Could you retire on a $1 Million?

James

James

Staff member
Had this question on another (geek) forum and I created a spreadsheet that figures in annual return, taxes, inflation, etc to see what you would need to retire, thought I'd share.

P.S. this would be $1 million AFTER taxes.

Another question, if you still owed money on your mortgage would you pay it off in one lump sum?
 

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rezrider

rezrider

James:
Had this question on another (geek) forum and I created a spreadsheet that figures in annual return, taxes, inflation, etc to see what you would need to retire, thought I'd share.

P.S. this would be $1 million AFTER taxes.

Another question, if you still owed money on your mortgage would you pay it off in one lump sum?
Click to expand...

I'd sure give it a hell of a try... :banana:
 
cleonard

cleonard

It depends on where you live and how you live. Could you make a go of it in a low cost area for 1 mil? Probably. Where I live a nice house will soon be $500k. Kind of puts a dent in that 1 mil.
 
Mihylo33

Mihylo33

I think I could do it providing I moved to like North Carolina in a low tax area... I think I would still work the 1st 2+yrs to grow the account.
 
rezrider

rezrider

Weathergeek:
If you attempted to live on the interest and even if you had no debt. $30-40 K a year is not enough.
Click to expand...

OK so..... interest PLUS $50k / year = 80 - 90k / year could get you by pretty good depending on your way of life. So once I run out I move out to the REZ...... OR sell my house, take the gains spruce up the REZ a bit (water)... I should be good to go...

Hey mr millionaire
Hey mr millionaire

:shocked:
 
jackson409

jackson409

Yeah don't plan on just sticking it in a bank account and live off the interest. You will need to put it in some type of stocks and have someone
Manage it.
 
cleonard

cleonard

Banks are paying about 1%. That's a non starter. Stocks can have a lot larger return, but it comes with risk. Bonds of various types pay better than the banks, but safer than stocks. Real Estate can earn pretty well. Diversification is a good plan as well.

Say that you are in a market where rents run at near 1% of value per month and there is good demand for rental property. Take your million and buy five $150k homes for $750k. Invest the remaining $250k. Live in one and rent out the other four. Say you can get $1250/month or 0.83% per month. Your income will be $5k/mo or $60k/yr. Plus you have the $250k invested that hopefully gets 12.5k if invested at 5%.

There are costs in a rental business. I'd guess at least 10k/yr in not a little more.
 
rezrider

rezrider

cleonard:
Banks are paying about 1%. That's a non starter. Stocks can have a lot larger return, but it comes with risk. Bonds of various types pay better than the banks, but safer than stocks. Real Estate can earn pretty well. Diversification is a good plan as well.

Say that you are in a market where rents run at near 1% of value per month and there is good demand for rental property. Take your million and buy five $150k homes for $750k. Invest the remaining $250k. Live in one and rent out the other four. Say you can get $1250/month or 0.83% per month. Your income will be $5k/mo or $60k/yr. Plus you have the $250k invested that hopefully gets 12.5k if invested at 5%.

There are costs in a rental business. I'd guess at least 10k/yr in not a little more.
Click to expand...

Palmer could be more specific on this from his point of view however I worked with a guy that had 3 types of income who did VERY well for himself...

* His daily job as a mechanical precision inspector - ($ somewhere in the teens) worked there only for the medical insurance
* He owned at least 2 "restauraunts" (burger joints, not part of a chain) that he made most of his money on
and
* Duplexes and/or 4 plexes that he rented out....
 
Weathergeek

Weathergeek

rezrider:
OK so..... interest PLUS $50k / year = 80 - 90k / year could get you by pretty good depending on your way of life. So once I run out I move out to the REZ...... OR sell my house, take the gains spruce up the REZ a bit (water)... I should be good to go...

Hey mr millionaire
Hey mr millionaire

:shocked:
Click to expand...
Interest plus $50K? Where is that $50K coming from?
 
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