Sorry this is a favorite topic…and no I do not have a calculator.
I keep saying that if you are about 40 years of age, you need a MILLION DOLLARS for you to retire. I still stick my neck out on that. However just saw some interesting stats. There are about 7 billion people on the planet. About 12 million of them are millionaires (US $ denominated). That means an awful lot of people are going to retire with a lot less money than what I am predicting. Or is it? I am talking of 1 Million $ only AFTER 20 years, not today!
1. When I say US dollar 1 million, I mean this has to be your NET WORTH. This is Assets minus liabilities should be 1 million US $.
2. This assumes that you have no pensions, annuity, royalty….income. If you have one of those, your requirement falls.
3. Your cost of living, health care costs, and your ability to alter your life style based on the amount of money available. If you are the watch tv and sleep more type of a retiree, you will need less than the travelling type of a couple.
4. The surplus that your kids have – just in case you need to fall back on! It gives a lot of comfort to know that your kids ARE in a position to support you – YOU may not use it, but just that comfort is useful. It is therapeutic.
5. The age at which you retire – I hope to be dying with my boots on. So if you can earn – long enough post your retirement, that is likely to reduce the need for a US $ 1 million.
but hey….look at your own portfolio – you need protection from one big enemy.
The joker whose face you see while shaving 🙂 assuming of course that you are not a barber.
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