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/biz/ - Business & Finance

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21374838 No.21374838 [Reply] [Original]

Please explain the "you need +2m to retire" meme to me.

500k invested with 5% returns gives you 25k passive income per year or 2k per month. That's enough to live a modest comfy life in the west, or a well-off lifestyle in a cheaper country like in SEA.

https://www.numbeo.com/cost-of-living/in/Bangkok
>A single person monthly costs: 671.15$ (20,843.84฿) without rent. Rent Per Month Apartment (1 bedroom) in City Centre: 675.68 $ Outside of Centre: 336.36 $

I'm autistically frugal and I'd be perfectly fine with this. Also have zero desire to take care of a family. Just want freedom from wageslavery and no stress.

Why would you need more? Protection against inflation and rising costs of living? How to get a guaranteed safe 5% return?

>> No.21374900

>>21374838
I'd rather be poor in America than rich in a shithole city in SEA

>> No.21374915

>>21374838
shit happens like unexpected medical bills, markets crash etc. but sure, you can live on $2mm. Just get a part time job

>> No.21374965

>>21374900
I cannot understand this mindset. Why?

>> No.21375006

>>21374838
>5% returns are like, guaranteed bro
imagine believing this in 2020

>> No.21375034

>>21374838
you need to account for inflation, what do you think $25k will be worth when you're 60?

>> No.21375040

It's a combination of finance "experts" trying to pretend this stuff is really hard and complicated to create more of a need for their own services, and emotionally disturbed urbanite retards not understanding that most people don't have to pay $4000 a month in rent and don't see buying topshelf champagne in nightclubs every week as mandatory.

>> No.21375045

>>21374965
Because we dont want to live in a shithole country?

>> No.21375069

>>21374965
My guess would be:
1Education for your children
2healthcare for my aging self and wife

>> No.21375132

>>21375034
we wont have a fiat based society by then. in fact much sooner

>> No.21375214

>>21375006
How hard can it be? I mean I made a x100 in my first two years of investing by randomly throwing my neetbux on a racist peruvian otaku meme as an inexperienced financially illiterate autist and now I'm in the 6 digits range. Not to sound cocky but if I made it this far, 5% shouldn't be that hard, right?

>>21375069
Being "rich in a shithole" would give you access to better education and healthcare than being "poor in the first world".

>> No.21375216
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21375216

>>21374838
We all want enough to leave this faggot society, find a white wife and produce as many white children as possible. The more money, the more children.

>> No.21375313

>>21375214
Based. Stop listening to these anons who would prefer to live in the fire that is the USA. After this year's elections most countries will be better than them. Put money into EWT and live off your 500k in a developing country.

>> No.21375354

>>21375040
Yeah I don't understand people who say they need 75k per year as a minimum, what do they even spend the money on? Do they all live in 6 bedrooms mansions in NYC and have kids in private schools, go in luxurious hotels every weekend or what?

But still I assume you'd need to account for taxes and inflation... 25k a month might be enough for me right now but what about in 20 years?

>> No.21375367

>>21374838
You have to pay taxes on that retard, also if you dont reinvest your returns you get cucked by inflation

>> No.21375423

>>21375069
>children
>wife
Unironically won't make it.

>> No.21375448

>>21374838
You need the stack to be growing faster than inflation and then you can pay yourself living expenses without becoming poor. Your 5% plan might work if you actually make 10%.

>> No.21375536

1. You aren't going to make a consistent 5% a year, every year, that's a fantasy

2. You need to account for inflation

3. Those gains are still taxed

4. $25k a year is literally a poverty wage

>> No.21375693

>>21375448
Real inflation is probably closer to 6 or 7%. Its probably going to get even worse with all the brrrrring. A lot of staple goods are priced artificially low because of subsidies/loss leaders and groceries are a small portion of most people's budgets. Prices of things like rent and insurance rise much higher than official inflation figures. even if you own your home your property value will likey appreciate causing you to get cucked by property taxes

>> No.21375789

>>21375536
There's people who make 25k a year work in USA, and he's talking about living in 3rd world Bangkok.

