[wheaties]

Let me get this straight, he thinks 900k is going to be enough to retire on, send a kid to college, and lay for his future medical bills!? That home building business started during the home building boom better be earning more than 50k.

[kpanghmc]

The safe withdrawal rate -- that is, the rate at which you can withdraw from retirement accounts without too much risk of running out of money eventually -- is generally considered to be around 4%. With $900,000 saved up, that means the OP can spend about $36,000 / year from his nest egg without too much risk. The article states that they live as if they made $35,000 - $40,000 / year. So the income from their retirement combined with their side business should be enough to at least sustain their current lifestyle. I have no idea if their $35,000 - $40,000 estimate covers health insurance, so it's hard to say whether they are at risk of being wiped out by medical expenses.

[grimlck]

It sounds like he moved from Canada initially, which implies he is a Canadian citizen who can always move back and get universal health care if his health becomes a concern

[bryanlarsen]

He's letting that 900K appreciate, so it should be enough soon for a lifestyle as frugal as theirs.

And I expect that his income will remain good. There's something about being able to say 'no' that puts you in a position to snap up the really juicy work.

[nazgulnarsil]

yeah, what a moron thinking 900k still appreciating in his 30's plus free rent is enough to support a comfortable lifestyle.

I'm going to refrain from writing something offensive. Suffice to say I find your attitude distasteful.

[cperciva]

The median household in the US earns about $1.8M over their working lives; and I suspect that the median household wouldn't describe themselves as having a "comfortable lifestyle".

Now, the fact that they aren't working lowers their costs; but still, the amount of money they have now is significantly less than what a typical couple would earn between now and when they retire.

I don't see anything distasteful in questioning the arithmetic here at all.

[ricardobeat]

$1.8m distributed over ~40 years equates to $3750 a month. I doubt a family could save much with that income.

If you get to this kind of logic, you will lose around $50k from slacking out during lunch through your lifetime (15m a day, $20/h).

[wheaties]

Back in 1950 a loaf of bread cost 5 cents. Now? People often forget about this little thing called inflation. You have to plan for 4% inflation and faster medical inflation. You also can't count entitlement p

[ricardobeat]

That's why you put your money in a savings account... anyway, I think we're on the same side.

To put these $1.8m in perspective, that's just a tad less than the amount of savings one in the top 0.5% might have after retirement: http://sociology.ucsc.edu/whorulesamerica/power/investment_m...

[krschultz]

So you don't think he's going to burn through 900k in 70 years? You don't think that his living expenses will increase when he has kids?

[nazgulnarsil]

45k a year (5%) + supplemental income from side projects is A LOT of money when you aren't paying a rent or mortgage in most parts of the country. I suspect many HN people have a warped view of living costs living in areas with lots of high tech jobs.

[mahyarm]

And in ~20 years those mortgages will be paid off, and he'll be making rental income off of the house.