Wednesday, January 25, 2012

Your Turn

When I saw how much Mitt Romney made last year and how much money Bill Gates gave away last year and that Jennifer Aniston just dropped $21M on a house for just herself and her 17 kids, it got me to thinking about what people think is rich. What amount of money do you think you would need for you to consider yourself rich enough to never have to work again?

74 comments:

  1. Jennifer's 17 kids??

    To really believe I didn't have to work again? Um...$10 million. But I'd live frugally.

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  2. Probably more now that I think about it. And I probably would work somewhere fun at least a few times a week to keep myself busy/entertained.

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  3. Probably around $5 million. I'd invest it all and live off the interest.

    And I think the Jennifer and her "17 kids" remark refers to how many times she's been "pregnant" according to the tabloids.

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  4. I could live on a million. I'd be happier with ten times that if only so I could help out a few of the other people I know who are just as broke as I am.

    Honestly, $40,000 would make me feel rich. Once I pay off my debts, my life would be nice and comfortable. Sadly right now I'm just hemorrhaging money.

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  5. fuck! in this economy, I'd be happy w/20g in the bank.

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  6. I'd say a mil, just to be safe. My husband can work.

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  7. aha, thanks @iheartjacksparrow, duh!

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  8. If I had $3MM, I'd never have to work again. So, yeah. $3MM.

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  9. Two million (one each for hubby and I) and a paid off house in a state that doesn't kill you on taxes.

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  10. I think of anyone who can buy a nice car with cash and not have to make house payments as rich, make of it what you will.

    Personally, I just want to be able to pay bills and take modest vacations without having panic attacks every month when the mail comes in.

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  11. Say, this is totaly off-topic, but does anyone know where Rita has been lately? I noticed she's been MIA.

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  12. 5 mil to never work again....just to live comfortable and still work....500,000.

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  13. you guys are forgetting the one thing, once you start raking it in, you never "have enough."

    money's like crack.

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  14. I live in Los Angeles, so to never work again, it would have to be 8 digits.

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  15. I actually want to work; I just want to be able to do what I enjoy instead of having to do it during my "spare" time in the late evening hours. So, I need enough money to support myself & the husband for five years while I finish my historical research & writing, and then enough money to publish the books & finance the TV series. So $10 million. That will get me off to a good start.

    Wishful thinking...

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  16. ^^Exactly. Rich absolutely has to be a state of mind. I read a study recently where people how much money they needed to live on. People who made 30K/year said 50K. People who made 50K said 75K. People who made 75K said 100K. You get where I am going...

    The mother of my best friend in high school won $1,000,000 on a scratch ticket. Her parents bought a new house, car, clothes and started taking trips. 5 year later the mom is addicted to gambling, working at Walmart and they are divorced. House is gone and they are back living in the townhouse complex they came from.

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  17. @CarrieL I agree with you. If I won the lottery, I'd continue with my job which I really like, but go down to part time hours. I know I need structure and a schedule, otherwise I turn into a sloth. When my dad died 10 years ago, getting back to work saved me from slipping into a deep depression. A routine is very important, people don't realize that, but it's true.

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  18. $1,695,685.

    This is 60K a year (in today's dollars) for 40 years, I'm 45, with a 4% inflation rate and an after-tax investment average of 6% with no remaining balance.

    Add 1 million for a cushion for other life expenses, a modest house, some travel money and I'm good.

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  19. a million would't carry you all your life unless you're older.

    If I live the next 50years that's only $20,000 a year with $1M.

    and especially if you live in Vancouver, second most expensive city next to HK. ;o(

    $5M would be a comfortable, worry free life. $20M would be debauchery.

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  20. My immediate response was 10M. I see most of us have the same idea. That's to never work again and feel secure.

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  21. To a lot of my friends I'm rich, but my income is based on my and hubby's "feast or famine" career, so I have to live as frugally as possible.

    That said, to never work again and live to old age, paying the same bills we have now and driving the same middle-rung cars we drive now, with room for some fun and giving our same annual amounts to charity, etc., it'd have to be whatever nets us over $150,000 a year before taxes.

    For us to consider ourselves "rich" we'd have to be pulling in quite a bit over that. Our current income puts us squarely middle class due to living in a resort area with a lot of retirees, trust-fund babies, sporties and tobacco allotment land owners, etc. with higher cost of living.

    An hour inland and I'd be needing a bit less.

    Sorry--ranting here!

