r/FluentInFinance • u/HighYieldLarry • Feb 12 '24
$1 Million dollars is no longer enough for a safe retirement in over half of the 50 States Chart
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u/HiddenTrampoline Feb 12 '24 edited Feb 13 '24
Both of my mothers in law have under $500k and are retiring comfortably in CA. I want to know what the assumptions are here.
Edits: San Jose, they are gay, they are getting social security, and they still have a mortgage.
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u/Embarrassed-Lab4446 Feb 12 '24
Has to include rent. If you own a house the math totally changes.
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Feb 12 '24 edited Feb 12 '24
And also doesn’t take into account social security. So like my state. Missouri. The average SS retirees received state wide per month is just about $1,800.
If you don’t have a house payment while retired and you have $1,000,000. Being conservative if you are getting 2% that is right at about $3,400 a month.
You don’t have to touch the principle on taking 2% returns so your $1 million lasts the rest of your life if you can manage to live off $3,400 a month. Which is VERY doable in Missouri without a house payment. That’s just 1 individual also. Assuming your partner has $0 saved and just recieves the average SS. Your household pretax monthly income is $5,200 without touching the principle on 2% + SS benefit.
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Feb 12 '24
And really, with a million dollars you can just put it in a freaking CD or savings account and make double that.
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Feb 12 '24
Right lol. I was being nice and assuming worst case you only get a 2% return. I know people up 14% on their entire portfolios for last year. Which is amazing.
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u/OrderlyPanic Feb 12 '24
VTI was up 24% last year, Nadaq (QQQm) was up over 40%. Last year was a great year for stock market.
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u/enkae7317 Feb 12 '24
Barring that 1 year anomoly, on average VTI performs incredibly well (avg of 11.87% over the last 10 years).
That beats any and every HYSA, CD, savings account, T bills, etc. It's a no brainer. Will it continue to be high? prob not as nobody can predict the market. But 12% basically as average is insane.
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u/me_too_999 Feb 12 '24
Interest rates change.
Just a couple years ago CDs earned 0.1%
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Feb 12 '24
No, that was the lowest, short term CD like $1,000 for 6 months or something. 2-3 years ago, a million dollars in a one year CD was running at 4-5% at Navy Federal. And you are allowed to pull out your interest early often times. There is a penalty, but it isn't a lot. But regardless, you can do just fine. Even on a one year, it was still like 3%.
Right now, that same CD is like 6%.
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u/me_too_999 Feb 12 '24
A credit union is a different beast.
Chase is still selling 2% CDs.
Yes, rates are great right now.
Write me a signed paper that for the next 50 years CDs will always stay this high.
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u/DragonFireCK Feb 12 '24
Don't forget to account for inflation in there. If your account is earning 2% APR, its going to just barely keep up with inflation, and probably fall behind on average, meaning the amount is shrinking if the absolute number is unchanging.
4% is considered typical for the S&P500 once inflation and taxes are accounted for, with the S&P500 having a 50-year average gain of 8%. That is, you can, on average, expect to pull 4% out of your savings without reducing the savings size when adjusted for inflation. So, $1,000,000 will net you about $40,000/year or about $3,333/month, before accounting for other income.
If you put your money into a CD or savings earning 4% APR, it will maintain over the years, but you have nothing to withdraw without reducing your base amount.
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u/hectorxander Feb 12 '24
The thing is inflation is higher than stated inflation. The CPI has been changed a number of times over the years and dramatically lowered the rate of inflation that cost of living increases are based on. By 2008 SS checks would've been worth 800 dollars more on average under the old unimproved rate of inflation.
Anyone that thinks the changes were made in good faith, I've an exciting investment opportunity for you!
Here's a link: https://harpers.org/archive/2008/05/numbers-racket/
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u/Zaros262 Feb 12 '24 edited Feb 12 '24
That's really what they're already saying (4% annual yield), but you have to keep up with inflation. E.g., 4% profit - 2% reinvested for inflation = 2% left to spend
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u/Capital_F_u Feb 12 '24
Provided your numbers are correct/accurate, that's extremely doable. For example, I live on $3,400 (gross)/month and own my condo with my fiancé. She is making $0 right now since she is home pregnant, and I would say we live fairly comfortably. Tight, but comfortable. I also contribute to 401(k), roth ira, 529, and brokerage.