Op as for your question, Bangkok won't be a 3rd world country forever, cost of living could raise in an instant and you'd have no income

>> No.21375870

>>21374900
You've never actually been poor in america have you?

>> No.21375879

>>21374965
>American climate is terrible but SEA climate is even worse
>terrible infrastructure in actual "shitholes"
>gross brown people everywhere

>> No.21376101

>>21374838
I mean yeah, there are definitely areas of the US where a 25k yearly income is going to be more than enough, especially after 20+ years of working and acquiring stuff. In other areas, it isn't going to cover it. It all depends on where you live, man. I'm here in Indiana, about an hour west of Indianapolis, and 25k in this city would make you middle classed. I make about 53k and have enough money to do whatever the hell I want every single day. It all depends on where you decide to live.

>> No.21376253

>>21375870
man the poverty that exists in this country is unbelievable. im from new york city so im used to being around ghettos but the shit that i saw when i went to college upstate was insane. people stuck in their rust belt shithole towns working at walmart or pricechopper and subsisting on mountain dew, pall malls, natty light and ramen noodles. id say the social mobility is even worse in those areas than in the inner city. and there are places like that all over the country. shit is just sad.

>> No.21376410

>>21374838
For one, you need a place to live, full stop. So from whatever money you make in crypto, you need to deduct the cost of a house, or the remainder of your mortgage if you have one already.
Secondly, stonks don't *always* go up. For a normalfag, that might just mean a setback for their retirement fund. But if you're hoping to live purely off invested dividends, that can be a huge problem.

>> No.21376413

USA is an undeveloped shithole with a lot of money, so you dont need to adapt to developing controles. Move to europe if you can.

>> No.21376667

>>21375693
This is true, inflation being based on the consumer price index is a complete load of bullshit. It's basically equivalent to the 2008 financial crisis where the mortgage bonds were fraudulently being rated better than they really were. In this case, the CPI only looks at a bunch of bullshit that doesn't accurately take into account actual living expenses. Who fucking cares how much bread and eggs cost when that means fuck-all compared to the cost of things like a house, car, insurance, and so on.

>> No.21376707

>>21375536
>You aren't going to make a consistent 5% a year, every year
There's no reason you shouldn't. Banks don't have a monopoly on lending anymore. You will always have access to lending markets from now on through defi or semi-defi like Celsius.

>> No.21376732

>>21374838
5% is pathetic. just run masternodes for a juicy 12%

>> No.21377022

>>21374838

What you autists don’t understand is there are ugly men out there, such as myself, who NEED TO BE FUCKING RICH IN ORDER TO GET LAID.

I need a hot asian girlfriend or my life will not be complete and I will not have self actualization. In order to do this I need a fucking 60k luxury car and 800k McMansion to impress her along with 2k monthly allowance and 1k for random gifts. Life is expensive as a non Chad male who wants sex and respect by your peers. You need to flaunt the fruits of your labor by keeping up appearances. Yes I could be a NEET used to living off 1k a month welfare and get by just fine on 2k passive income but I’d be fucking MISERABLE

>> No.21377207

>>21374838
More like 3% if you want to be guaranteed safe
That's still just about doable in SEA.

Why have more? Because waifu and probably will have a family
But yeah, frugalchads can opt out easier than consumercucks. You can do it op

>> No.21377305

>>21377022
All i hear is
>consume consume consume
You could go to SEA and get the frugal version of an asian girlfriend too, but you seem to want the luxury version and so you pay the costs

>> No.21377847

>>21375536
>You aren't going to make a consistent 5% a year, every year, that's a fantasy
Been lurking here for like a year on and off, is this actually pipedream? Like do anons unironically dream of getting 5% annual returns? How do you guys even get to financial independence at that point.

>> No.21377866

>>21377022
lol you don't need a lot of money to get a hot asian gf. you just need to be a decent-looking white guy

>> No.21378064

>>21374838
You aren't accounting for damn near anything. I have a net worth of around 600k which includes a house I own outright. I'll need at least 3 more cars in my life, the fuel, insurance, home insurance, medical costs (even if you're just talking ibuprofen or something it's going to be a factor), utilities, food, so much goes into living.

