How much in savings would you need in order to feel comfortable never working again
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Returns in index funds are about 7% a year. Inflation could be as high as 3% long term, so you really only have 4% you can sell & still have same real wealth. Taxes may be as high as 60% one day on cap gains —>1.6%. Index funds cost ~0.3% fees, so 1.3% so COL/0.013=wealth needed.
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Someone with 2M in index funds this can only dependably spend ~26k/yr. (It gets a bit wonky at low spending levels though as cap gains wouldn’t be 60% ever at those levels, you might get away with 36k or so).
Personally I’d want >100% of current income, so I’d need ~$10M+.
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I'm married with three kids. The number is well north of the options you've listed.
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2m @ 3% -> $60k. I’d feel pretty comfortable with that _depending_ on the state of healthcare in this country.
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For me in the US it primarily depends on what health care coverage i need and how much I'm worried about medical debt driven bankruptcy. Minimum 5m 2020 dollars at age 62 for never working again to be relatively confident that I can do the things I want.
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This answer is going to be very different for a 20 year old compared to a 50 year old
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I have ~zero savings and will likely never work again; going on nigh a decade now in terms of not working; had zero savings when I started.
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90% of the people answering anything other than <700k don’t know how compound interest works, or are somehow UNcomfortable living on anything less than 10k/month. JFC.
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