How much is required to retire.

nickCR

nickCR

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Feb 5, 2010
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First, no im not near my retirement yet, however i'm curious what everyone thinks.

Lets make some assumptions

You have kids just about out of high school (they might do uni)
You own your house outright
You like to travel 2-3 times a year

In todays day and age how much do you figure would be required to retire? A million would not be enough. Thats only 100k a year which really isnt that much. Also remember inflation. Coffee used to cost 5c now its $5.
 


Ideally, I want investments to provide my income. Different sources have different views on the matter. I know a college education in the foreseeable future can set you back 250k or so, from estimates I've seen.
 
The problem is, what you think you would want to do at retirement is likely to change over the course of the next ~30 years. I know a lot of retirees including my parents. They still work. They retired about 7/8 years ago.. the first year they took a couple trips and then they came back home and now both have these little part time jobs to keep them busy. They seem pretty happy. One thing I can say that keeps them from doing a lot more things is health. It seems my dad always has a drs appointment so he can't go here or do that.. He also has a garden that keeps him close during the spring and summer.

My point being is what you love today, may not be what you love tomorrow. I don't think you can accurately guage how much you will need even if you knew for sure what you want to do when you retire because costs and technology could change things in an instant.

I think what you need to do is cover all your basics like medical, housing, food, transportation. Once those areas are covered then what's left over can be your fun money. If you think you want to have of fun money, then bank as much as possible...
 
topimg_7652_bretton_james_600x400.jpg

More.
 
You want to set up something that will always be bringing in money, or preserve your buying power in gold/silver
 
Bofu2U said:
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More.
Click to expand...

Mmmmmmmmmhmmmmm

But for realz, to truly retire you have to have enough monies to invest and live off the interest. So your million would go in investments and yield 5% giving you like 4k month magically. If that's enough then do it. You can go live on a beach somewhere for that.

fyi my logic comes from the millionaire fastlsne, read it if u haven't. I would need at least 3 mill to retire, but want 10..

Also I don't know old you are, im 23,, and even if I had 10m right now I would still work on new things. To truly retire id have to be really burnt out..
 
leadsupplier said:
Mmmmmmmmmhmmmmm

But for realz, to truly retire you have to have enough monies to invest and live off the interest. So your million would go in investments and yield 5% giving you like 4k month magically. If that's enough then do it. You can go live on a beach somewhere for that.

fyi my logic comes from the millionaire fastlsne, read it if u haven't. I would need at least 3 mill to retire, but want 10..

Also I don't know old you are, im 23,, and even if I had 10m right now I would still work on new things. To truly retire id have to be really burnt out..
Click to expand...

so whats this magical investment that yields 5%?
 
Just a tip for investors: Always invest in your preferred currency. for example: Interest rates in India are currently at around 10% for a fixed deposit. Sounds great right? but if you live in say hong kong and placed a FD in india, by the time your FD matures, the currency loss could be over 10%, how much you gained? nada nothing
 
How Much Money

Hola Nickcr

great question and its good to see the many replies.

first being in Costa Rica you are already ahead of the curve since your money actually goes further ( depending on vices :) )

I don't believe its safe to actually have large amounts of money in liquid investments since the near future I see alot of changes.

someone mentioned and I agree is not having large amounts of money BUT diverse income streams. and if you do have large amounts of cash available. I would purchase smaller tico style homes under $100,000 for cash and rent them. taxes are so low that most of the monthly would actually be profitable.

so you could own 20 small homes and you would have an income stream that will be consistent while still protecting your initial cash.

if you do NOT want to rent them then then next best thing is to become the bank and give 20 or 30 year mortgages at a good interest ( this is what I do since your better protected in case of default) in costa rica if you default you can foreclose in 4 months as opposed to kicking out a tenant that renting.

this is as secure as they come.

then mitigate your risks by adding different styles of online revenue

adsense
offline consulting
etc

and as you build your business you save a certain amount them buy another small home. I say smaller tico house because there is always a market for tico homes under $100 grand.

I know alot of guys buy precious metals which is good but I have not much experience in this

my longer term plan is to have NO DEBT which I do..:) I owe NOTHING

and have rent able income that I get that I dont even declare and this monthly income pays the monthly bills as I build other streams of income.

at the moment offline consulting.

I also purchased a nice 2 acre compound that I am building a completely self sustainable home to provide for my family which includes or will include

solar and wind power
bio dome
aquaponics
etc

so i will always have food in the event something happens

all in all you made a great choice because

step 1

is get the hell out of the states before they don't allow you to leave

with the new trend that going up is

relenquishing U.S. Citizenship

as of now you can only take out of the country net income up to $600,000 all monies after that is taxed again I think at 15% although I am not sure.

so you will pay another 15% on already taxed income crazy

they just passed a new law that states

there is a $500 fee associated to giving up your citizenship LOL

pm me when you get a chance
 
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