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#42
04-13-2007, 04:49 AM
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Re: How much $ is needed to never have to work again?
Lud, I have no idea what you should read. The one Ed linked seems reasonable if not overkill, as he says. He knows a lot more about finance math than me, but the stuff that's been written in this thread is relatively basic.
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#43
04-13-2007, 04:54 AM
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Re: How much $ is needed to never have to work again?
[ QUOTE ]
Sniper, actually the 2k seems to be a number which doesn't matter a lot (I think). I looks as if I wanted 4k/month I'd just need to have double that of what I need for 2k. The 2k was just a number for a "Ok, I'm done with the world. I'll just sit on my ass and do nothing from now on"-scenario. As I said it seems easy to translate the money needed to a different monthly redrawal. [/ QUOTE ] Well sorta... figuring out how much your expenses are going to be, is actually the most important number... the rest you can just plug into a retirement calculator, once you determine your comfortable RoR level, and thus your expected future %return level. Also keep in mind that your expenses are going to increase over time, so what starts as 2K/month can get much larger by the end of your life. Don't forget to factor in unplanned contingiencies... they always happen [img]/images/graemlins/smile.gif[/img]
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#44
04-13-2007, 04:56 AM
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Re: How much $ is needed to never have to work again?
[ QUOTE ]
figuring out how much your expenses are going to be, is actually the most important number [/ QUOTE ] I think you have that backward. Figuring out how to calculate your required investment is the most important part. Once you do that you can plug in any monthly withdrawal amount and instantly get an answer.
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#45
04-13-2007, 11:36 AM
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Re: How much $ is needed to never have to work again?
[ QUOTE ]
pig4bill, please explain. [/ QUOTE ] Explain why I want someone to give me a half-million? [img]/images/graemlins/smile.gif[/img] I feel reasonably confident I can make 12 to 15 percent a year off the market, so I would take 200k and trade my usual way to make my nut. I would keep the other 300k in T-bonds in case the market got really weird or I got too aggressive and lost the stake. If I had to re-load, I would back off the aggression and would only need to make 8% because of the bigger stake. Note that taxes on $24k are nearly non-existant, so a couple percent here or there to cover taxes wouldn't matter to me. [ QUOTE ] Question for all: Is a person who is studying economics or finance of some sort automatically a lot more probably to never have to work again compared to a person who hasn't studied in this field? [/ QUOTE ] No. Who's going to be "teaching" you this stuff? Someone that needs a job. How can they teach you something they don't know? Besides, their institutionalized uncreative thinking is the type that leads them to advise everyone to buy index funds or mutual funds.
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#46
04-13-2007, 11:42 AM
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Re: How much $ is needed to never have to work again?
[ QUOTE ]
[ QUOTE ] pig4bill, please explain. [/ QUOTE ] Explain why I want someone to give me a half-million? [img]/images/graemlins/smile.gif[/img] I feel reasonably confident I can make 12 to 15 percent a year off the market, so I would take 200k and trade my usual way to make my nut. I would keep the other 300k in T-bonds in case the market got really weird or I got too aggressive and lost the stake. If I had to re-load, I would back off the aggression and would only need to make 8% because of the bigger stake. Note that taxes on $24k are nearly non-existant, so a couple percent here or there to cover taxes wouldn't matter to me. [ QUOTE ] Question for all: Is a person who is studying economics or finance of some sort automatically a lot more probably to never have to work again compared to a person who hasn't studied in this field? [/ QUOTE ] No. Who's going to be "teaching" you this stuff? Someone that needs a job. How can they teach you something they don't know? Besides, their institutionalized uncreative thinking is the type that leads them to advise everyone to buy index funds or mutual funds. [/ QUOTE ] Taxes on 24k in the US are like 3k, that is hardly nonexistant. Also, what makes you think 12-15% is a reasonable return to expect? Just curious.
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#47
04-13-2007, 11:59 AM
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Re: How much $ is needed to never have to work again?
[ QUOTE ]
I feel reasonably confident I can make 12 to 15 percent a year off the market, so I would take 200k and trade my usual way to make my nut. [/ QUOTE ] What is this usual way you trade that gives you an expectation of 12-15% per year?
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#49
04-13-2007, 11:43 PM
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Re: How much $ is needed to never have to work again?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] pig4bill, please explain. [/ QUOTE ] Explain why I want someone to give me a half-million? [img]/images/graemlins/smile.gif[/img] I feel reasonably confident I can make 12 to 15 percent a year off the market, so I would take 200k and trade my usual way to make my nut. I would keep the other 300k in T-bonds in case the market got really weird or I got too aggressive and lost the stake. If I had to re-load, I would back off the aggression and would only need to make 8% because of the bigger stake. Note that taxes on $24k are nearly non-existant, so a couple percent here or there to cover taxes wouldn't matter to me. [ QUOTE ] Question for all: Is a person who is studying economics or finance of some sort automatically a lot more probably to never have to work again compared to a person who hasn't studied in this field? [/ QUOTE ] No. Who's going to be "teaching" you this stuff? Someone that needs a job. How can they teach you something they don't know? Besides, their institutionalized uncreative thinking is the type that leads them to advise everyone to buy index funds or mutual funds. [/ QUOTE ] Taxes on 24k in the US are like 3k, that is hardly nonexistant. [/ QUOTE ] It's an extra 1.5% yield on my 200k stake. As I said above, a couple percent here or there doesn't matter to me. [ QUOTE ] Also, what makes you think 12-15% is a reasonable return to expect? Just curious. [/ QUOTE ] That's just over 1% a month. Even in the low volatity environment of the last few years, I've been able to find enough trades to return 1% a month.
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#50
04-13-2007, 11:44 PM
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Re: How much $ is needed to never have to work again?
[ QUOTE ]
He has probably made 12-15% the last three years, and thinks his system will work in the future. [img]/images/graemlins/smile.gif[/img] [/ QUOTE ] Ah... no.
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