Yes, I meant it. If you look at the horrific inflation numbers, you can see that if you want to live comfortably, you will need at least 10M to retire. So I understand why there are so many deadwoods who don’t want to retire.
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it was an illusion. Warren Buffet has been selling stock and sitting on an ever growing pile of cash since before the last BH annual meeting (during which he continued to assure that stock market always bounces back). The hypocrisy of these people....
Post ID: @nxo+1ecegbpW
Well it was artificially enhanced by the elites the last four years so no surprise they are crashing it now. They hate it when they don’t get their way.
the number will be ever changing. to stop working you need income producing assets. your 401k can be crashed by the elites also.
@zle+1ecegbpW - It all comes down to your situation and assumptions. If you're single and can live on $60K/yr, you only need 1/4 of that amount. Same thing if you believe that the stock market can grow exponentially forever. Adjust accordingly. If you trust that Social Security will be there when you're in your 60s or 70s you can save even less. You do you, and roll the dice.
OMG - If you make 3% on 10M you have a yearly income of 300K. Give me a break will ya!
I agree with the OP. You can't expect a 6% return in perpetuity (as suggested in previous responses). If we use $120K as the target income, the 4% rule would put you at $3MM. Recent articles I've read suggested 3% or $4MM invested for the same $120K. If that's per person, a couple would need $8MM to retire with $120K income each.
That doesn't take inflation into account. $120K/yr will not buy as much in 10 or 20 years. Your asset would need to grow over time. Add 25% to your starting balance so can increase you annual income over time. That gets you to $10 million. This assumes no Social Security or pension.
$10MM is not going to be the magic number for everyone. If you live somewhere with a low cost of living, you won't need as much. If you can live off of $60K/yr, you would need half as much to retire.
Sounds like fear mongering over Biden.
Do yourself a favor: Pay yourself first. If you're not investing right now, start.
Index funds are easy. IRA. 401k. Just do it. Today.
The peace of mind that comes when you reach the financial point where no company can hold you over a barrel is incalculable.
"Retired" just does NOT mean the same anymore. Age 65 is no longer the full Social Security retirement age to get full benefits and not have the Social Security department deduct money from your Social Security checks if you still continue to work while collecting Social Security payments. Most of the young people have no company pensions to rely on once they are older. The younger people have a greater age to reach full Social Security retirement benefits. Social Security does not pay all that much and the USA government even has the nerve to collect taxes on Social Security payments, though not all USA states do so. Younger people fear having to work until a great old age in order to survive and fear that they can NEVER "retire". "Retired" now means collect Social Security at full retirement age and then just keep on working forever to be able to actually afford all of the bills. Unless you have been able to save millions in your retirement account. That is not the norm for most people I don't think.
Don't forget income taxes...comes right off the top. And medical premiums. Do agree $10mm unrealistic and not necessary.
I sincerely hope that OP is not any role that requires a basic understanding of how numbers work
No one gives a Shht guy. Go whine to someone else, d-mbo.
Pouring all my extra cash into F.I.R.E fund. Gonna retire at age 27 with $300,000 and I'll be able to live on $13,000 a year renting a room from my local librarian and enjoying a sensuous diet of graham crackers and canned tuna.
Should run for office. I think these politicians retire with more than that on top of everything given to them. Doesn't include the kickbacks but it does sweeten the p-t. You don't need talent or skills or have to do a good job. Just be friendly to your postal office and have them rig the election in your favor.
Stop trying to make "dead wood" happen. It's NOT going to happen.
This is very simplified math, but:
If you retire with 2MM and invest at 6% average, you can have 10k income per month and never have the principal go down.
If you use this same math with 10MM, then you can get 50k per month.
Do you really think 50k per month is enough income to live off of? That sure sounds tough….
My point is, no, you don’t need 10MM to retire.