4 ms·

That depends entirely where you live, how you live, and how long you live. A million doesn't go that far. It won't even buy a tiny fixer upper from the early ha

by eloff 6y ago

That depends entirely where you live, how you live, and how long you live. A million doesn't go that far. It won't even buy a tiny fixer upper from the early half of the last century where I live (Vancouver). People can live 30 years from retirement. A million doesn't go far like that. There's no safe returns on that money anymore.

Closi 6y ago
I think a million dollar house counts as a mansion in relative terms for most of the world. I just mean on a world scale I’m hot feeling pity for someone that “only” retires with a million and will have to try so so hard to make ends meet. You won’t struggle to live on a million dollars (in the real meaning of the word struggle).
- eloff 6y ago
  Given low-interest rates and very high prices in both bonds and stocks, you could withdraw safely only about 3%, not the usual 5%. And that's not counting on any improvements in longevity over the next 30 years. You'll also have to deal with very high inflation rates in health care costs, which will dominate larger and larger chunks of your spending over the years in many countries - even those with free public healthcare. 3% of 1M is $30,000, before taxes on any investment gains. That's basically a little less or a little more than a minimum wage job, depending on where you live. Most likely both you and your spouse will need to live off of that. I don't think 1M is enough to retire in any manner of comfort. 2-3M would be a lot safer. And that's if you move to a cheaper locale and avoid any of the first-tier cities.
  - Closi 6y ago
    Withdrawing 3% is not high risk - You can get an inflation adjusted annuity that provides 3% if you retire at 65.
    - eloff 6y ago
      I didn't say it was high risk, I said it was a safe withdrawal rate to plan for. I don't think market conditions allow for a 5% rate anymore, which used to be the recommended level. Also you've ignored everything else I said just to harp on one thing - which is rude considering the time I took to reply to you.
      - deleted 6y ago
        [deleted]

by eloff 6y ago

Closi 6y ago

I think a million dollar house counts as a mansion in relative terms for most of the world. I just mean on a world scale I’m hot feeling pity for someone that “only” retires with a million and will have to try so so hard to make ends meet. You won’t struggle to live on a million dollars (in the real meaning of the word struggle).

eloff 6y ago
Given low-interest rates and very high prices in both bonds and stocks, you could withdraw safely only about 3%, not the usual 5%. And that's not counting on any improvements in longevity over the next 30 years. You'll also have to deal with very high inflation rates in health care costs, which will dominate larger and larger chunks of your spending over the years in many countries - even those with free public healthcare. 3% of 1M is $30,000, before taxes on any investment gains. That's basically a little less or a little more than a minimum wage job, depending on where you live. Most likely both you and your spouse will need to live off of that. I don't think 1M is enough to retire in any manner of comfort. 2-3M would be a lot safer. And that's if you move to a cheaper locale and avoid any of the first-tier cities.
- Closi 6y ago
  Withdrawing 3% is not high risk - You can get an inflation adjusted annuity that provides 3% if you retire at 65.
  - eloff 6y ago
    I didn't say it was high risk, I said it was a safe withdrawal rate to plan for. I don't think market conditions allow for a 5% rate anymore, which used to be the recommended level. Also you've ignored everything else I said just to harp on one thing - which is rude considering the time I took to reply to you.
    - deleted 6y ago
      [deleted]