What’s your number? $1M? $5M? $25M?
As the title says, what’s your number?
So many (but not all) of us are in this rat race of banking and PE to make money and live a “rich” lifestyle.
What’s your number to walk away from it all?
Has that changed as you’ve aged, or as inflation has ramped up?
Curious how you all think about it + when you expect to reach it.
Cheers.
Commenting to avoid bot.
Based on the most helpful WSO content, the concept of "your number" varies widely depending on personal goals, lifestyle expectations, and financial strategies. Here are some insights from WSO discussions:
High Net Worth Goals: Some users aim for extremely high numbers, like $100 million, to ensure complete financial freedom and the ability to live a luxurious lifestyle without constraints.
Moderate Goals with Conservative Strategies: Others suggest a range of $5 million to $10 million, focusing on creating a low-risk portfolio that generates steady dividends or passive income. This approach allows for a comfortable lifestyle without depleting the principal.
Lifestyle-Driven Numbers: A practical method shared involves calculating mandatory expenses and dividing by a conservative withdrawal rate (e.g., 3%). For example, if you need $20,000 per month, your "number" would be approximately $8 million.
Early Retirement and Flexibility: Some users emphasize the importance of starting early, saving aggressively, and investing wisely to achieve financial independence by their 30s or 40s. This often includes diversifying income streams through real estate, public market securities, or other passive investments.
Changing Perspectives Over Time: Many note that their "number" evolves with age, family responsibilities, and inflation. For instance, younger professionals might aim for a lower figure, while older individuals with families may adjust upward to account for education, healthcare, and other long-term costs.
Ultimately, the "number" is deeply personal and depends on your desired lifestyle, risk tolerance, and financial planning. Some even argue that if you love what you do, the number becomes less significant, as fulfillment and growth in your career can outweigh the desire to "cash out."
Sources: $1,000,000,000 Before 40, https://www.wallstreetoasis.com/forum/investment-banking/your-number?customgpt=1, Retirement Planning for IB Analysts, My wife thinks we need 30 mil to retire, Leaving PE - to the older folks on WSO
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10 liquid + paid off house
I come from a semi poor country so i would be like some royalty if i go back
I am at 7 liquid and 4 stuck in some private stock, hope i can get out of it next few years and call it a day,
5+ and move overseas
I'm hoping to make $12M in December so yeah that.
Poker tournament?
Yeah Bahamas $26K buy in.
I remember talking with my friend back in 2015, when I was still a student, saying my dream number was about $4.75m in USD equivalent. I grew up with a single non-college educated mom who was always really anxious about money - I distinctly remember her having a full on breakdown because she saw someone had damaged her car while it was parked once - and I just always thought of money as the inverse to stress/anxiety/depression. That $4.75m equivalent figure was what I calculated in my head as being enough to own a nice house outright, have a nice car, and have enough passive income through interest/dividends to live a fulfilled life while never needing to worry about anything.
A few years into a podshop gig and I'm browsing white gold rolexes and looking at buying a Porsche. I fly home in business class. I can't imagine retiring with less than $10m equivalent, probably more at this rate.
And do/would any of these things make me happier? Somewhat, but not as much as they should. As much as I enjoy them, if I'm totally honest with myself there's a pretty large degree of living for other people. Nothing overly cringe, but: family members who didn't think I would amount to much, friends who are doing extremely well in their own careers and that I want to keep up with, etc. Even more difficult to admit is that being financially successful has become part of my sense of self worth, which is absolutely not the right way to view life.
This sounds a lot more depressing than it was meant to. Venting on an anonymous forum is surprisingly therapeutic.
I had this conversation with a colleague of mine, and it's fascinating to see how my answer differed so much from my colleague's. I always thought the magic number for me would be between ~$3 - $5M USD. He then hit me with a question I hadn't thought of... "is that for you and your spouse? What would you leave your kids? Would your parents be well off enough to not need anything as they enter old age? Do you plan to send any money back home to your extended family? When do you plan to retire by?" - It hit me like a truck because each word felt like another $100K to increase by if I were, at that point in time, responsible for a number of folks and still wanted to retire relatively young (by ~50).
I've never really thought money to be the inverse of anxiety or stress, but rather a medium of trade to recoup time. The more money one has, the more time one can use for anything intrinsically rewarding. Simply put, having enough wealth to have the house clean, home and car paid, and fund a liferstyle allows for the most optimal balance for me.
