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Cake day: February 21st, 2024

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  • 667@lemmy.radiotoComic Strips@lemmy.worldInner Peace [SMBC]
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    20 days ago

    Some quick math on what this looks like:

    Assume $70k median income, this means passive income would need to be $140k. In order to get $140k/yr one would need $4M to draw down at 3.5%/yr and meet that goal.

    To get to $4M, using the following assumptions: 20% savings rate (not accounting for inflation, raises, bonuses, etc) per year and a 10%ROR on the index funds would take a little more than 35y.

    It takes a substantial amount of discipline to do this. If one could make $70k/y starting the year they turn 18, it could be done by the time they’re 53.