hoops23;869706 wrote:LOL.
10 million SHOULD be more than enough for about 90% of americans to completely change their life...
If you make 70,000 a year for 30 years, you've made 2.1 mill during that time...
Fair point, but I think some are arguing one inevitable change is a more expensive lifestyle. I'd also argue that no one will make $70k without raises or indexed for inflation the next 30 years (i.e. in 25 years you are probably making $150-$200k). So call it $4M.
But there are also taxes to consider, but with no job there are also substantially higher medical costs/insurance to absorb. But comparing with your expected remaining earnings is probably the correct way of thinking about it, I just think you undershot the multiple a bit (plus, most are spending - housing, for example - with an expectation of future increases in income). Tuition costs for children will also likely be much higher in 10-20 years. Otherwise, you're right $10M is probably more than enough, but again it depends on what your future expected earnings are. If I expect/hope to be an executive one day with stock options and high 6-figure salary, then I have several million in earnings alone just on the back-end of my working years.
Problem is, if I walk away today for $5M, then with 40-50 years or so in retirement I either have to take some investment risk, or inflation risk, something that is largely mitigated by continuing to work and having earning power. So, no, probably not comfortable with $5M to live the lifestyle I'd like the next 40-50years. Although I think I'd buy some cheap foreclosures and rent them out for income and would feel pretty secure with the investment and inflation risk - a 5% yield would be $250k a year right now so that sounds very, very nice knowing the housing will be worth more in 30 years while the rents will also track inflation, more or less.
