How much is needed to quit job

[DrBeta]

3 minutes ago, brahmin said:

Emily g kinda 65 years vachina $400k daatale, $750k at this rate eppadu avtadi?  BTW adi Emily, ikkadi faafa, mana  Enakalyamma/Ravullama ki 65 years varaku ikkada unde anta possibilities kooda consider chesi cheppu.

The only way to retire early is to be frugal and invest. Believe it or not, rich people actually live a very poor life. Living in the Midwest with 100k salary, you should be able to save 60k a year. 

https://www.supermoney.com/2014/12/retire-by-age-35/

[MyNameIsEarl]

Spark and Hadoop oste salu. Paisalu avasaram ledu anindi vendetta aunty

[MobileMusic]

 

24 minutes ago, AlaElaAlaEla said:

prove me!

$100k jobs with family toh forget $750k target.  

Annual savings 30k anukunna, it takes 25 years.

You invest along the way to grow your savings and that should reduce the number of years it takes to reach your milestone. If you just keep it in savings and do not invest, it would take much more than 25 years - or probably forever because inflation will eat you!

[DrBeta]

Just now, MobileMusic said:

 

You invest along the way to grow your savings and that should reduce the number of years it takes to reach your milestone. If you just keep it in savings and do not invest, it would take much more than 25 years - or probably forever!

S, if you are saving money you are loosing money because of inflation. 

[Jai_Tdp]

At least 30 million according to db

[brahmin]

17 minutes ago, DrBeta said:

The only way to retire early is to be extremely frugal. Believe it or not, rich people actually live a very poor life. Living in the Midwest with 100k salary, you should be able to save 60k a year. 

https://www.supermoney.com/2014/12/retire-by-age-35/

Lets break it down $100k salary would net you $78k (excluding FICA deductions for now or else it would net you $72k only). Refer https://smartasset.com/taxes/missouri-tax-calculator#KREDWminLa

Assuming your avg. student/ single gumpulo govinda living would have a rent of $500 + ramen noodles type food $200 + $500 car + fuel = $1200/month. => $15k/year  balance - 57k/year

 Family sangati enti?? Spouse and children unte increase the rent to $1000 and food to $800 and medical and incidentals another $300 -> $2500/month => $30k/year  balance - 42k/year  ikkada schooling / vacation / entertainment consider cheyale inka.  

I still can't wrap my head around how you can save $750k savings in 10 years  with salary alone.

[brahmin]

15 minutes ago, MobileMusic said:

 

You invest along the way to grow your savings and that should reduce the number of years it takes to reach your milestone. If you just keep it in savings and do not invest, it would take much more than 25 years - or probably forever because inflation will eat you!

Any investments in US yield is less than 5% for a balanced growth without risk.  Why do you think US fund managers look EAST for investments ??  Our markets give you an ROI of 12% on a good day with safe investments.

My point here being US based salary + US based investments toh it is next to impossible to raise $750k in 10 years.

[DrBeta]

5 minutes ago, brahmin said:

Lets break it down $100k salary would net you $78k (excluding FICA deductions for now or else it would net you $72k only). Refer https://smartasset.com/taxes/missouri-tax-calculator#KREDWminLa

Assuming your avg. student/ single gumpulo govinda living would have a rent of $500 + ramen noodles type food $200 + $500 car + fuel = $1200/month. => $15k/year  balance - 57k/year

 Family sangati enti?? Spouse and children unte increase the rent to $1000 and food to $800 and medical and incidentals another $300 -> $2500/month => $30k/year  balance - 42k/year  ikkada schooling / vacation / entertainment consider cheyale inka.  

I still can't wrap my head around how you can save $750k savings in 10 years  with salary alone.

Let's say you save 50k annually. In 10 years that's 500k. But in reality if you invest, it's compounded. If you invest it, based on the compound interest expecting a 5% return on investment, it will be 750k. 

[DrBeta]

1 minute ago, brahmin said:

Any investments in US yield is less than 5% for a balanced growth without risk.  Why do you think US fund managers look EAST for investments ??  Our markets give you an ROI of 12% on a good day with safe investments.

My point here being US based salary + US based investments toh it is next to impossible to raise $750k in 10 years.

https://www.nerdwallet.com/banking/calculator/compound-interest-calculator

[Don_Draper]

16 hours ago, meri_zindagi said:

How much money is needed in USA so that we can quit IT job and do something else for living.

and the same in India

I already quit my job. Money needed is very subjective and one to it's own situation.

[Don_Draper]

22 minutes ago, MobileMusic said:

 

You invest along the way to grow your savings and that should reduce the number of years it takes to reach your milestone. If you just keep it in savings and do not invest, it would take much more than 25 years - or probably forever because inflation will eat you!

Investing antey stocks or real estate or MFs or 401k ??

[brahmin]

3 minutes ago, DrBeta said:

Let's say you save 50k annually. In 10 years that's 500k. But in reality if you invest, it's compounded. If you invest it, based on the compound interest expecting a 5% return on investment, it will be 750k. 

Sounds fancy and fairy tale-ish.  50k/78k(net income) is nearly 65%  savings.  Achieving that with family would be an outlandish goal.

Live examples of any DB peddalu with that percentage of savings unte back it up.  It doesn't seem realistic to me.

[Don_Draper]

31 minutes ago, DrBeta said:

The only way to retire early is to be frugal and invest. Believe it or not, rich people actually live a very poor life. Living in the Midwest with 100k salary, you should be able to save 60k a year. 

https://www.supermoney.com/2014/12/retire-by-age-35/

It's not the only way, but one of the ways. People have flourished in business and through stocks equally. 

[brahmin]

9 minutes ago, DrBeta said:

https://www.nerdwallet.com/banking/calculator/compound-interest-calculator

Not to be picky or pessimistic but, FYI, $50k/year for 10 years with ROI of 5% in above link still resulted $668k still short of $750k goal.

[DrBeta]

3 minutes ago, Don_Draper said:

It's not the only way, but one of the ways. People have flourished in business and through stocks equally. 

Definitely true.