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Comment by muse900 | Hacker News Reader

Thank you.

You are an inspiration, and I do agree, quality of life doesn't come with millions of $.

As we speak am in a 6 months transition, while leaving London and a good salary, to go back to my home-country and reside by the beach. Will be a tough one but certainly worth it! Glad to see that some people like you have achieved it!

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I just want to point out that for all intents and purposes, having millions of dollars is equivalent to owning a software company that brings in 6 figures of passive income. If you invested $4 million in index funds, you could safely withdraw $120k per year (3%, accounting for inflation).

In reality it takes more than $4m to live off the returns, but that is a common dream.

You can't pay your bills with a 10 year average. There are down years.

A 3% withdrawal rate is extremely safe, and a 2% withdrawal rate is almost guaranteed to last forever (that would give you $80k per year). These rates account for both inflation and down years.

More information: https://www.reddit.com/r/financialindependence/wiki/faq#wiki...

This is very false. Run some simulations. 4% is safe to withdrawl.

The down years are why you only withdraw 3 to 4% max.

Anyone down voting actually have $4m in an index fund? Or are you just keeping the dream alive?

Seriously, though. I would love to hear from someone who does this.

The average dividend rate on the total market index is currently around 2%. If you want to be extra safe, you could just live on the dividends and never touch the principal. 80k would be enough for most people to "live off the returns".

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