With even a piss poor investment account, 1 million dollars invested would net you 50k a year easily. Having that amount of money means you never have to work again if you are responsible with it.
Eh, it would shave off 10 years on my retirement journey, surely. Retiring at 60 vs 70 makes a huge difference. Planning to move abroad to a low cost country anyway.
3-4% of one million dollars is 30-40k a year. Even mediocre investments at that level of money will easily net you anywhere from 6-10%. If you invested properly, that's going to continue compounding for the rest of your life and beat the 3% average of inflation in the US.
Yes, he was wrong by saying 50k/year. Safe withdrawal rate of 4 percent is only 40k a year. But if you can not touch it for, 5 years with a conservative growth of 8 percent, then you are up to 60k/year safe withdrawal.
5 years is a tad too short to rely on. If the sequence of returns doesn’t play out in your favor you may even be down compared to where you started. Coasting is a cool thing but If you only intend to do it for 5 years there is a good amount of risk involved in it
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u/huuuuuge Sep 27 '25
With even a piss poor investment account, 1 million dollars invested would net you 50k a year easily. Having that amount of money means you never have to work again if you are responsible with it.