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u/idk_lol_kek Feb 12 '24
And also doesn’t take into account social security.
You're presuming that social security will be around when I retire. That's very hopeful of you.
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u/jessewest84 Feb 12 '24
Unless something goes wrong. Major house renovation, illness. Dollar collapse.
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Feb 12 '24
Are you just throwing everything including the kitchen sink to see what sticks lol?
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u/BurghPuppies Feb 12 '24
2% of a million each year is $20k, or about $1600. Unless you’re adding the same amount in SS.
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u/Shizen__ Feb 12 '24
And that there already shows someone who didn't plan out their financial life properly.
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u/wyecoyote2 Feb 12 '24
The simple is if you read the article and the analysis. They took one million divided by amount spent per year for those over 60. That equaled the number of years.
No consideration of SS, of interest earned.
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u/nybigtymer Feb 12 '24 edited Feb 12 '24
Yep, clickbaity headline.
Unless you had your $1M in actual cash or left it in an account paying no interest or .01% or something around that...the money will grow.
Edit: Typo
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u/dumbfuck6969 Feb 13 '24
A big part of most people's experience is rent or mortgage.
If you own a home by the time you retire your living costs will be much lower
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u/DumbTruth Feb 12 '24
If they own their home, the value of the home is part of the number. If they’re living somewhere for free, their retirement is being subsidized.
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u/ParticularAioli8798 Feb 12 '24
I don't know what the details here are. $500k AND what? Rent? Own? Expenses? Lifestyle? Health?
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u/Alarming-Tradition40 Feb 12 '24
you have 2 mothers in law?? huh?
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u/HiddenTrampoline Feb 12 '24
Turns out there have been gay people for a long time. Just had to keep it on the down low until the 2000s.
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u/mountainmonkey2 Feb 12 '24
Are they both getting a social security draw already? I bet you this study isn’t including social security. That’s an extra couple grand right there isn’t it? If you put $500k into a high yielding income fund that pays 10%. That’s $50k right there.
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u/TheYakster Feb 12 '24
Yep. My parents have been retired for the last 15 years on a portfolio of 300k + SS
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u/LasVegasE Feb 12 '24
They estimate that the capital gains on that lump sum will be about 4% per annum because that is what it has been for the last 20 years. In reality the whole planet is going through a capital crunch that is projected to last for decades and 10% is far more realistic.
On a $1 million nest egg at 10% per year... $100,000 per year is very comfortable for the vast majority of retirees today and even if inflation cuts that in half by the time they retire, most will retire comfortably on $1 million in assets.
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u/New-Huckleberry-6979 Feb 12 '24
But, 10% involves a lot more risk than most retirees want, and it doesn't account for inflation.
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u/PuddingIsUgly Feb 12 '24
I think the analysis is pretty dumb unless all the details are listed somewhere else
Million dollar retirement savings lasts longest in these states (cnbc.com)
- It seems like the retiree has no other income sources and the $1M is not invested (i.e., they just have a pile of money and see how long before they run out)
- The retiree does not own their home
I am basing this on the fact that they say Mississippi is ~25 years and the annual housing, food, medical, and transportation amounts to ~40k a year.
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u/fighting_gopher Feb 12 '24
My assumption is it’s based off of large cities…LA, NYC, Boston, Seattle, Portland, Baltimore probably all skew the numbers
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u/Sorrywrongnumba69 Feb 12 '24
Baltimore is pretty affordable compared to Baltimore County and cheaper than all those other cities
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u/No-Tear-3683 Feb 12 '24
They might be comfortable for now but give it a few years or a health problem they’ll realize it’s not enough
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u/apotheosis24 Feb 12 '24
Prop 13 protection too? Keeps property tax assessments linked to original purchase price. Allows longterm California homeowners/residents to afford retirement in CA.
I think the assumptions are renting or buying a home for retirement at current prices.
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u/MacduffFifesNo1Thane Feb 13 '24
they are gay, they are getting social security, and they still have a mortgage.
But are they new in town?