    (off to buy a lottery ticket)

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  22. Anonymous10:43 AM

    You have to hope, though, that while you were doling $20K a year to yourself out of your million, that the rest of the million would be invested and perhaps earning more? Once a few years ago, we had this giant lotto jackpot in Florida, and everyone at my work got on the bandwagon and we collectively bought a bunch of tickets...except for one woman, probably early 50s, who refused to participate because if we won, her share would only be $5 million and she didn't think she could live the rest of her life on that.

    It's all relative. If I were 20, I'd want a few million. But at 69, I'd be happy to have an extra $50K in the bank to supplement my social security benefit. At any rate, I'm already retired and not planning to work again...unless someone needs a crackerjack telephone person a couple days a week, anyone? Anyone?... so we're looking at the difference between scraping by miserably on what I have now, or getting along a little more smoothly with some extra cash in the bank.

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  23. Anonymous10:54 AM

    I would go for the $10M+ range - I want to be able to do more things (ie traveling) than I can do right now, but also want to know I'm set for the rest of my life at that same level.

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  24. I probably wouldn't quit my job for 1 million...you look at house prices and the cost of living, and you can see the end of a million dollars. But saved and invested wisely, it could definitely be a very comfortable early retirement.
    To quit my job right away it would have to be a bit more than that. Maybe 5 million? I'd prefer a 50 million LottoMax jackpot though, if you don't mind *L*

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  25. I think there is being rich and being wealthy. Those people listed are certainly wealthy. I don't think I need a $21 mil house to be rich. I can go out and buy new shoes, clothes, concerts or out to eat any time. It won't hurt us financially at all. I know quite a few people who can't do that. Hell, every dime they make is spoken for by some bill. We made just over six figures and we are very satisfied with our lives. I don't go out and buy all the things I listed all the time. It's nice to know that you can though. I wish all of you good luck and good fortune.

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  26. @Sue Ellen
    I know, she's been missing since the day after the GG.
    Hope she's okay.
    RITA, come out wherever you are girl!!!!!!!!

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  27. Yeah, a million doesn't go too far anymore, sadly.

    I'd say I could live comfortably with three million?

    Okay. Five million. ;-)

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  28. I could live comfortably for the rest of my life on $1M, but I'm older. Better make it $2M to be safe -- I plan to take all my friends and family to Hawaii after my windfall. :)

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  29. Just a little more than I'll ever need..I'm not greedy.

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  30. No idea, but I'll take whatever you got...a dollar, a million..whatever's good.

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  31. One million would work for me. Maybe a little less.

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  32. @RenoBlondee

    Thanks. Glad I'm not the only one who noticed. Hope all is well with her.

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  33. $10 million. After taxes.

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  34. 10 million dollars. I would buy a house and do charity work for the rest of my life.

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  35. 3-5 million to never 'work' again.

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  36. To never work again, I'd have to have enough money to be able to move me, spouse, pets and everything we own to a lovely home in France. I'll go with $3.5M.
    To 'consider ourselves rich', but not to never work again (which would be boring to me...) and stay here in the U.S., I'll go with $2M.
    :)

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  37. I don't know about your local papers, in fact you may all live on line, but mine has a weekend feature where s couple discloses their financial situation and a planner gives advice. To generalize I would say that they are at the $2MM range for couples anticipating retirement. Basically the advisors concerns are how much money they can draw out each year (4% of capital is common, but advisors seem to hype 3% as a more realistic assumption), longevity (if you get tour 60s the chance of one spouse making it to 90 is relatively good) and health costs (particularly risk of nursing home). Obviously lifestyle is a factor and this is essentially the three bedroom surburban range.

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  38. I love my job and I love my 2 bd/w2 bath condo. However, I am 58 and not in stellar health so I figure I'd be thrilled with 500k but estactic with 3-5 million.

    I'd live in my condo and work as long as I comfortably could, but right now, I simply can never retire. I can't afford it.:(

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  39. 4mil that's $150k for the next 30years. I'm 36 now. Should be enough to love off of.

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  40. I'm not sure, but I recently read about federal MSW jobs starting around $58K and I got REALLY excited. That's 3 times what I make now; I'll have the MSW in two years.

    I'm a minimalist and very frugal. ;-)

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  41. Between 10 and 20 million, though I want to say 20 million, only because my husband and I would travel and I would love to go business class and that costs a lot more (one time first class, but I don't want to blow all my money).

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  42. I think there are about 5 Rita's on this board. One to write the first comment and 4 more to tell her how great her comment is. I'm not trying to be mean, I just thought it was weird. What happened with the Golden Globes live blog? Something weird?

    I would feel rich financially if we had 3-4 million in the bank. We could live off the interest and accommodate rising cost of living and lower interest rates.

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  43. Anonymous1:13 PM

    2.5 million net.

