Ok, so my plan for this blog is to keep track of my steps towards financial freedom. I am still working on what constitutes “financial freedom”. Right now I’m looking at a sum of money, such that I can live off of the earnings without touching the principal. One of the inspirations for this site, PFBlog.com, has chosen a goal of $1,000,000 by age 40. After reading an article at MSN Money, getting a solid number sounds complicated.
Still, let’s try some super-simplified calculations. Let say you want $60,000 a year after retirement, ignoring what you get from Social Security and pensions (a term that will probably go with the dinosaurs). A fair rate for return is 4%, with fixed income-type securities. So that leaves you with needing $1,500,000. Sounds like a crapload of money, huh? Well, hopefully not, but that’s another entry.
By Jonathan Ping | General | 12/7/04, 7:36pm