How much principal would be enough for me to retire?

[mike50]

...If I:

- Retire at 45
- Want to spend $55,000 each year (adjusted for inflation/after taxes)
- Want the portfolio to last at least 35 years
- Plan to use social security benefits by age 70

Most of my retirement income would come from investments like dividends, index funds, bonds, maybe some stocks, etc. rather than the typical employer pension, 401k, and IRA. Would moving to a state with no income tax help me big time?

[dragoncar]

1.4 million*, ignoring SS.

If you want to factor SS, try firecalc.com

*edit: today's dollars

[swissgva]

Lots of nice calculators available at http://www.dinkytown.net/retirement.html

[begood]

Lots of nice calculators available at http://www.dinkytown.net/retirement.html

Thanks for that link! I just spent a happy hour over there dicking around with calculators. :)

[Shor]

Interesting, are you saying you expect to need to spend $55k every year?
Are you accidentally adding your current savings on top of your expected expenses? Or is this to cover various unexpected expenses as well?

Care to provide an additional breakdown on expected expenses for your retirement years?

[SnackDog]

Around $1.8mm invested in the stock market, depending on how much tax you will owe to leave you with $55,000 after tax.  Your taxes of course depend on state, deductions, exemptions, etc.