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Originally Posted by Love Sosa
Start indexing with the majority of your net worth when the market is near the end of the second longest bull run in history? Not too crazy about that idea.
agree BIG-TIME with the above.
$20K a year to live on with fully paid-off house (no mortgage), but he still has to pay:
His property taxes are probably north of $5K/year...plus insurance, utilities, upkeep & repairs, on average what's that going to cost him? Yes, he could take in roommates to offset those costs, but OP doesn't mention that as an option.
Presumably this guy is going to want to own a car...even if that's paid off, again, there's still insurance, gas, & repairs to consider.
Health care costs are perhaps not a big factor in his life or even a concern to him now, but trust me, that will change.
37 years old & single...not too much discretionary spending left over for dating...then again that may be the least of his worries, not too many single women in their 30's are going to be into dating a guy living a bare-bones existence on 20K/year...
For what it's worth, I'm knocking on 50, single/no kids and considering retiring early w/ zero debt & 2 mill liquid, and I'm still assuming that I'll need to develop some side hustles to generate extra $$ along the way.
Not knowing how long you'll need your money to last (i.e., how long you'll live) & what your health care costs will be along the way is the real conundrum. Plus of course the threat of future price inflation / loss of purchasing power of the dollar.