How much cash should I set aside before I can quit my job...?

...and get a return of $50000 annually from investing that capital? What average % yield should I aim for, and how should I diversify my investments? Assume we live in a tax-free, inflation-free world. Serious answers please.

Depends on what you return you can comfortably get. If you throw your money in 5% T-bills, you'll need $1million to get that return.

However, if you diversify a bit and buy a few index ETFs and write covered calls on em to earn 25% a year or so, then you only need $200K.

If you combine the above and also do some iron condors and earn 5-10% a month on this stay rich pile, earning say 50% a year conservatively, then you only need $100K.

Education is the key. The more you learn about how to invest and what you can do, the greater your return in the long run.

So, to answer your question, I'd learn first about strategies that can get you 25% or so return a year, master them, then you'll know just how much you need (see above). :-)

Let me know if you have any questions.

Hope that helps!

Given that you are in a tax-free, inflation free world, I would say you would need $ 1mln to also be in a worry-free world. With that kind of money you can invest in safe investments, without a big risk of capital depreciation, which would potentially force you to take a job again. Since you want to live from the income stocks may not be a good idea, so look at returns of about 5-7% annually.

Good luck...

28% Annually will get you $50,000.00 USD if you have at least $200,000.00 USD.

If you need a more detailed answer just email me.

Top 4 Answerer.

You need a lot more than that to just live off your investments.