According to the Trinity Study, I need 25X (where X is my annual expenses) to retire.
However, I am also interested in one of the points raised in an updated study.
If you choose a reasonable withdrawal rate, you are very likely to end up with much more money than when you started! For instance, a 3.5% withdrawal rate over 30 years with 100% stocks would leave you about six times more money than when you started!
Although I do not live my life for my kids, I do hope that 20-30 years later, my portfolio will be big enough such that my kids are financially secured to a certain extend, such that they can choose how to live their lives.
If it happens, I will also remind my kids not to kill the goose (the portfolio) such that their kids have a chance to be financially secured too. Maybe I should put everything into a trust then!
-H
Poser: Your kids will need to build financial competency to manage the portfolio on their own in order not to kill the goose. This implies the portfolio creator also need financial skills to impart and not rely on a friend for stock picks...
ReplyDeleteHeh, I think the most important financial lesson for my kids is about developing good money habits.
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