Even $600,000 is not enough to retire at 40

When people are working hard, they often dream of having a large sum of money to deposit in the bank and earn enough interest to live without working. However, when they have accumulated VND15 billion, nobody will go all-in and put it all into savings.

Right now, if someone with VND15 billion deposits all of it into a bank savings account and lives for another 30-40 years with a monthly interest of VND70 million, the interest might seem high now, but it will not be as significant in 30 years as it will slowly lose value.

For this reason, I think that it is more reasonable to invest in real estate or stocks.

To achieve true freedom, the interest earned must not only cover current expenses but also compensate for inflation and perhaps meet higher living standards in the future.

Now, if we look at retirement more broadly, I believe there are three levels of retirement:

Financial security: This is when one no longer works, their finances can cover all basic needs to survive, such as food, housing, fuel, electricity, water, and healthcare until the end of life.

Financial independence: One’s finances guarantee their desired lifestyle, meaning there is no need to trade time for money. They can enjoy good food, nice clothes, entertainment, and travel.

Financial freedom: This is when one no longer needs to think about money, incomes are passively generated and serve all their needs. This level means you do not need to do anything but can still afford a luxurious lifestyle, experiencing the most high-end services without money being an issue.

I find the third level extremely hard to achieve, so the second level is enough for me. If someone has a few rental properties, then they can retire at the second level.

Of course, the degree of enjoyment varies according to each person's viewpoint, and there is no exact figure for this.

When do you think is a good point to retire?

Reader Quoc Khanh

*This opinion was translated into English by AI. Readers’ views are personal and do not necessarily match VnExpress’ viewpoints.