Quote:
Originally Posted by glassman
Greg, I do agree with you. I have a saying I've sead since my twenties that I'm kinda tweaking today, basically " It's either be here making it, or out there spending it...". But I m finally beginning to see the light of some investing advice I received a while back, is to have your money making money while your sleeping, which is totally contrary to my bisness.
So at 8% and I have 1.2, does that translate to 96,000 before taxes? Less 15% for taxes (probably 20% of that 1.2 will be from my Roth)...bout 6800 a month. Or bout 1700 a week. You can see where it starts to get thin...
Mike
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Yes -- if you can SAFELY make an 8% cash flow off your investments. I've yet to be able to make that kind of return. You can get that in TOTAL return - capital growth and dividends -- but to consistently, safely earn 8% you'd have to be seeing mortgage rates in the 9's and 10's -- and treasuries would be yielding 6% or more.
Of course that's the issue isn't it.... we don't really know what the future holds for rates etc.
A more conservative estimate would be to earn a steady 5%.... if you get more --- then we're in a highly inflationary period... which of course ALL retirees hope for!!
