Open thread, Oct. 20 - Oct. 26, 2014

MrMind

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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.

It takes roughly 2.5 million dollars invested prudently with a return of 7% per annum in order to live off savings. You would have to be earning a great deal and live extremely frugally in order to accomplish that. However, there are people that retire from daily work at 35 who have done it. However, given student debt and this kind of thing I think it is harder now than ever before. I have an issue with extreme altruism movement and the early retirement crowd because I think there is a loss of meaning in both.

I could live on $20k/year easily, given I stay in the same place. A ROI of ~3%/year on an investment of $1,000,000 would sustain me for life, given that it remains constant at worst.

(Expenses: ~900USD in student loan payments, ~400USD food/utilities/internet/transit, = ~1300/month = ~15600/year. I'll also note that I am not drawing even half that in SSI at the moment, but if not for the student debt, SSI would be livable. This relies on not paying rent/mortgage/whatever you pay for housing. If housing is an issue, location obviously matters--$30k/year in S... (read more)

7Lumifer12y

That estimate needs at least two more vital numbers: the expected volatility of your returns and the expected inflation.

5RowanE12y

At the current amount I live off, $2.5 million would last me for 200 years, and that's if it returned 0% post-inflation. I might have less expenses than "real adults", being a student, but unless you're assuming a family of 12, those numbers sound insane.