Monochromatic Oeuvre wrote:smokeylarue wrote:Yugihoe wrote:Fuck you money is having enough saved where you can live off the safe withdrawl rate from your investments without needing a job (I.e. Where the principal balance does not decrease). Some people say the rate is 4% (plus inflation). So I'd need 2million, though that amount varies for other people.
Dude that is not FU money. That is more like minimum needed to survive.
A 4% return—which is conservative—is $80k a year, with no supplemental income from something you might actually like, without ever touching the principal.
If you “need” $80k a year to “survive” despite having no job-related constraints on where to live, you’re the kind of person who’s bound to keep working in the vain hope that the next financial milestone will finally lift you from your misery. But it never will. So congrats on making service partner.
Life is not that linear man. Sure 80k a year is plenty for a single person (though I wouldn't say its FU money) on average. But there will be many years you may spend more than that. What if your wife doesn't work. 80k for two people isn't that comfortable. If you have kids, even worse for you. You're going to buy a house someday. You're going to buy some cars over your lifetime. You going to pay for your kids' colleges? Do you have any interest in leaving an inheritance? $2M at age 65 is plenty enough to retire. $2M at age 45? That can go fast.