SailNet Community - View Single Post - The Cruising Life, by Jim Trefethen, and Cruising Financials
View Single Post
post #5 of Old 10-29-2006
Senior Member
Join Date: Aug 2006
Location: wherever
Posts: 5,609
Thanks: 8
Thanked 30 Times in 29 Posts
Rep Power: 13
Living on 7% return was mentioned. Great when you can get it but what do you do the year the market drops 10%?
Most financial planners will tell you to plan on only using 3 to 4% of your returns to live on. The rest of your returns of 6 or 7% go to offset inflation and market losses when they occur.
So if you have $100,000; you should only count on $3,000 to $4,000 per year if you want that money to keep up with inflation and market fluctutions.
So the $500,000 should only be counted on to generate $15,000 to $20,000 per year.

For someone over 50, health insurance alone could eat most of that!
xort is offline  
Quote Share with Facebook
For the best viewing experience please update your browser to Google Chrome