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How much is enough? (financial independence)

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Some thoughts but not a lot of new information.  My number changes based on withdrawal rate (4%-3.5%).  The number is between $4.9M to $5.5M.  I am in So Cal with two kids and one will be ready for college in 6 years.  I am looking for a passive income stream of $170K per year and a bit more for income taxes.  Health insurance is the biggest challenge as income determines subsidies and lowering income may not be easy if assets are throwing off at least $125K. 


The expenses are high as I take care of older parents and their expenses.  That will drop off as they age.  I am close to 45 and am hoping to be independent in a couple of years.  Grew up with limited resources so appreciate the need to control spending but that does not give me comfort.  The reason to build the asset is to enjoy it and not scale back. 


My experience with planning is that it is completely personality driven and while I too advice others to hang it up at a certain point, don't know when the comfort will come.

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20 hours ago, Gregmal said:

^ You and me both man. Same thoughts across the board. On the land, well, the land I would be looking to buy I can kind of gain easier exposure through public vehicles. And on cashing out, whats cool is that the market is different than say the stock or bond markets. Appraisals for a refi take last 6-12 months comps. So even if you have a huge market shift, you'll get a decent appraised value and have no problem tapping that liquidity. Was shocked at how easy it was to do one last March when the world was supposedly on the brink...


That's a good point, about the lag, I will have to remember that next time. 


I should have done a cash out refi late last year but I just did a rate and term recast back to 360 because I was being lazy and just left it at current servicer.

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Talk to younger retirees .. most are bored out of their skulls, and largely do the trips 'as something to do'.

Can't tell what day of the week it is, 'cause every day is the same !! The soution for many is to partner up in a small business, contract yourself out for part of the year, or work part-time, ie: a low stress JOB until you are well into your mid 70's. It's all about maintaining the mental/physical health - the money side is largely secondary.


In NA, work the summer, and take the winter off to travel in the Azores, &/or the southern hemisphere. Where it is both summer and with no work obligations - you can spends weeks at a time there.  The Atlantic 'Hawaiian Islands', Dar es Salaam, Cape Town, Buenos Aires, Rio, and Pantagonia are all quite something, and 'cheap' by NA standards.


And while you're working .... you ain't spending - both saving money and adding to the pot as you go along. The mental/physical health benefits, are pure bonus.



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  • 2 weeks later...
On 7/11/2021 at 12:54 PM, thepupil said:

Result: $2mm-$6.5mm+, one could argue I'm double counting house/LTC/healthcare because in theory the house could be cashed out to pay for that, so $1.6mm-$5.5mm


This is the range of net worths where i would feel comfortable stopping working (or at least traditional working). Obviously its a wide range, but I'm still pretty young (early 30's) and think leaving options open on some of the choices that will be made at various stages in life is a good thing. there's also a dynamic where unless one is retiring pretty early, you'll be covering certain of these expenses (like childcare/education) during your working years. Right now,  my life choices are probably in the middle range of house, unknown on education and healthcare (but bought house in a good public district), and middle range on everyday life. I expect the range to narrow over time. Also a lot depends on how long/what part of her field my wife wants to work in. she's been in grad school or low pay training for the last 10 years (certain fields are crazy!)

There is no number -- that's just a target that you'll easily exceed -- we did.  At some point, you'll realize that life is enjoyed, money is spent on family and compounding continues.  Find a few work experiences that you thrive in and make these your life's work.  Being paid or paying yourself from your own company to enjoy doing what you like isn't working at all.  Retirement is boredom for an active mind.  My wife went back to school in her forties when the kids were young and plans to work into her seventies.  The kids' school is paid for and we're gifting them cash and securities for their futures.  Flexibility around life events is what money gives you and makes easy decisions easier.  And the compounding doesn't stop unless you stop it.

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