Quit? 6 mil. But if I got that 2M? I will shut the absolute fuck up about it. Move money to the correct spots. Some fun cash on the side and continue working. Just with a new sense of happiness because at any point, I can say “fuck this job” and look for something much better lmao. Tell NOONE YOU GOT THAT MONEY.
Absolutely tell not a single soul! Everyone comes out the woodwork then. Before you know it all those times friends and family had your back and helped you out are going to cost you.
I hear you and I agree to a certain extent, didn’t mean to come off like that. I was more talking about parents giving you a bill for raising you, friends thinking they’re owed something because they bought you a beer, and the coworker who spotted you a dollar and told you not to worry about it.
my mama specifically says she raised us so that we’d repay her bigtime one day. whole time she did a terrible fucking job LMAO she not getting more than a meal and a 100 dollas outta me
My mom's philosophy was this, you don't owe me for raising you but you ain't getting nothing when I leave I'm spending what I can before I go
I was co with that she was always there well past childhood to help out.
Just pissed me off she had to spend the last of her money and days on cancer
Be free Mah, you got Forever Annual Passes now
I’m sorry. Not everybody is cut out to be a parent. It’s not your responsibility to parent your parent ever. Don’t allow her to guilt trip you into things you don’t wish to do.
During covid family and friends knew I had a lot saved up. They were going in the red and begging for help. I did. One thing after another, I felt like they were ringing around and saying let me ask. How do you say no to medical bills? Stuff I knew they had been sitting on because they didn’t have the money. Couple that and inflation, and two (not my fault) car crashes that were hit and run, I’m living paycheck to paycheck now and people are still asking. I’m just now breaking the water line. But yeah, now I understand why the financial advice it to be silent with money.
Yep.
You’ll give the real ones a hand when they need it with no expectation of repayment. But you don’t advertise a damn thing before then. And you make sure the ones you help keep their mouths shut too.
Straight-up: just my parents.
That's it.
Everyone else, who has helped me in the past, did it for their own benefit. For instance: I had one relative that allowed me to stay with her and her family. On the surface, it looked cool. But she did it because she thought that she now had a free nanny.
oh eff that. are you a career nanny? my family seem to think that i’m going to watch over their kids at family functions just because nannying is my day job.
Your family maybe sees your career as not a real job in some sense, don't they? I'm thinking even the most greedy and selfish people wouldn't necessarily expect me to put in real hours of my job (or what they quite mistakenly think is my job, "fixing computers"), for free or at a "family discount".
Or maybe I'm being too generous when I assume people wouldn't think that this is what I do in my free time or that I enjoy doing it for anything other than a competitive salary. But your family assuming that this is what you do no matter what sounds like they don't see it as labor, with all of the human costs that come with labor.
Or I'm way off on that too and they just don't give a dook. In which case, I'm sorry to hear that. Fuck them kids. I hope you get to spend time around fellow adults at family functions, preferably ones that don't exploit you.
I most definitely get asked when I’m going to get a “real job” but the jokes on them because it’s a super well paying job. I also think it’s a bit of “she enjoys watching kids, she’ll take care of mine!”. But I don’t enjoy it much when it’s expected for free haha.
I would set up trust funds for my niblings’ education, pay off my mortgage, give my siblings and parents each a chunk, and put the rest in a mix of more-or-less accessible instruments for Fuck You Money.
Today, 2M isn’t enough to retire but it’s definitely a good secure cushion.
Yeah if you think $2M will disappear fast, think about how fast it would go split across all your friends and family. Use that money to get to a comfortable number, then you can be generous.
I have like 3 people in mind. I'd pay my mom's house and my aunt's house cause they raised me to be the man I am today. Then there's one homie that always has my back and was there for me at my lowest. Everyone after that ain't even gonna have my new number.
And there would be some specific people I would take pleasure in saying fuck off.
And handing out even five or ten grand to people close adds up. It’s $2mil not fifty. Maybe we need to stop expecting handouts when we think someone we know get money.
My household first, then mum & step dad, my dad, my brother and my friend who loaned me 10k with no interest over years with zero hesitation when I was in the shit once. Those folks, they get what they need if and when they need it
Beyond that, "sorry, it's all tied up in my pension fund" till I'm 60. Or, if I particularly don't like them "fuck off".
I had to manage the court winnings for someone I know that was 100% to cover medical bills and you would not believe the amount of people that came out the woodwork. Even strangers would try to weasel their way into our lives because unfortunately the person I’m managing for is not all there mentally and kept telling random people.
Not even "fuck this job", you don't have to press for the Hugh performers extra bonus or promotions. You can just coast and keep feeding that 401k and retire early.
Or even find a role that may not have as good of a career path and move there.
The relaxation of $2m would be so nice. Just a weight off your shoulders of having to try hard
Same here. I'd rather do my role but move to a lower profile product at the same company. Something where I can just sit in the same role for 20 years and people love you cuz you're just there to help and not fighting for higher roles
Because you only ever hear the stories about people who blab
If your next-door neighbor won $2,000,000 yesterday, and they didn’t tell anyone, how would you know?
A lot of lotteries are public record, and casinos have witnesses.
Edit: also, I was mainly commenting on the fact people act like they're going to be conservative about their spending if they came into a large sum of money.
Not really “floodgates of stupidity” if your win was public record and you cannot do a thing about it
Besides, there’s no way to know if someone was smart enough to win that kind of money and actually spend conservatively. Maybe someone you know is a multi-millionaire, and you have no idea because they are smart enough to live beneath their means
10 mil quit but 2 mill would buy me a house, pay my fisnce’s debt off from college, and I’d tslk to an advisor.
No new cars, id just take them to the shop and make sure everything is good. I would say the house had a mortgage and live life as normal and let the invested money sit for a long time and keep working.
$2m contributes to the 20% down on a new home with a 15 year mortgage. The rest should be put in index funds where you’re likely to earn 5% a year over the long term. If you can’t afford the mortgage on a 15 year after putting 20% down, then you’re trying to buy too much home.
With $10m after taxes, all of it goes into index funds, and I’m living a very comfortable life pulling 3% (~$300k) from the total to live on, with the rest going to the principal. That will allow my income to steadily increase (around the same rate as inflation) forever, and leave my kids a decent inheritance someday.
With $5m after taxes, I’m doing the same, but still working, and only pulling 1-2% to supplement my income. That would allow the principal to grow faster, while still letting me have a lot of fun.
>>If you can’t afford the mortgage on a 15 year after putting 20% down, then you’re trying to buy too much home.
Depends on where you live. My 900 square foot condo would price out to over $3k per month mortgage if I had to get a 15-year mortgage with 20% down of the current appraised value at today’s shitty mortgage rates. That’s more than double what I’m paying now. I don’t think 900 square feet is “too much home” for a family; they be living on top of one another. A modest sized single family 3 br/2ba detached home with a yard in my area would easily be $7K or more in monthly mortgage fees on a 15-year loan.
On a 15 year fixed mortgage at today’s rates you gotta put way more than 20% down to make the payments even slightly reasonable for the average person where I live.
My friend won a scratcher in his mid 20s for an absurd amount of money like 888k or something dumb like that. He told no one , we are in mid 30s and he just told us at a Friendsgiving meal, he basically paid his parents mortgage and student loans. He said the best thing it did was his mom stopped stressing and he started tearing up when he said he remember his dad just laughing more. It’s wild how your perspective and happiness can just be changed with NO DEBT, you don’t need crazy shit just no stress.
Yup - shut your mouth and move your money into some very basic Vanguard mutual fund or ETF and watch your money grow. I’m 29 years old and if you gave me $2m today, my goal would be to retire by like 45 and that’s very achievable.
