I think that i need about 4 million to retire on in about 20 years, assuming that either I or the better half live to be about 90 years old. Talking to others, that's about the same number that they came up with. What's so special about 4 million?

 

$4M x 4.5% = $180K/year in income from a bond heavy portfolio. If you want a $100K/year income you only need $2.2M. US treasuries are currently yielding 4.5%ish. If rates get cut that could go down to 3.8-4.2%. $3M is a safe bet but it depends on how much income you want/need for your retirement lifestyle.

 

Problem is, you're not factoring in inflation. $180k/yr in 20 years isn't anything close to what $180k/yr is today.

 

But if you are retiring now, you may only be around for 20 years. At that point you can start dipping into the original $4M maybe.

 

[QUOTE=QUIKAG,Apr 22 2007, 02:01 PM] Problem is, you're not factoring in inflation.

 

I'd like about 30 million when all is said and done.

 

On inflation, Since this a car site... In 1985 the average cost of a new car was $9600, and Jeep was advertising "8.5% in '85." In 20 years, the average price of a new car has trippled. ...So, in 20 years if that happens again, and new car prices are a decent measure of the kind of inflation that I care about, then $180,000 might be worth $60,000 or so.

 

Sounds about right

 

this seems about right since every decade it suppose to double..

 

Two doubles is x4...

Either way, that's going to a lot of bills for that Ferrari...