Those are definitely the most expensive. People really love having a house by the beach but they never thing of what could happen in a tropical storm. Your house would just go kaput. That's why I'd like to have my house in a high rise building.
Pretty sure I'd rather be evac'd in a hurricane (been there!) than be in a high rise and worry about low flying planes, tornadoes, and earthquakes.
I hope I get to lead a self-sustaining lifestyle, growing a small garden of vegetables in my backyard. Then, I'll open a small cafe by the highway, sell hot soup, fresh coffee, etc to passing truckers. It's a simple dream, but I hope I get to achieve it.
Hopefully even while in retirement I am still keeping busy and earning money from my passions of writing, photography, and sculpting. Slowly but surely I have been putting that into place and I believe that it will work out as planned.
I really like the idea of going up to Alaska and living off the land and catching my own food. You could save a lot of money if you did not have to go to the grocery store, and build your own cabin somewhere. The one downfall though would be the extreme cold temperatures.
My dream would be having a nice house, location does not matter, a nice car, a motorcycle and nice amount of money in the bank. That would be great!
Same with me. I have always loved the ocean and have been fascinated with it at a young age. To have a beach house would be amazing I could surf all the time and swim and snorkel and who knows what else. I want to decorate the house inside and out and make a garden! Oh boy don't even get me started on this topic haha.
Just hoping that if i save some money every month from 21 in my savings account, i should have a lot by 65. Hoping to aim past a million as ive always wanted to see a million in my account xD
@JR Ewing , does this include all investments (physical gold, investment real estate, etc.) or is the "times 25" thing only for cash, bank accounts, and retirement funds? I'm thinking something like stocks wouldn't be counted as part of that final amount determination because there's no way to know where it would be in 10, 20, 30 years? But investment property... well that real estate seems to me as if it should count since it could be sold if needed. Am I thinking too much, and the times 25 issue simply refers to net worth, and everything is counted?
That's basically the income portion of your portfolio. It's just a guideline, and it mainly pertains to debt (bonds). Muni bonds generally pay tax-free interest. Corporate bonds are taxable, but tend to pay higher interest than munis of similar maturities and credit quality. But you can also figure on things like dividends on stocks, any annuities you might own, rental properties, variable life insurance (tax free appreciation), etc. Statistically speaking, if you limit yourself to 4-5% a year coming out of your income portfolio, you are more likely to maintain your principal more or less indefinitely than if you're pulling out more than 5% a year. This is one area where a good variable annuity with an "income for life" feature can come in handy for a portion (not all) of your portfolio. This type of annuity acts as a pension basically - it pays you a certain amount each month for life, regardless of what actual dollar amount remains (or no longer remains) in the account. Some even allow the income for life feature to be transferred to a spouse or even children or grandchildren. But you do pay for these features - the annual fees for these annuities with all of these "bells and whistles" tend to be on the high side. And you've also got to be mindful that insurance products are basically as good as the company offering them.