I’m pretty sure if someone gave me a million dollars as someone who doesn’t have anything in the bank at 36 right now, I could retire tomorrow without an issue. It wouldn’t be a life of luxury, but it would be better than I’m living now
Comment on Even millionaires don't feel wealthy these days
Lemmyoutofhere@lemmy.ca 2 months ago
Can’t even retire with only a million these days.
LifeInMultipleChoice@lemmy.world 2 months ago
Sc00ter@lemmy.zip 2 months ago
Interest could net you around 45k a year. While thats not inconsequential, thats also not allowing for any growth, so itd be 45k every year, only. Based on historical data, thatd be about the same buying power as $15k in 40 years.
LifeInMultipleChoice@lemmy.world 2 months ago
I mean I could buy a house somewhere in a small town for 250k, and live off 20k a year without issue. That’s what $385 a week. That sets $13,000 a year aside for emergency funds (and property taxes) and or just growing back the principle to a million. Id probably be able to die at 75 with half a million in the bank
superglue@lemmy.dbzer0.com 2 months ago
Are you in the US? Healthcare nukes that plan. If you skip buying healthcare then one single event can bankrupt you.
Bronzebeard@lemmy.zip 2 months ago
Most people set the bar slightly higher than “technically surviving”, for their retirement.
FishFace@piefed.social 2 months ago
Average S&P return is 10%, but average US inflation is 7.8%, which gives you a yearly return in today’s dollars of $22,400. If you did your plan and bought a house for $250k, (well below the US median house price, but I’ll take your word for it that it’s plausible) you’d expect to indefinitely get $16,800 a year. If you add on the average US rent ($1,700) which you wouldn’t be paying with an outright-owned house, you get an equivalent yearly income of $37,700. In 2023 this would’ve put you in between the 4th and 5th deciles, so slightly below median.
So, if you think the middle class is squeezed in the USA, then you should also think that someone with a million dollars would be squeezed if they quit their job and retired intending to live of it.
LifeInMultipleChoice@lemmy.world 2 months ago
Where are you finding inflation at 7.8%? It’s likely closer to 3.5%
FishFace@piefed.social 2 months ago
Christ I think I copied the wrong figure and it should actually be 2.9%.
I’m on mobile ATM so can’t conveniently check but that likely changes the income decile considerably.
PlantJam@lemmy.world 2 months ago
Just work until you’re 80, then a million is plenty to get you through to either 90 or the first time you get sick.