What's your walkaway $ number?

thexfactor336's picture
Rank: King Kong | 1,654

After a bender of a boys trip to Miami, I'm sitting at my desk hungover, tired, and with a huge case of the Mondays. Don't really feel like doing any work today so been planning my Europe trip for this summer. And it got me day dreaming and thinking about some hypotheticals: What's your walkaway number? If you were to win the lottery or get some inheritance money unexpectedly today, what $ amount would you need to walk away from working forever?

Comments (74)

Apr 15, 2019

$5

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Apr 15, 2019

Awesome question btw

Apr 15, 2019

$2 Million dollars. Assuming I can get a safe 5-10% annual return on this, that means passive income of $100k-200k/year, which should be ok to live on and never have to work again

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Apr 15, 2019

Yeah, was thinking around the same. I'm only 24 so tons of time for compounded growth as well. I'm very much in the "work to live" rather than "live to work" camp.

Apr 16, 2019

the consensus is an inflation adjusted safe withdrawal rate of 4% or less (ideally 3%). talking about returns of 5-10% and just spending all of the return is a surefire way to end up with a) no money and b) inflation eating into your purchasing power.

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Apr 16, 2019

Yeah but I think no one here would want to "retire" as in "not do anything with your life." But maybe you go pursue a passion project, do something low paying in a lower cost of living area. If you can make 50-60k a year on top of your passive earnings, then you're a lot more comfortable on that 2 million. All of a sudden that's 125k or so before taxes if you're only pulling out your 3% (with the salary, that is). That's a comfortable number to live on.

But yeah, assuming a 5-10% return... who does that anymore? That's why every pension know to humankind is f**ked; they modeled out this crazy growth in order to justify removing dollars for other things and now municipalities have enormous unfunded liabilities. Learn from their mistakes, my man

Apr 15, 2019

I feel like a lot of people are going to post from their current viewpoint, without realizing that priorities change when you get older. For example, when you have a family or you develop an entrepreneurial passion. It's not always just about the money.

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Apr 16, 2019

Young people also forget about the cost of health care as you get older. If you're not working/have employer paid health care, then you're buying private policies or something from Obamacare ... neither of which are cheap. Trust me, you'll be going to the doctor much more in your 40s than you are in your 20s, and way more in your 60s than your 40s. If you think $100-200k pretax per year is going to let you permanently retire early in life, well, I've got a few other ideas to sell you.

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Apr 20, 2019

Well plenty of people retire on much less than that, so yes it is possible to do so. Plus, you're discounting the possibility of people deciding to move abroad where healthcare can be much cheaper at the point of purchase.

Apr 15, 2019

$5 mil, safe 4% real return rate would give you 200k a year

Apr 15, 2019

$20MM. The returns off of that would sustain a very comfortable lifestyle. Ideally if we're talking lottery wins, I would probably keep working no matter how much I won. If I won like a real fuckton, like $100MM+, I'd open a nightclub and/or maybe purchase an existing one and really improve it. It would def focus on serious EDM, none of that top-40 bullshit.

Where you going in Europe? I'm hitting Barca for a week this summer.

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Apr 15, 2019

Barca is lit, you're gonna have a blast. Might pop over there this summer as well.

Apr 15, 2019

Thinking Amsterdam>Munich>Krakow

Barcelona is awesome man. I spent a week there last year. Absolutely amazing city. There's just a vibe there. After a night of clubbing, we went to watch the sunrise at Park Guell. Highly recommend that.

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Apr 15, 2019

Actually thanks a ton for the sunrise suggestion. For personal reasons related to a recent loss, my #1 goal for the trip is to catch a beautiful sunrise. Idk why haha i know its cheesy. And yeah i was abroad there and fuckin loved it. Super pumped to show the city to my friends.

I havent done Munich but Amsterdam is dope and Krakow is actually a really cool city. Sounds like a fun trip.

Apr 19, 2019
Nightman Cometh:

I'd open a nightclub and/or maybe purchase an existing one and really improve it. It would def focus on serious EDM, none of that top-40 bullshit.

This seems like a horrible idea. Right up there with investing in used car sale lots.

