Originally posted by beech
With regards to Passive income/converting equity to an income stream what are youre opinions on the Bare minimum in equity you would have to have before retiring?
I suppose you would want to be conservative in case a very flat 5 years or so of growth happened.
At 5% an income of 50k would be handy without getting carried away and spending too much capital,what do you think?
Darren
G'Day Beech,
50K would be handy, 75K would be handier, 100K would be dandy, 200K would be dandier.........
really, I think it's all a matter of what one's lifestyle costs.
I have a good mate that told me the other week that just to maintain his and his familys current lifestyle he needs $85K a year, to me that seems extravagant.
And as for retiring, I will retire when I'm dead, no sooner, no later.
But I love what I am doing..... what I think you meant is "retiring from something that you don't like doing" in that case work out what it costs to maintain your current lifestyle, add in car replacement, daughter(s) future wedding costs and substantial wedding presents to children, childrens future educational expenses, costs of extended future holidays and replacement of all major furniture items including fridge, big screen plasma TV, stereo and computer equipment etc etc.
Once having calculated these costs, double them to make sure, and you will arrive at a figure that should be the bare minimum.
On achieving that figure in passive income, go in and see your boss with a big grin on your face, and I'm pretty sure you'll know exactly where to tell him to place his job.
Until then, be nice to him.......or her.
regards