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.
Sc00ter@lemmy.zip 3 weeks 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 3 weeks 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 3 weeks ago
Are you in the US? Healthcare nukes that plan. If you skip buying healthcare then one single event can bankrupt you.
LifeInMultipleChoice@lemmy.world 2 weeks ago
They fucked our healthcare system, so my philosophy is if something bad happens you just don’t pay them if they perform the procedure, and if they don’t you just kill yourself. 300k in healthcare bills, send them $10 a month until you pass away.
Bronzebeard@lemmy.zip 3 weeks ago
Most people set the bar slightly higher than “technically surviving”, for their retirement.
LifeInMultipleChoice@lemmy.world 3 weeks ago
Most people retire at 65 with a house paid off as well. Spending 125,000 a year in retirement is a crazy amount. If have to I could go on a $15,000 vacation every other month and have $35,000 left over for food. Id call that living large for sure.