Quote:
Originally Posted by HockeyIlliterate
This probably isn't the right thread for this, but how much money do you really need in order to live a decent life?
I figure that, with a paid off house and no kids, something around $40,000 is enough. Assuming you want a 2.75% or 3% withdrawal rate, something around $1.5 million in savings should be sufficient.
And, respectfully, I'd expect most professionals to have at least that much saved up by 50 years of age.
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You would be wrong, basically for sure. I don't know statistically, but I work with people for this very purpose and its not "most professionals". I would say a majority don't have that saved up by the time they're 65-70, never mind 15-20 years before that. Like I say though, that is anecdotal, and I don't know statistically.
The $40k figure is probably pretty light as well. Maybe $40k after tax for a good portion of the population, but then again if you're retired at 50 you're probably more active than a guy at 70 in terms of travel, activity and spending.