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MJ DeMarco
I followed the science; all I found was money.
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MJ talks about living off of 3.5% interest from bonds for life.
A bond is just one income instrument. There are others. I would recommend a variety of options, from dividend stocks, to REIT payments, to real estate income, to MLP Partnerships, to other "hands off" options that deliver regular reoccurring income.
I also don't recommend that your entire net worth be invested this way. If our net worth is entirely dependent on the stock market, you're not financially independent, but dependent.
If the markets crash 50%, my life wouldn't change. I'm guessing other folks on this forum who are financially set are similarly invested. Also, which you didn't mention, is that inflation is correlated to interest rates. If inflation is high, low paying bonds would be so cheap that they would be earning (net) a lot more 3.5%, but probably 6 or 7%. And new bond issues also would not be trading at 3.5% coupon as they'd sell none. Inflation and interest correlate.
Also, your question kinda doesn't consider HOW your life would look at this level of wealth, but looks at it from a point of view of being broke, or being leveraged to the hilt with cars and mortgages.
I have no debt (outside of an ongoing experiment) and no mortgage payments. My biggest expense is insurance and an electric bill on a fairly large house. I'm not worried about the electric bill going up from $942 to $1035, or bread going from $3 a loaf to $3.99.
So...
The bigger question is, do you own a business? And have you made a dime yet doing so?
Because all this other stuff is cart-before-the-horse, reminding me of the old thread, what color should my Ferrari be?
GOLD! - MINDSET - What Color Ferrari Should I Buy? (I Have Twenty Bucks)
I have twenty bucks … what color Ferrari do I buy when I succeed? (Image @biophase) Ridiculous statement, often equivalent to a ridiculous question quite often found here at the forum. The poker-face for the WANTREPRENEUR are the hypothetical questions about things that are months, perhaps...
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