Quote:
Originally posted by gavinlit
You're net worth is a mil & you're worried. Holy crap. Maybe i should save some more  Or maybe I just won't ever fully retire. Not sure that I could handle doing absolutely nothing all day. Long ways off for me anyway.
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With the cost of living here in SoCal, my take is that you'd have to have US$2-3mil invested capital at minimum, with little to no debt and your housing free and clear, to maintain a decent standard of living. Returns for low-risk investors (i.e. retirees) are still very low so preservation of capital is very important.
Many if not most folks here have virtually all of their "wealth" tied up in their home equity; you can't live off that and you sure as hell can't afford a $5K/mo cash-out re-fi mortgage payment on zero income. SoCal real estate is a fabulous investment -- if you plan to sell it or rent it out (at a profit) and live someplace else afterwards.
My goal is to go "semi-retired" by 40-45, which is coming up real soon. By that I mean not -having- to work the 40-60-80 hour weeks but still having someplace to go do that when I'm up to it....I would go absolutely effin' nuts without a steady stream of stuff to work on.