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re: Is $1 million a lot of money in 2019?
Posted on 6/23/19 at 7:53 am to Teddy Ruxpin
Posted on 6/23/19 at 7:53 am to Teddy Ruxpin
quote:That's not true at all
The board is very antagonistic towards high net worth or high income individuals at times, which is humorous considering that's kinda at least a goal or point of the whole board and that I would think many here are those very people.
Probably would be nice to have a dedicated thread for those folks. Americans are also just culturally weird about talking money.
1
Posted on 6/23/19 at 7:59 am to Ace Midnight
quote:
Is $1 million a lot of money in 2019?
yes
quote:
You could take, what $40k or maybe $50k (after a particularly good year) and expect that money to take you all the way to 85.
very likely, but i was thinking $1M as a 36 year old
quote:
Now, if your house is paid for, with SS kicking in at some future date, maybe, but I certainly would feel comfortable at that point.
i assumed for the 60 year old they had a paid off house and SS on the horizon. health care would be your primary expense, and that's irrelevant once 65 hits and Medicare kicks in
Posted on 6/23/19 at 8:02 am to eng08
quote:With current fixed lending rates as low as 3.125% and tax deductible interest, that may not be the best use of your money. Dave Ramsey notwithstanding.
We set a goal recently to pay off one mortgage as soon as we can.
Posted on 6/23/19 at 8:03 am to SlowFlowPro
quote:
very likely, but i was thinking $1M as a 36 year old
Yep. A million isn't enough to live off the interest. One way or another, you have to be able to draw down the principal slowly enough to make it to Social Security age.
Posted on 6/23/19 at 8:12 am to Bestbank Tiger
quote:
Yep. A million isn't enough to live off the interest.
i could probably do it without kids but it would be pauper-esque (Which is ironic) if i didn't have a paid off house
$20-30k extra in income a year, however, would be a great supplement to a more sustainable working life
i couldn't imagine just being a bum from 36 on, but having a guaranteed floor of about $20k? that would make life so much easier in terms of work. I could take a PDO contract for $50k/year and be set for the upper end of middle class income
this is all without kids, however, but $70-90k/year is still a hell of a lot of income
Posted on 6/23/19 at 8:42 am to castorinho
quote:
That's not true at all
Anyone who claims to have more money than the average bear gets downvoted or negativity commented into oblivion, so I respectfully disagree.
Though, a percentage of that could just be lurkers/trolls. Nothing I hope someone is crying about
This post was edited on 6/23/19 at 8:56 am
Posted on 6/23/19 at 9:09 am to sacrathetic
quote:
The historical return of the market even accounting for inflation is about 7%. At $1 million invested, that gives you $70,000 per year without even touching the principle.
Because the stock market returns are not guaranteed and can have large swings as money being pulled out, I wouldn’t estimate income generation during retirement years using a straight percentage that way.
Posted on 6/23/19 at 9:13 am to CajunTiger92
nm
This post was edited on 5/21/20 at 2:03 pm
Posted on 6/23/19 at 9:44 am to sacrathetic
FIRECalc is a fun tool to play with. Gives some piece of mind that you're doing everything you can be doing. If everything goes tits up it wasn't your fault.
Posted on 6/23/19 at 10:13 am to NC_Tigah
quote:
With current fixed lending rates as low as 3.125% and tax deductible interest, that may not be the best use of your money. Dave Ramsey notwithstanding
Oh I don’t disagree, it’s more of a piece of mind type of thing. We are looking at it more as diversification of assets. We are extremely fortunate with our W-2 incomes and past planning to be in the position we are. We have enough in stocks so we are trying to evenly split stocks/real estate. At the moment we don’t want to get another property to manage so figured let’s just pay one off.
And my wife wants to quit her job.l, so there’s that factored in as well.
Posted on 6/23/19 at 10:14 am to Bestbank Tiger
quote:
you have to be able to draw down the principal slowly enough
yeah f that. draw down? wrong mentality from get go. you put money to work for you into passive income streams so your principal works for you and you do not draw down anything. cash flow anyone??
Posted on 6/23/19 at 11:09 am to Fat Bastard
quote:
yeah most of what i read said most live paycheck to paycheck and do not have jack shite for savings or investments
Are you sure you heard paycheck to paycheck? or did you hear check to check? Big difference.
There are a lot of Americans that get by with checks for unemployment, disability, social security, TANF, SNAP,....
44% of young black men (age 20-25) in Illinois are not in school nor have a job
Posted on 6/23/19 at 11:11 am to sacrathetic
quote:
Which is why I linked to the FIRECalc site that takes all of that into consideration and runs the simulation on every possible consecutive period of total years that you entered into the system.
So why confuse things with the statement?
Posted on 6/23/19 at 11:59 am to Fat Bastard
quote:
yeah f that. draw down? wrong mentality from get go. you put money to work for you into passive income streams so your principal works for you and you do not draw down anything. cash flow anyone??
Just going with the ultraconservative, zero risk strategy. If you invest well you obviously don't have to touch the principal.
Posted on 6/23/19 at 12:23 pm to Ace Midnight
If you can retire with no debt, $1M in liquid investments, and maybe an additional $100k in a cash mutual fund, I'd say you'd be sitting pretty. If you can be disciplined and live off maybe $50k for the first 5 years, depending on what your retirement age is, you'd definitely be in the clear
Posted on 6/23/19 at 2:28 pm to Ace Midnight
I’m 40. Just built a new home and paid cash — $1.2 million. Have about $700k liquid and two daughters, 7 and 8, who have about $75k in college and trust accounts.
Our goal—live off $7,000 a month and continue working until at least 50.
My wife is a public school teacher/counselor in Texas and should retire with $4k a month.
I own a business that I will probably always own and pass on to a daughter or son-in-law someday.
Duel income, our goal is to have $2,000,000 socked away, when we retire and still have money coming in from the company.
$1,000,000 is a ton of money.
Our goal—live off $7,000 a month and continue working until at least 50.
My wife is a public school teacher/counselor in Texas and should retire with $4k a month.
I own a business that I will probably always own and pass on to a daughter or son-in-law someday.
Duel income, our goal is to have $2,000,000 socked away, when we retire and still have money coming in from the company.
$1,000,000 is a ton of money.
Posted on 6/23/19 at 3:52 pm to JoseVargasTX
Nice plan. But why drop all cash on the home? Don't you think keeping some of that liquid would have more likely helped you achieve your goal a sooner? 
Posted on 6/23/19 at 4:02 pm to castorinho
quote:
Nice plan. But why drop all cash on the home? Don't you think keeping some of that liquid would have more likely helped you achieve your goal a sooner?
People don’t understand a couple of basics
#1 cash flows
#2 tax advantage of debt financing
#3 return on assets
Posted on 6/23/19 at 4:29 pm to castorinho
Yea I get that it is nice to not have a mortgage but that is a chunk to toss out. Unless that is the house with some acres, then maybe due to the higher interest rate.
This post was edited on 6/23/19 at 4:30 pm
Posted on 6/23/19 at 5:41 pm to TigerintheNO
quote:
While I am not debating the accuracy of the above statement, CNBC host stated a new report found the 58% of working Americans have three months of emergency savings, which is the highest it has been since before the Great Recession started.
How is this determined? I have all my money in stocks, mutual funds, investment properties, etc. It is not the most liquid i.m. a checking account. How are they measuring this stat?
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