PDA

View Full Version : How long can you live on $100k (USD)


larrysb
10-04-2010, 06:39 PM
How long could you live on $100,000 (USD) in cash?

Assuming that's all you had to pay rent/mortgage, health insurance, car and property insurance, taxes, food, clothing, necessities of life, utilities, debts and all the things you wanted to do and never had time to do before, travel, vacation, visit friends, etc.

Tyrant Soup
10-04-2010, 09:47 PM
It wouldn't last very long unless you move to a tropical country with a low cost of living.

True Rune
10-04-2010, 09:57 PM
I'd horde it and use it as needed..like an apt with a roomie.

cannotseethe
10-04-2010, 10:09 PM
It'd last a couple years at my current lifestyle, which is already fairly comfortable.

Nemesis
10-04-2010, 10:30 PM
Being a broke-ass student for so long has made me really good at squeezing value out of every last penny. 5-6 years.

Deliberator
10-04-2010, 10:50 PM
At least four years depending on where I lived and with how many people.

deacon
10-05-2010, 12:46 AM
tropical country dweller here. 100k? you can make that last forever here. start a business. hopefully it's moderately successful. done.

i'd say a year or less in more developed nations.

vampyroteuthis
10-05-2010, 12:51 AM
What Nemesis said. I could do 3-4 years in New York with it if I maintained my grad school lifestyle, and 10 years in my home country very comfortably.

Still Standing
10-05-2010, 12:52 AM
If I skipped the travelling bit and didn't move out of my cramped apartment, I could make it last 10 years in Canada, maybe 5 years if I splurge.

Anju
10-05-2010, 12:56 AM
With how i live that would last a few months at best.

plotthickens
10-05-2010, 09:04 AM
$100,000 would last my husband and I :
* about 5 years if neither of us worked.
* about 30 years if I stayed home, and then we could both retire.
* about 15 years if he stayed home.

mormeguil
10-05-2010, 09:56 AM
I could make it last abot 10 years on my current lifestyle. Probably not worth it tought. Myabe work just a bit, about 10-15 hours a week and you could just keep on living like that for a while.

themuzicman
10-05-2010, 10:04 AM
How long could you live on $100,000 (USD) in cash?

Assuming that's all you had to pay rent/mortgage, health insurance, car and property insurance, taxes, food, clothing, necessities of life, utilities, debts and all the things you wanted to do and never had time to do before, travel, vacation, visit friends, etc.

Let's see.. with $100K, I could pay off all my debt, leaving me with around $30k.

Expenses around $2k/month... So, 15 months, no travel or anything else.

zibber
10-05-2010, 10:10 AM
How long could you live on $100,000 (USD) in cash?

Assuming that's all you had to pay rent/mortgage, health insurance, car and property insurance, taxes, food, clothing, necessities of life, utilities, debts and all the things you wanted to do and never had time to do before, travel, vacation, visit friends, etc.

Well, with that laundry list, it would certainly be a lot shorter than it could be. $100,000 would easily last me over ten years, if I chose it to.

woodywoodpecker
10-05-2010, 10:25 AM
You can live 20 years in Vietnam on 100k with cable TV, internet, good food, travel, education, entertainment, taxpayer, expenses for family consumption (conditions: already have a house)

Or : you can live 50 years relatively comfortable on 100k in Vietnam

Kricket
10-05-2010, 01:19 PM
With no changes to lifestyle, a little over four years. With changes, probably twice that.

darynthe
10-05-2010, 01:31 PM
A CEO in Ecuador told me 50K would last at least two generations for poor people.

deacon
10-05-2010, 05:18 PM
that's if they have no relatives... they almost always do and in the dozens

Imagineering
10-05-2010, 05:20 PM
Did you see that documentary on the homeless guy who was given 100k? I tried to hide the following paragraph if you are curious about it.

Did you see the documentary on the homeless guy? It really pissed me off. First off, he shouldn't of bought that kid a car. Second, he got ripped off at that dealership where he bought his truck and that salesman should of been ashamed. Third, all the money grubbing trashy woman came out of the wood work. He was straight retarded with money.

