Take workers with 401(k) accounts and similar retirement savings plans run by Vanguard. Plan members whose portfolios were invested 70% in stocks and 30% in bonds had average annual returns in the five years ended Dec. 31, 2018 of 5.6%. The S&P 500 grew at an 8.5% annual pace.
That's a reasonably representative period of time. It had down markets as well as up markets.
So in beefing up your retirement planning, let's use a 5.6% average annual rate of return for forecasting how your portfolio would behave going forward.
Before or after the next Democrat Marxist President?
Getting investment clicks is big business right now.
$1 million divided by $50,000 = 20 years or 40 years at $25,000 + the SS money or SS money plus the $1 million invested at 5% in some no tax investment. You would not run out of money.
Most do not make $115,000 a year. This is like the articles in Forbes or Fortune where the writer assumes everyone is making lots of money and $115,000 is poverty wages.
Just keep working...
Couple weeks. :-)
Depends on how you live.
A million isnt worth much when a filthy, disease infested democrat deliberately crashes the market
Bookmarked.
If you only spend a dollar a year, it will last a million years.
We’re doing Vanguard ads now?
Note... Let’s assume $115,000/yr was the pre-retirement income. Statistics suggest that about 75% of that should be needed in retirement to maintain standard of living due to changes in lifestyle and taxation. That gives us an assumed income need of $86,250/yr.
Then, there’s Social Security. Let’s go with about $2,500/mo for an average... and you’re taking it early at age 65. That gives us a need of about $56,250/yr from the portfolio. If we’re assuming a growth rate of 5.6%/yr, you should see a declining balance over time... initially not rapid but eventually growing in pace.
If we start retirement at a market high and initial returns are lower than average, it will accelerate the decline. If you can afford to retire nearer a market low, you will probably have a smoother ride.
Have a nice day.
Me, I’m just clipping my stock coupons...
You’re going to save up all that money and “stuff” and some of your children are going to disappoint you and you’re not going to be able to leave it to them anyway. Seen it happen.
You can get an apartment pretty cheap in Nepal.
My retirement guy gets asked this all the time. Actually, he gets asked “How much do we need to retire?” and his answer is always the same....
“How much do you spend?”
My plan is to retire to Mexico. That way I won’t need a lot of money to last the rest of my life.
This is a truly dumb article. One doesn’t divide their nest-egg value by one’s final/highest annual salary to determine how long one’s nest-egg will be viable. One accounts for some level of annual nest-egg value growth, and then deducts expected annual/monthly expenses, adding inflation into the future expenses. So, if you have a $1M nest-egg growing at 8% per year, and have $60K annual withdrawals/costs and also account for a 2% annual increase/inflation on those costs over time, that $1M GROWS FOREVER! (Just be mindful of any Required Minimum Distributions).
The Marxists like the fake Indian want to confiscate your wealth. Whatever you have will not last as long as it should.
Here’s what I do, and my inside recommendation for everyone here who has $10,000 or more in liquid stocks or, worse, a bank!
Find a local Real Estate Investor club. Commit to three months of going to meetings and get to know the investors who “fix and flip”. Tell the ones (who you get a good read on) that you are a “Private Money Lender who lends $10k or more in 2nd lien position”. Ask them for a Credibility Packet on past projects showing how they succeeded in making their investors money!
Here’s how it works: you lend money to a flipper asking for a promissory note and deed of trust secured by the property in 2nd lien position. Ask for 12% to 14% per annum (year). Now, most Investor flippers will only use your money for 6 months. You get your money back at closing when they sell the property! You get paid before they do and with very little risk, since it’s secured by the asset that they bought at a wholesale rate. Hell, the investor flipper could die but you’ll have control of a property with the 1st lien lender!
After the first successful flip, it becomes addicting and fun! Your money is then compounding two or more times per year as you continually invest in real estate flippers!
The only downside is that your money is tied up in property until it sells (in 3 to 6 months), so don’t do it if it’s your emergency funds!
Make it a goal to commit to finding a few quality investors in your area and they’ll explain the details to you. Just always use a title company or title attorney and never give money directly to ANY investor flipper. Your funds must be controlled by a third party AND secured by the property itself! After a few years, you’ll be investing in 1st lien position!