Honest question, are you living with your parents? Because I think anyone who has lived on their own even 6 months would know 500k is only going to get you 10-15 years max. If your expenses are just 20k I'm fucking impressed. I wasn't doing that living alone eating ramen in the south.

>> No.21378454

>>21377847
Consistent returns on a large investment over decades. 5% compounded doubles your money in around 10 years but not if one of the years returns -50% or whatever like in a market crash or hyper inflation.

>> No.21378501

>>21374900
All city's in America are shit holes, your entire country is

>> No.21378535

>what is inflation

>> No.21378631

>>21377847
Living off passive income is a meme for people under 5 million.

>> No.21378650

>>21374900
I used to think this until I actually lived in China for awhile; I want Western media to make it look bad. Keeps other laowais out

>> No.21378831
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21378831

>>21377022
lol I'm not even white I'm like 5 fucking feet I'm broke AF no job unemployed collecting
live in Brooklyn nyc
came into chinese grills vagina who owns a 2million dollar house she pregnant now
when her over 60+ parents crock hopefully not from corno knock on wood guess whose the ugly friggin froggo fucker that will be collecting rent and indulgening in more asiastic vaginal creampies better luck next time
nothing personal kid

>> No.21379148

>>21375423
I’m making it in my own way. Have a good paying job and a beautiful wife. Crypto is more of a hobby for now. If I make it I’ll do it for my children

>> No.21379179

Please explain how the fuck is real estate so expensive in Romania, but the salaries are utter shit and the rent is just as big as the salary?

>> No.21379243

>>21374838
This should explain everything.

https://www.youtube.com/watch?v=y6yCmdIkw_E

>> No.21379305

>>21378831
She's obviously into you for your spelling and grammar.

>> No.21379638

>>21375214
How do you get your 5% returns?

>> No.21379827

>>21374838
I think it comes from something called the "Trinity Study"
https://en.wikipedia.org/wiki/Trinity_study

It's a paper by 3 professors of finance who say around 4% yearly withdrawal from a retirement portfolio (highly diversified with a mix of stocks and bonds) is 98-100% likely to survive to 30 years without decreasing. 4% of two million is 80k which is pretty good to live on unless you live in California or New York. Also this is 4% of the initial value at the time of retirement, and the rest serves as a defense against inflation and any major fluctuations in the market over the years. You can read the study, it's only 6 pages long. I read it a few weeks ago. Also, I've only been learning about /biz/ stuff for a few months so I may have gotten some shit wrong, other anons who are smarter may be better at explaining it and I'd be happy to learn from them.

>> No.21380158
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21380158

>>21374838
>2k per month
>modest

>> No.21380200

>>21379243
That's fucking hilarious...I've never seen it probably worth checking out

>> No.21380881

>>21379827
>For short payout periods (15 years or less), withdrawal rates of 8% or 9% from stock-dominated portfolios appear to be sustainable.

So the 4% number is very conservative as the paper says.

>> No.21381698

>>21380881
Yes, I think so. Especially if it’s 50% stocks 50% bonds, even at 8-9% withdrawal per year it has around 91-98% success rate at 15 years, and a 50% chance of success over 30 years.

>> No.21381828

>>21375216
Cope. Broke niggers will always have more babies than you. You can have as many offspring as you desire and money has nothing to do with it.

>> No.21382524

>>21379827
This is correct, lately if you invest in Vanguard mutual funds you can get 6-7% returns.

this is easy peasy, safe money, take a break, relax and live life and come back and then put your money to work harder for higher gains.

There's alot more to learn, anon(s) - you're on the right path of wealth and retirement. :)

https://www.bogleheads.org/wiki/Books:_recommendations_and_reviews

https://www.investopedia.com/john-bogle-reading-list-books-by-the-father-of-index-funds-4584157

Read these.

>> No.21382741
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21382741

>>21374838
>He isn't aiming for at least an upper-middle class huwhite lifestyle with 10k to play around with per month
If you want a wife + kids + comfort 500k ain't gonna do it

>> No.21382904

>>21379243
Succinct and to the point

>> No.21383003

>>21374838
>>21382741
This. I feel like I'd need at LEAST a passive flow of +$10k a month to be comfy.