Financial independence

**Ima saver** · 07-07-2006, 08:29 AM

Re: Financial independence

If I had that much cash earning interest, i think I would have no trouble living on the interest from $1 million. That would be about $40,000 plus a year in interest. My house is already paid off, but I would probably sell and build something smaller. (My husband wants a bigger house) I think my husband would keep on working, I can't see him sitting around doing nothing. His hobby is cars, but that is too expensive to play with on $40,000 a year!

**Broken Arrow** · 07-07-2006, 09:06 AM

Re: Financial independence

If someone were to give me $1 million (after-tax), no, I still could not retire.

For one thing, I'm still fairly young. That means the money would have to last me for half a century.

The other thing is because I would get bored very quickly. I wouldn't want to retire, but I wouldn't mind taking on a job that I enjoy without worrying about how much it pays.

**b4freedom** · 07-07-2006, 10:55 AM

Re: Financial independence

Nope. If I was about to retire today, I would NEED about $2.2mil in order to substain the lifestyle that I wish I enjoyed today.

**jmjj215** · 07-07-2006, 10:58 AM

Re: Financial independence

I figure I'll be comfortable with a cool $10 million.

Well, okay, $5 million would probably do fine as well.

**Bookie** · 07-07-2006, 06:22 PM

Re: Financial independence

Speaking from personal experience, it's possible to retire comfortably on less than the income from $1 million. It really comes down to lifestyle choices and resource management.

It also depends on attitude and inner resources. Long before I left the workplace, I began shifting into a retirement lifestyle, simplifying my routines, scaling back possessions and commitments, discovering that less really can be more. I also began to invest myself in activities and interests that keep me alert, active and involved with others.

Income is only one of the factors in a contented retirement, although an important one. There's more to life than getting and spending. I have more days when I don't spend than when I do, but those days are spent exploring the richness and diversity that is living fully.

**Snoopy2645** · 07-08-2006, 06:11 PM

Re: Financial independence

Oh ya if I had a million earning interest of 40k a year I could retire easily on that especially if the kids were grown!! Between dh we are taking home around 25k after all deductions now & we have 3 kids at home!!! I am sure 40k a year to take home I could live nicely on!!

**robex** · 07-08-2006, 10:28 PM

Re: Financial independence

We could easily retire on a million dollars. Our take home now is about $3500 a month, but we pay about $600 monthly to retirement funds, and, obviously wouldn't have to do that if we'd reached retirement!

Our goal is to be there in 12 years, just as our youngest graduates from high school...our house will be paid off then as well. I love my job, but I'm looking forward to the day that I get to decide what I want to do without money playing a part!

**kristinecfp** · 07-09-2006, 06:46 AM

Re: Financial independence

I've found that people in their 60s today could probably retire on $1M, but that younger folks, who have longer life expectancies, could NOT retire on $1M because of inflation (even more so than lifestyle).

If you looked at two different couples, one in their 60s and the other in their 30s, and both had the exact same lifestyle, the couple in their 30s would need probably about 4 to 5 times more than the couple in their 60s would need, not only because the money would have to last longer, but also to keep up with inflation.

So if I were 65, then yes, I probably could retire on $1M, but at 34 years old, I would need $3M or more to retire right now.

**lrjohnson** · 07-09-2006, 01:43 PM

Re: Financial independence

Without taking inflation into account, I could live exceedingly well on $40K with no debt/bills. Pre-challenge I was living well on less than $26k net including rent, now I'm atttempting less than $13k. I coult live off $18K and re-invest the rest to help catch up with inflation.

**Tree0164** · 07-10-2006, 03:25 AM

Re: Financial independence

I don't think I could retirement on a million dollars. With inflation going up each year, it will be more like 1.5 to 2 million that we are shooting for. We got about 25-30 more years to do that.

**disneysteve** · 07-10-2006, 03:46 PM

Re: Financial independence

Originally posted by lillyb

Could you retire on a million bucks?

Could I? I suppose so, but it would be impossible to maintain anything approaching my current standard of living since I earn 6 figures now. Cutting that to 40K would be a tough adjustment but we could do it if we really had to for some reason.

To fund retirement adequately, I'm shooting for $2.5 to $3 million.

**jamreed02** · 07-11-2006, 10:46 AM

Re: Financial independence

I WISH I had 40K a year now! if I didn't have to pay rent or CC payments, or student loans.... that would be a HUGE increase in income for us! Right now we're bringing in a hair over 30K, with three young kids (maybe more to come)

We've got rent, and student loan debts, and credit card debts, and a leased van (

) If I had that kind of income, I'd have my farm in the country, and retire to taking care of nice gardens and a flock of sheep, maybe even start a business spinning and dyeing the wool... (sigh) but that gets into daydreaming...

**jamreed02** · 07-11-2006, 10:48 AM

Re: Financial independence

out of sheer curiosity: How do those of you that make over 100K actually spend it all??? I don't know what I'd spend it on... honestly.

**lucasrd** · 07-11-2006, 11:59 AM

Re: Financial independence

My wife makes 90K and we save her entire paycheck !!! I make 60K...contribute the max to 401K and we live off of about 80% of that. I make an additional 30K/yr with a side business I operate and all the proceeds from that go into the stock market.

I guess you could say we live well below our means.

So hope that answers your question....we DONT spend it all

Financial independence