How Much To Retire at 30?

[Rusty Shackleford]

I stole this from Dave's

In the back of my mind I've always dreamed of savin up as much money as I can and somehow trying to retire early. Lets say i'm 30 right now and I could scrape together $50,000 US currency, what would that get me in a nice relaxing part of Thailand? How long would it last? Could I live a simple life off that money and maybe if I had to teach part time just to have a little extra income? Could I live the rest of my off that money or is that the dumbest idea you've ever heard of?

What do you think? Some of the responses are plain wrong imo. Living off the interest on a big wedge of cash is about as risky as it gets, imo.

I won't be retiring at 30 but I'm definitely working towards not having to work if I don't want to. That means having a base I can crash at if need be ie. a house that I own. And a residual income of around a million won a week.

[bjinglee]

Do you have a link to the thread?

[DWAEDGIMORIGUKBAP]

I read that a million pounds is enough to reitre on frugally as the interest is 10K gbp a year, thus just enough to live on to pay shared housing, bills and food etc.

[DejaVu]

Though I don't know how feasible it is since I've never lived in Thailand, I can say that I support such a great idea.

I wonder if anyone can give an accurate estimate of how much would be needed to live off of in a cheap, yet beautiful, country like Thailand / the Philippines / etc.

[ingrid28]

What kind of visa would you need for such an endevour?

[kyndo]

And a residual income of around a million won a week.

A million won per week? 
I've never been to Thailand, but from my understanding of the cost of living in that area, you could do very well with that same residual income spread out over an entire month, or even over 2.

I would feel very nervous with a nest egg of only $50k. If you ever end up being hospitalized, or needing some serious dental work, then a good chunk of it would be gone. Also, you wouldn't be able to travel much, or buy a car, or...

I think Rusty's idea is pretty good: if you own your own house, you then have a massive amount of money that you can draw on in an emergency (mortgaging it), and property in the right location is always a good long term investment.

Also, you could subdivide it, rent it out, move to Thailand, and live off of that income more or less indefinitely. This would work even better if you have somebody in the area that you could trust to take care of maintenance issues, rent collection etc.

[katsy3g4]

I'm sure it would last you quite a while, especially in a dollar-a-day society! But, having never lived in Thailand, I can't say for certain whether that would work or not. The idea sure is tempting, though

[Davey]

I read that a million pounds is enough to reitre on frugally as the interest is 10K gbp a year, thus just enough to live on to pay shared housing, bills and food etc.

Remember that in 10 years, at current rates of inflation, 10K gbp will only be about 7K gbp in current terms. That's why I said living off the interest from a wedge of cash is risky.

Correct; people often fail to take into account inflation in their rate of return as well taxes. Of course, taxes can be ignored if the investment/account is exempt from taxes.

Let's suppose inflation is 3% and you can live off 3% of your base without paying taxes. To offset inflation, your rate of return would need be approximately 6.10% [(1+inflation)(1+rate of return) - 1= (1.03)(1.03) - 1].

[SpaceRook]

I am going to put this as delicately as I can:

If you think you can cobble together $50k and then retire at 30 to some beach paradise in Thailand for the rest of your life, you are a fool.

- 50k is nothing compared the income you will get from steady work.
- Anyone who has any clue about "living off the interest of 50k" at 30 would be worth a lot more than 50k.
- If you want to live in the cheap parts of Thailand, you need to know Thai or find a Thai spouse.
- Oh, you found a Thai spouse?  Good luck hanging onto that 50k.
- Have fun getting a job when your 50k inevitably dwindles down to $0 and the last line of your resume says "2012-2015: Just chillin'."

It's a bad idea.  And not to put too fine a point on it, but if you think 50k is "big money", you have no business even thinking about retirement right now.

[Keuka]

I met someone once who retired at thirty from the Wall Street rat race.  She only worried about where she was going to walk her dog the next day.  She had made a fortune on Wall Stree, t and had a bank account like a movie star, I presume.  Fifty G is not even close.  You would be more likely to retire at 30 if you were a receptionist at Microsoft with stock options and they fully matured into a million plus.  That would allow you probably to live on a beach in a quiet part of Thailand.

