Money

Keep your lives free from the love of money and be content with with you have.

Hebrews 13:5

Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share. In this way they will lay up treasure for themselves as a firm foundation for the coming age so that they may take hold of the life that is truly life.

1 Timothy 6:17-19

Retirement Need

Here is a simple formula to determine how long after retirement we can live in the way we have grown accustomed:

Cash + investments/ annual Debt + annual budget = years until money is gone 

Examples:

$1,000,000 retirement money/$100,000 in debt + $100,000 annual budget = 5 years until money gone

$2,000,000 retirement money/$150,000 annual budget = 13.3 years until money gone

Alternative calculation

If you want to live on $100,000 for 25 years and have no debt you will need $2.5 M in investments

($100,000 x 25 = $2.5 M)

$50,000 x 25 years = $1.25 M 

$100,000 x 25 years = $2.5 M

$200,000 x 25 years = $5 M

400,000 x 25 years = $10 M

What if you want to be retired for 20 years at $100,000 annual budget?

$100,000 x 20 years = $2 M

($100,000 annual budget = $8,333 each month)

$120,000 x 20 years = $2.4 M

($120,000 annual budget = $10,000 each month)

$150,000 annual budget x 20 years = $3 M

($150,000 annual budget = $12,500 each month)