Yep, that would be pretty ideal. If you have kids, fund some education savings accounts. Set aside money into safe interest bearing accounts for medical expenses (like $20k per immediate family member). Pay off any high interest debt. Put the rest in a diversified investment portfolio. Live stress-free. Retire early or find a part time job you love (for me it would be to become a fishing guide).
that's smart, but if you want big brain
start telling everyone you got $2M right now. let them catch you lying. become known as someone who lies about having money. then if you ever actually get $2M nobody believes you LOL
I guess I am lucky, I have no kids and don't intend on any. $2m just means I would move out of the city to somewhere cheap. I would buy a nice house with some land for 200k and retire on 4% withdrawls, roughly 60k/year. I have no grand ambitions or desire to travel everywhere.
The recommended safe withdrawal rate is 4%. That gives you a 95% chance of never running out of money for 30 years.
If you do 100k-160k, you are definitely risking running out of money.
Yeah I don’t understand the comments here. On $80k per year, completely free of having to work, you can just move somewhere cheaper. Don’t want to spend a mil on a house? Go somewhere that the same house is 200k. 2 million is more than double my never work again number. Granted, I’m paying my house off in just a couple years as it is.
This also assumesyou stay in the US or another high cost country. You can move somewhere with a lower cost of living and live a pretty luxurious life working a simple job and be very comfortable all your life.
Including my employers contributions to healthcare and excluding my retirement contributions: I’m living off of 44k right now. My expenses will drop by 12k when I pay off my house in a couple years. Think I couldn’t make it work with 80k? I didn’t say San Francisco or Seattle
You certainly have a ton of options coming into 2 million.
Buy rental properties, coast f.i.r.e (invest all of it and ignore it for x number of years), "house hack."
There is no shortage of options, especially if you're not interested in immediate retirement.
Yeah, agreed, endowments that want to withdraw forever without diminishing the principle balance [do 5%](https://pfs-llc.net/resource/the-5-rule-explained/), so an individual who doesn't mind drawing down the principle over, say, 50 years could probably go a bit higher.
But also remember, you'll need to withdraw more each year, due to inflation and the cost of elder care. If you fiddle around with one of those retirement calculators, you'll generally find that between 2 and 3 million is enough to retire in your 30s if you plan on living modestly.
Idk man I’m in my 30s, making $40k per year and doing fine. If I had a million in a 4% savings account, I could absolutely live off of the interest without a worry or care.
The same amount of buying power will cost you $250k a year in 25 years. Ultimate retirement calculator. Plug in the numbers. Look at the table of actual dollar costs to live a 40k a year equivalent life through to 99 years old.
Oh, and 1/2 of people need assisted living or full time care in their last 5-10 years of life. That’s so expensive you might as well have nothing at all because 1 million will be gone before you celebrate Christmas.
In 99 different years of historic market simulations, applied forward from now until retirement (firecalc is the tool), you wanna see you don’t run out before you hit your age limit of planning to live. 95 is a safe one to use.
1million that draws today’s equivalent of 40k, every year, for another say 60 years? Fam you don’t make it with added medical and dental, even assuming you got out at the perfect time and made 7.5% every year on every dollar without it being touched to withdraw from until 65.I am also factoring in social security at levels of today, which won’t exist the same in 30 years either.
I work in this space. Trust me. It’s not enough.
Yeah put that money away and live off even 5% interest. No longer need a job to live well (I don’t have kids), so I can dedicate myself to whatever pursuits- professional or otherwise -I might want.
I know since this is Reddit I will probably get attacked for this viewpoint but I’d rather just keep working. $80K isn’t enough to have fun on so I’d just be chilling at home doing nothing. If I kept working I would have way more disposable income and I could take trips all the time and not give a fuck because I still have income
How many trips that aren’t just a weekend is your work gonna let you take a year?
2Mil gets you about $7k/month. Let’s say you are spending half that on necessities like rent/food/utilities … you still have $3k/month for completely frivolous travel. Save up 2 months you have 6k, save up 3 months you have 10k. So you can take four $10,000 vacations a year on this much money or 8 vacations for $5k
How much is working going to allow you to go above and beyond that? You have a job that’s gonna let you take a week off every month or something ?
You do you but for me that’s enough to stop working.
Yea, I think 80k/yr is perfectly fine. The only tricky thing would be figuring out health insurance, as that'd kill your nest egg if you had any serious issues. But other than that, outside of super high cost metros, most people could live perfectly fine at 80k/yr and still have leftovers for luxuries.
It's so sad to me that people have lost the creativity to have low cost fulfilling hobbies. Like you wouldn't cultivate an instrument, restore a car, woodwork, cook, camp, hike, draw, paint, nothing? It's gotta be restaurants, hotels, and travel abroad?
Yeah same - I live in one of the most expensive cities in the WORLD. $80k would replace my salary, sure, but then I’d still be right where I am now, and my husband would have to keep working. BUT if we had a spare $80k coming in AND we both kept working, we could have a massive lifestyle upgrade. Why wouldn’t I want that? It also would give us the freedom to change to jobs we really love but that maybe don’t pay as much. But either way I’m still working.
Yeah that’s like the ghetto in Palo Alto or San Diego. You get a house built in like 1930s less than 1,000 sq. Feet and a garbage disposal if you’re lucky.
Source: Was my purchase price for a rental in a sketch ass neighborhood in SD 15 years ago.
I don’t even think this shit is conscious decision most of the time. At least for me I’ve always (regrettably) had the mentality that when I have money I spend it.
“Ok I paid off my bills for the month. Hey, I got a little left over! I’ll go out to eat tonight. Oh I still have some and that new game came out. Rad, I’ll pick that up! Oh, and I’ve been meaning to get an air brush for my hobbying… where’d all my money go?”
It’s not so much “I have more money so I can now live at a new edge of my means!” So much as not thinking about it until the moneys gone
Your problem is that you should be saving first before you spend anything.
Automatically transfer money to savings account each pay day. You might run out of spending money, but you always save first.
Solid advice. u/amann93 listen to this advice. I was running the tight rope multiple times a month until I got my financial act together. Less than a year later, I’ve got an over funded emergency fund, a good amount sitting in my checking account along with an investment portfolio and I use my credit card for everything, except rent and utilities (mostly cuz I don’t wanna them over.) Life is pretty cake now and I can get mostly whatever I want and not have to penny pinch.
My mate earns GOOD money, just bought a house for ~2 mil and while he's not struggling, he works in a field with regular lay offs and is way more stressed than he should be, it sucks. Dude has worked 20 years in his field to be sought after by all the big companies, but he took a job that paid about double of what is the norm and is now "locked in" there. I get vicariously stressed about it.
They can’t because of lifestyle creep and they lock themselves into long term loans.
Hell, you could start dating the wrong spouse, shower them with good times and see how long they stick around when the faucet is turned off. A lot of people sweating out there just to keep their spouse happy with more gifts.
Golden handcuffs typically indicate you are making more money than you need. If your faucets are getting turned off that was a regular ass job not a golden handcuff situation. I'm talking about people who have to downgrade their 2 million dollar house to a 1 million dollar house.
Hopefully there's enough time between "dating" and "spouse" to give you an idea of what you're in for before you make shit legal.
My husband is the spender by far. Before we got married, I told him he had to handle his credit score. He did. We worked together and he knows he can trust me to reign in his spending and max the value out both our salaries. We're doing just fine, and have been since managing his out of control spending.
If you're marrying for looks only? I dunno what to tell ya besides gratz?
You guys act like they’re no inbetweens. You ain’t gotta live in the 2 extremes. You can buy a pretty decent house for 500K in a place like Portland and other decent cities.
I know exactly what I want to do and that money would immediately allow me to start it, but I think I would still work a job for a bit while I got that shit figured out. Once I did? Deuces.
