Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
What about the investment return. It will run that $1m a lot longer.
If you can expect 4% return, then $1m will give you $40k/year without ever dipping below $1M. Of course that's hypothetical, nobody knows how any given year will be, and maybe there will be a negative 30% year, blowing the whole thing up. Maybe the value of $40k now will be like $15k in a decade if inflation is bad. One never knows.
But to OP, figure out what you want to spend. Estimate a CONSERVATIVE ROI and then figure out what it takes to sustain that into perpetuality when added to your SS and other expected incomes. That's the best approach in my non-expert opinion. Don't forget to account for market fluctuations, inflation, unexpected expenses (car, new roof, a new hip, etc...)
Good luck.
Yes investment returns and sequence of events etc are all problems you will run into. I was just trying to make a simple example, all in todays dollars, to give the posted an easier way to evaluate the 1million that was in todays dollars.
I'm not sure who you're referring to when you say "they". The $315,000 figure did not come from a financial advisor. It's the consensus figure if you were to do a query on it and they did not omit the fact that the large expense occurs over decades.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,732 posts, read 58,079,686 times
Reputation: 46205
Quote:
Originally Posted by rjm1cc
Yes investment returns and sequence of events etc are all problems you will run into. I was just trying to make a simple example, all in todays dollars, to give the posted an easier way to evaluate the 1million that was in todays dollars.
Yes, OP can also do an annual evaluation of withdrawals and just learn to live with the consequences of the 'sequences'. No growth / earnings = no withdrawals. BTDT as necessary (And I have a very large chest freezer, a few of them). cows in the pasture, fish in the stream, fruit on the vine, and really helpful neighbors filling each other's freezers.
Meanwhile... back on the frugal living forum... it's a common theme.
Just be sure to feed the tax man.
I am totally addicted to reading books. From the library. For nothing. So many hobbies you can have that are very low to no cost. Thankfully, I have no desire to travel or spend much money, and also thankfully, I don't have huge bills. We do not have a million dollars and for the last 45 out of 50 years never made an income over five figures combined. I have never ever felt deprived. Just grateful that I have what I need.
But as I already commented, travel doesn't have to be expensive, and it does add greatly to life. The cheapest travel creates REALLY memorable experiences, though not everyone has the right personality for that type of thing past the age of 27 (I do!!! :-).
I am totally addicted to reading books. From the library. For nothing. So many hobbies you can have that are very low to no cost. Thankfully, I have no desire to travel or spend much money, and also thankfully, I don't have huge bills. We do not have a million dollars and for the last 45 out of 50 years never made an income over five figures combined. I have never ever felt deprived. Just grateful that I have what I need.
People have vastly different wants.
I grew up in a small city in Appalachia. We had all the essentials, but I hadn't been north of Washington, DC or west of Nashville until I was about 25. We went to the same couple of places for vacation. It wasn't a bad life, but it was certainly sheltered and small.
I spent a lot of money traveling from 25-35. I wouldn't trade those memories for a bigger pile of money.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,732 posts, read 58,079,686 times
Reputation: 46205
Quote:
Originally Posted by elnrgby
But as I already commented, travel doesn't have to be expensive, and it does add greatly to life. The cheapest travel creates REALLY memorable experiences, though not everyone has the right personality for that type of thing past the age of 27 (I do!!! :-).
me too.
We just hosted international guests this week, and had a really memorable time, as did they.
Fresh Salmon, fresh wildberries, homemade Ice Cream, free concerts in the park, free county fair, free hiking guides and transportation... and... Free Lodging (with lots of shared memories and ideas.) Hope they have a great 'rest-of-the-trip!'. We'll remember the guests and events for many year (as we always do).
They've already been back in touch with adventures, as have we (sent a picture of the bear in our backyard, that they missed by a day)
You can travel well on the annual earnings of $1m. (~$110/day)
Our last 1yr RTW cost us $40k for the entire yr (for 2 travelers)
Staying home and keeping the doors open and lights on costs ~$48k / yr. (high property tax area, but a really nice view)
Rent out your 'furnished home' (to well screened tenants / international travelers / traveling nurses / school teachers...) and Hit the road!
I was a hourly employee all my life and lucked into a really good investment advisor. I'm a millionaire before house and car but still live like a pauper.
It is a mystery to me why there aren't more people who are into reading books. It is a VERY addictive habit, but it will never get you in trouble like other addictions, and library addicts will neglect every expensive pursuit so that they can read. Which guarantees a very cheap yet highly satisfying life, eg, in retirement. Book addiction can solve all your financial problems. I wish someone would do a study, to ask retirees how many pages they read per month, and how much money they spend per month, and I bet there would be a highly significant reverse correlation. Why would someone who only eats, sleeps and reads need $1M to retire?
The Internet is the new library. For a few measly dollars a day(if that) one can spend countless hours surfing the net and watching tons of free videos, news, learning new things, catching up on old friends, reading endless articles, or go on various forums, etc etc etc. Hard to beat a variety of entertainment for such a relatively low cost.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
