$1.2 Million invested so that it returns 3% after inflation provides a return of $36,000 per year. That is hardly a retirement.
You could probably get a higher return with more risky investments. Plus, it helps if you have your house paid off. However, unless you really want to live a “no frills” lifestyle, $1.2M is not enough to retire at such a young age.
And that assumes nothing goes wrong. But we all know things go wrong all the time.
*I’m confused.. What is the definition of retire? 36K a year and not touching the principle add in a part time job I LIKE doing and can take off as much time as I want, , sounds like a pretty sweet deal at 30. I’d actually have trouble spending 700+ a week if my house and cars were paid off. But then comes the dreaded “healthcare insurance premiums”. So i get major medical couple hundred a month and go holistic. If I get cancer and they can’t cut it out. I go out with one heck of a party and a lot of pain drugs. besides that.. I’ve got a reserved seat in Heaven already.
“1.2 Million invested so that it returns 3% after inflation provides a return of $36,000 per year. That is hardly a retirement”
A decent brokerage account will get you 8-10%/year.
I agree. And for a family of four, it's poverty.
Especially at 43. His kids are probably in HS or JR. HS.
He’s got lots of expenses in front of him.
“$1.2 Million invested so that it returns 3% after inflation provides a return of $36,000 per year. That is hardly a retirement.”
True in the US, but for those willing to live abroad, it can be a king’s fortune (depending on the country).