re: Retiring at 50 with $2MM in savings

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This is often cited, but there have been studies refuting it. Everyone's situation is different. The only way you're really ever going to know is to make your own budget, representing your own lifestyle(s) that you want to live, and then measure against the income you expect to generate. In many cases, 80% may be more than you need.

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I need 1 lambo in my life. Current calculations with lambo says I can retire at 71.

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We couldn’t do Auburn out of state without it…or at least taking on debt which I refuse to do.

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Auburn is one of the most expensive public schools - a complete waste of money for out of staters.

Many kids need a reality financial check when it comes to college choices.

You are lucky grandma had a trust set up for y’all….

That shite isn’t real…

It’s almost impossible to have $2mm in cash at 50

That’s $80k/year savings from 25-50..

I know there is some interest , etc…. But if it’s in cash, it probably wasn’t earning much more than 3-4%.


Got to be inheritance, rich parents, are you are just stupid rich (athletes, CEO, etc)

True

Guess I’m just thinking liquid savings

Talking about retirement plans. Does anybody have an opinion on just buying the S&P and when you’re ready to call it quits just borrow against it instead of doing the 4%?
Buy borrow die?

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It’s almost impossible to have $2MM by 50

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Not true. Power of compounding!

Avg Return / Annual Amt Invested
6% / $35,700
7% / $30,200
8% / $25,900
9% / $22,300
10% / $19,300

Age 23-50. Keep in mind this would include company matching.

(1+k)^n is a BEAUTIFUL thing! And going from $2MM to $3MM is even easier…and on and on.

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It’s almost impossible to have $2mm in cash at 50

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This is not accurate, but it takes discipline.

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Does anybody have an opinion on just buying the S&P and when you’re ready to call it quits just borrow against it instead of doing the 4%?

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You talking through revocable or irrevocable trusts?

Thank you for your response

Idk any retirement accounts as well.

Talking about taxable brokerage account. So in your example you’ve noticed growth has beaten the margin interest, so that’s what I’ve noticed in my account. If you borrow the 4%, the asset is still allowed to grow and a margin loan isn’t income so not taxable. I’m starting to wonder if the portfolio could eventually allow me to borrow the 4% and still dca with margin growing the dca rate by inflation rate.
10% of 2 million is 200K. 4% of 2 million is 80K. So you would have growth of 120K year 1 with no taxes(minus what dividends you get with growth etfs)
To the point of a down year or decade. Would you rather sell at a lost(tax lost harvest potentially, but this strategy is trying to avoid income) or just borrow and wait for the market to eventually go back up on its own?

Hopefully someone smarter than me can run me through the thought process.

Lastly, I’m in the accumulation stage still and about a decade out before I can truly try this.

Thank you to you and anyone else who may be able to add insight to this to help sway me one way or another in the right direction.

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xBirdx

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Hey, this is completely off topic and I hope this doesn't get whacked...do you still clean pools?