Hypothetical

[JOCOOL]

Who remembers that TV show on the ABC called Hypothetical....or something to that effect? There was a bearded guy presenting but I can't recall his name. He was an academic or some such!:rolleyes:

I was thinking today on a hypothetical question, and maybe you guys would care to comment, or add your twist to it. Here is the scenario I will put forward!

Lets assume you own your own home, with no mortgage. You owned your own car, and boat and they were all paid up. Let's also assume you didn't want to work for the rest of your life. I know thats a pretty broad, sweeping statement, but lets say you are in my position, 37 years old, married, and 3 girls aged 8, 11 and 14. How much money would you need per year to cover your normal bills (phone, power, water, gas) and your normal everyday expenses such as food and clothes.

Lets say that you live your life as you do now, and enjoy the same amount of liesure activities such as going out to dinner, movies, weekends away etc etc. Nothing changes in your life except the fact that you didn't have to work!

How much money would you need per year. How much money, and where would you invest it, if you planned on living of the interest it accumulated?

Wishful thinking, but lets see what we can come up with!:D

[Grozzo]

Too hard to put a figure on it really... but ROUGHLY i would say with 3 kids that young with HEAPS of stuff left for them to do and YOUR money to spend :p proberly about 40-50k (assuming tax has already been taken out of it ;) its the accountant in me coming out :D )

But of course everyone would be different :)

and yeah i remember that show it was well worth the watch!!!


Wayne

[mystic shad]

The host of hypothetical is Geoffrey Robinson QC

[lbgking]

$26372 per year required.

[phild]

30 bucks, maybe 29 if I was feeling tight;)

[Chris]

if you could catch enough fish to feed atleast three meals a week id say around 30/35k thats also to cover anything that may go wrong (car boat house hold work), id be investing in a company that makes medical supplies in AU ie baxter or the like, it would be a sweet life!! anyone want to pay my debts off???

[FatBoy]

50k would be enough, but 100k to feel truely comfortable... I've started aiming at that by investing in property - 4 houses at 300p/wk in todays money is $1200 a week at todays prices, and rents tend to rise inline with inflation...

I think retiring with 10 houses is achievable, but i still have a long way to go - but even at $250 a week that'd be $2,500 a week before expenses, i reckon i could live with that !! :p

[iain]

Depends entirely on lifestyle. $75k after tax I reckon would be doable.

[lbgking]

$75 k a year Iain? You must go through 20 schoners of James Boag's a day!

[FatBoy]

I just read my post again and if it sounded like i was bragging i wasn't all - i don't own 4 investment properties yet - but i'm working on it !! :)

My goal is to have 10 though and retire at 50... Then i can spend a lot more time devoted to fishing, playing golf, drinking beer and spending time with my family... :) (Not necessarily in that order !!)

[treble]

Joe,
I reckon if you take out all the loan repayments you have and look at what you spend on the rest that would give you an idea of what you would need.

If not working then you would have more time to grow own veges have a couple of chooks. If you take your green groceries out of your weekly expenses because you grow them you save quite a bit.

You would still have rates, insurance and utilities (pwr wtr gas etc) with 3 kids these are not cheep. Plus if you plan on helping them with UNI fees $$$$$

Sh#t I sounds like I will be working till I'm 75..........

must win lotto must win lotto must win lotto must win lotto must win lotto

[JOCOOL]

must win lotto must win lotto must win lotto must win lotto must win lotto
DITTO!:rolleyes:

[robthefisherman]

I reckon to maintain your same standard of living you would need as a minimum what you earn now. No w also take into account that you've just found yourself an extra 40-50 hours per week liesure time and you would probably need more because I dunno about you guys but I tend to spend more money on the weekend than I do at work.

Be a nice problem to have though, after a divorce 6 years ago I've got a long way to go before I'm debt free at current rate I should be able to retire at 163:D

[bluecod]

As Rob said, more leisure time can sometimes mean more cash depending on whether you relocate to an area that provides easily accessible leisure activities.

I reckon you would need 85% of what you currently earn and to do it in style, 120% of current salary up until age 70 when you start to slow down.