Do you mean that you don't expect the gains of investment to offset the losses from inflation? Because I would find that surprising.
$3M is a lot, typically the rule of thumb is that you need 25 years worth of living expenses to be financially independent. That means you expect to spend $120k yearly? That's up to you of course but that fits exactly in what I said about choosing how much you spend. My monthly expenses are currently < $1500 per month (for 2 people, in Sweden), and I think it's more likely that I will taper off working (work fewer hours, more fun but lower paying jobs) than that I will stop working altogether. That means $300-400k would probably be enough to provide a significant level of freedom especially once my girlfriend graduates and has an income as well.
My salary is far from an SF salary and I do work full-time but I find my work quite fulfilling. If it weren't I wouldn't have much difficulty finding work with more freedom for e.g. part-time employment.
The gains of investment can offset the losses from inflation, yeah, but I'd also be drawing down. The problem is that I might live longer than 25 years and I might not be able to work by that point.
I would need about $50k/yr in expenses at present (adjusted for inflation in the future). If I'm planning for 50 years out, that means I need a portfolio of about $1.6M to have a high probability of being able to make it 50 years.
So not quite $3M, and maybe I could cut more expenses, but I think at least $1.5M in liquid assets is what I need. If by some miracle I can get a $1M payday when my current employer sells, then maybe I've got a chance at being done in the next few years.
If I could get my spending down to $30k/yr, which might be possible, then I could get away with $1M, but I'll still have to put in another 5 years or so to hit that $1M number.
Keep in my mind for US people, we have to buy our own health insurance, and if something medical goes wrong and you can't work, you can easily go bankrupt that way. There's such little safety net that I'd like to have more than I think I'll need.
5 more years of work to then have $30k/yr to spend basically indefinitely seems pretty good to me. Sounds to me like you can cut down on the pills and relax a bit ;) But yeah I get what you're saying about medical catastrophe.
$3M is a lot, typically the rule of thumb is that you need 25 years worth of living expenses to be financially independent. That means you expect to spend $120k yearly? That's up to you of course but that fits exactly in what I said about choosing how much you spend. My monthly expenses are currently < $1500 per month (for 2 people, in Sweden), and I think it's more likely that I will taper off working (work fewer hours, more fun but lower paying jobs) than that I will stop working altogether. That means $300-400k would probably be enough to provide a significant level of freedom especially once my girlfriend graduates and has an income as well.
My salary is far from an SF salary and I do work full-time but I find my work quite fulfilling. If it weren't I wouldn't have much difficulty finding work with more freedom for e.g. part-time employment.