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I have not been able to find any evidence of a federal law to that effect, although I do not have access to any law-specific search-engine (should such a thing exist), so I cannot say categorically such a law does not exist. However, it is possible there may be a way of circumventing their restriction. The question What US law requires a bank to reopen a ...


33

Not safe at all. A 4% withdrawal rate would require the US stock market in the 21st century to produce returns similar to those of the 20th century, i.e. in the vicinity of 7% in real (inflation-adjusted) terms. Fair estimates for stock returns going forward are not this high. Rick Ferri proposed a real 5% over a 30-year horizon in 2015. I recall Bernstein ...


9

I think you could answer this by looking at how the world market does on average compared to the US market. Essentially a comparison of VTSAX to VTWIX. This website will allow you to do exactly that. While VTWIX has a lower growth rate over a 10 year period (8.57% versus VTSAX's 13.09%) it's still higher than the ~7% annualized growth required to make the 4% ...


11

The 4% rule was created by looking at hypothetical retirees throughout all of the history of the stock market. 4% was found to always ensure that a retiree never ran out of money for at least 33 years regardless of what period of history you looked at. This includes a retiree going through any of the 30 year periods that intersected the Great Depression, ...


-1

Usually the best investment for a start is buying a house/apartment, if you don't have one yet. The rent you pay every month could easily amount to $1000/month, and it will adjust itself for inflation )


1

Years ago I wrote a brief discussion of a book titled The Number. In it, I link to a spreadsheet that will do exactly as you request. It opens looking like this I used a starting salary of 17338 as that's what was needed to get an age 62 salary of 60,000. The assumed raise was 3%. The 15% saved was (in my approach) 10% deposit and 5% company match. You can ...


3

This question is unanswerable as there are many important variables: How many years you expect to live What you expect to happen if you live less or more than that Whether you want exactly $1000 or can tolerate some variation How much work you expect to do to keep the money flowing How much security you want against unexpected catastrophes such as the ...


4

Given the other answers here, if you actually have $300,000 to $1,200,000 in cash sitting around, you might consider purchasing a house. I own a rental property near Fort Hood, TX originally purchased for about $110,000 and now valued at $150,000 and it earns me about $1,100 a month. You have to subtract some upkeep from that (typically about $600 to $1,500 ...


95

Endowment manager here. An endowment is a large lump of money that is invested to create "forever income". They are held by universities and the like, and there are countless billions of dollars in them. They are also very tightly regulated, including how they are invested. To the astonishment of most novices, not only are they allowed to be heavily ...


57

What you are describing is a lifetime annuity. You pay a lump sum now and then get a fixed amount until you die. Included in this calculation are estimates of (1) how long you will live (2) how much your money will earn when invested. Both of those are difficult to estimate, so in order to be confident you don't run out of money before dying, you must do ...


3

First, there's the issue of how much money you have to earn versus how much money you have for your endeavor after taxes. And then there's the issue of taxation on the yield. You can adjust the numbers per your current and anticipated futures tax brackets. From a U.S. perspective: Money market are variable. At the current rate of about 2%, you'd need $...


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There’s a general “rule of 4%” for investing. It means that a given sum invested in a total market Index fund can usually generate 4% a year indefinitely. Using that rule, $300,000 would generate $1000/mo.


21

Simple math that all (and I mean all) depends on the interest rate. At 1%: (1000 x 12)/0.01 = 1200000 At 2%: (1000 x 12)/0.02 = 600000 At 3%: (1000 x 12)/0.03 = 400000 At 4%: (1000 x 12)/0.04 = 300000 Of course, interest rates change, so you'd have to be conservative with your forecasting, and 1000/month isn't very much at all. The elephant in the room ...


1

1) Build an emergency fund. If you encounter some unexpected expense and are unable to pay it off you risk incurring a high interest loan or damaging your credit score which could negatively impact your future. I recommend having enough money to cover at least 6 months of expenses (rent, food, utilities, day-to-day expenses). Park your emergency fund savings ...


2

So I would ask another question. After this degree what do you intend to do? If you intend on going into industry, I would be saving the bulk of it in a online "high" interest savings account. This would be used for covering moving expenses, or expenses associated with starting the new job. In a pinch, if things go south with your education financing ...


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