The dream of many people is to have the opportunity to not work more and dedicate themselves to leisure, traveling or doing other activities outside of employment. In this sense, The artificial intelligence was asked how much money a person in Colombia should have to be able to retire.
How much money should I have to not work anymore?
In the first instance, it is advisable to consult with a financial advisor. This will allow you Personalize your retirement plan based on your current context and your future aspirations. In addition, it can help mitigate risks and ensure a constant flow of income during your retirement.
However, if you do not need the help of a professional, you can consult artificial intelligence and clear up some of your fundamental doubts. We leave you some recommendations.
(FURTHER: How much must you earn to declare income in Colombia?)
Leisure
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Numbers to analyze
According to ChatGPT, you need to take several numbers into account and come up with an estimate:
-Average expenses:
-From a single person: Approximately COL$4,377,517 (around USD 1,160)
-From a family of: Approximately COL$ 9,251,440 (around USD 2,440)
Common expenses:
-Dwelling: Rent for an apartment in a normal area can vary between COL$1,997,040 and COL$3,529,500.
-Feeding: Supermarket expenses for a person can be between COL$300,000 and COL$600,000 per month.
-Transport: The monthly payment for public transportation is approximately COL$150,299.
-Public Services: Electricity and water expenses can be around COL$345,613 for an average home.
(READ: Citizen Income Care Assessment: will there be payments in November 2024?)
In order to make this calculation, a concept known as the “financial independence number” is used.
Then You should apply the 4% rulewhich maintains that a person can safely withdraw that percentage of their total capital per year, without that money being depleted for an average of 30 years.
If we take as a parameter the income of a single person who plans to live on $50,000 a month, he or she will need to invest at least $1.2 million to maintain the same style.
What factors should be taken into account?
Lifestyle: IF you have a more austere or more comfortable life it will be decisive in the necessary income.
Investment Returns: If you achieve a return above 4%, the capital required will decrease. For example, with a 6% yield, you would need less capital.
Inflation and Future Spending: Consider inflation when calculating your long-term needs.