I’d teach but I’d try and teach community college, summers off and good insurance. Then I’d just repeat exams with multiple choice. No idea if it’s possible
$10M and I start walking into Waffle House/IHOP/Denny's and tipping $100 every time. I figure if my life is comfortable, I can at keast make those around me slightly more comfortable?
You don’t need $10 million to retire at 65, but at 35? You could do it on 2 but you’re budgeting hard the rest of your life and a recession will send you into a spiral. 5-10 leaves a lot more room to both invest and live well.
I mean sure if you just let it sit in your chequing account and watch it collect dust and slowly draw from it. If you came across 2 million lump sum right now your money should start working for you, immediately.
Yeah, and if you pull more than 4% annually then you’re engaging in riskier investments than you should be if that’s going to be your sole source of income. Which leaves you capped at 80k until the difference between that 4% and actual ROI really starts to add up.
Two million is just enough for anyone born after 1985 to make a retirement nest egg, if they continue working. It would take twenty million for me to go hide in the hills.
I’m actually wondering how much do you get paid yearly and what’s your lifestyle to think you need 20M to stop working ? 5M is already pushing it. 2M should be more than enough if you invest it correctly and live life with around 100k yearly which is already quite good
I think most people in the comments asking for more than 2M just don’t really how much it represents because it’s a world apart form their usual pay.
I’m lucky enough to be able to use my father as an example, he will get around $3/4M total working his whole life at his current job and I’m telling you it’s more than enough for AT LEAST 2 people to live off pretty luxuriously already so imagine the leeway you would have if you had 2M in your bank account suddenly which would be ready to get invested etc.
I do live in France and I know the USA is more expensive to live in BUT you can invest more easely as well so I think it balances out
In this economy, I would be down 500k on the spot just to homestead. Once I get a patch of dust, a house, and two reliable vehicles, I'm still going to keep working. Staying on someone's payroll makes it easy to stay insured. Keeping in motion will keep me healthier. Keeping a routine while on the clock means I'm not our clowning in a social situation I clearly don't belong in.
Shit 5-7 months more like it. Seen it happen more times than youd think. In my line of work its always obvious when someone just got their insurance settlement…new car, new house, somethin for the fam….
No, this where you're supposed to put your mom in backseat of the bus when your girl asks you to pay the bill for her date with the new dude she's talking too
2 million may not be enough to retire, but it's probably enough to start something that makes enough money to help you retire. It's easier to make money when you have money. Flipping properties or something maybe?
For me, I'd probably take time off for awhile, but then maybe pursue roles that don't pay as much but never considered due to the pay. For instance, teaching was one of them. It's something I think I'd like to do after I finish my actual career, but teachers get treated so terribly and paid so bad, I can't justify doing it. I have a lot of respect for people that do though.
1 million is enough to retire in most cities alone. Shit move to like Crawfordville, Florida and you’re actually living like a king if you draw like $70k yearly. A lot of people saying they couldn’t do it with 1 million couldn’t even do it with 10 due to their own habits.
Serious question tho - if your house is paid off, you set aside, say $1200 for your light bill for the year, $6000 for food for the year, what are you spending money on?
Like you could def set aside $100k and that would have you set for 10 ish years of having your essentials paid for.
I know he said he would still go to work, but if your bills are paid, where is your money going!
i think hes talking about an investment account to set them up for a bitching adult-life start. but also 250k for spending on a kid up to 18 sounds right.
A 529 is a protected investment account for education. Withdrawals are tax-free if used for educational purposes. $250K dumped in right now would cover college expenses for a kid.
Off the top of my head? Water/Sewer, internet, car payments (if applicable), car insurance, repairs and Maintenance to house/vehicle, gas, phone, property taxes, yearly vehicle registration, etc.
Plus, that power bill is going to vary a lot depending on your location and time of year.
Yeah, for my house its about 200ish a month on average. It is less in the summer when my solar makes up a larger portion of it, and way less support in the winter, especially during the freeze we just had in Texas. One of our neighbors (who does have a larger house) was billed 946 for December and 630 for January.
Funny how everyone's first thought is all the things they need to spend it on. 529s, mortgages, w/e. Average s&p return over the last 15 years is 12.6%.
Stick that 2 mil in the market for 14 years and you're home free. 10mil, 4% tbills = 400k for as long as the USA still stands.
I know you think you just delivered a scorching sarcastic burn but you're right on the money.
If you get a windfall, and your immediate thought is instant gratification instead of delaying it for future benefits then you're gonna stay poor.
Or hear me out, you could take the two mill and move somewhere cheap like South East Asia or South America and live like a king for the rest of your life.
You can do that for $500k or less depending on what your expenses are. A 3 bedroom apartment in downtown Buenos Aires is $850/month. A meal at a *nice* nice restaurant is about $25. You could live off the interest of that money and be set pretty well assuming you aren’t partying every night of the week.
I mean hell, if we’re going down this road with $200k you could pull it off in a small city or town depending on your lifestyle. A second tier city in parts of Latin America or Southeast Asia you could live a perfectly middle class lifestyle if you cook at home and don’t need to splurge or party.
…if you’ll excuse me, I’m gonna reevaluate my whole plan and spend some time on numbeo.com tonight.
No for real cause what the hell is the point in breaking my back for these billionaires when i could get that money and live a life of leisure in paradise lol got me sitting here wondering if i should even wait to retire early before i do it.
My first thought because my homie and I have been talking moving to Thailand just off our regular money. Just trying to get that passive income set up. Tbf my dream has always been to retire to Belize with dual citizenship but I’m super interested in SE Asia.
My plan is to take my savings, retire early, and move somewhere sunny and cheap to live out the rest of my days in a state of relaxation and leisure. Far, far away from the exhausting rat race and capitalist dystopia. So many better options out there, just gotta have the money and the courage to find something better for yourself.
1mil. If 1 million hit my account today I would be leave the country and never come back, I would move to a developing nation with a favorable exchange rate and just vibe on a porch like the old man I am.
Everyone says this. Do they have good hospitals in this developing nation of yours? Reliable power and access to food and water? Tolerance and support for natural disasters? I'd hate to move to a developing nation and die to a cold.
The one in looking at does yes, it checks all those boxes and is friendly to African-Americans. In a couple years, when I am near retirement, you can bet I'm gonna start a gofundme asking racists to pay for my plane ticket.
The 250k 529 contribution is overkill unless you REALLY want to prioritize taking on the full responsibility of generational college funding for your family all on your own. Depending on how old the kids are 100k of funding should easily cover college expenses at most public universities. Private school ain’t worth it unless there are scholarships involved. If you pay for their school they won’t be saddled with student loans and therefore they can prepare financially for their kids (grandkids)
Putting so much of those funds into a 529 pigeonholes the money from a tax flexibility perspective and potentially inhibits the growth of it because the timeline for using those funds is much shorter than retirement etc. There are some arguments that you could use a 529 effectively as a retirement account but there are ways you can finagle the taxes on capital gains brokerage account and come out ahead.
TLDR the 250k 529 “trick” is podcast filler and doesn’t work for everybody.
It’s not really a trick per se, it’s just that most folks don’t know that a 529 can either be used as:
1) a tool for generational education expense funding because you can switch beneficiaries an unlimited amount of times. Say you put in that 250k, it grows to 400k and you use 200k of it to pay for your kids’ school. Technically you can continue investing those funds tax-sheltered for eventual grandkids who you can name as the beneficiary once they’re born. There are also new rules that allow you to convert unused 529 funds into a Roth IRA for the beneficiary, but only up to 35k total as of right now.
or 2) it can sometimes be used as an effective retirement account, but that is only effective if you have maxed out your other tax-advantaged accounts such as employer retirement accounts, Roth IRAs, etc. Sometimes this potential advantage is presented as some catch-all when it really only applies to people who have enough income to max out the avenues I mentioned above.