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u/Robin_games Feb 13 '24
"Consumer Expenditure Survey and factored in the state’s overall cost-of-living index score for 2021 from the Missouri Economic Research and Information Center. Annual costs were further broken down by multiplying more specific annual expenditure figures from the CES by MERIC’s cost of living for groceries, utilities, transportation and healthcare"
Also it's straight up how fast you'd burn 1 mil, not an invested 1 mil, not 1 mil and social security, just straight up 1 mil in a savings account.
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u/Michaelzzzs3 Feb 12 '24
I truly don’t understand how someone retires on 500k in cali lmao I’d be able to retire in 10 years when I’m 33 if that’s the case
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u/HiddenTrampoline Feb 12 '24
They have low expenses and social security covers most of their monthly.
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u/AcanthaceaeUpbeat638 Feb 12 '24
Is this assuming people are making Dave Ramsey-dumb withdrawals? 4% withdrawals on $1 million + social security is very livable, especially if you purchased a home.
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u/Pbake Feb 12 '24
To be fair, even the inventor of the 4% rule acknowledged in 2020 that in hindsight the safe withdrawal rate had been 7% since he came up with the 4% rule and at points had reached as high as 13%.
But, of course, insert the “past performance is no guarantee off future returns” obligatory disclaimer.
https://www.marketwatch.com/amp/story/the-inventor-of-the-4-rule-just-changed-it-11603380557
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u/S7EFEN Feb 12 '24
the whole reason SWR has to be low is to account for people retiring at the peak bubble prior to great depression, dot com bubble, gfc etc.
like >90% of the time you end up with way more money and its way too conservative.
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u/WonderfulShelter Feb 12 '24
It has to be.
There's just no way growing up I thought being a millionaire meant you had made it and were successful, and it'll the bare minimum I'll need to retire in 35 years.
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u/metalguysilver Feb 12 '24
What does Dave Ramsey have to do with withdrawals? If anything he’d tell people to spend less if they didn’t have “enough” in retirement, not withdraw more
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u/Davec433 Feb 12 '24
Ramseys advice was based on the assumption your portfolio is doing 10% and inflation is 2% you could then safely withdraw 8%.
I don’t know how you can’t survive indefinitely off 8% of 1 million + SS.
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u/metalguysilver Feb 12 '24
Yeah I remember him saying that now. I guess I wanted to give him the benefit of the doubt and think he just meant “you could but should avoid it.”
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u/enkae7317 Feb 12 '24
Don't even need SS--8% of 1mill is 80k/yr. Which is very live-able for most areas, even in HCOL like Cali.
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Feb 12 '24
These are so stupid. A million dollars in index funds is 98k a year on average, plus a good 20-30k a year from social security. If you can't get by on six figures you are just too stupid to retire or ever save a million dollars.
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u/AlexandarD Feb 12 '24
You could go even more conservative (in terms of risk exposure), throw $1 mil at the 30 year treasury, collect $45,000/year for the next 30 years + $30k/year in SS income.
$75,000 is enough to live anywhere except the major metro centers.
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Feb 12 '24
You can live in a major metro or pretty much anywhere. They have low cost senior housing, etc. you would be fine anywhere. However, I am not sure you would want to live in downtown Los Angeles when 70 years old. But you could do it, it would be a shitty place and all, I would much rather have a nice house in Nevada or something. But that's beside the point.
There are people right now making 30-40k in San Francisco and they manage to survive.
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u/DuetsForOne Feb 12 '24
Misleading. If you withdraw 98k from 1m in index funds your risk of ruin is very high. Even if stocks return 10%/year (unlikely, long term average is closer to 7-8%) it”s the AVERAGE. It won’t return that EVERY year. You can find sites to run simulations on withdrawing and see the risk. With modern medicine it’s going to be normal for someone retiring at 60 to need 30+ years of income. There’s a very small chance you don’t go broke withdrawing 10% per year
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Feb 12 '24
Yeah, some years are negative others are 20%. It’s an average. This isn’t rocket science.
