From: wballoon234@aol.com (Wballoon234)
Newsgroups: misc.invest.financial-plan
Subject: Re:  Re: How much do I need to retire early? Help!
Date: Fri, 27 Feb 2004 04:01:30 CST
	iQBVAwUAQD8Ve/l/I4+O31e5AQFnbAIA3ZwMhouBvLwdxsO5fa+yiegX62SbaIE2
	gYB5n4Rm21YJDMLDfyfK6K5JFICyQdTonSdMM27WJERWBZfOclPx1Q==
	=lpVN

Thanks everyone for the replies. It helped me get a better understanding of
what is required - wow. I had no idea even if you are rich that the money could
dwindle so quickly. Getting a 7% return on your investments after taxes and
inflation sounds very difficult - it seems you would have to go for only the
most aggressive strategy. Growth? Growth and income? Does anyone know what
health insurance would cost to a healthy person before age 65? Matt 

Relaxification wrote: 

>wballoon234@aol.com (Wballoon234) wrote in message
>news:<20040225005652.25147.00000329@mb-m07.aol.com>...
>> This is my first post to the group. I'm 20, and have a hypothetical
>question.
>> IF I ever save the following amount by the age of 35 (probably never in my
>> lifetime, but it's fun to look at the numbers), could I stop working for
>the
>> rest of my life? 
>> 
>>  * $250K, all liquid assets (2004 dollars) 
>>  * Annual expenses totalling $17K (2004 dollars) 
>>  * No debts (no credit card, car, student loans, etc)
>>  * Assuming an annual 3-4% inflation rate
>>  
>> Perhaps this is just reassurance I'm seeking, but it doesn't look likely.
>Based
>> on some stuff I've scanned on the web, a person would need roughly $500K in
>> order to make a steady income of $17K a year (assuming a 3.5% "safe
>withdrawal"
>> rate) without ever dipping into capital (inflation-injusted original value
>of
>> investment). Is this true? If so, there is not much hope for the ambitious
>> saver.  
>> 
>> Thanks for any replies,
>> Matt
>
>You're not going to lead much of a life on 17k per year.   That's 8
>bucks an hour.  If you manage to save 250 k in cash you'll be earning
>more than 8 bucks an hour, so to "retire" on 17k per year is going to
>require some serious lifestyle adjustments.
>
>
>
>
>
>
>
>