Apr 20, 2019

I wouldn't be doing it for the money

Apr 15, 2019

I've owned a business for quite a few years now and the burn-out is looming even though I take 4-5 weeks of vacation a year. I really love what I do, but it's just a lot of work lol. I turn 27 this summer and I'm pretty set on reducing my work week down to M-F with a half day on Friday. After you hit 300K a year the money really doesn't matter especially if you're single. I'm not going to give a walk-away number because I can't imagine having no involvement in my line of work anymore, really just looking to free up some more personal time. Everything in moderation I suppose?

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Apr 15, 2019

Strange way to display something in order to provoke envy or admiration, but still somewhat acceptable

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Funniest
Apr 15, 2019

You mean "Weird flex, but ok"

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Apr 15, 2019

$5MM USD would be enough to walk away from corporate life. Would have to find something to keep me occupied and mentally stimulated for 25 hours a week. That amount allows for a nice annual income along with enough cushion against inflation.

Also allows for some currency arbitrage by living in Costa Rica / Nicaragua during the winter.

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Apr 15, 2019

"More."

Just joshing, I think I would likely go with between $10-20mil. No matter what ends up actually happening, I think I will always want to be working in some regard (though as other posters have said, that will change the older I get), so 20 seems like a good round number for stepping back altogether.

Apr 15, 2019

Gonna sound wanky, but PS50m. I don't know why, just the number I've always had in mind. I guess it just sounds like a round, solid figure. Although, reading some of the above comments, I agree that PS2-PS5m in cash would likely do the job. Not sure it would be enough for me to "walk away," but certainly enough to maybe try something else in life.

Apr 15, 2019

$100MM, not crazy enough to think I'm getting there no matter what but I do have a path.

Apr 15, 2019

$6MM. Have thought about this. Just invest $5MM into various apartment buildings at 40-50% LTV and collect checks. Have $500k in a boring old savings account (like Ally), have $500k in some crazy stuff or trade options for fun.

Use cash flows to start up a charity (have a plan for this), join some boards, travel. Enjoy life.

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Apr 15, 2019

"If you ain't first, you're last!" - GOAT

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Apr 15, 2019

$15-20M (in today's dollars)

Apr 15, 2019

I would continue to work in some capacity even if I had $100 billion.

Apr 20, 2019
real_Skankhunt42:

I would continue to work in some capacity even if I had $100 billion.

I tend to agree. The allure of having big money for me is not a nice yacht, but the proper allocation of capital.

I feel that if I had $100 billion, it would be in better hands than if the government had the money (for instance). I want to raise the standard of living and ensure people have the basic necessities in the world. My efforts with this capital would be largely to push these two basic concepts.

The 'how' in using the capital is a constant philanthropic battle. Still, my desire to have 'big money' in this world is less about me being able to 'chill out' with cool whips, and more along the lines of proper capital allocation.

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

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Apr 16, 2019

I don't think I would ever stop working. Had my biggest payday yet about a month ago and immediately rolled my winnings into a new deal. Once you start...it really is the most addictive thing.

Maybe once I have $20/30M liquid in the bank I'll semi-retire and stick to a more boring line of work but really far from that now. I think having kids might change my perspective too idk.

Also feel like if you're any good at generating alpha you have a societal obligation to do so and donate the money.

Apr 16, 2019
m_1:

I don't think I would ever stop working. Had my biggest payday yet about a month ago and immediately rolled my winnings into a new deal. Once you start...it really is the most addictive thing.

Maybe once I have $20/30M liquid in the bank I'll semi-retire and stick to a more boring line of work but really far from that now. I think having kids might change my perspective too idk.

Also feel like if you're any good at generating alpha you have a societal obligation to do so and donate the money.

Implying you have that illiquid?

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Apr 16, 2019

No, just that there's a huge difference between liquid wealth and illiquid wealth. A lot of guys in early-stage have a technical net worth of 7 figures but it's illiquid and they can't sell if they're founders other than small %s in each equity round they do (if they sell too much it's bad optics).

Have a friend with a co. that just raised @ 8 figures for example but he was barely able to pull cash out because the VCs would be alarmed if he tried selling anything beyond $500k/$1M in stock. Sounds like a lot but it's garbage when you account for risk + buddyboi not getting paid anything meaningful for working 80 hours+ a week for years on end.

