$1,000,000 depending on context, isn’t enough to comfortably live on forever. Especially if you’re talking about net worth, and not available cash.
Even if it was cash, invested properly, you could expect to have $30,000 annually safely, which is basically minimum wage or less in many cities.
It’s life changing money for sure, but I don’t think you could say that being a millionaire means you’re wealthy, it just means that you have a lot of freedom in life choices.
$1,000,000 depending on context, isn’t enough to comfortably live on forever.
Not forever, but earning $1M over the span of a 2-3 years sets you up for a ton of success.
For comparison, engineers can expect to earn and average of $2.5-3.5M over the span of their careers in the US, depending on which type of engineer they are.
There was some back testing around the 4% rule, and for a normal retirement 4% was okay and historically only failed a couple times if you started in a specific month of a specific year and changed nothing as things turned bad.
For a longer term early retirement, 3.5% never failed.
Obviously, past performance cannot guarantee future performance, but $35,000 a year would probably be fine from that mil.
And this is assuming a properly diversified portfolio
$1,000,000 depending on context, isn’t enough to comfortably live on forever. Especially if you’re talking about net worth, and not available cash.
Even if it was cash, invested properly, you could expect to have $30,000 annually safely, which is basically minimum wage or less in many cities.
It’s life changing money for sure, but I don’t think you could say that being a millionaire means you’re wealthy, it just means that you have a lot of freedom in life choices.
Not forever, but earning $1M over the span of a 2-3 years sets you up for a ton of success.
For comparison, engineers can expect to earn and average of $2.5-3.5M over the span of their careers in the US, depending on which type of engineer they are.
There was some back testing around the 4% rule, and for a normal retirement 4% was okay and historically only failed a couple times if you started in a specific month of a specific year and changed nothing as things turned bad.
For a longer term early retirement, 3.5% never failed.
Obviously, past performance cannot guarantee future performance, but $35,000 a year would probably be fine from that mil.
And this is assuming a properly diversified portfolio