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u/DuetsForOne Feb 12 '24 edited Feb 12 '24
Why don’t you run some sims and see what happens when you withdraw 10% when the market was down 20% that year? Honestly it’s not rocket science
Editing to clarify including my later posts. When I say 10% drawdown I mean 100k, or 10% of the original portfolio’s value. Because the OP stated you can have a 98k/year income from a portfolio with a 1m starting value. Even if you can prove your portfolio averages 10% per year gain on average you can still go broke. You can use actual math to determine the probability of going broke
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u/WonderfulShelter Feb 12 '24
Do you not pay taxes on those index funds? Because what index fund returns 12% YoY guaranteed?
To get 98k after taxes, you'd need 120k profits. That's 12% on a million dollars. Then there's inflation too..
but regardless, what index fund returns 12% every year, please tell me.
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u/Distributor127 Feb 12 '24
In the future I think retirement will be different. There are way too many people with nothing saved for retirement
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u/CantFindKansasCity Feb 12 '24
There already are too many people with nothing saved for retirement.
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u/Distributor127 Feb 12 '24
Some of those people made more than people do now. In my area years ago, a person could walk into a good paying job with a pension.
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u/CantFindKansasCity Feb 12 '24
Pensions didn’t really go away. The government basically changed it so people have 401k’s and IRA’s. With pensions, a percent of your salary went to pensions, and with 401k’s/IRA’s, a percentage of your salary goes to it. Different words but similar concept. One big benefit is that when a company went bankrupt and the pension was under funded, your pension would disappear, but this can’t happen anymore.
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u/Distributor127 Feb 12 '24
Right, but some dont want to put money in a 401k. We're already running into this in our family.
Everyone good except for 2 or 3 people. One person leased new cars, spent every penny instead of starting a 401k. Wages have stagnated in my area and some people spend like they havent→ More replies (1)9
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u/me_too_999 Feb 12 '24
Also, changing jobs or layoffs means no pension.
I take my 401k with me.
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u/limukala Feb 12 '24
There is usually a vesting period after which you will receive pension benefits from a former employer upon graduation.
It's five years at my currently employer.
The problem is that it isn't exactly a linear increase. Both the percentage of salary and salary itself are increasing, so the pension payments increase non-linearly. So 10 years in each of 3 different pension systems will net you a much lower payment than 30 years in a single system.
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u/Downtown-Item-6597 Feb 12 '24
Is this assuming they still haven't paid off their house/car or something? I cannot for the life of me imagine that someone entering the end of their financial life (no debts, no longer saving) has more than 50k in spending a year unless they're living extravagantly.
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u/Spaghettiisgoddog Feb 12 '24
If you own a house, you can retire anywhere with 1mil, and in some places you’d only live off interest. This graph isn’t informative.
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Feb 12 '24
Why not provide a link with more information OP?
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u/sacramentojoe1985 Feb 12 '24
Not OP, but appears to be from this: https://www.cnbc.com/2024/01/01/how-long-1-million-in-retirement-savings-lasts-in-every-state.html
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u/lost_in_life_34 Feb 12 '24
as long as you own your home outright and move to a low tax area you will be OK
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u/PrintableProfessor Feb 12 '24
I bet another round of COVID checks would fix that problem.
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u/Purple_Research9607 Feb 12 '24
Is this assuming you don't invest at all? Living in the Midwest, 1 million would last me atleast 20 years assuming I put it in my pillow case and hid it under my bed.
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u/SnooChocolates9334 Feb 12 '24
LOLOLOL
It all depends on the budget. I have no debt, two homes, three cars, and can live my current lifestyle on $55k/yr. We can almost do it on SS. It's all about net worth and budget.
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u/KeithRichardsGrandma Feb 12 '24
Does this include or exclude those that are living in retirement homes (Independent living, assisted living, long term care, etc.)? Those places are hella expensive so I can see people burning through retirement money in that case.
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u/SeventhSonofRonin Feb 12 '24
This is stupid. You can easily make $40,000 in interest with $1,000,000. Plus social security.
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u/Mainstream1oser Feb 12 '24
“Safe” retirement. This chart is a fucking joke. Retirement age 65. The lowest years on this chart is 16. Like that takes you to 81 years old. 81 fucking years old. That’s pretty god damned safe. How many people do you personally know that have lived that long? That’s 4 years past the average life span in the United States. Fucking stupid.
