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42 years in the future your $4 million has deflated in value to the equivalent ~$1.4 million worth of buying power today assuming 2.5% inflation rate. Which is
by auiya 7y ago
42 years in the future your $4 million has deflated in value to the equivalent ~$1.4 million worth of buying power today assuming 2.5% inflation rate. Which isn't really worth much in the U.S., certainly not enough to recover from a major medical disaster.
- pwinnski 7y agoGP was talking about saving $1200 out of $3400 take-home, which means living expenses are $2200/mo, or $26,400/year. Let's leave things in "today's dollar" terms for simplicity: A 4% annual withdrawal from $1.4M would be $56,000, or a big upgrade over $26,4000. A 4% annual withdrawal from $4M is $160k. But as you say, it's the equivalent of $56k today.