> You could get up to 10% on 1M investment annually (that is what my friend has) We have a hundred years of investment data in the United States that says this

> You could get up to 10% on 1M investment annually (that is what my friend has) We have a hundred years of investment data in the United States that says this isn’t true. A 10% withdrawal rate will lead to portfolio failure 50% of the time after about 14 years. You can calculate using historical data here: https://engaging-data.com/will-money-last-retire-early/ https://engaging-data.com/will-money-last-retire-early/ There are mountains of research showing the safe withdrawal rate for retirement is around 3.5-4%. A million dollars gets you $40K per year at most, not $100K per year. Anyone expecting to live off of $100K/year with only $1m invested is in trouble in about a decade, even if they could get a mythical reliable 10% return. Note that due to inflation and downturns, you cannot withdraw an amount equal to the interest you earn. You have to withdraw significantly less than the interest you accumulate.