$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.
Most don’t make even HALF that.
Another article by an elitist for elitists.
Most of the writers live in high cost living northeastern states so that’s why you see the incomes they use. I live in the less expensive areas of the country and can survive on much less. But you get the idea.
You’re not going to earn 5% in any tax free investment
I always shake my head at these silly articles. If you make $115K/yr and think that you’re gonna retire and continues that $115K/yr spending...then you are probably broke to begin with...Mortgage should be ZERO...expenses should be stripped to parade rest...What about health issues and unforseen expenses. Reroofing that house at 73 is gonna be painful. $1M will last if you are drawing out $40K-$50K average in your 60s, $50K-$60K average in your 70s $60K-$70K in your 80s...by the time you’re in your 90s you have $500K-$600K left depending on average returns. The older you get, the less you should be spending on STUFF and housing. Crap man, take $200K - $300K and buy a few places and start a property management company. WHen you hit your upper 70s, start selling the property. 15-20 years worth of property value increase with a 12%-15% annual return on investment (in positive cash flow) and tax write-offs.... Then use that other $$$ to enjoy the heck out of your retirement.
Many people retire with an annuity, their SS and the contents of their 401K/IRA. The annuity seems to be ignored by most planners in this type of article.