What is financial freedom?

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

Ok, so my plan for this blog is to keep track of my steps towards financial freedom. I am still working on what constitutes “financial freedom”. Right now I’m looking at a sum of money, such that I can live off of the earnings without touching the principal. One of the inspirations for this site, PFBlog.com, has chosen a goal of $1,000,000 by age 40. After reading an article at MSN Money, getting a solid number sounds complicated.

Still, let’s try some super-simplified calculations. Let say you want $60,000 a year after retirement, ignoring what you get from Social Security and pensions (a term that will probably go with the dinosaurs). A fair rate for return is 4%, with fixed income-type securities. So that leaves you with needing $1,500,000. Sounds like a crapload of money, huh? Well, hopefully not, but that’s another entry.

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


User Generated Content Disclosure: Comments and/or responses are not provided or commissioned by any advertiser. Comments and/or responses have not been reviewed, approved or otherwise endorsed by any advertiser. It is not any advertiser's responsibility to ensure all posts and/or questions are answered.

Comments

  1. Susannah Martin says

    I wanted to suggest a book that I found extremely helpful in answering this question, even though some of the approaches are simplified, they give an excellent starting point. The book is called “How to Retire Early and Live Well (with less than a million dollars)”. The author is Gillette Edmunds.

  2. I wouldn’t really invest your all of your funds in fixed income in returement. Otherwise, inflation might eat you alive. If you keep a stock/bond allocation of 50/50 or 75/25 you will have a higher chance of not outliving your money.

Speak Your Mind

*