Depending on where you live, and whether you want to be rich and still working, or rich and just relaxing, you're looking at needing to have between $2 Million to $12 Million in the bank collecting interest, and between $100,000 and $300,000 coming in annually to support your "rich" lifestyle.
CNN Money had a great article the other day on how rich you have to be in order to be considered "rich" by Americans.
Here's the story:
How rich is rich?
How much money do you need to feel rich?
Wealth is a subjective concept, but one thing is universal in most definitions: being able to live a comfortable life without having to work.
Does $250,000 make you rich?
Experts peg the figure to be somewhere around $2 million to $12 million in savings.
On the high end of that range, a single person living in an expensive part of the country (say, New York City), wanting to retire at 35 would need at least $300,000 a year to feel rich, according to Steven Kaye, president of Watchung, N.J.-based wealth management firm American Economic Planning Group. He based that number on real-life figures his clients tell him they need.
A yearly income of $300,000 would allow for taxes, a $3,800-a-month apartment (the average price in Manhattan), and a monthly spending allowance of around twelve grand, he said. Not too bad, especially since you could do this all without a pesky job.
To generate $300,000 a year beginning at age 35, you'd need a nest egg of just under $12 million. That assumes a conservative investment portfolio generating a return of 5% a year, an inflation rate of 2.5% a year and Social Security benefits of $25,000 a year starting at age 62.
If you live in a low cost part of the country, $100,000 a year should be enough, said Kaye. In that case, you would need savings of about $4 million to retire at 35.
But if you're willing to stay in the workforce until age 65, a mere $2 million would be enough.
Oh, what I'd do for a "mere $2 million"... Or $1 million. Or $100,000. Or really, even $5000. Maybe even $500. Ok, ok, even $50. Yes, I'm a whore... ;)
http://www.flickr.com/photos/argenberg/91885776/sizes/o/ by Argenberg on flickr