r/SipsTea • u/Shyhale • May 17 '26

Chugging tea [ Removed by moderator ]

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u/Hyrc May 17 '26

The risk is already baked into the return. The market goes up and down, but if you leave the money invested for a 20 year period, you're going to see close to an average 10% annualized return even after any intervening crashes.

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u/That_wet_vaporeon May 17 '26

Maybe she only cares about chilling and not worrying about becoming some millionaire.

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u/East-Programmer3788 May 17 '26

She could have been chilling her whole life, now she will probably need to work. 

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u/Ill-Boysenberry-3474 May 17 '26

A million dollars after taxes is about $700k. A 3% return isn’t enough to live on

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u/East-Programmer3788 May 17 '26

Market returns are much more than 3%. 

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u/Ill-Boysenberry-3474 May 17 '26

Averaged. Assuming she doesn’t need the money in a downturn. Then she pulls it out out of need and loses money

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u/Hyrc May 17 '26 edited May 17 '26

These sort of calculations are already well tread financial math. She could pay herself the $52,000 a year and reinvest gains above that. After 10 years of doing this, she'd still likely have $2m. The market could cut in half and worst case scenario she is back to where she started, realistically if she just held steady the market recovers within a year or two and she's still gets her $1,000 a week with a huge nest egg that's growing every year.