[jonpurdy]

Yeah, purpose in life is important. Even choosing a low-paying job that you love would be better than retiring, especially at age 30! I can't imagine any situation where retiring at age 30 would be fun or useful or fulfilling.

I just had a three-week vacation and was dying to get back to work (of course, I was stuck somewhere cold).

[Keuka]

Rusty, I agree with you.  I didn't know her that well to have asked that.  She seemed pretty content though.  BTW, it is a true story. 

[lotte world]

If you retire at 30 you will be bored.  So, you will find something enjoyable to occupy your time, such as a job you like.  So, you might as well find a job you like and do that instead.

I have essentially been retired since I was 38, and to occupy my time I teach English in Asia.

[DWAEDGIMORIGUKBAP]

@Spacerook, 50K is highly unrealistic.

@Keuka, that sounds like it's own sort of hell. you still need a purpose in life.

Pretty sure you don't have to be working at a corporate job to still find purpose in life.

[Mani]

@Keuka, that sounds like it's own sort of hell. you still need a purpose in life.

A Purpose is easily found..
I have an acquaintance with retired at the top of the internet bubble with million. Out of shape late 30s man.
Since then he climbed all over the world, ski toured over 1 million vertical feet last year (do the calculation... It's insane). He is now a super legit mountain guy. Crazy transformation. Some people are just good at giving themselves ridiculous goals and achieving them. I just procrastinate and surf the web

As for the first question, you want to live on a 4% draw dawn. Can you live on 4% of 50k a year? Will that cost go up due to inflation? Usually 1M is considered safe. Even in a cheap place like Thailand I would not dare trying with less than 500k.

[bjinglee]

I am going to put this as delicately as I can:

If you think you can cobble together $50k and then retire at 30 to some beach paradise in Thailand for the rest of your life, you are a fool.

- 50k is nothing compared the income you will get from steady work.
- Anyone who has any clue about "living off the interest of 50k" at 30 would be worth a lot more than 50k.
- If you want to live in the cheap parts of Thailand, you need to know Thai or find a Thai spouse.
- Oh, you found a Thai spouse?  Good luck hanging onto that 50k.
- Have fun getting a job when your 50k inevitably dwindles down to $0 and the last line of your resume says "2012-2015: Just chillin'."

It's a bad idea.  And not to put too fine a point on it, but if you think 50k is "big money", you have no business even thinking about retirement right now.

Well put.

[mrchristeacher]

- Have fun getting a job when your 50k inevitably dwindles down to $0 and the last line of your resume says "2012-2015: Just chillin'."

I didn't have any issues in getting a job after taking close to 3 years off and just relaxing in Figi.  Got a teaching job in Thailand, then came to Korea.  Take the time off!  When you are on your deathbed, you are not going to wish that you spent more time at work. 

[hilarity ensues]

The idea of retiring at 30 or even 40 is kind of absurd on our salary alone… and on $50,000??? Even in Thailand, that's not going to get you very far… unless you spend your money on a course that teaches you how to survive indefinitely in the wild. 

[SpaceRook]

- Have fun getting a job when your 50k inevitably dwindles down to $0 and the last line of your resume says "2012-2015: Just chillin'."

I didn't have any issues in getting a job after taking close to 3 years off and just relaxing in Figi.  Got a teaching job in Thailand, then came to Korea.  Take the time off!  When you are on your deathbed, you are not going to wish that you spent more time at work.

You got lucky.  I think it's OK to change careers for a bit or work on personal development.  But totally dropping out for 3 years is going to look very bad.  No company in America would hire you (especially in this economy). 

[bobrocket]

Kiwi stylz, west coast villa, 100k, high side if your happy with bluff, pension? Kiwi saver, time overseas effects this, as a kiwi, no pension refund from korea but there are options to pay to specific companies.
Your accounts can be merged within company, it's the withdrawal options that are specific.My employer + my contributions are acknowledge in NZ.
Retire at 30?, well your kiwi saver can be used as a deposit towards a house.