To me, the question should be "How much is enough lifestyle?" Once the lifestyle question is answered , "How much is enough money?" will have a straightforward answer. For example, if someone wants to live in a $2 million house, drive a Mercedes 500 SL, attend private schools, and have a yacht, then $3 million net worth is probably not enough. On the other hand, a $250,000 house, 2003 Camry, public schools, and ski boat can probably do very well on $3 million net worth. To me, either lifestyle is acceptable. I am not one to judge the lifestyle another person chooses, if they can financially support it.
In our case, once we chose a lifestyle, it was easy to calculate the cost of supporting that lifestyle. We took that number and multiplied it by 20 to get a good initial estimate of a comfortable value of "enough money" on which to retire. Of course, as with any major personal finance decision, we had our professional advisor do an in-depth analysis to confirm the validity of our estimate.
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