Lets put a price on freedom. <\/p>\n
Many of us dream of being able to walk away from work, supporting ourselves solely on income from our investment portfolios. <\/p>\n
But what does that fantasy really mean? <\/p>\n
The ideal arrangement would be to take as little risk as possible. We would live on only dividends and bond yields, without ever touching our capital. <\/p>\n
To be sure, this dream could quickly turn into a nightmare if it required us to live on a pittance. Most of us would stipulate that we want at least as much annual income as the median Canadian family. <\/p>\n
Given all that, what would freedom cost? Roughly $4.5-million, according to my calculations for the drum roll, please first ever Financial Independence Index. <\/p>\n
The index is a toy Ive developed to answer the many readers who want to know when they can say good-bye to work without ever having to think about money again. <\/p>\n
The good news and you may be happy to hear this is that the index is not designed as a realistic savings target for most families. <\/p>\n
Think of it instead as an indicator of how financial conditions have shifted over the years and also as a demonstration of why most of us have to keep thinking about money and risk, even after we quit work. <\/p>\n
The Financial Freedom Index owes a great debt to Scott Burns, a pioneer of personal finance journalism during his years at the Dallas Morning News. For years, hes compiled the Life of Riley Index, which puts a price tag on financial freedom for Americans. <\/p>\n
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Read the original:<\/p>\n
Financial freedom is just $4.5-million away<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Lets put a price on freedom. Continue reading