Today, I pulled question #54: How much money would you have to win in order to feel comfortable quitting your current job?
I looked up what I would need to retire, because I had no idea. Considering how close I am to retirement, that’s pretty scary. I obviously like to live in a little bubble of ignorant bliss. Here’s what I found out:
According to my research, because I am a single person, a middle class lifestyle is going to cost me about $28,000 to $42,000 per year after retirement. Of that, the government is probably, given my work history, going to contribute at least $15,000. So I have to contribute, from savings and my retirement portfolio, or from income, at least $13,000. The table I gathered this data from says I will need $325,000 in my portfolio but I multiplied $13,000 by 20 (expecting 20 years more of life) and ended up with $260,000.
Okay maybe I should plan on living longer, so perhaps $325,000 would be better. And of course, as they reminded me, prices are going to go up over the next twenty years.
A lot of the calculation is guess work and will vary depending on several factors like whether you have to pay a mortgage or not. I have recently upped my mortgage payments with the intent of getting it all paid off before I retire.
I do have fairly expensive hobbies; painting canvasses and paints are expensive. I would really like to get a degree in fine arts after I retire and even though the local university only charges a senior 50% of the usual tuition, it’s still a lot of money. I’m not likely to suddenly become famous and be able to charge an arm and a leg for my paintings so I probably won’t even offset the cost of producing a painting. Maybe after I’m dead.
I have a friend who now, in retirement, takes an around the world trip every year. I’d like to do that, although unlike her, I think I’ll take it on a cruise ship rather than having to fly from place to place. So I’m looking at approximately $50,000 per year for that.
I used to think I wouldn’t quit my job unless I won at least $4,000,000 but I was intending at that point to give a chunk to my son and other deserving relatives. The deserving relatives are rapidly becoming undeserving in my view and my son and his wife both have good jobs. Therefore, I am only going to worry about what I need to win to guarantee a relaxed and comfortable retirement. So sorry, everyone!
So my calculations, including a cruise every year, leads me to believe I could retire comfortably if I won $2,250,000 million. Okay so maybe I won’t take a cruise every single year and I could bring it down by about a million.
Let’s face it a million doesn’t go far nowadays. But on the other hand, I live in Canada.
Okay, so if I won a million I could retire if I wanted to. Probably what would happen, even if I won only $500,000, is that the very first time I was snippy about something or didn’t like a project I was assigned to, I’d think, “I’m outa here.” And I’d be gone.
But no matter what, retirement to me doesn’t mean sitting on the porch. I will probably always be working. I’ve had my own business since 1981 and I’d continue to have my own business. I’m actually looking forward to having more time for my business, my writing, my painting, my workshops. So hopefully, I’ll be continuing to make money long past retirement.
Winning even a million would make it just that much more relaxed and fun. Tomorrow night’s draw if for $43 million. I would definitely retire if I won that.