I think one could live for 3 years on 100k.

Sawa Hinuyo
10-05-2010, 09:24 PM
After some quick math, I figure, that with my current lifestyle, it'd last about 5 to 8 years, give or take something...

jm123
10-05-2010, 09:34 PM
Honestly, probably 3-5 years.

Dishonestly, but still quasi legal 5-10 years.

Savagelight
10-05-2010, 10:00 PM
How long could you live on $100,000 (USD) in cash?

Assuming that's all you had to pay rent/mortgage, health insurance, car and property insurance, taxes, food, clothing, necessities of life, utilities, debts and all the things you wanted to do and never had time to do before, travel, vacation, visit friends, etc.

5 years.

Fox
10-06-2010, 01:49 AM
5 Years modestly if I had to pay for everything. Perhaps up to 10 years if my dwelling was all paid for, there was universal health care and I own a little bit of farm land.

zibber
10-06-2010, 04:49 AM
a little bit of farm land.

Actually, with some smart investment in farm land and equipment and the like, $100k might take me the distance.

GrnEyz
10-06-2010, 05:03 AM
Indefinitely if properly invested... you could probably even fail once.

plushbug
10-06-2010, 05:23 AM
In Canada, the average urban couple with one or two kids, probably not more than 2 years assuming a "standard" comfortably middle-class lifestyle.

Most urban singles I know, 3-4 years.

Me, with the house paid off several years ago, and a bias towards frugality, I'll say at least 5 and probably more like 8.

If we're talking about a windfall $100K here, as opposed to "you're no longer able to earn, and all you have is $100K in the bank"--I'd prefer to treat it as seed money for investment in property or a business, looking to create either a long-term savings or income stream.

pip
10-06-2010, 06:18 AM
100,000.00 USD = 62,905.65 GBP

That would last me just short of 10 years.

larrysb
10-07-2010, 03:19 PM
For me, I'm just trying to get an idea of a money/time relationship. If I got punted from my job, I have some money set aside from 25 years of working in high-tech. I would like to take some extended time off, to do all the stuff that 25 years of nights, weekends, holidays spent working, of losing vacation hours every year due to maxing out the accrual possible. This habit goes back even further for me, as I have not missed a day of work since I turned of legal working age. I supported myself completely on my own since I was about 17, put myself through university, working full time and taking classes at night and weekends as much as I could.

Living in one of the most crazy expensive parts of the USA, that budget would not last me very long. Half of it would be gone in a year to my rent (a meager 1000 sqft place) and spousal support payments. Then I have to pay taxes on property, I'd have to pay for hangar rental for my aircraft and the upkeep on that, then medical insurance all on my own, food and utilities, and then, whatever is left, spent on doing things I wanted to do. I do not carry any debt either. Most of my expenses get charged through my credit card, but I pay it off every month.

I don't think I could last a year, if that. I think at most, I would project 3 months and then a return to work would be necessary relatively soon.

On the investment angle, one would be doing extremely well to garner 3% annual return on investments these days with any kind of safety. Even that meager return will require significant risk of capital loss. That $100k lump would only return $3k a year, or a few hundred dollars a month. Really safe investments are worth about 1% these days.

darynthe
10-07-2010, 03:39 PM
Well for one it all depends on your investment skills. There was this player in poker all stars who started out with 39 dollars and ended up with like 4 million.

TigerL
10-07-2010, 03:50 PM
As larrysb states above, rent/mortage makes up the biggest part of monthly expenses for most people so depending on where you live and how you want to live (neighborhood, with roommates, old building meaning 70-100 years old in some places, etc.), this will have a huge impact on long 100K lasts.

The second most common expense would be, for most people, health insurance, if they elect to take it. Without an employer or special association, just try to get individual health insurance even with minor conditions (e.g. acne treated by a doc) in your past; women face special challenges as some insurance companies charge them extra for the "risk" of pregnancy and also for birth control pills. Insurance can cost several hundred dollars a month even for a mediocre plan.

