Retiring from trading

B

bestfriend

How much money is enough to retire? Assume trader doesn't own his home and has a family of 4.

What's a minimum yearly income to live comfortably--ie take trips whenever one wants, pay for private school for 2 kids,etc.
 
Depends what part of the country you are. On the East and West Costs you'll need a minimum of 100 - 120 k net after tax to live compfortably. In addition you'll need a good chunck of cash safe in the bank to cover your living expences for 6m to a year if the trading is not going too well (it does happens even to the best of us). Before you'll go full time ie retire to be trader plan and think carefully. It is not a retirement. Its a job and not an easy job even though it may seem so.
 
I guess i wasn't clear. I am thinking about retiring FROM trading , not retiring to start trading. I understand the confusion as most old men start playing the market after their retirement. Hmmm.. does that make me retired already?
 
Still in the Costs it is about 100 - 120k minimum after tax. Also inflation and medical costs will increase this amount every year. I'm sure in other parts of the country it can be much, much less. I know a guy in Ohio making less then that and even being able to afford a nice house.

Good luck.
 
bonderme, if you think you need 100k NET to live, (I assume you don't have a family of 12) then you are part of the problem, not part of the solution.

Get real.
 
Quote from bestfriend:

I guess i wasn't clear. I am thinking about retiring FROM trading , not retiring to start trading. I understand the confusion as most old men start playing the market after their retirement. Hmmm.. does that make me retired already?
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yo friend,

it all depends on how you want to live. live simply and 30k/yr should be plenty. live well and 150k/yr will not cut it---totally a personal choice.

private school is about 22k a year x two= 44k year just for school.


surf
 
Quote from stock777:

bonderme, if you think you need 100k NET to live, (I assume you don't have a family of 12) then you are part of the problem, not part of the solution.

Get real.
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Why not? 8k a month. And he doesn't own a home.

Hypothetical expenses.

Insurance (Health for a family of 4, car, ect.) $1,000

Rent: (on the Coast's it could be much more) $2,500

Utilities(electric, heat, phones) $400

Car (either lease or depreciation plus gasoline servicing ect) $500

Food (four people who prefer other than Happy Meals) $750

Cleaning supples, soap, toilet paper ect $100

Clothes for kids/wife $200

Entertainment (movies, amusement parks, DVD's, Miniature golf) $150

Vacations (a 2k once a year type thing) prorated monthly $200

Incidentals $200

I think that's 6k a month. If we're talking private school tuition or college then fuggedabout it. If you're talking about a high maintaince wife, fuggedabout it. If your talking about renting a home in NYC, Boston, SoCal or even pricey hoods in Chicago, SoFla, Denver, Seattle fuggedabout it. In those cases you're at 8k.
 
Quote from bestfriend:

How much money is enough to retire? Assume trader doesn't own his home and has a family of 4.

What's a minimum yearly income to live comfortably--ie take trips whenever one wants, pay for private school for 2 kids,etc.
More...

Don't forget about my hooker habbit
 
Where in the country you live is huge factor.

If you are not a homeowner and have to rent a home on the East coast it could easily cost $2000 a month.

Unless someone has health benefits from a previous job paying for them could easily top 1000 a month.

You still haven't paid for heat ,car insurance and food.

Private school is nuts if you are worried about finances.

Pick a town that has a good quality public school.
The increased rent to live in a town with good public schools will still be substantially less than 2 private school tuitions.

The big variables are where you live in the US and do you have to pay for your family's health insurance.
 
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