Currently 22 and want to retire by the time I'm 25-30. One plan I was thinking of is investing 3m into the S&P 500 (which averages 10% return a year) and pull out 4% every year (120k). Is this a good or bad plan? I live in Chicago so COL is really reasonable. TC: 330k
Depends how fast you can reach $3M, aim for $5M, the you’re fine regardless.
120k today is going to be about 60k in 20 years. You'll need more than $3m.
Inflation every year is like 3-4% so my money always readjust for inflation, hence why I am withdrawing a % off my investment instead of a hard number.
As long as the market holds year over year, you should be fine then
There are stocks with higher dividends, like JEPI, SVOL, PFLT etc.
Jepi just writes call options against stocks it owns. It goes down when stocks go down - it's not that much safer than the s&p 500
I know dividend stocks have their own problems. But the thing is, dividend stocks kinds of take away the hassle of needing to sell stocks periodically just for income. You’re definitely not wrong, but it offers a different way of generating income during retirement.
Big question: why do you wanna retire by 25-30? What are you gonna do for the rest of your life?
Travel for a few years Binge watch shows Work on some passion projects Teach @ HS (most likely in a club-format). Work @ nonprofits.
You are clear with what you want to do with your time after retirement. Thats not the case for 99%of blind crowd. Check your current expense, calculate inflation adjusted value needed at the time of retirement of numbers match go ahead man. Live your life and once you retire get out of blind of you need peace.
Get to the 3M first, you’ll learn a lot along the way about what is reasonable and what’s not
You’re clueless about saving for kids college and healthcare when you’re older. I’d say one needs 200k at current currency value and should go up with inflation in a city area. If you were living in LCOL it could be lower.
All my friends who's family household TC is 90-100k live pretty well. I grew up dirt poor all my life so I don't really care about luxury things. And I don't think the necessities items will cost over 200k
Ignore the TC chasers. If you do get to three mil view it as the freedom to do what you want and escape tech if you aren’t passionate about it. 3M is plenty and you can always supplement with a part time job you enjoy for healthcare and basic costs
Intrinsic schools pays that much?
No, Intrinsic is the high school I worked @ during college. Paid me like $15/hr :p I run my own company.
Move internationally and live in luxury
2024 Presidential Election
15h
1854
What crime did trump commit?
2024 Presidential Election
14h
809
Trump is still leading to win US presidential election on PredictIt
Product Talk
4h
143
Which search engines do you like/trust most?
Ask Blinders
15h
215
Why would Universal Basic Income work ?
Tech Industry
Yesterday
32139
You cannot make this up…
You'd have to live pretty frugally, but yes you could lean FIRE
120k is frugal?
In what world is 90-120k (inflation adjusted) annually “pretty frugally????” Blind is hysterical