Other things to think about would be car insurance/ payments and as above, food, utilities, etc. Also, don't forget cable, cell phone, internet. Cheap for me but up to $100+ a month total for some people.

I've lived fairly on $35K US but I was living in university-subsidized housing (had my own room) in a relative cheap city with excellent insurance 100% covered while paying off student/ car loans. For where I live now, 100K would likely only last 3 yrs. for a single person living fairly simply with no debt.

{we're assuming 100K net right? Because if taxes were taken off, it'd be more like 70K-80K}

larrysb
10-07-2010, 04:34 PM
Yeah I am talking net, taxes already paid on the gains.

My rent alone is 25k a year. I live in a modest two bedroom house with a detached garage. It is pleasant but not at all luxurious. Just enough room for me to have room for an office. My spousal support payment will be a bit more than that. Seems wrong somehow to be saddled with that from short term marriage with no kids, from which her net worth has increased greatly.

But damn, do I ever need a break.

Thinker
10-08-2010, 12:13 AM
We (family of 3) could make $100K last for 2 to 3 years as long as we didn't need to pay rent or mortgage payments.
It would generally mean being more frugal on how we spend money.

By myself I could probably make it last 4 years (or more if I was able to move to another area).

AdmiralJack
10-08-2010, 12:17 AM
Can't put it past me to entirely lose my shit over a windfall like that. I can imagine a number of things that would be very smart to do so it'd last, but I'm accustomed to blue collar money (and not the union-boy waste management/roughneck kind, either) so I recognize that the extra zero has potential for intoxication.

6 years or longer if I can keep it together.
Maybe a year if I continually decide that one more pinball machine couldn't hurt.

ktgrey
10-08-2010, 12:31 AM
This is an interesting thread for me since I've been trying to compare my spending to that of the average person for a while for a while. I'm single, and I pay $735 per month for an apartment which I consider fairly luxurious (lots of space, washer+dryer in the bathroom, good sized kitchen counter), and the rest of my costs make up about that much as well. Again I don't make any effort to skimp and buy soda, the expensive cookies at the grocery store, imported cheeses that cost like $15 a pound, I'm not overly concerned with trying to use up everything in the fridge before it spoils etc. Including any "big" purchases like a computer or whatnot, it'd be about 20k a year, so 5 years for me which sounds about right from reading through the thread.

I harbor alot of skepticism towards those who feel 100k is enough to live on indefinitely. You need at least 10% interest per year, maybe 15%, and that's after countering the effect of inflation. And as for starting a business, perhaps INTJs are better at running a business than the unwashed mashes but I imagine the risk is still pretty great, plus it would use up so much of your time you might as well stay with your normal job.

I wonder how much money it takes to comfortably and securely retire?

Still Standing
10-08-2010, 02:01 AM
I harbor alot of skepticism towards those who feel 100k is enough to live on indefinitely.

In my case:
Rent, utilities and Internet: $600/mo
Grocery food: $200/mo
Transportation: $20/mo
Clothing and stuff: $20/mo
Insurance: $30/mo
Various extras: $100/mo

So yeah, about 10 years.

psykhe
10-08-2010, 06:27 AM
Depends on where you gonna spend that $100,000 (USD). I think 15-20 years for me provided that I am going to invest that in a food business and be as frugal as I can be in a tropical country. In 5-10 years, I am calculating 50-60% ROI.

Night Runner
10-08-2010, 10:28 PM
If I were to move back to Russia, I could probably make it last for about 10 years. If I were stingy, it could probably last ~20 years. And if I were stingy and smart, the interest on that $100K could feed me for the rest of my life. ;)

Delarge
10-09-2010, 02:32 PM
I'd use $15,000 to support myself for one year while I grow the remaining $85,000 in the markets for shares, bonds, futures and valuable metals.

brdmadgrl82
10-09-2010, 04:35 PM
One year if had to pay bills. It's never enough *sigh* we are struggling with a little over that amt. (probably because I don't qualify for financial aid at school- not easy to pay $3000 per class). then the guilt of taking a vacation.......

