Open thread, June 20 - June 26, 2016

Elo

If it's worth saying, but not worth its own post (even in Discussion), then it goes here.

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If it's worth saying, but not worth its own post (even in Discussion), then it goes here.

Notes for future OT posters:

1. Please add the 'open_thread' tag.

2. Check if there is an active Open Thread before posting a new one. (Immediately before; refresh the list-of-threads page before posting.)

3. Open Threads should be posted in Discussion, and not Main.

4. Open Threads should start on Monday, and end on Sunday.

And of course all these calculations are ignoring inflation.

If inflation is, say, 2%, then

to get out $2k/month with 4% nominal returns you need $1.2M rather than $600k; or
to get out $2k/month with $600k, you need 4% real returns or about 6% nominal. And
the equivalent of $2k/month now is about $3k/month in 20 years. On the other hand,
your savings can reasonably be expected to increase in line with inflation too.

Yep, so far we've been talking about nominal sums without considering their real purchasing power.

The proper question of what is the sum of money that one can live off as a rentier to maintain a certain standard of living and how much needs to be saved for how long is... complicated.

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Open thread, June 20 - June 26, 2016

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Open thread, June 20 - June 26, 2016

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