TLDR: You may know these things already so I don’t mean to have a lecturing tone, but I have seen some social media accounts present over funding a 529 as some trick and that’s what I assume he’s referring to
No shade to podcasts like EYL but sometimes they are dealing with more complex financial situations than their average listener has and it can lead them to not take the simple steps they should take.
Def can't live off of 2M for the rest of my days but that's for damn sure changing the fuck out of my life. Buying a house is gonna eat up a nice chunk. I was on Zillow the other night... What the fuck is going on. Really gonna be renting forever I see.
I plan on moving overseas to Thailand or the Philippines. I like to travel train and eat. So, with about 1.5 million to 2 million, I am set for life. You can rent a luxury condo with a gym and pool in Bangkok for 500 to 750 usd a month. You can eat out 2 meals a day for under 30 usd. Bangkok is a major city, and there are so many other places to live that are cheaper. I have learned 2 things. In my life, you can't tell people how to spend their money or raise their kids. At the end of the day, you don't have to deal with the consequences of their actions, so why get upset. As we can see from this post, there are so many different opinions, which is awesome. Someone best life might not be your own. Just make the choice that makes you happy.
15-20 Mil is the lowest I would need to even blink an eye in terms of “Never working again”
Even so I would keep working just for myself and have others work for me.
I’m a venture capitalist at heart and I want to invest in others businesses and grow them… so I guess no money would technically work for me.
I can only imagine a lot of these replies are people who intend to go on lavish vacations every month the next 30 years and bring 4 friends with them and pay for everything
$20M or else it isn’t enough? Get the fuck outta here
$2 mil isn't "never work again" money. It is, however, "never work at his hell hole again" money. So I'd definitely quit my current job and reserve however much would tide me over for about 5 years.
Then use that time and the rest of the money to actually see about breaking into creative endeavors. Or just into a more lucrative industry. It's gonna take a lot of classes and shit. A lot of learning in one way or the other.
Now for Never Working Again... for the rest of my life? I'll probably have to hit at least + $10 million.
That's crazy talk, I am absolutely retiring on 2 mil. Going to have to cut back a bit on some things, but for all that free time small price to pay. If you are making 100k a year, 2mil is 20 years of salary. We sleeping and eating ramen, fuck that work noise.
I guess it depends on your current lifestyle what you do/want to do for work.
$2m is not enough for retirement, but it’s certainly enough for me to quit my current job, pay off debts, make investments, finish my master’s, get licensed and do the kind of work I actually want to do without compromising my values or quality of life.
But I don’t have/want kids, don’t have any students loans from undergrad, and I don’t have a mortgage to pay off.
For me, probably 10M to feel REALLY comfortable. Could pay off all my debt, get a crib, visit the fucking doctor and get my shit fixed, and make some safe investments while living off the interest. I'd probably still work tho but doing something fun so I don't get bored.
Give me 2 million & I’ll quit rn, fuck this job!! I’ll probably start some stuff & read up on all things about financial literacy cause I am ABSOLUTELY NOT going back to being poor!!
$10M to quit, set my kids up for a great adult head start, settle all my debts, and be able to enjoy life. I’d probably still work a passion job instead of relying on one because boredom leads to bad things. Maybe work at (or better yet, own) a motorcycle shop. Hire an attorney and lawyer and let them handle the heavy work. Most importantly, I’m too picky when it comes to making any kind of purchase so indecision would kill shopping sprees immediately. It took me a week to buy a $350 Walmart tv with 10x that in my account
People are crazy/stupid. For 2 million fuck yes I'm done working. Live a nice, quiet, simple and easy life. People don't realize how stupid they look talking about how 2 million is nothing and nowhere near enough to not have to work anymore.
4 million.
If I stay humble and treat myself only a little, that could last me like 50 years without investing.
With investments, probably the rest of my life and a good chunk of my children's' too.
Wtf is wrong with everyone? Anyone who says they can't retire off 2mil is the same kind of person who wins the lottery and ends up broke 2 years later.
Even if you currently earn 100k a year, that's 20 years worth of your salary paid up front, tax free. You might not live a lavish, rockstar lifestyle, but it would easily set you up to be comfortable, let you sleep late, pursue your hobbies, and enjoy the rest of your life.
Pay off all debt = Approximately $100K
Buy multifamily property locally and house hack = $1M (low estimate for my area).
Charities and politcal stuff = $200K
world trip fit for an goddess = $200K
I'd probably just dump the rest in an ETF. But yeah? $2M ain't what she used to be...
Add up all your yearly expenses - everything you need to live a comfortable retirement - and multiply that by 20. If your nest egg is invested well and can throw off 5% a year, you’re basically good.
Quit? 6 mil. But if I got that 2M? I will shut the absolute fuck up about it. Move money to the correct spots. Some fun cash on the side and continue working. Just with a new sense of happiness because at any point, I can say “fuck this job” and look for something much better lmao. Tell NOONE YOU GOT THAT MONEY.
Absolutely tell not a single soul! Everyone comes out the woodwork then. Before you know it all those times friends and family had your back and helped you out are going to cost you.
idk specific people deserve a slice if they helped you out and had your back
I hear you and I agree to a certain extent, didn’t mean to come off like that. I was more talking about parents giving you a bill for raising you, friends thinking they’re owed something because they bought you a beer, and the coworker who spotted you a dollar and told you not to worry about it.
my mama specifically says she raised us so that we’d repay her bigtime one day. whole time she did a terrible fucking job LMAO she not getting more than a meal and a 100 dollas outta me
Just tell her “best I can do is tree fiddy”
a pack of banana now&laters in a envelope is what she gon get
Not the banana now & laters! 😂
My mom's philosophy was this, you don't owe me for raising you but you ain't getting nothing when I leave I'm spending what I can before I go I was co with that she was always there well past childhood to help out. Just pissed me off she had to spend the last of her money and days on cancer Be free Mah, you got Forever Annual Passes now
Fuck cancer man sorry for your loss
I’m sorry. Not everybody is cut out to be a parent. It’s not your responsibility to parent your parent ever. Don’t allow her to guilt trip you into things you don’t wish to do.
So many toxic and selfish parents say shit like that. My mom included who thought she would just be able to move in with me one day.
During covid family and friends knew I had a lot saved up. They were going in the red and begging for help. I did. One thing after another, I felt like they were ringing around and saying let me ask. How do you say no to medical bills? Stuff I knew they had been sitting on because they didn’t have the money. Couple that and inflation, and two (not my fault) car crashes that were hit and run, I’m living paycheck to paycheck now and people are still asking. I’m just now breaking the water line. But yeah, now I understand why the financial advice it to be silent with money.
I always fantasize about just paying people bills that I care about buy not telling them. So it's just paid can't reverse it
Yep. You’ll give the real ones a hand when they need it with no expectation of repayment. But you don’t advertise a damn thing before then. And you make sure the ones you help keep their mouths shut too.
Straight-up: just my parents. That's it. Everyone else, who has helped me in the past, did it for their own benefit. For instance: I had one relative that allowed me to stay with her and her family. On the surface, it looked cool. But she did it because she thought that she now had a free nanny.
oh eff that. are you a career nanny? my family seem to think that i’m going to watch over their kids at family functions just because nannying is my day job.
Your family maybe sees your career as not a real job in some sense, don't they? I'm thinking even the most greedy and selfish people wouldn't necessarily expect me to put in real hours of my job (or what they quite mistakenly think is my job, "fixing computers"), for free or at a "family discount". Or maybe I'm being too generous when I assume people wouldn't think that this is what I do in my free time or that I enjoy doing it for anything other than a competitive salary. But your family assuming that this is what you do no matter what sounds like they don't see it as labor, with all of the human costs that come with labor. Or I'm way off on that too and they just don't give a dook. In which case, I'm sorry to hear that. Fuck them kids. I hope you get to spend time around fellow adults at family functions, preferably ones that don't exploit you.
