How much net worth would you need to retire?
Depends on where you're retiring. In the US (West coast), I'd say, at least 3mil before retiring
Another big factor people forget when making these calculations are dependents (think children). At your retirement brackets they won’t be getting any aid for the increasing costs of education and overall costs of raising a child at the lifestyle you’re likely to have once you have kids. All of this can put a massive dent into the plans
Thanks for clarifying what a dependant is 🙄
Id need a minimum of $10m to maintain my current life style at a 4% withdrawal rate. Single male, nyc, late 20s
Even with no kids? How do you spend that much?
Penthouse in Manhattan: 120k/yr 401k: 18k/yr Roth: 5.5k/yr Food: 30k/yr Parties / clubs: 30-40k/yr Travel / vacation: 50k/yr Misc shopping: 20k/yr I typically invest another 150k and the rest is taken away in taxes.
Whatever amount you plan to set aside now, you cannot predict inflation or cost of living expenses in the future. A comfortable amount to cover monthly housing and living expenses 15 years ago now equates to just about half of what my current rent/mortgage would be.
It's a tricky game. Save more than you you plan to spend / life. It's better to outlive your money than you outliving your savings . Max out on 401-k and also rebalance your portfolio as market changes.
According to blind, you need to apparently be in the top 1% of net worth to retire.
tree fiddy
My plan is to save enough money that I can live off the interest alone, and have the principal keep growing. That way, I can pass the whole thing on to my descendants when I die.
If you use all the interest, capital can’t grow!
You cant do that if you r in US. I mean you need very big saving to achieve that. In country like India its easy.
Wealthfront predicted that I need 5.3M.
It depends at what age and what your spending needs/wants are. Boring answer I know, but it’s simple math to figure it out.