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The "Safe withdraw rate" is something like 4%. 1 million saved = 40k per year, adjusting with inflation. 2 million saved = 80k per year, adjusting for inflatio
by brianwawok 5y ago
The "Safe withdraw rate" is something like 4%.
1 million saved = 40k per year, adjusting with inflation.
2 million saved = 80k per year, adjusting for inflation.
If you can live a life you want for 80k a year, then sure - 2 million can do it.
And yes, there will always be a "what if the economy collapses etc. etc", but retiring doesn't mean you can never ever for any reason hold a job again or make money.
- brewdad 5y agoDon't forget that safe withdrawal rate assumes a 30 year retirement. If you are looking at a 40+ year retirement, the safe withdrawal rate is probably more like 3-3.5%.
- brianwawok 5y agoAccording to MMM https://www.mrmoneymustache.com/2012/05/29/how-much-do-i-need-for-retirement/ https://www.mrmoneymustache.com/2012/05/29/how-much-do-i-nee... > Luckily, the math in this case is pretty interesting: there is very little difference between a 30-year period, and an infinite year period, when determining how long your money will last. You should be fine at 4% forever. If you can spend a little less some years, or go make a few dollars somewhere hey, boosts your odds even more.
- nly 5y agoFortunately house wealth can help via equity release / a lifetime mortgage. Of you don't want to pass it on to your kids that is.