• Datz
    link
    fedilink
    English
    arrow-up
    1
    ·
    21 hours ago

    Why specifically $5M and not say $1M? Building a house should apparently cost you half of that, and I assume the rest is for investing into passive income?

    I agree with the other guy, talk is cheap. I probably don’t need a 4k TV or multiple consoles, but I immediately started planning and buying after a raise.

    • sugar_in_your_tea@sh.itjust.works
      link
      fedilink
      English
      arrow-up
      1
      ·
      18 hours ago

      I have three kids to support, and $1M would only produce about $30k/year in income if I use 3% withdrawal. I can’t realistically use a higher withdrawal rate given how far I am from retirement.

      I probably only need $2-3M (current spending is $60k or so), but $5M gives me plenty of cushion and lets me donate generously to causes I believe in. At $2-3M, I need to be careful when the economy is bad, $5M means I’ll never need to worry about money again.

    • brachiosaurus@mander.xyz
      link
      fedilink
      English
      arrow-up
      1
      ·
      19 hours ago

      I would agree that 1M is enough to live comfortably, everything on top of that you are seeking luxury that you don’t really need like an house in a fancy area or way to big