About 7% is the market average I often hear quoted, but I use the number 4% for guaranteed income. I know you can buy insurance annuities that guarantee about

About 7% is the market average I often hear quoted, but I use the number 4% for guaranteed income. I know you can buy insurance annuities that guarantee about 3% and average 4%. So, I would calculate 200k on 5Million. Planning to actually live off your interest means having to be super conservative, because, if, for instance, your first year is one of the bad years, your calculations will end up way off. Losing 20 or 30% and having to actually eat some principle would hurt a lot. That's why some people end up putting off retirement in bad years and get very conservative with investments near retirement. So, I suppose someone could live off about 1 million at 4%, unless they have a medical emergency, but with minor inflation, I think you'd need to grow your principal to maintain the same level.