UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75523  
Subject: Re: To retire or not to retire? Temporally Date: 2/2/2001 10:17 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Only you can answer the ultimate question or retirement, house, etc, but here's some helping info.

Banks are limited to 100k on FDIC. However, brokerage houses with money market mutual funds (say Fidelity or Vanguard for example) are not. They are self insured and thus will guarantee a higher account limit. The risk you run is that the brokerage house or insurance company goes bankrupt.

To through off 4.5k/month from interest alone, you'd need to have around $1.1 million invested with a return of 5%. That's a cold hard fact. The only way to change that number is adjust your living needs/wants. Since this is money needed over the next 3 years (i.e. less than 5) investing in stocks is very impractical. Imagine having started this scenario one year ago and having placed some in an S&P index (or any other stocks). That money is now at best cut by one third, good bye dream (or at least a serious portion).

JLC
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Berkshire Hathaway

Brookfield Asset Management
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement