Yesterday’s post What’s Your FU Money Amount prompted several great comments and tweets. Stephen Flemming chimed in with his target FU money amount from several years ago:
Seeing Stephen reference $42 million made me think it would be interesting to calculate FU money assuming a “Buckhead fabulous” lifestyle. Here’s how that might be calculated assuming a 30 year horizon with no inflation and no interest/appreciation:
- House – $1.5 million
- Beach house on 30A – $2 million (@lance prefers Rosemary Beach)
- The Westminster Schools for three kids ($20k/child/year) for 12 years – $720k
- Ivy League college for four years @ $50k/year/child – $600k
- Living expenses/property taxes/etc @ $150k year for 30 years – $4.5 million
- Two nice cars @ $10k/year/car for 30 years – $600k
- Two $50k angel investments per year for 30 years – $3 million
- Total: $12,920,000
So, a little south of $13 million of after tax dollars in the bank gets you a “Buckhead fabulous” lifestyle in one of the wealthiest communities in the Southeast with extra to spare.
What do you think? How would you calculate your FU money?