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The US is about $52K for a household. $40k would probably be enough for a lot of people. That's at 4% return on $1m. Where are people getting that consistently
by johnward 10y ago
The US is about $52K for a household. $40k would probably be enough for a lot of people. That's at 4% return on $1m. Where are people getting that consistently and without too much risk of losing a bunch of that money? Then how to you keep up with inflation?
In my mind I would still risk it at $1m because $40k isn't enough for me to live the kind of lifestyle I would want to live and ensure I could do it until I die.
- mulletbum 10y agobut at 14 you could still do other things. It isn't like they give you $1M and say you can never make money ever again.
- CydeWeys 10y ago4% is the withdrawal rate, not the return rate. You want the return rate to be higher, ideally at around 7% real returns. You accomplish that by investing most of it in the stock market. You have to withdraw less than the return rate in order to manage risk so that you survive periods of bad returns.