How Long $1 Million Will Last in Retirement in Every State

[BNA/LION]

Some interesting Information Here:


http://time.com/money/5017751/how-lo...n-every-state/

[tbonesteak]

$1MM, 17 years in NY... Where do I sign up for that?

[Forum-Dweller]

$1M living in TRF will only last 6 months.

[SevenWays]

1 mill gives you $50,000 per year, never touching the principle. Lots of people live very well on that so take this article with a grain of salt.

[RW16610]

Interesting stuff, Larry. Thanks for sharing

[Masteryacht]

Originally Posted by SevenWays

1 mill gives you $50,000 per year, never touching the principle. Lots of people live very well on that so take this article with a grain of salt.

Under normal circumstances, but not during ZIRP. How do you safely get 5% per year without the risk of losing principal? Just like last week, GE halved it’s dividend overnight.

[Rolex addict]

Just depends on the type of lifestyle you want in retirement. I would have to do something to get banned from TRF. This place makes money fly out of your wallet!!

[Lange]

Originally Posted by SevenWays

1 mill gives you $50,000 per year, never touching the principle. Lots of people live very well on that so take this article with a grain of salt.

How? Im only getting half of that.

[kneedeep]

[QUOTE=Forum-Dweller;8055166]$1M living in TRF will only last 6 months.[/QUOTE

[tbonesteak]

Originally Posted by Masteryacht

Under normal circumstances, but not during ZIRP. How do safely get 5% per year without the risk of losing principal? Just like last week, GE halved it’s dividend overnight.

While they have also almost halved their stock too.

[SevenWays]

Not sure I understand the question. How to get 5% return or how to live on $50,000?

A strongly diversified portfolio can yield an overall return of 5% without too much exposure to risk.

$50,000 goes a long way depending on where you live in a state. For example, consider the difference between Upstate NY and NYC. The overall cost of living for the state is 134, but the cost of living in lots of small towns Upstate is in the low 80s, which is Mississippi-like, the cheapest state to live in. Mostly, that's from the low low cost of housing Upstate. Start adding in tax considerations in retirement and you find that NY is not such a bad place to live in retirement, as long as you stay out of the metro NY area.

So the article is good entertainment and gets people thinking about how and where to live in retirement but should be the beginning of investigation, not the end. That's all I'm saying.

[Lange]

Originally Posted by SevenWays

Not sure I understand the question. How to get 5% return or how to live on $50,000?

A strongly diversified portfolio can yield an overall return of 5% without too much exposure to risk.

$50,000 goes a long way depending on where you live in a state. For example, consider the difference between Upstate NY and NYC. The overall cost of living for the state is 134, but the cost of living in lots of small towns Upstate is in the low 80s, which is Mississippi-like, the cheapest state to live in. Mostly, that's from the low low cost of housing Upstate. Start adding in tax considerations in retirement and you find that NY is not such a bad place to live in retirement, as long as you stay out of the metro NY area.

So the article is good entertainment and gets people thinking about how and where to live in retirement but should be the beginning of investigation, not the end. That's all I'm saying.

I was asking how to get 5%

[rmlovett1]

Originally Posted by Rolex addict

Just depends on the type of lifestyle you want in retirement. I would have to do something to get banned from TRF. This place makes money fly out of your wallet!!

⬆️⬆️⬆️⬆️ Agree

[jets]

Originally Posted by forum-dweller

$1m living in trf will only last 6 months.

hahahahahahaha

[HereBeDragons]

You don't have to get pure "income" stocks to get a 5% return. If you've got a million to invest, you should get a return in capital growth of considerably in excess of 5% pa, when averaged out over a few years. Decent growth stocks (or funds more likely) should give you capital growth of an average of 10% - 20% pa over any decent period of 5 - 10 years.

[Sprta]

Go to any well known mutual fund site and check out the funds who have returned over 5% over a ten year Period. They are not usually high risk funds. And therearea lot of them.
Diversify a million dollar portfolio and its not very difficult to achieve a 5% return.

[playmore009]

I think what I need to do is purchase a lot more watches more I retire. Well don’t call me crazy just yet. What if I buy a watch every two years for the next 24 years? Let’s say it average out to be $10k per watch. That is $120k worth of watches. I can only buy more watches if I sell some from my collection so that it is net neutral.

Realistically, as a couple I think we need $2 millions to live comfortably and also with the assumption that we do no have a mortgage payment.


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[ejvette]

So subjective everyone's life style and spending habits are different

[BNA/LION]

Originally Posted by ejvette

So subjective everyone's life style and spending habits are different

Yup. We all agree on life style and spending habits but this is a general idea based on someone retiring and how far their $1M will go in each city.

[Formulansx]

Originally Posted by Forum-Dweller

$1M living in TRF will only last 6 months.

Ain't that the truth!

[brandrea]

Originally Posted by Rolex addict

Just depends on the type of lifestyle you want in retirement. I would have to do something to get banned from TRF. This place makes money fly out of your wallet!!

Yep, couldn't stay here long

[Tony64]

Originally Posted by Forum-Dweller

$1M living in TRF will only last 6 months.

^^^ Brilliant!

[Laszlo]

If you pay off your home that's been maintained and you have a few cars paid off as well... and a collection of items that make you personally happy, you can easily live on a dime and still be quite happy in retirement. It's the people who continue to roll over credit and continue to suck their equity out of their homes and everything else under the sun to live the 'high-life' that end up living in struggle when that time comes. Be smart and you'll be fine...

[68camaro]

Originally Posted by Masteryacht

Under normal circumstances, but not during ZIRP. How do you safely get 5% per year without the risk of losing principal? Just like last week, GE halved it’s dividend overnight.

+1, you are taking risk trying to get 5% per year. May or may not happen, may or may not turn out well. Plus you ever heard of taxes, if you chase yield and run to taxable market DC will want their share.

Plus inflation will eat away your buying power over time. To have same interest income on $1mm in 1995 you need $3mm today.

Even if you can get 5%, try living on $50k after paying healthcare

[OgSnowflake]

I want every last bit of what the author is smoking thinking 1m is gonna last me 17 yrs 4 months in Massachusetts ...borderline laughable.

[GB-man]

Originally Posted by Laszlo

If you pay off your home that's been maintained and you have a few cars paid off as well... and a collection of items that make you personally happy, you can easily live on a dime and still be quite happy in retirement. It's the people who continue to roll over credit and continue to suck their equity out of their homes and everything else under the sun to live the 'high-life' that end up living in struggle when that time comes. Be smart and you'll be fine...

Preach!

Money goes fast but I like to balance it by having major items paid off. Gives me comfort that when worst comes to worst I can survive off minimum wage if need be.

[77T]

When I read the source material I found they only accounted for eating, sleeping and a visit to the doctor once in a while...
...wouldn’t it have been easier to say for those things that Hawaii is expensive and Mississippi ain’t?


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[Laszlo]

Originally Posted by GB-man

Preach!

Money goes fast but I like to balance it by having major items paid off. Gives me comfort that when worst comes to worst I can survive off minimum wage if need be.

Exactly!

[bdex75]

Originally Posted by Forum-Dweller

$1M living in TRF will only last 6 months.

Dilly Dilly!!!!


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[Star Ferry]

I could live 60 years on a million dollars if I needed to. I'd move to Thailand, buy a modest condo, go swimming everyday, and be happy

IDK why so many people feel entitled to McMansions, luxury cars, vacation homes, etc.