I don't have any really desire to drive the nicest car or wear a Patek, Rolex, or anything else that costs the equivalent of a downpayment. So I never thought it would be difficult funding my lifetsyle until I broadened my line of sight, now, it's a matter of how the next decade or so pans out.
more thoughts here: www.wallstreetoasis.com/forum/off-topic/wealth-goals#comment-3816515
lmk if you want me to expand but it's clear you don't have a firmly rooted values system, so you're chasing something that you think will make you happy
don't sweat it, it's for sure fixable, just takes that first step
best of luck
You need to be making $300,000 post-tax by age 24 otherwise you are basically invisible to women
You spend way too much time online if you genuinely believe this.
Congrats on looking like the the Hunchback of Notre Dame
Bro just say you're short and overweight
The correct answer is there is no number. Everyone has a number, but do not realize that life makes that number not sufficent.
Especially if you have kids and want to be near major cities. And if you want to live an upper middle class / wealthy lifestyle. Keeping up with the Joneses, etc. Especially those who had that experience with their parents, doing that now in today's inflationary market costs at least twice as much (at least where I grew up).
$5-10mm, property paid off. at the end of the day, it's freedom to be wherever, with whoever, whenever
I think this is generally the right answer. Even if one is ~40 when they hit $5M, assuming their house is paid off, that should be enough to pay for kids' college, daily expenses, while still living off the interest.
The problem (which is a good thing), is that we really may live longer than ever before. If you take great care of yourself and expect to hit 90, that number may be higher than if you expect to move on around 75. In theory, though, if you have $5M invested and you average out a 7% IRR, even with a ~30% ST capital gains tax rate, you should have $245k to live off, while your principal remains flat.
Idk, personally I think I could live off a lot less. The reason for $5M is so that if my wife or immediate family gets some sort of horrendous disease, ideally we could pay for best in class treatment.
I would never regret having to downsize early or budget tactically because I retired early, but I would seriously regret not having the funds to get a loved one the best medical treatment possible.
For some, having a walk away number is about having a really high quality of life (business class travel, exotic vacations, 3+ houses).
I just want to be able to live in a peaceful remote pocket of the country with access to good food, clean water, decent water, and family.
https://www.wallstreetoasis.com/forum/investment-banking/what-is-your-n…
I think for most, like myself, it would be mortgage paid off + kids done with college + x thousand per year until death. I guess anywhere between $3-5 million on top of the mortgage paid off for most would be enough to stop the rat race.
I feel $5M liquid....I do want to be a professor at a college, so move to a college town....Somewhere close to the shore, preferably the East Coast. We would move from our current location and live in like SC/NC/Central VA/Central PA.....3 hours from the beach close to some decent colleges. Just chill in a small 2-3 bed house. No cares.
$10mm with a paid off primary residence and a vacation home.
Of course that depends on when, my number today is higher than at 65 because of both way more sequence of returns/longevity risk and costs like healthcare.
I've thought a lot about this and the problem really has to do with sequencing of returns. If the market legitimately returns 10% per annum, I think people would feel they need a lot less than they think they do since their undrawn principle will continue to grow. The issue is that the market has returned way above the 7% real return that it normally does for years on-end now. We're also at ATHs with oil prices above 3-digits, another war, a potential tech bubble, etc. all flaring up
If there's a big correction and/or lost decade, that changes things dramatically for everyone. Between that, inflation continuing to rise, and how competitive the job market is, it's hard to walk away from a well-paying job with all the uncertainty in the world these days.
As many have said, $5M liquid with a paid off house is my number.
Cash, post-tax? I would guess that I COULD walk away with $5m. I live relatively modestly, so that would leave me with a paid off place in NYC, a nice car, minimal fixed expenses, and enough income to enjoy myself.
Would I? Likely not. I generally enjoy working, and it adds structure and meaning to my average day. The extra income wouldn't be needed, but would allow me to travel more, and buy some nice things, even though I'm the sort of guy who would buy the $400 microbrand watch instead of the Rolex.
Having spent time on gardening leave, it begins to suck after a while. If you don't like golfing with the senior citizens, there's not all that much to do while everybody else is at work.
10 liquid should lead a comfortable life anywhere in the US. In lower col countries 5 would do
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