Quote:
Originally Posted by HockeyIlliterate
We must travel in different circles. I can't imagine not having $1.5 million saved up by age 50, and I'd be shocked if most of my friends didn't think likewise. And that's all I'm going to say about that because I don't want to say too much.
But on the spending matter---I track what I spend every month (and have for years), and $40k a year with no rent/mortgage payment would sustain, in my view, a very nice lifestyle. It won't allow for first class flights every week to Paris, but it will allow for plenty of travel and you won't go hungry. Besides, there is only so much stuff that you really need (or, honestly, want) to buy after a while.
As for the tax matter, in the US, if the $40k is from dividends/capital gains, there won't be any federal tax to deal with. As far as the federal tax code is concerned, earned income is for chumps.
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This was the $1.5 million by 50 living off of $40 k a year because you don't need 1st class tickets to Paris every week.
But not only should $1.5 million be saved by 50 (I mean, you're a pretty bad "professional" if you haven't), but you should also have your house completely paid off too because that's how the $40k a year is do-able.
Although he/she mentions US taxes, which if a US resident maybe they forget that Canadians can't write off interest on our mortgages which is a huge savings.