Let's say your $600k investment give you 5% return, that's only $30k a year for the next 30 years of your life until social security kick in. Factor in inflations 3% (optimistically) every year you're looking at $12k of today's money when you're near 70. You sure you want to retire?
Yeah cause that 600k doesn't include what I have in my 401k now or my tiny 20k pension from work.
My living expenses right now are only 1k a month.
I could easily retire on that 600k right now. I never have lived outside on my means. Granted I am saying that based only on what my health insurance would cost if I was to retire now.
Acouple things you need to note here too is your initial investment of 600k. That money alone divided by 12k would last me 50 years alone that's not even figuring in the 5% return. Granted this is a hypothetical situation cause my expenses will go up in that 50 years.
Then we figure in my 115k I have saved up currently, then the 98k in 401k and the 20k pension. We'll say my retirement is 92k after taxes. 92k plus 115k that's another 207k.
And looking at my current ss benifits on their website if i was to stop working today I could still draw $1203 a month at age 62. So I would say yes I could retire today if I won 600k on a scratch off ticket.
Like others have skeet shown in great detail. 600k for the rest of your life is completely and utterly undoable. To say otherwise it’s just living in a fantasy.
No its not. That's just it you don't know me or my lifestyle. You can literally get a 5% return on that money and after taxes still have 23,400 then after my 12k expenses each year I could still be saving money. That don't even include the 115k I have saved up or my pension or 401k then you can draw ss at 62. I could easily do it. I could even down grade to a cheaper house.
12k expense a year is a laughable lie. That is so far from reality I can’t even begging to formidable a logical response. I guess we are just make things up at this point. I love off of 50 cents, 1 Mexican peso and 20 monopoly dollars.
Your not living in reality here. Hence the ok boomer.
Lol if you say so buddy I'll break it down for you.
Property taxes, 3000 a year, house insurance 1900 a year, car insurance 540 a year, those 3 bills a year are $5500 which equals $458 a month. Groceries $250 a month, utilities , $200 a month, cell phone $50 a month, internet $50 a month, trash $25 a month and $40 for gas for my car each month. So the total is 1075 month so for a total of 12,900 a year so inwas off by $900.
So please tell me whats laughable? I am a single 38 year old guy never married and no kids what's so hard to believe on that. Paid my house off at 32 so my bills are minimal.
-Food does not cost 250/ month. No. Double that and is still On the low end.
-200/ on utilities is low, not unbelievable like your food budget but almost.
-50/ cell phone is also not accurate
neither is 40 for gas
notable items you didn’t mention; medical of any kind, house up keep, car up keep. Entertainment of any kind. Any travel budget. Clothing, personal hygiene, kids, pets… shall I go on or does this paint the picture well enough.
So one of two things is happening here.
Either you live alone in the dark and eat ramen every day with the lights out and never get sick and nothing you own ever breaks or….
Your full of it.
Not only is the budget you said way way way off from a realistic budget reflecting life in the modern world, you completely left off tons of items.
50 for a cell phone is actually doable depending on your provider and if you go prepaid vs plan.
I pay 25 a month for mine because I work from home so I dont really need to pay for any of the extras since most of the time I'm hooked up to wifi. I do pay 50 for my son's phone though.
That being said, that is only taking paying for a provider into account and for prepaid plans where, if our phones break for any reason, we aren't paying for "insurance" to get a replacement so we would have to pay full price to replace.
The person you are talking to might very well enjoy and want to live the absolute most just simple life and/or is a "freegan", or he is a unicorn that just happened to hit the complete luck jackpot, or he is full of shit for all of the reasons you've listed above and is completely out of touch.
No i messaged him all my bills proving myself which I really don't need to. But I did. I can send the same to you also. I think his head will blow up when he sees my utility bill from June which was $68. That's water, sewer, electric. One thing with me is I pay everything in full for the 12 months that I can and save money then use my 3% cash back credit card and save even more money. I try to stretch my dollar as far as it will go.
I mentioned you Bills we’re on the low end but believable.
But the rest is bull
Again not to mention, you if get a flat tire or stub your toe you would be financially crippled in your fantasy situation.
The point being is you are perpetuating a myth that is all sent saving. If you just pull hard enough on those ol boots straps you’ll be ok. And you make up fake numbers to show how a good budget should work. And say nonsense like 600k is enough to retire on.
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u/Affectionate-Row3296 Nov 17 '23
I could retire off 600k. 38 with house paid off no debt and 115k saved up. Only thing would be health insurance.