Feral
10-10-2010, 11:18 AM
I could live slightly more comfortably than I am now for about 4 years.
Or I could live fairly lavishly for 3.

supra938
11-28-2010, 01:23 PM
Adjust your lifestyle, hope for little inflation, and you can retire.

Know how to invest intelligently and get 10 - 14% annual return. That amounts to 800 - 1200 a month for income. Let's say you share a studio apartment with someone.

$400 rent
$200 utilities / cable / internet / phone
$200 - 400 for food

And you, my friend, do not have to work.

Would I live like this? Maybe, I would still get a job and invest the money. Probably retire when I have 200 - 300k and reap the power of compound interest!

ShadowID
11-28-2010, 03:47 PM
Forever? Buy a home for $100k, rent out a portion of it, and live off of that.

Now, getting a home for $100k may be another story.

Asocialkat
11-28-2010, 04:24 PM
If the $100,000 is what is left over after taxes, then I could live for 8 years with my present lifestyle and assuming no interest earned.

If the money is earning about 5% interest, then I could live for 10 years with my present lifestyle.

That is if I do not work or earn any extra income. If I just worked 12 hours a week at around $8/hour, I could survive for 19 years on it. These calculations are not corrected for inflation though.

Booko
11-28-2010, 04:36 PM
If I don't change the way I live, about 2 years

That's for 4 of us and assuming at least $15K per year in unreimbursed medical expenses.

larrysb
11-30-2010, 05:14 PM
Adjust your lifestyle, hope for little inflation, and you can retire.

Know how to invest intelligently and get 10 - 14% annual return. That amounts to 800 - 1200 a month for income. Let's say you share a studio apartment with someone.

$400 rent
$200 utilities / cable / internet / phone
$200 - 400 for food

And you, my friend, do not have to work.

Would I live like this? Maybe, I would still get a job and invest the money. Probably retire when I have 200 - 300k and reap the power of compound interest!



I have been investing, successfully, for many years. Can you explain how you would invest for 10-14% annual return?

If you are relying on investment return for income, you need to generate not only income but growth with respect to inflation and achieve security of principal.

The safest investment around at this point (arguably) are US T-Bills and Treasure Notes. Current t-bills are yielding less than 0.2% (yes, two-tenths of a percent) for anything less than 6-months. Even the 1-yr t-note is only yielding 0.28%. In other words, doodly squat.

That means in real numbers, investing $100k into a 52 week t-bill will return $280, taxable income!

The long term treasuries aren't much better, 2 and 3 year notes are returning about 0.5%, the 10-yr is only returning about 2.625%. Even the 30 yr is only returning 4.3%.

To put it in real numbers, plonking $100k into a 30 yr treasure note will get you about $4320 a year, for the next 30 years.

The highest dividend yielding securities I know at this point are Mortgage REITS, yielding in the 10-20% range. They are CRAZY risk investments though, most of them are tied up in agency pass-through securities and collateralized mortgage obligations.

In reality, anyone getting more than 5% return on investment these days is doing pretty well. Anyone getting 10% is just getting lucky and taking very high risk to capital.

I'm not trying to be mean, but some of the answers on this thread indicate an extreme ignorance of cost of living and what kinds of investment returns are actually available in the real world.

Even if one owns a house outright, there are taxes due every year (usually about 1.2-1.5% of value in the US), insurance, upkeep and repairs and many other expenses.

Thinker
11-30-2010, 06:08 PM
I'm not trying to be mean, but some of the answers on this thread indicate an extreme ignorance of cost of living and what kinds of investment returns are actually available in the real world

I am glad I saw this because I was starting to think it is dirt cheap to live in the US.
The OP asked:
Assuming that's all you had to pay rent/mortgage, health insurance, car and property insurance, taxes, food, clothing, necessities of life, utilities, debts and all the things you wanted to do and never had time to do before, travel, vacation, visit friends, etc.