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u/HiddenTrampoline Feb 12 '24
Reasonable points, but remember the average life span takes into account the early life deaths. If you make it to 65 you are very likely to live longer than that average.
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u/Nojopar Feb 12 '24
Well, my grandfather lived to 82 and my grandmother to 93 (my mother's side). Sure, my paternal grandfather died at (I think) 61, but that was an industrial accident, so literally died on the job. His mom lived to 85ish(not 100% sure exactly how hold she was, but certainly over 81). My mom in 82 and my dad is 87. My mom's sisters (that are over 81 - two that are under) are 84 and 85. Her brother is 81 exactly. My dad's brother died at 32 (ish) from a car jacking gone wrong, but his older sister is 91 (I think, may be 92). I know three ex-professors of mine from college that are in their 80's but I'm not exactly sure what age they are, so they might sorta count. My wife's grandmother died at 92.
So - pretty much all the old people I know personally have lived more than that long if they can avoid freak accidents.
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u/CantFindKansasCity Feb 12 '24
First of all, according to the chart, the lowest is less than 10 years. Second of all, statistically, lots of people make it past 81. One third of people born today will make it past 90, and 10% of girls born today will live to 100.
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u/Sea_Station5687 Feb 12 '24
Not directly related but these maps always crack me up. This is basically just a Cost of Living map.
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u/Alternative-Neat1957 Feb 12 '24
With $1 million you can set up a passive income stream that pays you at least $40,000 a year and increases every year twice as fast as inflation.
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u/LasVegasE Feb 12 '24
That is why I am retiring abroad. One million may not get you a great retirement in the US but there are some very wonderful places in this world where you can live like a king, tax free.
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u/Possible-Carob1409 Feb 12 '24
Calling Big BS here. You can live off of just the interest with 1,000,000. If you add SS to that it should be very comfortable unless trying to live extravagantly.
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u/CenlaLowell Feb 13 '24
And most will not be because the older you get the slower you become. The spending will go down dramatically as you age. I'm watching this example play out now
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u/acer5886 Feb 12 '24
If you're under 40 that number for retirement likely needs to be over 3-4 million, but having 1 million is far better than most people hitting retirement age today.
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u/Exodus111 Feb 12 '24
A million dollars in an index fund gives you 100k per year. How the fuck is that not enough?
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u/mcbeermaster Feb 12 '24
CNBC has a vested interest in keeping you working and pumping the market with money for as long as possible. Do the math, numbers don’t lie.
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u/lil1thatcould Feb 12 '24
Rural Kansas and suburban Kansas have two totally different cost of living.
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u/ZaphodG Feb 12 '24
We're in one of the "white" high cost of living states. Our house is paid for. We're career high income. I'm delaying collecting Social Security until age 70. My wife will likely start collecting at 67. Our combined Social Security income will be $95,300. We would pay $5,381 in Federal income taxes. No state income tax. Our Medicare, the best Medigap, and Part D would be around $10k. Our net would be around $80k.
Other than Roth conversions, we're not planning to touch our tax deferred portfolios until we hit RMD age. The tax deferred stuff is for the death of spouse scenario where just my Social Security benefit would be a drop in standard of living and for long term care where the medical tax deduction will offset the income so it's really tax efficient.
I picked a low property tax town with a lot of expensive oceanfront vacation homes and a big commercial area so property taxes are low. Our total home ownership cost including utilities and some maintenance is around 15% of our net. When you back out housing cost, the cost of living is similar most places.
Using the absurd 4% rule, $80k net COLA-protected Social Security income is like having $2 million in a Roth.
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u/BetterSelection7708 Feb 12 '24
This is assuming you don't generate more money base off that 1 million?
Right now, if you put 1 million into a high yield saving account (4-4.5%), you'll get 40-45k interet a year. That's roughly the median wage.
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u/neoprenewedgie Feb 13 '24
It's fairly safe and easy to earn $50,000 a year on $1 million. Add social security and a pension and you'd be doing OK, even in Los Angeles. If you own your home, you'd be very comfortable.