Apr 16, 2019

I don't differentiate work from life. It's all just one ongoing thing. IDK. If I buy my wife enough shit, do you think she'd introduce other chicks into the mix? That's a more interesting question.

heister:

Look at all these wannabe richies hating on an expensive salad.

https://arthuxtable.com/

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Apr 16, 2019

I know I'll never make this much in my life time but 250mm would be enough for me to never work again and the reason why is because i don't trust myself with 50mm, most likely I'm going to blow it all away with my new lifestyle. But 250mm is kind of hard to blow off during your life time unless you buy a mega island or a penthouse that cost 100mm in NYC

Apr 16, 2019

25M

I can see $1M / year two promotions away in the corporate world (~7 - 10 years?) Would until retirement to hit those numbers and life would be very scripted.

Dreams of becoming an eccentric CTO and taking a passionate idea to exit. That should get me there.

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Apr 16, 2019

You should pursue the CTO plan NOW while startup valuations are ridiculously high and it's easy to raise money. I've seen some borderline room temp IQ teams raise insane money and then burn it all and gain 0 traction.

Apr 16, 2019

Would call it the bar to get into the actually rich (aka UHNW so >$25-30M).

Realistically, most people can save up/invest prudently and end up with a few mil - getting to >25-30 takes something special (i.e. F500 C-suite comp, startup/business exit, lottery winnings, buyside senior investment professional comp, successful sellside MD comp, successful prof services partner comp etc) to do.

I don't think I'm the type of person to stop working though even if I had a SWR spending power of $500k-1M+ - would rather just reinvest the money into some new project or venture or charitable cause.

Apr 16, 2019

~$20mm in today's dollars. I figure a 60/40 stock/bond portfolio should produce ~5% return over the long term. If inflation averages 2.5%, I can take 2.5% out of the portfolio without eating into the principal ($500k / year). I'd like my children to grow that principal further, so I'm not looking to spend it; call it a multi-generational effort to build real family wealth.

I think the concept of being a "millionaire" is really dated since it became a thing back in the late 1800s, but if you inflation adjust from ~1880 to now that implies needing $25-30mm to hit that same level of "F-you money." So I think that's a relevant data point too.

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Apr 16, 2019
zMaverick:

~$20mm in today's dollars. I figure a 60/40 stock/bond portfolio should produce ~5% return over the long term. If inflation averages 2.5%, I can take 2.5% out of the portfolio without eating into the principal ($500k / year). I'd like to my children to grow that principal further, so I'm not looking to spend it; call it a multi-generational effort to build real family wealth.

I think the concept of being a "millionaire" is really dated since it became a thing back in the late 1800s, but if you inflation adjust from ~1880 to now that implies needing $25-30mm to hit that same level of "F-you money." So I think that's a relevant data point too.

Hit it over the head. I probably would even say a higher number just because there are a number of philanthropic/religious pursuits I would also want to help build with that money on the side.

Apr 30, 2019

This is definitely a personal aspect of me as well, I've spent a considerable amount of my time so far working in or for nonprofits and foundations, and I would definitely have to make well over $20-30mm before I stopped trying to accumulate more. There are so many organizations out there that could benefit from a $1mm donation doing truly good work to improve the world, and a good number of them that I know on a personal level, that I would need to be beyond a nine figure net worth before I felt content with my position to extol my contribution and legacy to the world as money.

Apr 16, 2019

5-7M is my number. I'd feel comfortable going back to school for that MBA, PhD or JD without handicapping my fiancee. I'd have us both retire and travel for a year but then would either start school or a business. I couldn't "not work" but would choose to work way less often but on more exciting things.

Apr 16, 2019

First, I don't think it's healthy to stop working. If you have the ability to add value somewhere, even if its at a non-profit, mentoring, coaching little league, etc. you should do it. It can be flexible, but I am a big believer in contributing all that you can to the community around you.

