Quote:
Originally Posted by I_H8_Crawford
Just curious with all of the talk of (the lack of) fiscal responsibility in the politics thread - if you were to retire tomorrow, what would you want to have set aside to do so?
Me - I want $2.5 M in liquid assets + a paid off house. Then even at a modest 5% return, that is giving me $125K/year with my biggest expense taken care of.
Bonus question - what do you consider rich/wealthy? Me - I would say anyone with a net worth (excluding primary residence) of $5 Million+ is rich.
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Is that $125K per person, or for a couple? Even for a couple, without needing to pay a mortgage, that's a lot of disposable income for each person.
For me, to be honest, I'm pretty sure I can get by with $30K annually (after tax) if I retired today at 65. If I add on CPP and OAS, I'm looking at minimum $3.5K per month for one person. If I conservatively budget $2K a month for necessities (property tax, utilities, insurance, food, gas, etc), that's still $1.5K a month for doing "fun" things. My hobbies aren't that expensive, so $1.5K would be more than enough.
Again, this is if I were to retire today on what money is worth now. Obviously we'd have to adjust for inflation 25 years down the road when I actually hit retirement age.