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Discussion => Off topic => Topic started by: raynardine on February 03, 2013, 07:45 am

Title: Retirement Advice
Post by: raynardine on February 03, 2013, 07:45 am
Okay, so I'm doing some research on just how much stocks, bonds, etc I need to buy in order to retire comfortably.

There are two steps to this, first is determining how much money I need every year to live comfortably.

It includes all of the day-to-day expenses, including care for pets and children and a few projects of mine that I'd want to continue into retirement.

My living expenses every month is approximately 800 not including rent and bills.

This includes food and gasoline, the two largest expenses within that 800.

If I included bills, the electricity bill for the household is about 300 every month, and the telecom bill is about 300 as well.

We pay approximately 50 for water, sanitation, and recycling, and let's say 50 for for the natural gas range.

That's 700 in bills, and rent for the average studio apartment is about 800 where I live.

So, 800 + 300 + 300 + 50 + 50 + 800 = 2300 USD.

That's about baseline, but to give myself a bit of breathing room, let's round that up to 2500.

So, baseline expenses every month would be about 2500 for me living on my own.

That's 30,000 every year. I'm expensive! There are many people who work full time jobs, and do not make even that much.

However, I want to retire with enough to look after pets and roommates, so we have to multiply that by however many people I want to look after.

I would feel comfortable with 12 people total, not including the pets, which would cost about 2 humans together. That's 14 people.

30,000 * 14 = 420,000 USD every year.

I need to make at least that every year to retire successfully.

The second step is to determine how much my retirement portfolio has to be in order to provide the income I need.

I'm going to use Coca Cola Company as the standard income stock for a reference point.

1 share of NYSE:KO is worth approximately 40 USD Each share of KO pays out a 26 cent dividend every quarter. That's 1.04 USD every year, and 8 cents every month.

That's actually a lot. I wonder how Coca Cola manages to pay that much in dividends? Anyway, the ratio between dividend payout every month and the value of each share will indicate approximately how much I need to have invested in shares to achieve the income I require.

Since each share is worth approximately 40 USD, and pays out 1.04 USD every year, following that ratio, to gain an income of 420k every year, I'd need approximately 16.8m worth of KO shares.

40 : 1 :: x : 420k; x = 16.8m

That's a lot of money. But at least I know what to shoot for, then.

So, 1.2mil for just me living individually in an apartment, and 16.8mil for living with 11 roommates and a small menagerie of pets.

Is there any advice you guys would give me regarding retirement calculations?
Title: Re: Retirement Advice
Post by: murungu on February 03, 2013, 04:16 pm
Retire?
We don't think so.
Anyone too poor to retire can't.
Anyone rich enough to retire is normally a workaholic and therefore also 'can't'
Anyone who DOES retire statistically dies within, on average, five years of pruning roses, picking up dog poop, etc.
But hey, if that floats your senior boat, set sail foxy!
Title: Re: Retirement Advice
Post by: napalm on February 03, 2013, 10:32 pm
Retire?
We don't think so.
Anyone too poor to retire can't.
Anyone rich enough to retire is normally a workaholic and therefore also 'can't'
Anyone who DOES retire statistically dies within, on average, five years of pruning roses, picking up dog poop, etc.
But hey, if that floats your senior boat, set sail foxy!

haha some very true statements there
Title: Re: Retirement Advice
Post by: eddiethegun on February 04, 2013, 12:17 am
You'll be taking care of 12 roommates? What kind of crazy shit is that?

Are you running a human trafficking ring?
Title: Re: Retirement Advice
Post by: raynardine on February 04, 2013, 12:20 am
don't forget inflation. 2-4%ish

Oh yeah! I forgot about that, thank you!
Title: Re: Retirement Advice
Post by: raynardine on February 04, 2013, 12:23 am
You'll be taking care of 12 roommates? What kind of crazy shit is that?

Are you running a human trafficking ring?

Not in the strict legal sense, no.

I'm into BDSM, and "own" several submissives. If I retired successfully, I'd be capable of taking care of them indefinitely.
Title: Re: Retirement Advice
Post by: eddiethegun on February 04, 2013, 12:46 am
You'll be taking care of 12 roommates? What kind of crazy shit is that?

Are you running a human trafficking ring?

Not in the strict legal sense, no.

I'm into BDSM, and "own" several submissives. If I retired successfully, I'd be capable of taking care of them indefinitely.

 :o

lol I have enough trouble taking care of one woman at a time.

+1 to murungu for the relevant sig
Title: Re: Retirement Advice
Post by: raynardine on February 04, 2013, 01:45 am
lol I have enough trouble taking care of one woman at a time.

What can I say? I'm ambitious! :D