How much money do you need before you can live off investements alone?
What different possiblities are there of investing so the passive income can become your main income?
I'm thinking of living as cheaply as possible for a certain amount of years then living the rest of my life with not having to work a 9-5 job while using the passive income I've collected by investing in whatever to stay afloat for the rest o my life.
I really hate working tbqh but I can work very hard or a couple of years to avoid it for the rest of time if I have to.
Watchu think Veeky Forums does this sound like a good idea?
At 4M in the market you should be safely able to withdraw ~4% a year without touching the principal. Its a long road and 9-5 (unless youre a top dentist, doctor or lawyer) won't get you there
Caleb Flores
5 million dollars. put it in a fund where you can expect a 5% annual gain.
thats $250k/yr to sit around jerking off to anime girls and shemales all day long baby.
Camden Martinez
250k a year is a lot though. I don't think I could use all the money.
I could hardly live on 100k Math me 100k please.
Wyatt Bell
Then it is $2M for $100K a year assuming a 5% annual gain.
Grayson Peterson
>How much money do you need before you can live off investements alone?
Obviously depends on a lot of different factors. Your country of residence, your standard of living, your amount of capital, your annual returns, your risk profile, etc. Just estimate your cost of living and your estimated return and rund the numbers yourself how much capital you'd need.
>What different possiblities are there of investing so the passive income can become your main income?
No income is truly passive, they all require some degree of management. Owning a successful business would be the ideal way of gaining "passive" income. If it's only from monetary investments, there's not all that much. There's plenty of possible investments, but you need ones that have at least annual pay-outs to sustain your life.
If you have your money in an accumulating mutual fund, you'd have to regularly sell your shares to get money out. So you need to invest into dividend-heavy stocks or funds or into bonds if you want to stick to financial instruments. If maybe not the most profitable, but in many ways the ideal investment is rental properties. You get monthy payments corresponding to your monthly expenses and rent is indexed with consumer prices, making sure inflation can't fuck you.
>I really hate working tbqh but I can work very hard or a couple of years to avoid it for the rest of time if I have to.
Unless you are a really highly qualified worker with massive salaries it is unrealistic that a few years of hard work can cover the rest of your life. Assuming a moderate return of 5%, you'd need investments 20 times your annual expenses just to cover the very basics. And that's not even talking about how inflation will in the long run really kick your ass. Yes, you could start tearing into the principal instead of only the returns, but that quite literally puts a deadline on your life.
Jaxson Wood
Where can i go to invest money? a website
Jacob Brown
Where do you live country-wise?
Joseph Brooks
UK
Adam Roberts
>I need 160,000 a year to live ?? >I need 250,000 a year to live ?? >I need 100,000+ a year to live ??
Try 1 to 1.5 million.
Blake Powell
Why do you need all that money. Give us some rough estimates on what you would use all the money on buddy.
Easton Hernandez
I'm from the USA, so I wouldn't be able to tell you about how to find a proper broker in the UK. I am assuming you will want to work within UK's stock exchange, though I believe through some paperwork you might be able to trade the US stock exchange with brokers like TD ameritrade (there are others out there, but I can't remember off the top of my head that take international clients). You will have to fill out paperwork and send a photo of your passport and in order to gain access to USA markets though. If you want to stick to UK's stock exchange, it should be as easy as googiling "online UK stock brokers" and searching through ones that have good reviews, low commissions, small or no account minimum, no activity fee, etc.
Lincoln Myers
you can go to early retirement extreme to see how to retire in as little as 5 years. But, you're gonna have to make a lot of money right up front as well as huge sacrifices in lifestyle (living in cars and tents, etc)
Nathaniel Davis
I meant 1 - 1.5 in investments, yielding 30k - 60k a year, depending on how much you want to withdraw a year. There's no way someone needs 250k a year just to live
Brandon Jones
Absolute minimum is like 100k, put into dividend stocks, like MLPs or REITs yielding on average 6%, you'd get about $500/mo to live in poverty as a vandwelling hobo guy or off a motorcycle with a tent in the woods. That's cutting it absolutely close and unexpected expenses would fuck up your plans. 150k is probably more realistic, but you'd still live in a van or tent.
200k to 300k and you're talking pretty comfy NEETbux.
Brody Taylor
>There's no way someone needs 250k a year just to live u'd b surprised
Wife + three kids. General expenses + private school = $50k/yr per kid. $50k for wife + you. $50k taxes.
Jose Kelly
The national average private school tuition is approximately$10,003per year. The private elementary school average is$8,908per year and the private high school average is$13,538per year.
So you're spending 40k a year per child on what? Food, clothes, and a larger house doesn't cost 40k a child.
I'm not doubting that people spend that much, it's just silly
Luis Roberts
You want a top tier private school in the New York area. Remember, kids need to be setup for Ivy League success.
That means higher tuition, donations, after school activities up the wazoo, and more bullshit taxes.
