Unusual case - Please give your opinion!

[Mr Nice Guy]

The answer to the OP is a simple math equation:

Add up ALL of your monthly living expenses that you plan to spend after you retire.

Then multiply this number by 12. This is your total yearly spending… i.e. how much money each year you will need to survive.

Multiply that number by however many years you think you will live from after you retire to when you die. Just take a guess. So if you retire at say, 35 and you think you will live to 85. Then multiply your yearly spending by 50 years.

This number is the absolute MINUMUM you will need to survive without working.

Of course if you have that much money, you should definitely put it in an interest bearing account!

Does that answer your question?

No it doesn't because your equation did not account for inflation. Gas and groceries will not be the same price in fifty years from now.

Not only that, but it appears that the majority of people here believe US taxes will increase; maybe Europe's will as well. It would be wise to put a buffer in the equation for possible tax increase.

[thekid]

4M$ is alot of money but it also isn't.

Start thinking and acting like you are "rich" and it will be gone within a few years, guaranteed.

I think you are way too young to think about "retiring". If you are not moving forward, you will find that you are rapidly moving backwards.

Instead of thinking that you are set for life, think of it as a great opportunity. What you really have, if you are smart about it, is security and flexibility...two absolutely fantastic assets in life.

Don't think about stopping (you will end up blowing it before you are 30 for sure), think about how you can use the significant leaway you have to mold a life where (i) you can do something productive that you enjoy and (ii) enjoy a somewhat "nicer" lifestyle than you might otherwise.

Also, and I realize that you are still only 22, but I would encourage you to think in terms of your future kids (if you want any) with that kind of money. You have the opportunity to have something that can be built on, instead of sit on.

[BudgetMath.com]

No it doesn't because your equation did not account for inflation. Gas and groceries will not be the same price in fifty years from now.

Not only that, but it appears that the majority of people here believe US taxes will increase; maybe Europe's will as well. It would be wise to put a buffer in the equation for possible tax increase.

Mr. Nice Guy: That's a good point. But that's why I said to put the funds in an interest bearing account. Inflation averages around 3% to 4% per year. If you put your money in an account that accrues at least 4% interest, then you will at least cancel out the inflation.

And about the tax increase, that's why I said this number would be the ABSOLUTE MINIMUM.

[happymonkey]

If I had that much socked away, and still had as much as you've got rolling in, I'd continue riding the horse and stuffing as much as I could in savings and other investments. You can make that type of money last a very long time if you're sensible about how you spend it. I think I'd live extremely modestly, because I value free time over having a bunch of "flash."

I don't think you're too young to retire, especially if you've got the skills to make money on your own. The one thing you don't want to do, and you have the luxury of avoiding this, is getting a 9 to 5, life sucking job.

Good luck!