I Want To Retire Early How Much Money Do I Need?
How much money do you need to make in order to retire early and live off of interest?
An exact answer is possible if I make certain assumptions, so I will:
Early retirement for you is age 50. Your max life expectancy is 100. You can’t count on any interest at all net after inflation and taxes. You can live on USA $50,000 a year in today’s money over the next 100 years. You will spend much less in the early years, and probably more on “assisted living” aka Old peoples home if you live beyond 85.
Answer: You will need at least $2.5 Million if my calculator watch is telling me the truth. To be on the safe side, I would say $3 Million.
What to invest in? If I had $3 million I would look for income property yielding around 5%. Ideally agricultural land leased out to a business that grows crop seeds on my property. Bank accounts or bonds suck. Guaranteed loss! Stocks or any trading is/are way too undependable. You have no control over what the people in charge do.
- W.G. Hill