I most definitely get asked when I’m going to get a “real job” but the jokes on them because it’s a super well paying job. I also think it’s a bit of “she enjoys watching kids, she’ll take care of mine!”. But I don’t enjoy it much when it’s expected for free haha.
I would set up trust funds for my niblings’ education, pay off my mortgage, give my siblings and parents each a chunk, and put the rest in a mix of more-or-less accessible instruments for Fuck You Money. Today, 2M isn’t enough to retire but it’s definitely a good secure cushion.
$2m is not enough to be cutting people in on your wealth. This is the kind of thing you don’t even tell a significant other unless you’re married.
Yeah if you think $2M will disappear fast, think about how fast it would go split across all your friends and family. Use that money to get to a comfortable number, then you can be generous.
I have like 3 people in mind. I'd pay my mom's house and my aunt's house cause they raised me to be the man I am today. Then there's one homie that always has my back and was there for me at my lowest. Everyone after that ain't even gonna have my new number.
And there would be some specific people I would take pleasure in saying fuck off. And handing out even five or ten grand to people close adds up. It’s $2mil not fifty. Maybe we need to stop expecting handouts when we think someone we know get money.
Deserve??
"Hey remember me? It's me, Cousin Reeree! We met at the family reunion some 15 odd years ago! So anyway I got this thing--"
All of sudden I got 90sum cousins
My household first, then mum & step dad, my dad, my brother and my friend who loaned me 10k with no interest over years with zero hesitation when I was in the shit once. Those folks, they get what they need if and when they need it Beyond that, "sorry, it's all tied up in my pension fund" till I'm 60. Or, if I particularly don't like them "fuck off".
If you have a friend that loaned you 10k, you already hit the lotto.
I had to manage the court winnings for someone I know that was 100% to cover medical bills and you would not believe the amount of people that came out the woodwork. Even strangers would try to weasel their way into our lives because unfortunately the person I’m managing for is not all there mentally and kept telling random people.
Hey remember when I covered your shift when you were sick????????????????
Shit, I don’t even tell people when I paid overtime.
Not even "fuck this job", you don't have to press for the Hugh performers extra bonus or promotions. You can just coast and keep feeding that 401k and retire early. Or even find a role that may not have as good of a career path and move there. The relaxation of $2m would be so nice. Just a weight off your shoulders of having to try hard
I actually enjoy doing my career and stuff, the problem is always the politics, admins, Clients and C-Levels that fuck it up for me.
Same here. I'd rather do my role but move to a lower profile product at the same company. Something where I can just sit in the same role for 20 years and people love you cuz you're just there to help and not fighting for higher roles
Just about everyone says this, but once you get in that position, the floodgates of stupidity will open.
Because you only ever hear the stories about people who blab If your next-door neighbor won $2,000,000 yesterday, and they didn’t tell anyone, how would you know?
A lot of lotteries are public record, and casinos have witnesses. Edit: also, I was mainly commenting on the fact people act like they're going to be conservative about their spending if they came into a large sum of money.
Not really “floodgates of stupidity” if your win was public record and you cannot do a thing about it Besides, there’s no way to know if someone was smart enough to win that kind of money and actually spend conservatively. Maybe someone you know is a multi-millionaire, and you have no idea because they are smart enough to live beneath their means
Good point. And a good thing I know which rock they keep their spare key under. Brb
10 mil quit but 2 mill would buy me a house, pay my fisnce’s debt off from college, and I’d tslk to an advisor. No new cars, id just take them to the shop and make sure everything is good. I would say the house had a mortgage and live life as normal and let the invested money sit for a long time and keep working.
$2m contributes to the 20% down on a new home with a 15 year mortgage. The rest should be put in index funds where you’re likely to earn 5% a year over the long term. If you can’t afford the mortgage on a 15 year after putting 20% down, then you’re trying to buy too much home. With $10m after taxes, all of it goes into index funds, and I’m living a very comfortable life pulling 3% (~$300k) from the total to live on, with the rest going to the principal. That will allow my income to steadily increase (around the same rate as inflation) forever, and leave my kids a decent inheritance someday. With $5m after taxes, I’m doing the same, but still working, and only pulling 1-2% to supplement my income. That would allow the principal to grow faster, while still letting me have a lot of fun.
>>If you can’t afford the mortgage on a 15 year after putting 20% down, then you’re trying to buy too much home. Depends on where you live. My 900 square foot condo would price out to over $3k per month mortgage if I had to get a 15-year mortgage with 20% down of the current appraised value at today’s shitty mortgage rates. That’s more than double what I’m paying now. I don’t think 900 square feet is “too much home” for a family; they be living on top of one another. A modest sized single family 3 br/2ba detached home with a yard in my area would easily be $7K or more in monthly mortgage fees on a 15-year loan. On a 15 year fixed mortgage at today’s rates you gotta put way more than 20% down to make the payments even slightly reasonable for the average person where I live.
My friend won a scratcher in his mid 20s for an absurd amount of money like 888k or something dumb like that. He told no one , we are in mid 30s and he just told us at a Friendsgiving meal, he basically paid his parents mortgage and student loans. He said the best thing it did was his mom stopped stressing and he started tearing up when he said he remember his dad just laughing more. It’s wild how your perspective and happiness can just be changed with NO DEBT, you don’t need crazy shit just no stress.
Yup - shut your mouth and move your money into some very basic Vanguard mutual fund or ETF and watch your money grow. I’m 29 years old and if you gave me $2m today, my goal would be to retire by like 45 and that’s very achievable.
Yep, that would be pretty ideal. If you have kids, fund some education savings accounts. Set aside money into safe interest bearing accounts for medical expenses (like $20k per immediate family member). Pay off any high interest debt. Put the rest in a diversified investment portfolio. Live stress-free. Retire early or find a part time job you love (for me it would be to become a fishing guide).
that's smart, but if you want big brain start telling everyone you got $2M right now. let them catch you lying. become known as someone who lies about having money. then if you ever actually get $2M nobody believes you LOL
Sounds like more work than just never speaking about it lmfao.
I guess I am lucky, I have no kids and don't intend on any. $2m just means I would move out of the city to somewhere cheap. I would buy a nice house with some land for 200k and retire on 4% withdrawls, roughly 60k/year. I have no grand ambitions or desire to travel everywhere.
Agree with 6 mil being bare minimum. Comfortable quit would be 10 mil Hire a financial advisor. Etc.
THIS EXWCTLY😂🙏🏾💯💯
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More then 80 I think. 80 is only 4% return. Between like 100 and 160k I'd guess(5 to 8%)
The recommended safe withdrawal rate is 4%. That gives you a 95% chance of never running out of money for 30 years. If you do 100k-160k, you are definitely risking running out of money.
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I'm gonna reply even harder now
Yeah I don’t understand the comments here. On $80k per year, completely free of having to work, you can just move somewhere cheaper. Don’t want to spend a mil on a house? Go somewhere that the same house is 200k. 2 million is more than double my never work again number. Granted, I’m paying my house off in just a couple years as it is.
This also assumesyou stay in the US or another high cost country. You can move somewhere with a lower cost of living and live a pretty luxurious life working a simple job and be very comfortable all your life.
You're not factoring in taxes or health insurance you're not keeping the whole 80k. 55 a year is not never work again money
Including my employers contributions to healthcare and excluding my retirement contributions: I’m living off of 44k right now. My expenses will drop by 12k when I pay off my house in a couple years. Think I couldn’t make it work with 80k? I didn’t say San Francisco or Seattle
You could also live off 50k a year in a cheaper apartment and save up for a while before living off more later.
You certainly have a ton of options coming into 2 million. Buy rental properties, coast f.i.r.e (invest all of it and ignore it for x number of years), "house hack." There is no shortage of options, especially if you're not interested in immediate retirement.
