How much money you need to feel financially secure

geezer

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May 12, 2006
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Savings as in having that amount in a bank account, or does money in a pension fund also count? My pension fund balance currently is about 1 mil more than that amount.
 

cguy

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Jan 2, 2013
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Very dependent on where one lives. There was a point where that was my net worth in the Bay Area - didn’t feel very financially secure with that there (because I wasn’t).

I suppose that technically, that wasn’t my savings though (half was in a flat).
 

Scooby_Doo

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Sep 4, 2005
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I will feel financially secure once I have enough saved to give me a basic life if I was unable to work again.

I will feel financially independent once I have enough to support my desired lifestyle without having to work.

R7.5million is not a lot if you are young, I would need to do maths to see what it is actually worth.
 

JayM

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Oct 30, 2005
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Savings as in having that amount in a bank account, or does money in a pension fund also count? My pension fund balance currently is about 1 mil more than that amount.

I wouldn't feel safe if it was in an SA pension fund.
 

Sepeng

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Dec 12, 2011
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That's, well, actually less than I might have imagined, with it being an American study and all that.
Guess it would depend on many factors.
 

Gallderhen

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Feb 11, 2004
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If you have R4.5m to invest at 7%, that's over R26k a month in interest. Can easily live on that.

You can live on that for 5, maybe 10 years. Then inflation catches up to you and that R26k per month will be more like what R15k is now, and in 20-30 years (depending how long you live after retirement) it drops to R10k or R5k (in today's terms).

-G-
 

Agent_Smith

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Dec 3, 2010
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You can live on that for 5, maybe 10 years. Then inflation catches up to you and that R26k per month will be more like what R15k is now, and in 20-30 years (depending how long you live after retirement) it drops to R10k or R5k (in today's terms).

-G-

Ah yeah, very good point.
 

Other Pineapple Smurf

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Jun 21, 2008
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You can live on that for 5, maybe 10 years. Then inflation catches up to you and that R26k per month will be more like what R15k is now, and in 20-30 years (depending how long you live after retirement) it drops to R10k or R5k (in today's terms).

-G-

Let's fact check those time value of money statements: If we do a time value on money to get to R26K today then let's travel back in time using South African inflation data.

0 years - R26K

10 years ago - R16K

20 years ago - R9K

30 years ago - R4K


Yeah, that's what time can do to money if you don't reinvest the interest.

Just ask my dad, he turned R4 million into R75K by not reinvesting the interest of a trust fund and instead of taking it for himself. Money only pays out to us on his death.
 

FrikkieSwag

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Nov 28, 2018
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Very dependent on where one lives. There was a point where that was my net worth in the Bay Area - didn’t feel very financially secure with that there (because I wasn’t).

I suppose that technically, that wasn’t my savings though (half was in a flat).

en mooi vir jou ook
 
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