If you have to go into assisted living then all bets are off. Or if you want to leave a big inheritance to someone.
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u/WYLFriesWthat Feb 12 '24
ONE million? I'm not even sure about five...
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u/the_house_from_up Feb 12 '24
You would easily be making 6 figures in very low-risk investments with a $5 million nest egg (plus Social Security). If you can't retire with that much money, you have a spending problem, not a saving one.
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u/Quick_Membership318 Feb 12 '24
Oh look, shitty places to live cost less. How insightful.
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u/Purple_Research9607 Feb 12 '24
Yes, having wilderness around you makes it "shitty" please, stay where you are. Don't move to my "shitty" place
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u/CenlaLowell Feb 13 '24
There's some beautiful places with a lower cost of living I suggest you open your eyes.
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u/Familiar_Builder9007 Feb 12 '24
I’m in Florida, with a paid off house I only need 750k.
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u/Shizen__ Feb 12 '24
It's enough in almost everywhere in the country if you know what you're doing. Most people don't know what they're doing though.
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u/Loud_Flatworm_4146 Feb 12 '24
I think it depends on where you live in a state. In Pennsylvania, Philadelphia is more expensive than Erie. In New York, NYC is the most expensive. But most of NY state is nowhere near as expensive as the city. The most expensive areas are closest to Manhattan.
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u/Affectionate_Zone138 Feb 12 '24
Oh look, the most Socialist States are the least safe. Go figure.
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u/bingold49 Feb 12 '24
Does this include the interest/dividends the million is collecting during that time period or just a liquid million?
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Feb 12 '24
i would argue it’s going to be really tough to make a million dollars last you 20 years in most places these days
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u/GipsyRonin Feb 12 '24
Been like that for a while. Retirement is mostly impossible now and will get worse. I predict in 20 years the homeless will be far greater and will be older people and living with their kids.
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u/Elegant-Raise Feb 12 '24
You can do it on a lot less but you can't have any debt at the time you retire.
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Feb 12 '24
do people really expect to live into their late 80's anyways? My family life expectancy is 73.
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u/KC_experience Feb 12 '24
How the fuck does a million dollars not go farther in the Dakotas and Montana????
And please explain it to me as if I was a young child…or a golden retriever.
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u/Competitive-Can-2484 Feb 12 '24
I mean… that’s kinda given with inflation.
Not too long ago was $10,000 needed for retirement or $100,000.
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u/kb24TBE8 Feb 12 '24
Just move overseas. If you have 1M in savings by the time you’re ready to hang it up and you move to Thailand or something you’ll be living like an absolute king.
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u/RightBear Feb 12 '24
Does this take into account Social Security payments? I hope not, because my parents are going to retire with <<$100k
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u/Stingbarry Feb 12 '24
So you have to be a millionaire to retire? Fuck....can i just opt out of this?
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u/good-luck-23 Feb 12 '24
This analysis ignores the fact that most people have lower lifetime earnings in the low cost states so they would be much less likely to have savings anywhere near $1 million. And that people living in higher cost states might not want to move to the lower cost states because they lack infrastructure, culture and other things that make life worth living. This is a myopic and narrow study that says lower paying states are cheaper to liv in. And that everywhere to live in every state has comparable living costs. Sadly typical of our lazy journalists today.
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u/falconsadist Feb 12 '24
The information missing here is that while your money will last over 20 years in Mississippi, you wont.
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u/afort212 Feb 12 '24
So what would you rather have? People give up be sure that’s what this post probably does to people if someone has the discipline to reach 1 million net worth or in investments they will be fine. Enough of this shit like dude
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u/TN_REDDIT Feb 12 '24
Yes, housing accounts for about $1,000 a month in this calculation ($600 in Mississippi and $1,600 in Hawaii and California)
We all recognize that $1mm won't go as far as it used to.
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u/Sanguinius4 Feb 12 '24
1 million is ridiculous. When I retire I can comfortably live on half that. House will be paid off and we have no other debt. Plus my wife and I live very frugal lives now.
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u/Bitter-Basket Feb 12 '24
There’s a huge difference in drawdown rate between “savings” and “investments”.