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  44. $10 mil would make me feel well off. $50 mil would make me feel fairly rich. But either way, I wouldn't quit working (one way or another).

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  45. Three to five million.
    I've never wanted to be rich though. Too much money is as bad as not enough IMHO.
    I'd like to be what I call comfortable. That is to buy a new couch,or book a flight to see my kids and not have to check the balance in my checkbook, or raid the savings account.
    I'd only like big money so I could give to causes I support now. I have always wanted to eat in some diner and leave a truly huge tip for the hardworking waitress.
    I'm an easy keeper, don't need much, but I don't want to scrabble for necessities either.

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  46. @MsCool

    At least she's relatively polite, unlike others that suffer from the same disease you mentioned above.

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  47. $5-10 million.

    Although, I've never had a job where I made a ton of money so I think if I won $10k I'd "feel" rich. ;)

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  49. I don't think I could not work, flat out. So assuming I'd have continuing income, interest & such, I would be most satisfied with $250k (prefer $500k) in the bank, steadily. Feel wealthy with $1 million and plush with 5 million (cash & modest properties in the 5 or so places I love best). Work harder to give more away if I got above the $10 million+ mark. How much do you need?

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  51. @campchristy You actually only need $4million to have $100k/year for 40 years!

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  52. I think I would still like to work part time but probably if I had an annual $50,000 annuity that would be enough for me.

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  53. I'm surprised this has never been mentioned by anybody but does anybody else think that Mitt Romney looks just like Mel Gibson? They could be brothers they look so much alike.

    And Newt is the Stay Puft marshmallow man trudging down the streets of New York at the end of "Ghostbusters."

    Me - I'd be content with between 2 - 5 million. I'm young so I'd have to spend it sparingly and make it last. Don't want to end up broke like Whitney or Tyrell Owens.

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  54. @JBE -- I don't think Mitt looks ANYTHING like Sugartits!

    But I *do* think he looks like The Fonz.

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  55. for sure 10million. 1 mill just ain't what it used to be unfortunately. you need a mill just to fucking retire comfortably!

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  57. With these interest rates, 1 mill isn't going to get you far. It'll last, sure, but unless you tie it up in investments, you aren't going to make much from it, and when it's tied up you can't use it. So either way you're "screwed" in the sense that it's hard to turn that mill into more mills with no other income.

    I think rich is having an accountant, not knowing your tax rate, not wondering if you can pay your bills, and having your money make money. It's relative. For someone that may be 1 mill, for someone else that may be 100 mill. Hell, I'd be happy with a 40k a year job. Being rich is now almost beyond most of our means.

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  58. When I was in my 20's I thought rich was living like Beyonce (k, back then it was MC Hammer)

    Now? Rich would be the same annual income I have now, gauranteed 'till the day I die, without having to shlep myself out at work.

    If I ever do hit a jackpot though, i'm hiring Amazonblue as my adviser.

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  59. "Where's Rita?"

    She's still basking in the glow of the accolades.

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  60. I would never stop working... but I would love to be able to travel and lie in a nice place... *sigh*

    So around 5 mil, probably. Add one more and I can treat the whole family to whatever they want.

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  61. 2-3M In the bank and I could retire young and comfortably.

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  63. 10 million. I think that would set me and my (selected few) loved ones up very comfortably. I'd also donate a ton to my favorite charities and I'd NEVER (have) to eat ramen noodles again! Yipee!

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  64. $3-5m, single, no kids, retire any time.

    $5k a month, never work again.

    21 days left in this slave job. I'm NOT EVER going back. It's over!

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  65. I once figured out that if my pay increased at the same rate it did my first 20 years working, I would make $1 million total if I retired at 65.
    So please give me that million now, thanks.

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  66. I'm 33 years old, single, no kids. I'm a new attorney (used to be a teacher) who is currently working as a judicial clerk. My salary is in the low $30s, but the experience is terrific. Here's my thinking...

    Making $75k before taxes will allow me to fulfill my current goals: purchase a 2 br condo, tuck some money away in retirement, and take a really nice vacation each year.

    $3 million, invested at 4% annually and withdrawing 2.5% annually (which is conservative), will allow me to withdraw $75k per year while the principal grows.

    So yeah...if I won the lottery and ended up with $3 million after taxes, I'd feel comfortable working only when I want to.

    In order to feel wealthy, I would probably need to earn more than my parents (who don't consider themselves wealthy). That's probably around $350k per year before taxes, which is $14 million using my calculations above. If I had $14 million, I would feel wealthy.

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  67. 100 million or more. I could live off the equity and work for fun :)

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