Financial Freedom

So basically my plan for this blog is to attempt to keep track of the steps i am taking toward securing financial freedom. And just what do I consider financial freedom? Well, what I have in mind is a lump sum of money, such that I can live off of the earnings and not touch the principal. One of many of my inspirations for this site, 2millionblog, has chosen a goal of 2,000,000. Im not quite sure how that number matches up with my own personal goals. But After reading a few articles on choosing a good target amount for retirement, its still hard to say what a target amount should be.

Theoretically, lets say you wanted to retire living on a fixed income of 60,000 a year. Assuming a rate of return of about 5% for securities designed for fixed income, this would take 1.2 million dollars. Out right that sounds like a lot of money, doesn’t it? Plus I’m not really taking into account social security as im sure that program will be dissolved to simply become another topic in middle school history books. But that’s for another post.