Generally, how much money would I have to invest to live

around 50k for a frugal neet life.. 200k for some semblance of luxury

>>1395440
Tricky to predict, but a lot.
The higher the dividend, the higher the risk, so you'd probably have to avoid high percentage ones to protect your capital.
If you chuck $100K in to something paying 5%, they'll probably cut you a check for $1,250 every quarter (or, $415 a month).

>>1395466
So it would cost around 1mil to make 60,000 a year?

>>1395593
If you could find a 6% dividend paying company that you felt comfortable leaving a million dollars with, yeah.
But that might be the difficult part.
Meanwhile, if you drop your yield to 4% for stability, now you need 1.5 mil.

>>1395440
Assuming a stock has a dividend yield of 2% its share price, and you intend to live off on it for $20k a year, then the number of stocks you would need would equation to:

y = 1,000,000/x

y = number of shares
x = latest price of stock

>>1395440

A safer bet is a dividend ETF like DVY which holds 100 or so companies. It has a 3% yield. So you would need around $1.6mil to make $50k per year before taxes.

>>1395463
50k would give you roughly $2,500/year to live on.
200k would be roughly $10,000/year to live on.

I don't know how the hell your manage to live on $2,500 per year, desu.

average ROI on investments (im not sure about dividends exactly) is around 7% historically

That's $70,000 on $1,000,000 invested per year.

To be safe, you should assume half, so $2M invested would get you $140,000 historically, but $70,000 almost guaranteed, probably more like $100k.

You can live on $100k, it's like $9k a month cash, $3000 for any BMW M6 fully loaded, or even a lamborghini huracan for $5k, assuming no mortgage another $1k for maintenance, and $3k to spend on food, which is about $100 a day, you'll realistically get around $1.5k to spend on entertainment per month, or a $18k trip per year somewhere.

If you had $3M, you could get $210k, or realistically like $150k.

I would personally suggest $5M invested, to get around $375k a year historically, or $300k a year to be safe, that's about $25k a month, or $27k

That would be more than enough to sustain any type of lifestyle.

$2M at minimum, to live "frugally rich", $3M would put you in the six figures club, or $5M to have no care about buying an ipad every week.

>>1395724
by eating instant ramen and not buying anything

basically, a life of misery

>>1395463
>>1395466
>>1395724
>>1395731
ITT: faggots who dont understand safe withdrawal rates

>>1395738
Please explain why my 5% safe-withdrawal rate is flawed. I would normally feel safer with 4%, personally, but wanted to be as fair as possible.

>>1395738
Explain instead of acting like a smug ass.

>>1395738

ITT

faggot who has no dreams and ambitions

>>1395742
>>1395746
>>1395744
>Explain
No, go learn it yourself. I'm tired a faggot NEET threads like this one, just as I'm tired of the faggot NEETs who can't even answer it correctly.

I pointed you to the road, but I'm not going to carry you fat asses to the finish line.

>>1395753

A 5% safe withdrawal rate is a perfectly sound assumption for a thread like this.

It's more nuanced than 5%, obviously, but I'm not going to type out three or more pages for a 4chan thread, for fuck sakes.

Stupid question - people talk like 5% is all your going to get, however since the stock price raises, if you invest long term, then surely your yield is going to be way higher since you've invested trough years of them increasing their dividends over time?

>>1395778

probably

but just stick with 5 to make it easy to count, and if you get more, yippee kay ayy mother fucker you can buy yourself another corvette z06 with the z07 package.

File: 1420223090080.jpg (165KB, 640x610px) Image search: [Google]

165KB, 640x610px

>>1395746
It's ok.
He saw a movie and heard the best way to do finance.
And he's pissed we don't know!