That being said, my walk away number would be $8-10mm. With that, I could put away $2-3mm in retirement investments and savings for a family, put $1-2mm in high dividend investments for passive income, start a charity/foundation with $1-2mm, and use the rest for business ventures and riskier investments. It's not a ton, but the charity and business ventures would probably give me 20-30 hours of good solid work a week and allow me to do whatever else I want.

Apr 18, 2019

Probably 10m. Give 2m to my parents (make sure they can retire off it and invest it wisely for the long term) and then for myself stick 2-3m in investment in portfolio, start a community service consulting thing and do free consulting for people. Otherwise remaining time will be spent flipping property - seen it on TV and looks interesting. Also gives me something to do and can generate money as cash.

Apr 18, 2019

$5M

Apr 19, 2019

where do they allow you to take "summer" vacation and how long you been for the company?

Apr 19, 2019

About 10 years ago, I was playing around with a retirement calculator and for some reason came up with $4.54 million liquid with the house paid off. That number has been stuck in my head for a long time now. And I'm just about there. Just a little work to do to push a few things over the top. I may come in a little short (closer to $4M) if my startup equity zeros out, but I'm good either way. Still killing it at work, but just about ready to slow down [unless that Google recruiter finally tempts me to take a job there]

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Apr 19, 2019

more.

Apr 20, 2019

Out of curiosity, what would you all do if you did not have to get up for work in the morning? I'd go crazy...

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Apr 20, 2019

lol

Apr 21, 2019

look at the date on ur comment

Apr 21, 2019

i knew that i was going to lol at his comment before it was even posted

Apr 20, 2019

A

Apr 20, 2019

A "walk away number" isn't nearly as important as your walk away quality of life. A million will carry you a VERY long way of high-end living in Malaysia or Thailand, etc. of coarse, You are no longer in the United States and as such, you no longer enjoy the protection of the United States Constitution.

I have been semi retired for several years and I am 51. The number isn't as magic as the situation you find yourself in. If you are completely debt-free, choose to live a somewhat frugal lifestyle and have managed to save at least Lowe's seven figures, chances are you will be just fine when you decide to turn it in.

On the other hand, if you would like to travel the world first class, see the seven wonders of the world and do all of the other wish list items that are on big spenders lists, that million bucks will not last you very long.

What I did is chose the lifestyle I wanted, then I worked towards meeting the financial goals it would take to afford me that opportunity.

Apr 20, 2019

$150-200MM

Apr 22, 2019

Some of these comments are incredibly sad. This is the exact reason why we have a mental health issue in this country. Have fun working forever because you need $20mm+ to walk away

"Look, you're my best friend, so don't take this the wrong way. In twenty years, if you're still livin' here, comin' over to my house to watch the Patriots games, still workin' construction, I'll fuckin' kill you. That's not a threat, that's a fact.

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Apr 22, 2019

Also some of you really need to get hobbies if you truly believe that you can't fully quit and stop working. There aren't enough years in a lifetime for me to do all of the non-work things I want to do...and 90% of them cost very little

"Look, you're my best friend, so don't take this the wrong way. In twenty years, if you're still livin' here, comin' over to my house to watch the Patriots games, still workin' construction, I'll fuckin' kill you. That's not a threat, that's a fact.

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Apr 22, 2019
Will Hunting:

Also some of you really need to get hobbies if you truly believe that you can't fully quit and stop working. There aren't enough years in a lifetime for me to do all of the non-work things I want to do...and 90% of them cost very little

Maybe we'd find your hobbies to be pretty gay. Just because you like building model airplanes doesn't mean there is any value or higher purpose in it.

Apr 22, 2019

Building a biotech company that saves lives is much more rewarding to me than any hobby ever could be.

Apr 22, 2019

I'm not sure whether I want to quit my job. I have many hobbies but I can't live without my job. Nevertheless, I would like to get some free money to start my own business.

Apr 22, 2019

On the very, very low end: $2MM. Then I'd move back home, buy a decent house (RE is basically free where I'm from), and live off the interest. There wouldn't be much room for a fancy lifestyle, but I wouldn't have any problem living that way. Could become challenging once kids are introduced, but I could make it work.

Mid-range: I'd say $5MM. That would afford me homes in two cities, decent amount of travel, and living the good life.

$10MM and I'd live like a baller.

Apr 22, 2019
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