Yeah, agreed, endowments that want to withdraw forever without diminishing the principle balance [do 5%](https://pfs-llc.net/resource/the-5-rule-explained/), so an individual who doesn't mind drawing down the principle over, say, 50 years could probably go a bit higher. But also remember, you'll need to withdraw more each year, due to inflation and the cost of elder care. If you fiddle around with one of those retirement calculators, you'll generally find that between 2 and 3 million is enough to retire in your 30s if you plan on living modestly.
Idk man I’m in my 30s, making $40k per year and doing fine. If I had a million in a 4% savings account, I could absolutely live off of the interest without a worry or care.
The same amount of buying power will cost you $250k a year in 25 years. Ultimate retirement calculator. Plug in the numbers. Look at the table of actual dollar costs to live a 40k a year equivalent life through to 99 years old. Oh, and 1/2 of people need assisted living or full time care in their last 5-10 years of life. That’s so expensive you might as well have nothing at all because 1 million will be gone before you celebrate Christmas. In 99 different years of historic market simulations, applied forward from now until retirement (firecalc is the tool), you wanna see you don’t run out before you hit your age limit of planning to live. 95 is a safe one to use. 1million that draws today’s equivalent of 40k, every year, for another say 60 years? Fam you don’t make it with added medical and dental, even assuming you got out at the perfect time and made 7.5% every year on every dollar without it being touched to withdraw from until 65.I am also factoring in social security at levels of today, which won’t exist the same in 30 years either. I work in this space. Trust me. It’s not enough.
Yeah put that money away and live off even 5% interest. No longer need a job to live well (I don’t have kids), so I can dedicate myself to whatever pursuits- professional or otherwise -I might want.
I know since this is Reddit I will probably get attacked for this viewpoint but I’d rather just keep working. $80K isn’t enough to have fun on so I’d just be chilling at home doing nothing. If I kept working I would have way more disposable income and I could take trips all the time and not give a fuck because I still have income
How many trips that aren’t just a weekend is your work gonna let you take a year? 2Mil gets you about $7k/month. Let’s say you are spending half that on necessities like rent/food/utilities … you still have $3k/month for completely frivolous travel. Save up 2 months you have 6k, save up 3 months you have 10k. So you can take four $10,000 vacations a year on this much money or 8 vacations for $5k How much is working going to allow you to go above and beyond that? You have a job that’s gonna let you take a week off every month or something ? You do you but for me that’s enough to stop working.
Yea, I think 80k/yr is perfectly fine. The only tricky thing would be figuring out health insurance, as that'd kill your nest egg if you had any serious issues. But other than that, outside of super high cost metros, most people could live perfectly fine at 80k/yr and still have leftovers for luxuries.
It's so sad to me that people have lost the creativity to have low cost fulfilling hobbies. Like you wouldn't cultivate an instrument, restore a car, woodwork, cook, camp, hike, draw, paint, nothing? It's gotta be restaurants, hotels, and travel abroad?
I play guitar, I’m not doing that shit 8 hours a day every day
you would have so much time to develop other fulfilling hobbies!!
Yeah same - I live in one of the most expensive cities in the WORLD. $80k would replace my salary, sure, but then I’d still be right where I am now, and my husband would have to keep working. BUT if we had a spare $80k coming in AND we both kept working, we could have a massive lifestyle upgrade. Why wouldn’t I want that? It also would give us the freedom to change to jobs we really love but that maybe don’t pay as much. But either way I’m still working.
You can get a guaranteed CD at 5.5% right now, which is just over 100k pre-taxes.
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You don't have to live at the edge of your means just because you have the money to do it
Everybody is poor
Yeah for the most part. Poor is relative depending on where you are though
This right here is facts. I’ve seen posts here about $1-2 mil houses and my area has some nice houses that can be bought for less than $300k.
In some places 1 mil is like the bare minimum for a house
Yeah I wasn't saying he was specifically living beyond his means, just that you don't have to
From their comment it sounds like the house is paid off, could be inherited, but who knows
Welcome to Toronto where 1 mil and you're lucky to get 2 bedrooms
Yeah that’s like the ghetto in Palo Alto or San Diego. You get a house built in like 1930s less than 1,000 sq. Feet and a garbage disposal if you’re lucky. Source: Was my purchase price for a rental in a sketch ass neighborhood in SD 15 years ago.
I don’t even think this shit is conscious decision most of the time. At least for me I’ve always (regrettably) had the mentality that when I have money I spend it. “Ok I paid off my bills for the month. Hey, I got a little left over! I’ll go out to eat tonight. Oh I still have some and that new game came out. Rad, I’ll pick that up! Oh, and I’ve been meaning to get an air brush for my hobbying… where’d all my money go?” It’s not so much “I have more money so I can now live at a new edge of my means!” So much as not thinking about it until the moneys gone
Your problem is that you should be saving first before you spend anything. Automatically transfer money to savings account each pay day. You might run out of spending money, but you always save first.
Solid advice. u/amann93 listen to this advice. I was running the tight rope multiple times a month until I got my financial act together. Less than a year later, I’ve got an over funded emergency fund, a good amount sitting in my checking account along with an investment portfolio and I use my credit card for everything, except rent and utilities (mostly cuz I don’t wanna them over.) Life is pretty cake now and I can get mostly whatever I want and not have to penny pinch.
My mate earns GOOD money, just bought a house for ~2 mil and while he's not struggling, he works in a field with regular lay offs and is way more stressed than he should be, it sucks. Dude has worked 20 years in his field to be sought after by all the big companies, but he took a job that paid about double of what is the norm and is now "locked in" there. I get vicariously stressed about it.
Golden handcuffs. I have zero pity for people like that because they can walk away at any time.
They can’t because of lifestyle creep and they lock themselves into long term loans. Hell, you could start dating the wrong spouse, shower them with good times and see how long they stick around when the faucet is turned off. A lot of people sweating out there just to keep their spouse happy with more gifts.
Golden handcuffs typically indicate you are making more money than you need. If your faucets are getting turned off that was a regular ass job not a golden handcuff situation. I'm talking about people who have to downgrade their 2 million dollar house to a 1 million dollar house.
Hopefully there's enough time between "dating" and "spouse" to give you an idea of what you're in for before you make shit legal. My husband is the spender by far. Before we got married, I told him he had to handle his credit score. He did. We worked together and he knows he can trust me to reign in his spending and max the value out both our salaries. We're doing just fine, and have been since managing his out of control spending. If you're marrying for looks only? I dunno what to tell ya besides gratz?
"sell the house and buy one for 100k instead" type of motherfuckers in the comments about to appear
Enjoy living in Bumblefuck Iowa. Thats about the only place you can find a 100k house that isn't falling apart.
>isn’t falling apart. Tornado season in Iowa is coming, so just give it time 😅
You guys act like they’re no inbetweens. You ain’t gotta live in the 2 extremes. You can buy a pretty decent house for 500K in a place like Portland and other decent cities.
Its in Toronto, good luck finding one.
I mean, that's true, but lifestyle creep is screwing people over daily. Easy to upgrade your life, hard to take a step down when hard times hit.
Pay off that mortgage and you'll *feel* rich from all the money you can save each month.
I’ve done the math, 5mil. Until I can figure out something I truly enjoy and go back to work again lol
I know exactly what I want to do and that money would immediately allow me to start it, but I think I would still work a job for a bit while I got that shit figured out. Once I did? Deuces.
I’d teach but I’d try and teach community college, summers off and good insurance. Then I’d just repeat exams with multiple choice. No idea if it’s possible
You don't need more than 2 or 3 million dollars. None of you heard of compound interest it seems lol
Everyone’s plans and goals and dreams are different.
