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

User Info: altblahblahblah

altblahblahblah
4 weeks ago#41
lostkiwi posted...
djwagon posted...
who derailing who here . that what i love about this place .your always wrong .when every you post on here . you always have a expert on everything from wiping your back side to how you can not retire on a million dollars.

i said my peace .i done talking to expert tonight


..Says the guy who hasn't managed to make a single cohesive post about investments in this entire topic..

Goodbye, don't let the door hit you on the way out.



he's right though, the post he was responding to was wrong about a great many things.

For instance

The Estate Tax (which he referred to as the death tax) Only kicks in above $5.3 million, it would not apply to a $1 million inheritance.

User Info: Nabinator

Nabinator
4 weeks ago#42
duffloes posted...
$1MM likely can't support an individual for 25-30 years of increasing cost of living. Especially not after paying taxes on withdrawals. You'd like to think it's a lot of money, but it just isn't. Cost of living, especially healthcare costs will far outpace the savings later in life.

Yeah this.

And if something goes wrong with healthcare, 1mil could go quite quickly. Depressing, but true.

User Info: kaimine08

kaimine08
4 weeks ago#43
You might be able to make this work in the midwest in the states or some cheap country, but there's no way you're going to make a million dollars last all that long elsewhere.

User Info: Nabinator

Nabinator
4 weeks ago#44
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

Man, this is why I love property. I know certain markets are stuffed, but the AUS property has been going solid for the last two decades.

If I inherited 1 mill, I'd put that sucker in at least two houses. My first house property has grown by 15% in value since I bought it 3 years ago. And that's steady growth. Nothing crazy rapid like we've seen in Sydney or Melbourne.

Stick 1 million in at least two houses (500k each), and you'd get back anywhere $1000-1200 in rent each week. That's $50k-62k in rent each year, and that's not including the growing value of the property itself. Say you keep that for 30 years, and you get a steady rate of 5% growth each year, that's 2.5 million by the end of 30 years. Not too much rent has likely increased due to inflation, and people are probably paying you closer to $2000 a week 30 years later. Housing markets in growing cities are great.

User Info: yohabroha

yohabroha
4 weeks ago#45
altblahblahblah posted...
lostkiwi posted...
djwagon posted...
who derailing who here . that what i love about this place .your always wrong .when every you post on here . you always have a expert on everything from wiping your back side to how you can not retire on a million dollars.

i said my peace .i done talking to expert tonight


..Says the guy who hasn't managed to make a single cohesive post about investments in this entire topic..

Goodbye, don't let the door hit you on the way out.



he's right though, the post he was responding to was wrong about a great many things.

For instance

The Estate Tax (which he referred to as the death tax) Only kicks in above $5.3 million, it would not apply to a $1 million inheritance.

dj wagon was the one that said that about the estate tax, so do you want to continue posting about these "great many things" or do you want to just admit there aren't a great many things and that you don't even know who is saying what in this topic
"Only idiots play games at ultra settings" - Fade2black001, 2018

User Info: deprofundis442

deprofundis442
4 weeks ago#46
Nabinator posted...
Yeah this.

And if something goes wrong with healthcare, 1mil could go quite quickly. Depressing, but true.
Take your big money and ditch America.
http://functor.bandcamp.com
http://cadavericlividity.bandcamp.com

User Info: Nabinator

Nabinator
4 weeks ago#47
deprofundis442 posted...
Nabinator posted...
Yeah this.

And if something goes wrong with healthcare, 1mil could go quite quickly. Depressing, but true.
Take your big money and ditch America.

I'm not American, buckaroo

User Info: Fire_Emblem_

Fire_Emblem_
4 weeks ago#48
The average person makes less than 50 thousand a year in America... How the f*** would a million not last you long?? Lol
Ike is the best Fire Emblem character! Path of Radiance is the best Fire Emblem!

User Info: knuxnole

knuxnole
4 weeks ago#49
A million would only last like 10 years maximum. Unless you like never, ever spend money.
3DS FC: 4554-0309-4782

User Info: NSGraphite

NSGraphite
4 weeks ago#50
21WIVES_CHILL posted...
Lets say you worked hard, invested most of your money into index funds, saved the rest, and you're looking to retire at 50. But the company you work at requires that you work there for at least 30 years and earliest you can retire is at 57.

....

If you've already made $1M before 50 from this job, why bother working on? To receive even more money later in exchange for working 9-5 for 7+ more years? Why?

Search for cheap and low cost of living homes in a nice area (plenty of them here in the US under $100K) and pay it off along with the taxes which shouldnt be more than a grand a year.


if you own your house and have it paid off, you can live on 1 million. spending only 50k a year it will last you 20 years.

but if you live past 70, you'll be out of money.
PS4 at 100 million baby!
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