How much money do we need in our bank account to feel safe for the next 20 years?

12 comments

1. Depends on where you live and your lifestyle.

2. To feel safe? Money is a tool to provide fear.

3. 1mil would be 50k x 20yrs not including interest as a good starter. Plus it minus depending on your cost of living and if that includes having a job or not

4. Spend a month recording all your spending then multiply it by 240 and you’ll get your answer.

5. Twice your annual income in long term investments by the time you’re 35. At least that was to old mantra. Probably three times that now.

6. This is basically what the field of retirement planning is all about. Basically, you would try to forecast your monthly spending first. Leaving your job tends to eliminate a lot of expenses, house gets paid off, etc. For a 20 year timeline, you likely wouldn’t want your money in a bank account, you’d want most of it in a conservative investment portfolio that will yield more than inflation. Rule of thumb is that 25x your annual spending in that account will just you indefinitely.

7. Generally speaking you shouldn’t keep much cash in an account. Especially right now with high inflation. That money is just losing value by the day. It should be invested somehow.

   What are you trying to be safe from? You’re trying to have enough money to be unemployed for 20 years and not change your lifestyle?

8. [(your rent) x 4] x 240 x 1.10, just to be reaching the bare minimum, and that’s assuming inflation doesn’t blow everything out of the water, or an economic depression hits.

9. 500k in a solid stock market portfolio returning 7-10% a year would be enough to get by imo.

10. money that makes money or interest that makes interest so your not actually spendng wages your just spending the interest

11. As in money ‘just sitting in an account’? A lot depending on how much you use per year and what you’re financial goals are But that money are worth less every month because of inflation and whatever new crazy monetary policy your government may come up with. Money just sitting in the bank is not without risk. To my knowledge banks hate when large amounts of of cash sit in accounts for long periods of time without because its a liability on their balance sheet. You’re never safe unless you live in stable financial havens like Switzerland, Liechtenstein, Cayman Islands, etc.

    The wealthy move their money from asset to asset depending on market cycle conditions. From risk on assets like stocks, crypto, real estate during times of prosperity to risk off assets commodities (oil, natural gas) & precious metals during global market downturns. Some of these generate income on their own while managing to be liquid. While they do have their own risks the rewards are significantly larger than just parking cash in a bank for years. The age of Saving died August 15th 1971.

12. Don’t store money in your bank account. Bank runs are a thing. Inflation is a thing. Goverment are scum and won’t hesitate to steal all your money if all it takes is flipping 1 to 0 on their computer.