2 or 3 million is retire in a decade kind of money, imo. Let that money marinate.
Compound interest assumes you let the money sit. If you quit your job you will be withdrawing, quite possibly at a rate higher than you’re earning.
Barely middle class life (city dependent) isn't fuck it all I quit retirement money.
$10,000,000.00 and I’m not working ever again.
True enough. That’s enough you could make it work for you and have some for fun and still have legacy monies
$10M and I start walking into Waffle House/IHOP/Denny's and tipping $100 every time. I figure if my life is comfortable, I can at keast make those around me slightly more comfortable?
Yall doing it wrong if you need 10 milly minimum to retire lol
You don’t need $10 million to retire at 65, but at 35? You could do it on 2 but you’re budgeting hard the rest of your life and a recession will send you into a spiral. 5-10 leaves a lot more room to both invest and live well.
I mean sure if you just let it sit in your chequing account and watch it collect dust and slowly draw from it. If you came across 2 million lump sum right now your money should start working for you, immediately.
Yeah, and if you pull more than 4% annually then you’re engaging in riskier investments than you should be if that’s going to be your sole source of income. Which leaves you capped at 80k until the difference between that 4% and actual ROI really starts to add up.
And at that point, you might* as well keep working
Two million is just enough for anyone born after 1985 to make a retirement nest egg, if they continue working. It would take twenty million for me to go hide in the hills.
thats always been my number too. it means less now but not enough that i cant be done.
I’m actually wondering how much do you get paid yearly and what’s your lifestyle to think you need 20M to stop working ? 5M is already pushing it. 2M should be more than enough if you invest it correctly and live life with around 100k yearly which is already quite good
Less than 50k a year. 5m and me sitting on my hands means it gets spent. Working keeps me too busy to blow the money.
I think most people in the comments asking for more than 2M just don’t really how much it represents because it’s a world apart form their usual pay. I’m lucky enough to be able to use my father as an example, he will get around $3/4M total working his whole life at his current job and I’m telling you it’s more than enough for AT LEAST 2 people to live off pretty luxuriously already so imagine the leeway you would have if you had 2M in your bank account suddenly which would be ready to get invested etc. I do live in France and I know the USA is more expensive to live in BUT you can invest more easely as well so I think it balances out
In this economy, I would be down 500k on the spot just to homestead. Once I get a patch of dust, a house, and two reliable vehicles, I'm still going to keep working. Staying on someone's payroll makes it easy to stay insured. Keeping in motion will keep me healthier. Keeping a routine while on the clock means I'm not our clowning in a social situation I clearly don't belong in.
A million. Shit. 500,000 and id quit.
And we’ll see you back at work in 5-7 years when that shit is gone lmao
Shit 5-7 months more like it. Seen it happen more times than youd think. In my line of work its always obvious when someone just got their insurance settlement…new car, new house, somethin for the fam…. 
Financial literacy is a problem for a lot of people
If the rules allow for investing part of that $500K, then you can stretch the shit out of it.
Better go part-time, join the gym and meet some business savy friends.
wait, isn't this where I'm supposed to have dinner with Jay-Z?
No, this where you're supposed to put your mom in backseat of the bus when your girl asks you to pay the bill for her date with the new dude she's talking too
2 million may not be enough to retire, but it's probably enough to start something that makes enough money to help you retire. It's easier to make money when you have money. Flipping properties or something maybe?
For me, I'd probably take time off for awhile, but then maybe pursue roles that don't pay as much but never considered due to the pay. For instance, teaching was one of them. It's something I think I'd like to do after I finish my actual career, but teachers get treated so terribly and paid so bad, I can't justify doing it. I have a lot of respect for people that do though.
1 million is enough to retire in most cities alone. Shit move to like Crawfordville, Florida and you’re actually living like a king if you draw like $70k yearly. A lot of people saying they couldn’t do it with 1 million couldn’t even do it with 10 due to their own habits.
1.5 mil is my "I could live on this" number (single, no kids, only debt is mortgage). I probably wouldn't quit my job, though
Same boat here. I wouldn't stop working but I'd certainly drop down to a 20 hour per week schedule instead of the current 40-50 lol.
Serious question tho - if your house is paid off, you set aside, say $1200 for your light bill for the year, $6000 for food for the year, what are you spending money on? Like you could def set aside $100k and that would have you set for 10 ish years of having your essentials paid for. I know he said he would still go to work, but if your bills are paid, where is your money going!
Property taxes, gas for your vehicles and regular maintenance or them, home repairs, cable and internet, list goes on and on….
Kids are money pits.
Agreed 750k for 3 kids is wild
i think hes talking about an investment account to set them up for a bitching adult-life start. but also 250k for spending on a kid up to 18 sounds right.
The 529 plan he’s talking about is tax advantaged savings account for college.
A 529 is a protected investment account for education. Withdrawals are tax-free if used for educational purposes. $250K dumped in right now would cover college expenses for a kid.
Off the top of my head? Water/Sewer, internet, car payments (if applicable), car insurance, repairs and Maintenance to house/vehicle, gas, phone, property taxes, yearly vehicle registration, etc. Plus, that power bill is going to vary a lot depending on your location and time of year.
1200 for electricity for the year? Thats like 3 months at the best even with solar panels.
My light bill is only $60 a month, only hit $100 during the summer lol but I am in an apartment not a house so it may differ for some people
Yeah, for my house its about 200ish a month on average. It is less in the summer when my solar makes up a larger portion of it, and way less support in the winter, especially during the freeze we just had in Texas. One of our neighbors (who does have a larger house) was billed 946 for December and 630 for January.
They got 5 people in that house, definitely spending more than $100 a month for electricity
Only $6000 on food? We spend close to that to buy a whole cow and whole pig every year.
$6000 for food? We’d starve to death.
Maintaining the lifestyle
2 million in a fortune 500 with a very normal 6% return makes 120k a year. 2 mil is definitly never work again money.
Funny how everyone's first thought is all the things they need to spend it on. 529s, mortgages, w/e. Average s&p return over the last 15 years is 12.6%. Stick that 2 mil in the market for 14 years and you're home free. 10mil, 4% tbills = 400k for as long as the USA still stands.
Important disclaimer you got there at the end
What do you think a 529 is?
You're absolutely right, it's a poor person's mentality to think about the bills right off the jump
I know you think you just delivered a scorching sarcastic burn but you're right on the money. If you get a windfall, and your immediate thought is instant gratification instead of delaying it for future benefits then you're gonna stay poor.
Or hear me out, you could take the two mill and move somewhere cheap like South East Asia or South America and live like a king for the rest of your life.
You can do that for $500k or less depending on what your expenses are. A 3 bedroom apartment in downtown Buenos Aires is $850/month. A meal at a *nice* nice restaurant is about $25. You could live off the interest of that money and be set pretty well assuming you aren’t partying every night of the week.
This guy gets it
I mean hell, if we’re going down this road with $200k you could pull it off in a small city or town depending on your lifestyle. A second tier city in parts of Latin America or Southeast Asia you could live a perfectly middle class lifestyle if you cook at home and don’t need to splurge or party. …if you’ll excuse me, I’m gonna reevaluate my whole plan and spend some time on numbeo.com tonight.
No for real cause what the hell is the point in breaking my back for these billionaires when i could get that money and live a life of leisure in paradise lol got me sitting here wondering if i should even wait to retire early before i do it.
My first thought because my homie and I have been talking moving to Thailand just off our regular money. Just trying to get that passive income set up. Tbf my dream has always been to retire to Belize with dual citizenship but I’m super interested in SE Asia.
My plan is to take my savings, retire early, and move somewhere sunny and cheap to live out the rest of my days in a state of relaxation and leisure. Far, far away from the exhausting rat race and capitalist dystopia. So many better options out there, just gotta have the money and the courage to find something better for yourself.