I think some people have seen it as a challenge on how far they could push their lifestyle.
Many explicitly excluded key costs like rent/mortgage.

I also agree that there are some ambitious expectations in relation to returns on investments.

Storm
11-30-2010, 07:08 PM
FYI: Taxes on $100,000 in the US is $22,000

2 years and 10 months, assuming I live conservatively, but not nun-like. That includes debt payments, car maintenance, gift-giving, airline tickets, clothing, health & dental insurance, rent, utilities and $100 worth of entertainment a month (restaurants, movie tickets, etc.). It also assumes a 4% return on investments (I would not invest money I would spend that year and keep an emergency $5,000 in a ready-access area). I also assumed that I would have to pay taxes on this money in the first year, which would be $22,000.

I assumed I lived alone. Sharing an apartment would allow me to live a few months longer.

I think a lot of people in this thread do not know how much they spend. Unless they are wearing the same clothing, eating canned food, never giving gifts, never spending money on entertainment (that includes holiday decorations, movies, restaurants, parking fees at events, video games, movies (both rented and theater), etc.) and have no debt.

Forever? Buy a home for $100k, rent out a portion of it, and live off of that.

Now, getting a home for $100k may be another story.

You're saying you could live off of $500 a month (amount you could charge to rent out a room)? Let's see - $300 in utilities, $200 in food, $100 for health insurance. Oops, already out of money.

Adjust your lifestyle, hope for little inflation, and you can retire.

Know how to invest intelligently and get 10 - 14% annual return. That amounts to 800 - 1200 a month for income. Let's say you share a studio apartment with someone.

$400 rent
$200 utilities / cable / internet / phone
$200 - 400 for food

And you, my friend, do not have to work.

Would I live like this? Maybe, I would still get a job and invest the money. Probably retire when I have 200 - 300k and reap the power of compound interest!

I see you didn't include health or dental insurance, clothing, or travel expenses. And that's just bare minimum stuff. Also, if you want a 10% (which I highly doubt you could get easily) - you're going to have to tie that money up for a few months. Which means you can't invest the entire amount.

Blse
11-30-2010, 09:22 PM
You mean as we currently live or in terms of what's possible?

mieu
11-30-2010, 11:49 PM
Since getting the money doesn't mean I'm no longer able to earn, it would all be gone instantly as I'd use it to pay off all of my educational loans as soon as I got my grubby paws on the cash. This is most certainly how I would spend it in order to avoid further interest accrual. I'd be paying that amount over the course of my life anyway, so either it comes from my salary or that lump sum.

Then, as a consequence, I'd be able to live 20 years longer and enjoy a fruitful, happy marriage due to the financial stress being lifted from my shoulders.

So when do I get the money?

Rohsiph
12-01-2010, 12:03 AM
~5 years with my current lifestyle, though if I can manage to stretch things successfully maybe add a year or two.

Seraphim
12-01-2010, 07:56 AM
Recently did a spreadsheet for retiring full-time in an RV, which included travel (about 1000 miles a month), gas, etc., as well as insurance(s), expected maintenance and health costs, occasional restaurants

AT about 4900 a month = about 20 months. I could probably stretch that out to 40 months, if I got rid of some insurances, travelled less and had no hobbies.

At current standard of living it would last a year. A year and a quarter if I weren't paying my son's college expenses.

At current interest rates, one might achieve a 3.5% safe return, which would be $3500 a year on a 100K investment.

BobG
12-02-2010, 08:15 PM
Slightly more than a year, but I could stretch that out - don't put any money away towards retirement that year; don't pay the ex any alimony that year; don't pay the kid's car payment that year; toss in the fact that I have a certain amount of income coming in whether I work or not; etc.

In fact, I think I could stretch that much out for 2 years fairly easily even with no other income coming in. Even longer if I got tossed in jail for failing to pay alimony.