Do we need $20m to retire in Bay Area at 50?
Dec 12, 2020
31 Comments
I read from some financial website that you can only withdraw 1% every year from your investment if you don’t want it to deplete over time. If I want to have $200k per year by the time I am 50, does it mean I can only retire when I save up $20m? That seems like a lot to me. Is the number realistic? Wanted to hear from someone closer to that age or net worth on their outlook on retire
comments
Also the closer you are to retirement the more diversified you should be to avoid a Japan like scenario. Get market cap weighed total stock (world) etfs, buy some real estate, have decent amount of bonds, precious metals etc.
That should work much better than wasting a couple more decades working to feel safe withdrawing 1%.
What on earth are you doing with 160k every year to eat and breathe? Do you currently have a 400k TC and burn all your after tax income today ...?
You don’t “need” a lot of all that vs you want