One Reddit user was curious about the lowest amount of money people would need to stop working. He had read in other forums that the average was $300k and wanted to hear firsthand from other Reddit users here. There were a lot of responses, and we have sampled some of the best ones from this conversation here.
One user agrees with the OP that 300k is probably the average amount most people need to stop working, “300k is a poverty-level income from dividends.”
One user wants enough to survive, and 20k will do it, “Enough to survive, but not enough for any luxury, like under 20k per year income unless you also dip into your principle… I’d still work at that for health insurance and housing, but it’s a good solid start anyway.”
This is enough money for one user to retire, “OP’s question can be rephrased as “how much money do you plan to have at retirement,” and a couple million is my plan, too. I used to say one million, but now I suspect I’m going to need more.”
This figure gives this user enough income in the form of interest per year, “5 million because 10% growth on that a year is around 500k and after taxes on that 500k I would be left with more than enough per year to live very, very comfortably.”
Another user also needs 5m to live comfortably for the rest of their lives, “At 39, my buyout price is $5M. This is equal to my remaining earning potential (post-tax) plus the max annual employee + employer 401k contributions (currently nowhere near the max of $66k/yr, but this would be ideal). So, yea, if there are any generous Redditors out there that want to write me a $5M check, I’ll quit my job, buy hundreds of acres somewhere to preserve the land, and start a rescue farm for senior/unwanted dogs, milk calves, pigs, and any animal needing a forever home.”
Another user says they would have time to travel with this amount in their account, “$5M. Without having to work 45 hours/week, I want more money to travel and whatever else I feel like doing. I’d be bored out of my mind inside a month with no job and no money to engage in fun activities.”
A user looking for luxury thinks 3.5m will be enough for them forever, “$3.5 M will set us up for a luxurious lifestyle for the rest of our lives.”
A user who embraces a frugal lifestyle can live comfortably on a quarter of a million dollars, “I own my home, my car, and have zero debt. I live very frugally in a small town where a loaf of bread costs like $0.60 and could never work again if I had $250K.”
By living off 50k per year, this 40-year-old user can have a comfortable life until their eighties, “I am 40 years old. If I live to be 80, I could live very well off $50,000 a year for the next 20 years and then $75,000 for the last 20. Raised it for inevitable inflation over time.”
If you had a self-sustaining lifestyle, 400k might come in handy to take care of all your affairs, “This comes with conditions. I own a small farm. That pays off all my debts and puts 100k in the bank. My farm is self-sustaining (beef + crops), so if I was debt-free, I could stop working and just farm… man, that’s the dream.”
This user walks the talk. They draw a consistent income from their investments and dividends to live comfortably, “I retired at 49 with just under 9 million in investments plus some small business ownership that pays small annual residuals. I draw about $400k a year in income from investments & residuals. I live comfortably but not much for luxury, so it’s easy to enjoy life.”
At 32 and drawing 50k per year, this millennial would need 1.6m to live past 65 years, “I’m 33, hopefully, won’t live past 65. So 32 yrs @ $50,000/yr, I’d need $1,600,000.”
“Put $ 1 million in an interest-yielding account. I believe I could earn 4.5% ($45k) annually simply by depositing it in the proper savings account. With smart investing, it is probably closer to 10%. At the very least, $2 million. Half to gain at least some interest and $1 million to spend over the years. It should be enough. $2 million. 5% interest per year is 100k. I could live a decent lifestyle with that and keep up with the bills,” Illustrates another user.
A Reddit user in Montenegro recognizes that such an amount can make a huge difference back in their country, “Actually, with 150-200k, I think that I can live a very comfortable life in my home country of Montenegro.”
Since this user is young, they believe they need more so that they can cushion themselves for the rest of their lives, “For me, I got to have a minimum of $25M because I’m young and it’s gonna be some time before I likely die so I need enough to at least live middle-class retirement before I stop working. Otherwise, I’m probably gonna work because I just like working.”
This amount will allow this user to live without worrying about inflation, “10 mil probably. Lots of wiggle room for inflation or if I somehow live super long. Would be able to keep up with my current medical expenses, and I could move somewhere better.”
This will take care of early retirement and inflation for another user, “…early retirement is expensive, healthcare is expensive, and inflation is terrible. Anyone under 60 who thinks they can retire with less than a million is in for a rude awakening.”
One user has already started their financial independence journey and illustrates how they are going about it, “I started my fire journey this year. I’m budgeting, travel hacking, and paying my debts. My hope is that by 600k between my 401k and Roth IRA, I’d be able to retire between the 40-45 year mark. Time will tell, but budgeting is 100% changing my life.”
This user says taking care of kids needs and education will be very costly and hence needs more money, “If I could retire on $300k, I would quit right now, but I have 3 kids still at home and one I’m putting through college, so that doesn’t seem like enough. $4.88 million is my buyout price right now.”
To draw 250k per year, this 40-year-old needs at least 10 million dollars, “I’d say around $10 million. I had a coworker in the early aughts who said at that point in time, $4 million would be enough, so adjusting for inflation, that feels decent to me. I’m in my early 40s; $10 million with zero investment (which I wouldn’t do) would give me about $250K a year for the next 40 years.”
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