Retire Early?

[Ron-Mexico]

So here's my situation.

I have a GOOD career job, but recently came into 7 figures.
I am fairly young, early 30's, wife 2 kids..

How much money do you need (After taxes) to be able to quit a career job and live forever off the investment \ interest you earn?

My ideal goal to keep myself busy is to play 1 poker tourney a month (Live that is) so I can travel.

I figure worse case, I could make 5% interest \ investment??

[edfurlong]

I think as long the seven figures starts with at least a two you should be good to go in most of the US.

[XXXNoahXXX]

If you aren't smart enough to make better than 5% on your investment that you probably shouldn't quit your salaried job.

If you get a considerable sum you should be able to get closer to 10% if you're good or hire someone that is good.


This is also my dream, and would be curious where people put the figures. Also, if you get bored with retirement you can always get back into the workplace.

[Ron-Mexico]

No no noah.. I am saying worse case.. Make 5%

Figure worse case (lets say 1.5m) 5% off that is 75k a year, 20% for taxes = 60k free and clear, about 12k a year for health insurance..

Leaves me with 48k cash (WORSE CASE???) Although 10% would be nice.. I am such a chicken though, I am worried quitting my career job, then I somehow lose all money (I know I am being paranoid) but *shrug*

[Jeff W]

http://raddr-pages.com/

[Ron-Mexico]

Thanks Jeff

[dp13368]

Do a FIRE calc here:

http://early-retirement.org/forums/index.php

[AlexM]

[ QUOTE ]
75k a year, 20% for taxes = 60k free and clear

[/ QUOTE ]

Wherever you live that you'd only pay 20% on 75k, I wanna move there.

[horrorshow]

[ QUOTE ]
[ QUOTE ]
75k a year, 20% for taxes = 60k free and clear

[/ QUOTE ]

Wherever you live that you'd only pay 20% on 75k, I wanna move there.

[/ QUOTE ]

He's estimating capital gains tax not regular income, which is correct for dividends if the security has been held long enough. 15% federal after 1 year.

[Big TR]

The 25% bracket for Married status doesn't kick in until 63k. He's in the 15% bracket up until that point.

Even assuming no capital gains taxes, once you factor deductions and exemptions he's probably not reaching the 25% bracket at all on 75k if income. Add 4-5% for state taxes, there's your 20%.

OP, I figure with 2M you can live comfortably anywhere. If you live in a lower-rent area, you might be able to do $1.5M. The one thing to consider is what will you do with all your time? If you aren't spending 50-55 hours per week working/commuting, you may be tempted to just spend money doing stuff during the day. I think having a cheap hobby if you plan on retiring young is a good move.