How much to retire?

On a cyclical basis, I’m thinking about retirement. I don’t know for you, but me, after a few years at the same place, I’m tired of my job. I wonder if I’ll ever find something which will suit me for a long time. I’d say that it looks impossible.

So, how much would be necessary to say goodbye to it all?

I’m often tempted to say that 500 000$ would probably be enough, given the fact that the market has an average annual performance of about 10%. Which means that you could pay yourself an income of 50 000$ on an annual basis (with some deductions if a part of that money is on your retirement account) and your portfolio would continue to grow, or at least, stay steady.

With 50 000$ a year, you'd get something between 3000 and 4000$ a month. If you live in Vancouver, you'll probably die after 2 months with that money, but everywhere else in Canada, you're probably gonna be OK to pay the grocery, the city taxes, some clothes, some trips. You’re not rich, but no poor either.

So, I’d say that, when you’re at a point where you just want to say a big fuck you to everyone, you could do it with a portfolio of 500 000$. But if you still have some patience in you, you could wait 5 more years and wait for the 1M$ mark (you’ll get there 5 years later if you achieve a 14% annual performance). Then, with 1M$, it’s obvious you’ll be OK for retirement, whatever your age is. With that money, you could do whatever you want for the rest of your life if you’re not too much into luxury. You’ll surely be able to travel at least twice a year, you’ll be able to eat well, dress well, have an OK car and have an active life.

And you won’t have to work along people you don’t like in a context you don’t like either. How many days do we really enjoy yearly? If the proportion appears too low, retirement as soon as possible should be your main objective. Because life is short.