Anyone who imagines they can retire with $250K in the bank is delusional.
You are probably very right.
But many people will retire with less than 500K in savings, SS and a pension.
Of course SS and pensions may be taken away, and they have designs on 401ks and IRA’s.
Even cash is not safe today.
Anyone who imagines they can retire with $250K in the bank is delusional.
Its probably slightly better than that because you can draw down your principal if you assume a reasonable time horizon for living (let’s say 20 years max after you retire). But you also have to adjust for inflation.
So.....my estimate is that $1.5M is really the current minimum if you want to maintain a middle class lifestyle.
You have that right. You need $1,000,000 in investments to generate $50,000 a year, assuming a measly 5% return. And with returns averaging 1% and inflation thrown in you are going to need a lot more than $1,000,000 to have a sustainable income through retirement.