How much capital do I need to retire comfortably on ?

[Aaron]

Income Required for Financial Freedom

Before Tax After Tax @33%
$70,000 $52,632


Capital Required at different rates of return
Yield% Capital Difference 1%


1% $7,000,000
2% $3,500,000 $3,500,000
3% $2,333,333 $1,166,667
4% $1,750,000 $583,333
5% $1,400,000 $350,000
6% $1,166,667 $233,333
7% $1,000,000 $166,667
8% $875,000 $125,000
9% $777,778 $97,222
10% $700,000 $77,778
11% $636,364 $63,636
12% $583,333 $53,030
13% $538,462 $44,872
14% $500,000 $38,462
15% $466,667 $33,333
16% $437,500 $29,167
17% $411,765 $25,735
18% $388,889 $22,876
19% $368,421 $20,468
20% $350,000 $18,421


Cutting and pasting from Excel creates presentation problems but I divide the $70k income by the interest rate to arrive at the required capital value. The last column shows the difference 1% improvement in yield makes in capital requirements. It highlights how important getting in excessive of 7% is. Even the difference in 4% to 5% is a jump.
In the current low interest rate environment of 3%-4% you will need over $2mill by my rough calculations. Hope I can pick up some 20% returns from somewhere. Based on past performance I will need to look after my health as I will need to be working well into retirement.