A Free Retirement Planning Program Lets You Retire on Less Than $1 Million
June 11, 2008 by Thomas Jones
Filed under Retirement Planning, Retirement Savings, Strategies
Emily Brandon at U.S. News and World Report wrote an interesting article about retirement planning that dares to ask the million-dollar question: namely, whether a million dollars enough to retire on?
Of course, a million dollars used to be a lot of money. There was a time when being a millionaire meant being rich… but those days are long gone. Twenty years of fast and easy credit from the Federal Reserve have resulted in a radical devaluing, not merely of the dollar, but of many retirees’ assets.
Becoming a millionaire once conjured up images of wealth and luxury, or at the very least financial security. But is a million bucks enough to retire comfortably on anymore? Many baby boomer millionaires don’t think so, at least for the lifestyle they want to lead.
If you drew down 4 percent of your $1 million nest egg every year, a share many financial advisers recommend as prudent, you would receive about $40,000 annually, before adjusting for inflation—a pretty comfortable salary outside major metropolitan areas, especially if your house is paid off. Of course, how far that $3,333 a month goes depends on your lifestyle, health, and inflation. Here are three viewpoints on the $1 million question: Read more
