Posted on 12/04/2022 12:57:51 PM PST by RomanSoldier19
A cool $1 million is not what it used to be.
There are more millionaires in the U.S. and globally than ever before, with nearly 24.5 million millionaires nationwide as of 2022, according to the latest Global Wealth Report from the Credit Suisse Research Institute. Even so, having seven figures in the bank offers less security than it used to in the face of inflation and extreme market swings.
“That mark is easier to obtain but it may not deliver what we expect,” said Dave Goodsell, executive director of the Natixis Center for Investor Insight.
These days, fewer Americans, including millionaires, feel confident about their financial standing.
(Excerpt) Read more at cnbc.com ...
We are comfortable, though not rich. I like my job, and she likes being a Nana.
For those who did time in the military, consider a federal civilian job. After 5 years, you can add your military time in for pension purposes. It’s been worth about $1500 a month to me, in addition to SS.
On the lighter brighter side a lot of the corrupt foreign counties paid people like Hillary and Billiory $10,000 A MINUTE for 'speeches'. So some of that money got back to the US...
And those DC books democrat 'elites' have ghostwritten for them? Rumor's some of those corrupt foreign countries 'buy' a few hundred thousand copies a pop... Amazing how countries like the Congo etc with such low literacy rates have populations that hunger for American political tomes. Could it be true?
Nonsense!!
Unless you decide to squander your money and live well above your means .... a million dollars will allow the average person to live comfortably.
A caveat would be that if you're living in an area whose cost of living is crazy high, e.g., NYC, San Fran, etc., a million dollars in retirement will not afford you the luxuries that you could afford in areas that boast a low/average cost of living.
The real inflation rate is about 15%+, so a 5% t-bill isn’t the answer.
Cash flow is more important than cash saved.
For most people social security + ira withdrawls + part time work will get them through the end of their life. Plus you should not be in debt when you retire.
Wonder how many of these “millionaires” are paying a mortgage and loaded in other debt.
Ding, Ding. We’ve got a winner!
That said, not being in debt is the real key.
Get rid of debt while you are in your earning years, and you are at least, as they say on the left, "sustainable."
“Inflation is caused by government, and 100% intended. It’s done so that you won’t be able to save up a lot of money and pass it down to your family.”
Absolutely correct.
The government hates the idea of middle class generational wealth transfer.
Inflation is wealth transfer from the middle class to the Government (pays bills for free) and the Wealthy (assets get revalued automatically).
I admire your attitude!
And may your "today" be a fine one.
Agreed. Also, I believe a common mistake with retirement investment planning is not maintaining enough of the portfolio in equities to keep up with inflation. The usual strategies are to put something like 50% or more of the portfolio into bonds/treasuries to handle market downturns. I suggest a ratio of something like 25% bonds/treasuries with 75% in equities, but with the equities portion spread out into many mutual funds across about 30 asset categories. I've been suggesting this strategy since before Brandon and his higher than ever inflation. The idea is that with a 4% annual withdrawal rate, having 25% in bonds allows you to handle stock downturns and recoveries that last 6 years. And in case the bonds are also volatile during that period, being diversified across many asset classes helps you have at least a few investments that are up (that you can withdraw from to live on without selling low).
For example, during the downturn from Oct 2007 to March 2009, not only were PURLX (long-term treasury fund) and PRTIX (intermediate treasury) up, as is common during large stock downturns, but also PRGMX (a GMNA mortgage fund).
And during the March 2000 to fall 2002 downturn, the PRREX (real estate) fund was up, as was PRWCX (capital appreciation), TRMCX (mid-cap value), the aforementioned PRTIX and PRULX treasury funds, and PRSVX (small-cap value), PRGMX, PRTAX (municipal bonds), PRCIX (intermediate core bonds), and PBDIX (bond index fund).
Credit for this thinking lies mainly in Paul Merriman with his Ultimate Portfolio strategy (though I have a few asset classes that he doesn't suggest). https://paulmerriman.com/ultimate-buy-and-hold-strategy/
Yikes 😳
🛐🙏✝️
Or you could just spend $50K a year for 20 years and not pay income taxes. Most people are dead by 80 anyway. After 80 they don’t do a lot of traveling and partying. Leaving money to kids is optional anyway.
It could well be that the market could be flat for decades - remember that it took until the 60s or so before the stock market again reached the highs of 29. NO ONE KNOWS WHAT IS GOING TO HAPPEN - it’s all guess work.
Again, a million is plenty to survive but not necessarily thrive.
Me, I’m gonna bet it all on bitcoin.
Bkmk
I was in pretty decent shape until my wife of 23 years walked out and took our entire life savings. My only hope for retirement vanished. The only way I will be able to quit working like a slave is to die. There are many nights I consider making that happen.
you forgot they are trying to cut ss benefits because ss is broke and going negative....cola’s are a joke..they dont come close to matching inflation..
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
thomas jefferson...............
May you find some peace in your life.
We need all FR folks to keep fighting.
Working til 70 will boost your SS significantly.
Best Wishes.
With $5 Million can one make it from age 62 to 95 in a comfortable manner if inflation continues at 10% for about 5 years?
Just asking for a friend.
How long will $1,000,000 last if you are 62 years old and average $125,000 a year in expenses. Not very long. Hell after Biden inflation a Big Mac will be $20.00
Nonsense!!
Unless you decide to squander your money and live well above your means .... a million dollars will allow the average person to live comfortably.
A caveat would be that if you’re living in an area whose cost of living is crazy high, e.g., NYC, San Fran, etc., a million dollars in retirement will not afford you the luxuries that you could afford in areas that boast a low/average cost of living.
I’m probably in the same boat, but it would be nice to cut back on hours before assuming room temperature.
We could try a DB Cooper, part 2...
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