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  3. Can anyone explain why cant you retire once you reach $1M before 50?

User Info: HappyGuy

HappyGuy
3 weeks ago#11
lostkiwi posted...
$1M is not even close to being enough for a comfortable retirement at 50.

If you live to 80, that's 30 years you need to support yourself. Excluding superannuation and pension, that equates to an annual income of only $33,333 per annum.

However, what most people don't consider, is inflation. Even if you could survive of $33k now, working of an inflation value of 3%, $33,333 now is roughly the equivalent of $13,700 in 30 years time.

So, again, excluding super and pension, you would be an 80 year old trying to survive on $13,700 per year in 'todays' dollars.


You think someone with a million is just going to sit on it? Most people would invest at least a quarter of it.
A Mod/Admin said on 4/2/2018 8:47:55 PM:
Please do not call other users a potato.

User Info: lostkiwi

lostkiwi
3 weeks ago#12
HappyGuy posted...
You think someone with a million is just going to sit on it? Most people would invest at least a quarter of it.
So, lets say you invest $250K. So now your annual income is only $25,000 per annum, which also must somehow include paying off a house, by the TC's own admission.

Lets say you find a really solid investment, that pays 7% return on investment, year on year. After 30 years if you left that investment completely untouched you could cash it out for almost $2M, excluding capital gains tax. Great. Except you're not going to get even close to lasting that long, since your measly $25,000 per annum means that you're effectively trying to survive off under $14k per annum in only 20 years time in 'todays' dollars (due to inflation). Including still trying to pay off your mortgage.

Most people seem to throw the word 'investment' around without really understanding the practicality of it

User Info: Taizuku

Taizuku
3 weeks ago#13
It’s just not that much money.
Come check out some dope beats n stuff! Soundcloud.com/otwolves

User Info: HappyGuy

HappyGuy
3 weeks ago#14
lostkiwi posted...
HappyGuy posted...
You think someone with a million is just going to sit on it? Most people would invest at least a quarter of it.
So, lets say you invest $250K. So now your annual income is only $25,000 per annum, which also must somehow include paying off a house, by the TC's own admission.

Lets say you find a really solid investment, that pays 7% return on investment, year on year. After 30 years if you left that investment completely untouched you could cash it out for almost $2M, excluding capital gains tax. Great. Except you're not going to get even close to lasting that long, since your measly $25,000 per annum means that you're effectively trying to survive off under $14k per annum in only 20 years time in 'todays' dollars (due to inflation). Including still trying to pay off your mortgage.

Most people seem to throw the word 'investment' around without really understanding the practicality of it


Oh, so you think someone is going to invest that full amount into a singular low risk, low reward venture? Pretty silly of you.
A Mod/Admin said on 4/2/2018 8:47:55 PM:
Please do not call other users a potato.

User Info: lostkiwi

lostkiwi
3 weeks ago#15
HappyGuy posted...
Oh, so you think someone is going to invest that full amount into a singular low risk, low reward venture? Pretty silly of you.
A consistent 7% year on year ROI is a well performing investment by any measure.

So, enlighten me, since you seem to post like you know so much about investing, without actually demonstrating that you know a single thing.

What exactly are you going to invest your $250k in?

User Info: djwagon

djwagon
3 weeks ago#16
lostkiwi posted...
HappyGuy posted...
You think someone with a million is just going to sit on it? Most people would invest at least a quarter of it.
So, lets say you invest $250K. So now your annual income is only $25,000 per annum, which also must somehow include paying off a house, by the TC's own admission.

Lets say you find a really solid investment, that pays 7% return on investment, year on year. After 30 years if you left that investment completely untouched you could cash it out for almost $2M, excluding capital gains tax. Great. Except you're not going to get even close to lasting that long, since your measly $25,000 per annum means that you're effectively trying to survive off under $14k per annum in only 20 years time in 'todays' dollars (due to inflation). Including still trying to pay off your mortgage.

Most people seem to throw the word 'investment' around without really understanding the practicality of it

lol you guys are a joke . the second you take any money out the state your in as well as the irs have thier hands out looking for thier cut.if you want no one to touch your money buy tax-free bonds ..

I am voicing my opinion here on how i see the subject .when i post .i will not be bullied into change it

User Info: djwagon

djwagon
3 weeks ago#17
lostkiwi posted...
HappyGuy posted...
Oh, so you think someone is going to invest that full amount into a singular low risk, low reward venture? Pretty silly of you.
A consistent 7% year on year ROI is a well performing investment by any measure.

So, enlighten me, since you seem to post like you know so much about investing, without actually demonstrating that you know a single thing.

What exactly are you going to invest your $250k in?

if he was smart tax free bonds

I am voicing my opinion here on how i see the subject .when i post .i will not be bullied into change it

User Info: Darkdragoon324

Darkdragoon324
3 weeks ago#18
You can stop working whenever you want if you've got the money, you just can't use your social security or take money from your retirement savings without a heavy tax until like... 65, I think?
"Antagonizing another user by posting about food is disruptive"
- A GameFaqs mod

User Info: lostkiwi

lostkiwi
3 weeks ago#19
djwagon posted...
if he was smart tax free bonds
I think you guys are overlooking the point I am trying to make. It doesn't matter if the money is invested into Bonds, Shares, or property, all of which are valid investment strategies with their own advantages and disadvantages.

The point is, even with the assistance of investing some of that money, $1M is simply not enough to cover yourself for 30 years. It may sound like a lot, but it really isn't. Inflation means that the net worth of the value of money decreases over time, so even if you were somehow were able to make that money stretch over that duration, it means that each year you are effectively living on less and less. $1M isn't even that much now, let alone what it's worth in 3 decades from now.

User Info: djwagon

djwagon
3 weeks ago#20
lostkiwi posted...
djwagon posted...
if he was smart tax free bonds
I think you guys are overlooking the point I am trying to make. It doesn't matter if the money is invested into Bonds, Shares, or property, all of which are valid investment strategies with their own advantages and disadvantages.

The point is, even with the assistance of investing some of that money, $1M is simply not enough to cover yourself for 30 years. It may sound like a lot, but it really isn't. Inflation means that the net worth of the value of money decreases over time, so even if you were somehow were able to make that money stretch over that duration, it means that each year you are effectively living on less and less. $1M isn't even that much now, let alone what it's worth in 3 decades from now.


i think your missing the whole point here .no matter where the money comes from you have to pay taxes on it in your state and the irs. you can spin this any way you want . but any money you make and take out is going right to the tax man and your state governemnet before you see any money .plus it boost you into another tax bracket

I am voicing my opinion here on how i see the subject .when i post .i will not be bullied into change it
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