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Correction - You need about $2 Million to retire..... Posted by MI-Roger [Email] (#882) [Profile/Gallery] (more from MI-Roger) on Thu, 10 Mar 2011 13:48:51 In Reply to: What's a MILLIONAIRE ?, STICKMAN, Thu, 10 Mar 2011 07:14:34 Members do not see ads below this line. - Help Keep This Site Online - Signup |
The one million rule of thumb is still valid IF you have a pension plan of some sort that will pay you $40K to $50K or so each year. Divide the $50K by 5% (the percentage you can draw off your nest egg each year with a 95% likelihood of not out living your money) and you find the pension equates to $1 Million of the needed $2 Million nest egg. Sp now you only need $1 Million additional.
Unless you already have paid off your mortgage, live frugally, grow a lot of your own food, have very good health insurance (paid for by employer - Hah!), no expensive habits, no other debt, no desire for expensive travel, etc., you will find the $50K pension just won't be enough.
My parents lived off my Dad's 15-year GM Hourly pension, age 65 SS benefits for both of them, AND put money in the bank each month. But they qualified on every one of the caveats listed above (actually built their home with their own hands and never had a mortgage). Plus, retiree SS benefits in the 1980 to 1995 time window were better than what we will receive.
posted by 98.250.156...
_______________________________________ Saabs owned: 2008 9-5 Aero Sedan, sold at 227K miles 2006 9-3SC 2.0T - Wife's daily driver 2000 Viggen Convertible - Sold May, 2022 1964 Quantum IV Formula Car - Retirement project 2000 9-5lpt Sedan, sold at 318K miles
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