close enough for me to get my fill of "city" whenever I want.
Anyway, my retirement budget is 20% higher than my highest working salary, I have far less than $10m and I have an ample margin of safety to maintain my retirement cash flows. In fact, I have a chunk of change that I shouldn't ever need to touch until the IRS tells me I have to take RMDs.
Whoever says $10m either lives in a very expensive location or has a much more ostentatious lifestyle than I do, or both. I can take that much and turn it into $300k/year dividend income with a 6% annual growth rate pretty easily. If someone needs that much to live on my hat's off to them but it sure isn't me.