How much liquid do you need to retire in today's world?

There are plenty of stocks out there that pay a 7-8% dividend...... buy those.

 

zero mortgage payment
zero car payment
zero credit card payment
both you and spouse have good paying jobs with a 401k
normal spending habits

this is the key to living allot more on allot less.

you don't have to be extremely wealthy to have a rich, full life.

trust me.

 

The other tough part is what happens to you in 30 years, when (with even modest inflation) your $70k/year is worth only $15k in 2006 dollars.

 

Its the age old question; When is enough, enough??

For me I will never stop earning money. What some people would consider work, i consider a hobby. I love my career AND i love my hobbies. I earn on both.

I just turned 35 and i dont have a million liquid yet. When I do, i will continue doing what I do. I cant sit around idle and do nothing and travel and stuff. I hate traveling. I wouldnt drive my toys all day either. Driving cars alone is boring and riding a motorcycle is much worse if you have under 4 people in the pack.

 

No, "real" means inflation adjusted.

 

Too much isn't enough in today's society.

 

There was a formula i read last year sometime on how to approximately calculate how much money/assest value you needed when you retired to maintain the same lifestyle you have now. I forget how it went sorry. But in the same finance magazine,i also read about 10 wealthy Australian retired business men. Never heard of these guys before in my life. They were asked how much money would you need to retire at any point in your life. They all said around $1million cash. At any age in life, from 20 years old to 50 years old. They said managed properly,you would never have to work again. No SH*T! The only problem is where do i get $1million dollars from at this age?

 

I don't think I'd be happy if I retired even if I had any amount of money.... I think people need some sort of stimulation, intellectual challenge, or struggle for life to be satisfying... I don't think lounging around playing golf, having toys, tracking cars on the weekend would do it...

 

You are exactly right mate. My Dad worked 42 years underground in a mine and he retired September 1997. He still wakes up 5.30am everyday and he is very bored so he walks around to all the pubs/clubs and sports clubs/ovals in his area and collects aluminium cans from them and then donates them to Leukemia Foundation. They then take them to the metal re-cyclers and exchange the cans for money to help their cause. Even down at his favourite pub/club,he goes there with my Mum for lunch/dinner all the time, he walks around and clears the glasses off the table ect... Cant keep the old man still!

 

Sounds like my grandpa. He says "the day I sit still is the day I'm dead."