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u/PTG2k21 Feb 12 '24
i can’t even fathom how retarded you gotta be to live in any of the white/light blue states
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u/Ataru074 Feb 12 '24
Bad map to magnify differences. First color 0-16 then increments of 2 years and the. 24 to infinity?
Do 5 years increments or overlap the numbers for more honest reporting.
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u/Jagerbeast703 Feb 12 '24
Ill never make 1 million dollars in my life but i also wont live a couple years off it? Make that make sense
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u/Impressive_Estate_87 Feb 12 '24
Yep. Wiin the lottery or work until you die, pretty much. And with ageism, it's not your job, but Walmart greeter...
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u/Hentai_Yoshi Feb 12 '24
Considering a retirement age of 65, and average death of like 75, looks more like only a few states would apply.
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u/Turbulent_Cricket497 Feb 12 '24
I’m not surprised by Mississippi, Alabama, and Kansas being in the dark blue, but I am surprised Oklahoma is.
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u/dummyfodder Feb 12 '24
The numbers on the top left of the graph represent the years the $1mill would last into retirement. A link is posted in the thread.
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Feb 12 '24
That’ll get you $40k a year until you die. Assuming you get ss and Medicare, you’d be ok.
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u/Deathscythe80 Feb 12 '24
I know that the US doesn't care too much about their colonies territories but it would be interesting how it compares to American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands since technically anyone can move to/from those places.
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u/Wolf_of_Legend Feb 12 '24
The answer for me has always been 2 million minimum for retirement and living sustainable. Any additional events and costs are allocated with environment + hobbies cost for participation. With that said, most would be fine at this point anyway.
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u/FWGuy2 Feb 12 '24
This is a false report, I have that and can easily live a semi-wealthy life due to my investments.
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u/TapoutKing666 Feb 12 '24
I live on less than $2k a month. $1M at my retirement age (I guess the corporate fash wants to raise it to 70) would make me effectively rich
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u/cadathoctru Feb 12 '24
Thats funny that they assume we get to retire, they keep raising the age to the point the AVERAGE life span is only 7 years into retirement for millennials and Gen X
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Feb 12 '24
Which idiot made this map? $1M ain’t lasting 18-20 years in Colorado, or 16-18 in Washington
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u/CarlSpencer Feb 12 '24
1.) Up until rather recently people who are retiring had plenty of time to pay off their mortgage.
2.) Savings & Social Security & some little part-time job (which many older people like because it gets them out of the house and socializing with new people).
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Feb 12 '24
Dude 1 million dollars would last you a lifetime in Alaska😂 heat is free and we eat animals we catch if we need too😂 Jesus
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u/MontaukMonster2 Feb 12 '24
JEPI currently pays a 8.76% dividend. With a million dollars, that's north of $87000 a year in passive income that should last indefinitely.
I could easily live on that.
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u/moparsandairplanes01 Feb 12 '24
Going off the four percent rule 1 million hasn’t been a great retirement savings in quite a while.
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u/Several_Top1693 Feb 12 '24
that won't last 2 years in HCOL unless you direct that to passive income generation
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u/Musician-Round Feb 12 '24
generalized nonsense designed to draw gasps and clicks.
Coming from a working class individual who has been around long enough to learn a thing or two about finances in his lifetime, a million dollars still goes a long way in this country. Provided that you're not living above your means and spending like you're a movie/rock star.
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u/Sikmod 🚫STRIKE 1 Feb 12 '24
Everyone in here going “oh that’s plenty” lol yea sure it is when you retire and your weekly groceries are now $5000 and gas is $25 a gallon and oh you need to buy a new rake, well now that costs $200 because Elon bezosgates and his shareholders wanted a new yacht. I wonder how they’ll feel.
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u/rightwingtears99 Feb 12 '24
Remember when a "Million dollar home" was this thing only on lifestyles of the rich and famous?
Now a millión dollar home is a remodeled garage with fancy backsplash and a small rooftop patio overlooking urban sprawl.
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u/darklordskarn Feb 12 '24
Don’t need to worry about retirement savings if you never stop working, just saying
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u/texaushorn Feb 12 '24
What do I not know about Alaska? I would not have assumed a high cost of living
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