No. of Recommendations: 2
Hmm. $500,000 works out (by my numbers) to be around $1500 per month, after taxes. Not a lavish lifestyle, but certainly very achievable. This assumes, however, that the money stays invested in the stock market. If you want the added (false?) security of CDs, you're looking at more like $900 per month after inflation.

Take into account something like health insurance (which I for one consider mandatory) at, lets say, $150 a month, and you're down to just $750. That's not too pleasant, to my way of thinking.

The initial target is low, but not unrealistic. I'm personally shooting for a combined total of around $950k to provide an inflation-adjusted salary of around $2250 per month, after taxes and good health insurance (~$300/mo). Many people can (and do) live on less than that.

Having said that, I'm not sure that I will retire when I hit my 'magic number' -- it'll sure be nice to have the option though. There are a few capital intensive things that I'd like to do to set up my non-rat-race lifestyle that I'd prefer to wait and pay cash for. Then again, I'm not sure that I won't have changed my mind by 2007!
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