I have a brother with this 'embarassment of riches' problem -- namely being 52 with just over a million dollars, almost all of it locked away in IRAs. He got all this by being cheap, cheap, cheap and could easily be a featured millionaire in The Millionaire Next Door and might even be, except for the fact he broke the barrier just last month. Anyhow, he ain't in equities to any great extent 'cause his worse instincts always take over and he looses money, but he will finally try a BTD5, unfortunately, it's a Unit Trust at a broker -- those worse instinct fears again. He's hanging on to a job he hates until he's 55 and maybe get swept up in another company wide housecleaning layoff, possibly to get some early retirement bennies. Must be nice to have such problems!!! And he'll live just fine on $32,000 post tax - I doubt he'll even need that much. He drives an old car that was paid for when he got it, he paid cash for his home, which will never grace the cover of Goodhousekeeping i fear, and he shops for cloths at GoodWill Industries. Me, I can get by on $36,000 'cause I shop at Walmart and have no desire to buy a big motorhome (home and vehicles paid for, kid out of school) and will do so when i cross $500,000 later this year or so. My basic expenses only come to $1,600 a month, which leaves $1,400 a month for emergencies and/or leisure and I intend to keep going with active investing. If I only manage 10%, I go a very long time, if I get 15%, shucks! I'll get that motorhome afterall. I know I'm out of line with the 5% philosophy ( or rule of twenty), but I can truly live comfortably (for me and my wife) on $24,000 in basic expenses with the other $12,000 a year is really earmarked for either emergencies or savings or, in a good year, a nice vacation.
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