Do you think you can retire on 3 million with the 4% withdrawal rule and capital gains...

Do you think you can retire on 3 million with the 4% withdrawal rule and capital gains? I estimate that you could net about 96k annually with this which is 8k a month....what do you guys think?

not investing 4 million in stocks, and living off dividend.
wew user.

I said 3 million? Can you elaborate on your strategy?

Are you refering to DRIP
Dividend reinvestment?

>investing 4 million in stocks, and living off dividend.

If I had 4 million dollars I would do something better with it than funnel it into a company and hope they do enough with it that I can live comfortably

Wouldn't a diversified portfolio be the easiest way to just earn without having to do anything? What would you do that is relatively passive? Buy a building?

>that captcha

let say you're a retard, you decide to make a safe bet. you chose to invest 3M on starbucks stocks.
dividend year is $1,2 per share and per year.
3M ÷ 100 ( price of a share) = 30,000 shares.
30,000 times 1,2 = 36,000 $ year.
so around 3k a year.

ofc you will do pic related. if you got a job you will just compound interest.

keep in mind dividend and stock price are two different things. you could choose to sell your 3M starbuck anytime soon.

t.day dreaming fag all time dream.

share it here, jew greedy fag

That's twice the median household income in the U.S. You would have to be functionally retarded if you can't figure out how to live off that.

I can't survive comfortable with 3k a month? I need at least 5k ...8k a month would be full freedom... vacations whenever and no job

The purpose of the thread was to discuss pros/cons ... or any potential flaws of the 4% withdrawal rule... some economists say in the event of a large collapse then the strategy would fail... I think they tested it out though and it has about a 70-80% chance of success

I'm just terrified because if I had lets say 10-20 years of NEETdom chilling and then my little paradise collapse and I lose half the value of my portfolio .... then wtf do I do at 50 with only 1.5 million....

mcdo stocks went ath during 2008/9 crisis

ok but generally speaking do you think 3 million is enough to just chill on forever or is it not enough?

well then reinvest to higher return stocks. u fucking retard.

ye ofc but its still retarded. u should invest it

There is no need to withdraw any of this money if your goal is just to live off it. Invest the money at 4% (not hard at all) and you net $120k a year off that 3 million.

Nigga just put the $3m in a Vanguard Index with 6% return, that's $180k per year for literally doing nothing.

>I think they tested it out though and it has about a 70-80% chance of succes
Do your own fucking research, kid.

* 4% withdrawal rate has a better than 90% succes (sic) rate
* it was called the Trinity Study ... lrn2google
* 90% success rate is consider UNACCEPTABLY LOW by financial planners
* if you don't understand why, you shouldn't even be thinking about this stuff
* Trinity Study applies to normal age retirees, NOT early-retirement NEETs
* 4% withdrawal rate has been discredited by most modern research
* safe withdrawal rate is now considered closer to 3%

Fuck you for making me type all that.

20% capital gains though? so about 142k right?

>6% return, that's $180k per year

>what are taxes and how do they work?
>what is an average return and how does that work?

So you would say 3 million is not enough for a late 20s retiree... how much do you think is enough?

>not enough
Learn to ask the right question. Then I'll take the time to give you an intelligent answer.

Ok, lets hypothetically say you pay 50% for tax+insurance and another bullshit on that $180k, that is still $90k per year, that is more than fucking software engineers make for busting their asses off 60 hours a week.

Doesn't help to be condescending to someone trying to learn...

If you were 30 and wanted to use your money as lifelong passive income without much day to day work how much would you need ?

3M with 6% year return user.

It's an equity fund, not an annuity. It's doesn't have a fixed payout. The average return is only an average; some years yield more, some less.

If you want to model for something like retirement spending, you have to do a Monte Carlo analysis. You can't just apply a historical average. The impact of good years and bad year is magnified when you're dealing with a fixed source of multi-year income.

>Doesn't help to be condescending to someone trying to learn
Doesn't help who? It definitely helps me get over my frustration arising from the financial ignorance of the Millennial generation.

>how much would you need ?
I'm not you. I don't live where you live. I don't have the same background that you have. I don't have the same life goals that you do. My standard for what makes a comfy life is very different than yours.

See where I'm going with this?

My monthly expenses including luxuries is about 5k so roughly 60k per year... I don't care about materialistic things, I just want freedom to vacation and socialize w friends around the world

Assume I own a home in full and would replace my car probably once every 7 yrs because again I don't care about having a new car every yr

Vanguard is still the safest option. OP could also invest in BlackRock.

>friends
>around the world.
you're never gonna make it user.

You could get that 4% from high grade corporate bonds although I recommend taking 1% and reinvesting into dividend paying stock, ideally more but since you want to live on it we have to reinvest less.
At that stage what becomes more important is how to avoid diluting your wealth. Income becomes secondary.

I'm talking about visiting friends in different states and one in europe...nothing too extravagant

I didn't disagree with your recommendation; I disagree with your calculation. Please read more carefully.

Do you really expect us to make a retirement expense budget for you? Do you honestly think you've provided enough information for anyone to do that? You haven't even said what country you live in, kid.

Do. your. own. research.

>index funds
>Vanguard
>4% rule

Is this 2013 Veeky Forums?

>You could get that 4% from high grade corporate bonds
Rates of return =//= safe withdrawal rates. Please go away from Veeky Forums and only come back when you understand basic concepts like this.

Or stick to the coin threads.

If you had 3m would you pay someone to do it for you or just invest it yourself?

Someday 2013 Veeky Forums will come back when posters get a little closer to earth with their estimations. People who seriously believe they’ll retire on crypto (and assume crypto will continue to skyrocket uninterrupted) are basically gambling. What to do even if you do amass wealth from crypto? Continue to put 10% on a single position hoping for triple digit gains? Nope, they’ll rush directly to safe investments (or end up broke).

Good thread. Good information. Good advice.

Pay attention to this man.

>would you pay someone to do it for you or just invest it yourself?
No, because I know how to invest. Buy if I was uneducated, dim, or inexperienced, I'd consider using some form of investment management.

>If you had 3m
>If
Hehe.

So why don't you tell us how you invest your 3million then instead of patronizing

60% domestic equities
15% international equities
15% bonds
10% private equity and venture capital

Are you better informed now? No, you're not. You might know more about how I invest, but that doesn't tell you how YOU should invest. I'm not you.

I seem to have made this point earlier in the thread. Learn to ask the right questions.

YOLO method:

Find leveraged R8s like MORL that pay 18%+ yearly dividends. To get your 8k per month you'd only need $540,000 invested.

I don't get it

You don't need 3M to retire

500k is enough to live in most regions, why do all the retards here want to retire in Las Vegas or what

where are these regions?
im guessing nowhere in the USA or EUROPE

Just put it all in LINK. The 30m you'll sell it for in a few months should be more than enough with even the most conservative investments.