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> $100k/yr is a 5% withdrawal rate on $2 million Yes, that's what the previous comment said. Of course, you don't need anywhere close to $100k, so you would st
by randomdata 3y ago
> $100k/yr is a 5% withdrawal rate on $2 million
Yes, that's what the previous comment said. Of course, you don't need anywhere close to $100k, so you would still be reinvesting the bulk of it, just as you did throughout your career. That will see your returns continue to increase as you grow older.
> you won't own your own house, or at least, you definitely won't be anywhere near paying it off.
You'd have no trouble buying a home on a $30k income 20 years ago. They could barely give houses away back then.
> You have significant risk from healthcare costs
You still have $70k to play with each year. If you have to miss a year of reinvestment it won't hamstring you that much. As before, bad luck happens. It is possible you are the unlucky one. But generally speaking the money is there.
- ryan_lane 3y ago> You'd have no trouble buying a home on a $30k income 20 years ago. They could barely give houses away back then. I made a bit more than that 20 years ago and can guarantee you it wasn't anywhere near enough money to buy a house. Finding affordable apartments to rent on that salary was difficult enough. I lived in New Orleans, which wasn't a high cost of living city at the time. Maybe if you lived in the middle of nowhere that would be doable, but almost certainly not in a city.
- PH95VuimJjqBqy 3y agotheir username is randomdata, not accuratedata. my experience agrees with yours.
- fragmede 3y ago> You'd have no trouble buying a home on a $30k income 20 years ago. You're absolutely right - the banks would give you a loan you couldn't actually afford. I seem to recall this leading to some sort of financial problem in 2008, unfortunately.