What's the minimum capital I need to get £24K/year (adjusted for inflation) for the rest of my life, WITH ONLY safe and non risky and non clever investments?
I don't want to know what returns some clever /biz/man things they can get by investing in just the right things. I want low risk income that takes no thought.
I need a point at which to cash out my Bitcoins.
I'm going to hold them just long enough to ensure I would never have to work again if I don't want to. Sure more might be nice but £24K/year is my minimum that would give me peace of mind and the freedom to chose whatever work I want to supplement it.
I know some dudes who make a living off bitcoin. They just drip-feed them on exchanges and buy during dips. I dont have that much in BTC but i do make around $100 per week on passive income.
Personally I think you need around £200k or more to sustain that amount of passive income on yearly basis
300k in a mutual fund
>>1314472
>Personally I think you need around £200k or more to sustain that amount of passive income on yearly basis
>>1314481
>300k in a mutual fund
seriously? That would be like 8 - 12% returns? And that's not just the best case? (I guess I am interested in the worst case scenario as I wouldn't want less than my target)
...if that's really the case I'm a lot closer than I thought...
I thought I'd need like a million or something.
wew
Is my money subject to inflation when in a mutual fund? I don't know anything about this stuff.
>>1314500
your money adjusts according to the inflation, because its in illiquid units that the company manages
>>1314515
Thanks
Somebody give me another opinion before this thread dies...
What about index funds vs mutual funds?
Does anybody know a good calculator/graph which will show my return if I also spend some of the capital over time?
>>1314454
depends on what you expect your investments to return.
240k at 10%
480k at 5%
and so on...
>>1315846
>depends on what you expect your investments to return.
Well that's really the thing I don't know... or are you saying there are no guaranteed/safe returns and it's whatever I can manage to achieve...
Realistically, if you were investing in Index Funds with an average annual return of around 10%, you would want around $1.5 million. You would want to reinvest the majority of the returns to hedge against inflation and market dips. You also have to consider the taxes you'll be paying on all capital gains, in addition to State and Federal income tax for anything you don't reinvest. Anyone thinking you can just drop 10x what you want to make and coast for the rest of your life is beyond naive.
>>1316057
>Realistically, if you were investing in Index Funds with an average annual return of around 10%, you would want around $1.5 million
So I might get $150K return but I should reinvest the majority?? That sounds crazy
if I'm buying a share in something why does inflation matter? isn't it as that guy said >>1314515
Just Google 'safe withdrawal rate' there's no real answer to your question but using swr of about 3% is as low risk as you can get
>>1314454
If you don't want to erode your nest egg I'd say £1.2 million based on an assumption of an average after tax rate of return of 5% and inflation of 3%. Your real return is then 2%, so £24k / 2% = £1,200,000.
It REALLY depends by what your swr is, and if you plan on following said strategy or you plan to consume all the money by the time you die (in the first case you need to plan long-term, in the 2nd..well, you can be a tad more flexible I guess?)