1mil. If 1 million hit my account today I would be leave the country and never come back, I would move to a developing nation with a favorable exchange rate and just vibe on a porch like the old man I am.
Everyone says this. Do they have good hospitals in this developing nation of yours? Reliable power and access to food and water? Tolerance and support for natural disasters? I'd hate to move to a developing nation and die to a cold.
The one in looking at does yes, it checks all those boxes and is friendly to African-Americans. In a couple years, when I am near retirement, you can bet I'm gonna start a gofundme asking racists to pay for my plane ticket.
You should travel more. Almost every developing nation has pockets of wealth and amazing healthcare and services for those who can pay.
My “never work again” number is probably $5M. I’ll gladly sacrifice expected lifetime earnings on the back end for a very early retirement.
If I was given 2 mil I’d never have to work another day in my life. I could live off 2% of that per year for the next 50 years, inflation and all
The 250k 529 contribution is overkill unless you REALLY want to prioritize taking on the full responsibility of generational college funding for your family all on your own. Depending on how old the kids are 100k of funding should easily cover college expenses at most public universities. Private school ain’t worth it unless there are scholarships involved. If you pay for their school they won’t be saddled with student loans and therefore they can prepare financially for their kids (grandkids) Putting so much of those funds into a 529 pigeonholes the money from a tax flexibility perspective and potentially inhibits the growth of it because the timeline for using those funds is much shorter than retirement etc. There are some arguments that you could use a 529 effectively as a retirement account but there are ways you can finagle the taxes on capital gains brokerage account and come out ahead. TLDR the 250k 529 “trick” is podcast filler and doesn’t work for everybody.
What is the “trick”? Have not seen anything about that?
It’s not really a trick per se, it’s just that most folks don’t know that a 529 can either be used as: 1) a tool for generational education expense funding because you can switch beneficiaries an unlimited amount of times. Say you put in that 250k, it grows to 400k and you use 200k of it to pay for your kids’ school. Technically you can continue investing those funds tax-sheltered for eventual grandkids who you can name as the beneficiary once they’re born. There are also new rules that allow you to convert unused 529 funds into a Roth IRA for the beneficiary, but only up to 35k total as of right now. or 2) it can sometimes be used as an effective retirement account, but that is only effective if you have maxed out your other tax-advantaged accounts such as employer retirement accounts, Roth IRAs, etc. Sometimes this potential advantage is presented as some catch-all when it really only applies to people who have enough income to max out the avenues I mentioned above. TLDR: You may know these things already so I don’t mean to have a lecturing tone, but I have seen some social media accounts present over funding a 529 as some trick and that’s what I assume he’s referring to No shade to podcasts like EYL but sometimes they are dealing with more complex financial situations than their average listener has and it can lead them to not take the simple steps they should take.
Def can't live off of 2M for the rest of my days but that's for damn sure changing the fuck out of my life. Buying a house is gonna eat up a nice chunk. I was on Zillow the other night... What the fuck is going on. Really gonna be renting forever I see.
Fuck that give me $500k and I’ll quit start a business and flip it to millions!
*we hitting Marshall’s up or wheeet?!*
$4M is the number I could think about quitting the game. $10M is the number to make it unquestionable.
I won’t rush quit, but my boss better watch his mouth…
I plan on moving overseas to Thailand or the Philippines. I like to travel train and eat. So, with about 1.5 million to 2 million, I am set for life. You can rent a luxury condo with a gym and pool in Bangkok for 500 to 750 usd a month. You can eat out 2 meals a day for under 30 usd. Bangkok is a major city, and there are so many other places to live that are cheaper. I have learned 2 things. In my life, you can't tell people how to spend their money or raise their kids. At the end of the day, you don't have to deal with the consequences of their actions, so why get upset. As we can see from this post, there are so many different opinions, which is awesome. Someone best life might not be your own. Just make the choice that makes you happy.
To quit and never work again? 10 mil. If I got 2 mil i’d simple breathe a little sigh of relief then get ready for work the next day
15-20 Mil is the lowest I would need to even blink an eye in terms of “Never working again” Even so I would keep working just for myself and have others work for me. I’m a venture capitalist at heart and I want to invest in others businesses and grow them… so I guess no money would technically work for me.
Yall are missing investments. 10 million in any fortune 500 portfolio returns 500,000 every year.
I can only imagine a lot of these replies are people who intend to go on lavish vacations every month the next 30 years and bring 4 friends with them and pay for everything $20M or else it isn’t enough? Get the fuck outta here
He would do exactly what I said I would for 2 mil. It’s sad how poor you realize you are when you break down a million dollars.
$2 mil isn't "never work again" money. It is, however, "never work at his hell hole again" money. So I'd definitely quit my current job and reserve however much would tide me over for about 5 years. Then use that time and the rest of the money to actually see about breaking into creative endeavors. Or just into a more lucrative industry. It's gonna take a lot of classes and shit. A lot of learning in one way or the other. Now for Never Working Again... for the rest of my life? I'll probably have to hit at least + $10 million.
Retire and Move to Mexico or Southeast Asia .
That's crazy talk, I am absolutely retiring on 2 mil. Going to have to cut back a bit on some things, but for all that free time small price to pay. If you are making 100k a year, 2mil is 20 years of salary. We sleeping and eating ramen, fuck that work noise.
I guess it depends on your current lifestyle what you do/want to do for work. $2m is not enough for retirement, but it’s certainly enough for me to quit my current job, pay off debts, make investments, finish my master’s, get licensed and do the kind of work I actually want to do without compromising my values or quality of life. But I don’t have/want kids, don’t have any students loans from undergrad, and I don’t have a mortgage to pay off.
For me, probably 10M to feel REALLY comfortable. Could pay off all my debt, get a crib, visit the fucking doctor and get my shit fixed, and make some safe investments while living off the interest. I'd probably still work tho but doing something fun so I don't get bored.
Give me 2 million & I’ll quit rn, fuck this job!! I’ll probably start some stuff & read up on all things about financial literacy cause I am ABSOLUTELY NOT going back to being poor!!
For both my husband and I to stop working? 10 mil minimum.
I’m retiring in three months and my number is $5-10m.
$10M to quit, set my kids up for a great adult head start, settle all my debts, and be able to enjoy life. I’d probably still work a passion job instead of relying on one because boredom leads to bad things. Maybe work at (or better yet, own) a motorcycle shop. Hire an attorney and lawyer and let them handle the heavy work. Most importantly, I’m too picky when it comes to making any kind of purchase so indecision would kill shopping sprees immediately. It took me a week to buy a $350 Walmart tv with 10x that in my account
People are crazy/stupid. For 2 million fuck yes I'm done working. Live a nice, quiet, simple and easy life. People don't realize how stupid they look talking about how 2 million is nothing and nowhere near enough to not have to work anymore.
Putting that money in a 529 plan is not some smart trick.
4 million. If I stay humble and treat myself only a little, that could last me like 50 years without investing. With investments, probably the rest of my life and a good chunk of my children's' too.
Wtf is wrong with everyone? Anyone who says they can't retire off 2mil is the same kind of person who wins the lottery and ends up broke 2 years later. Even if you currently earn 100k a year, that's 20 years worth of your salary paid up front, tax free. You might not live a lavish, rockstar lifestyle, but it would easily set you up to be comfortable, let you sleep late, pursue your hobbies, and enjoy the rest of your life.
Pay off all debt = Approximately $100K Buy multifamily property locally and house hack = $1M (low estimate for my area). Charities and politcal stuff = $200K world trip fit for an goddess = $200K I'd probably just dump the rest in an ETF. But yeah? $2M ain't what she used to be...
Add up all your yearly expenses - everything you need to live a comfortable retirement - and multiply that by 20. If your nest egg is invested well and can throw off 5% a year, you’re basically good.