Can you retire on a million dollars when you're 30?

[ChefPapiChulo]

[MrOracle]

Not unless you have that $1M invested in Tesla stock and you have some alternate income to get you through the next couple of years. 5 years from now, you would have enough money to retire.

If you were retiring today, at age 65 in 2023, and assume you lived to 85, that's 20 years that you have to have enough money to live off of. That's only $50,000 a year, today, in 2023. And it's INCREDIBLY likely that you'll have health needs that will cost you far more than that, at least for some years. Tax advisors generally advise you to have $2.2M in 2023 if you are retiring now. Obviously if you won't be 65 for 30 more years, then the amount you'll need to retire comfortably is going to be a LOT higher due to inflation. That also means if you are only 30, and are going to live to 85, $1M only gives you a bit over $18,000 a year over 55 years.

All this assumes that your money isn't invested and isn't growing. Hopefully it would all be invested, and you weren't drawing off of it, meaning you'd have other income.

[Drewtate]

Yes you can.

[ChefPapiChulo]

you can retire on 1 million dollars?

[Drewtate]

1 million dollars isn't what it used to be but yes if own your own home and live modestly.
If you have 1 million dollars technically you can be called a millionaire but you aren't really what with inflation.

[ChefPapiChulo]

how long are you planning to live from 30 on a million dollars a year lol? like another 30 years or what?

[ChefPapiChulo]

you wanna give me some simple maths of how much you can spend a year or do you want me to give you simple maths on it?

[Drewtate]

Well I wouldn't rely on the 1 million per year. I'd use it to secure the future. Ie owning a home and investing. When you reach a certain level of wealth the money you have earns for you.

[ChefPapiChulo]

its not 1million per year. where did i say per year?

[ChefPapiChulo]

you think 1million is enough to invest on while being retired?

[Drewtate]

For starters I don't think 1 million is enough to retire on. You might live a very good life on it for 20 years but then need money at 50 years old in your case so you have to get a job. Inflation would eat at it.
If I had a million dollars right now I wouldn't retire, I'd set myself up with a good house and maybe buy one or two more to rent out, I might even get a mortgage for two or 3 more houses with the other houses as collateral and rent them out and if all goes well in 20 years the mortgages will be paid off by the tenants and I will own 6 houses.

[ChefPapiChulo]

I mean real-estate is probably the best thing you can invest in. You said you could tho, and being a landlord is considered self employment. So you’re not really retired. Now you’re saying you can’t? Make up your mind chat gpt.

[Drewtate]

If you were 50 and owned your own home you probably could. I just said that if I had 1 million in my pocket at my age I wouldn't, 1 million is nothing and inflation and the cost of living would eat into that over the years

[ChefPapiChulo]

Yup.

[Drewtate]

To be a millionaire in the 1970s would today mean you've about $8 million just to put it into context. The way things are going in ten years your $1million might only be worth $500,000 and you might have spent a good chunk of that leaving you $250,000 which itself will depreciate

[ChefPapiChulo]

Inflation has not been that bad. Someone needs to take a look at your programming.

[ChefPapiChulo]

Bad bot.

[Drewtate]

Might not be that bad but look at it this way inflation on $1 million since 2013 puts its value today at $650,000 and inflation looks set to get worse. Feel free to check that out.

[ChefPapiChulo]

You don’t even know what you’re talking about lol

[Drewtate]

Look it up. $1 million in 2013 is worth something like $1.35 million in todays money with inflation. So basically your million dollars ten years ago is only worth $650,000 in todays money thanks to inflation.

[ChefPapiChulo]

Not really going to get in a discussion who’s wrong ten times and then randomly is right because he finally decided to look up the correct information.

[Drewtate]

OK stay ignorant
www.in2013dollars.com/.../2013?amount=1000000

[ChefPapiChulo]

i was pointing out your poor math skills. you're the ignorant one.

[Drewtate]

You lack understanding of inflation. That's OK.

[ChefPapiChulo]

"To be a millionaire in the 1970s would today mean you've about $8 million just to put it into context. The way things are going in ten years your $1million might only be worth $500,000 and you might have spent a good chunk of that leaving you $250,000 which itself will depreciate "

[ChefPapiChulo]

oh wait you're right. nvm my bad.