http://finance.yahoo.com/tech-ticke...irement-Guide:-Why-You-"Only"-Need-$2-Million "How much money do you need to retire? James Altucher, founder of Formula Capital, sets âthe numberâ at $4 million. Hereâs his equation: $3000 a month for rent (he doesnât recommend owning a home) $2000 for utilities, car payment $3000 a month for food $5000 a month for fun $4000 a month for vacations Thatâs a grand total of $17,000 per month or $204,000 per year. --------------------------------------------------- Eagerly awaiting ET's thoughts on this article.
What the hell is wrong with his hair? I've always thought 3-5million, depending on quality of lifestyle and size of family.
Here is some things to think about. - When you are 70 years old, do you really want a large house? Will your kids still be living with you? The answers are no and no. You could probably do best with a small 1 or 2 bedroom apartment which would not cost 3000 a month. Also, do you really want to live in a place like New York City or would you rather live in a more humble quieter place in Florida or Texas? - How many trips and vacations are you going to have energy to go on at age 70? Its not like you are going to be doing keg stands or scaling the side of a mountain. You will probably take quieter and more kick back vacations that require a lot less capital. You wont be jumping on long plane flights either. You will probably take the Amtrak somewhere as your health will probably prevent other travel. - How much food are you going to be eating at age 70 considering all the health issues? Will you really be at Ruth Chris eating that fatty steak and contributing to the probability of a future stroke or further aggravating your diabetes? More likely you will be drinking an instant cup of coffee in the morning with two packs of Splenda and nibbling on a bagel. In afternoon or evening, a small meal of sauceless spaghetti. Otherwise, you aggravate your health and get that much closer to death. - Will your senses be sharp enough to handle a large SUV or 400 horsepower monster car? More then likely the Toyota Corolla will be your transportation or even the local bus. You dont see many 70+ year olds driving big suburbans not because they cant afford it, but because they dont have the ability to drive it. Most older folks go with smaller and easier to handle cars nowadays and plus they dont really care what they are seen in as long as it gets from point a to point b. So there are a lot of things to consider, but believe me. At age 70, you will not need all that cash to live. In fact, your lifestyle will be exactly what it was when you lived in college but without the liquor and greasy food. You will enjoy living with a roommate in a 2 bedroom apartment as it gets lonely at that age and you wont want to be climbing on the roof or doing chores that go with home ownership. You also wont be taking curbs at 100 mph in a BMW, but simply enjoy going from point a to point b.
You forgot $65 for cable TV. You'll need to watch Altucher on CNBC constantly until you expire worthless.
What ET'ers have to look forward to in our golden years (according to retaildaytrader)- Bland food, dirty bus rides, living with an elderly roommate in a shoebox, boring vacations close to home, and no booze! Welcome to the conversation Mr. Sunshine! You should write articles for AARP magazine. After reading your column, most 65 year olds will be dialing Dr. Kevorkian.
We always planned for ~$5M at time of "retirement" - i.e. when my wife can scale back if she wants and I can take up trading full time And $5M is quite a modest number with enough cushion for peace of mind after making sure we can pay for kids school (if needed), etc.
Damn $65 is cheap, who do you use for your cable provider??? Near me its around $140 including Internet. And that doesn't include all the major movie and other 839 channels.
i've heard that he left the business. it suggests that probably everybody retires with $4M these days.