Is $1 Million Enough to Retire On?

A million is a million! I be very satisfied with a million.

Red

of @ Jan 28, 2009 18:08:52 PM

Is $1M enough? -- Depends on what you do with it!

Unless one lives-to-work, instead of vice-versa, everyone ultimately reaches the point where they conclude: It's time to retire." From that point, as they have for their entire lives, everyone does the best they can with whatever they have. It's called "living within one's means."

That's not a popular position in an acquisitive society that idolizes gluttany and immediate gratification --- regardless of the debt incurred. But then, that is a personal choice. The question of whether $1 million is enough to retire depends on the lifestyle one maintains --not the $1 million!

Some retirees could live happily and comfortably on $1 million, while others would consider themselves deprived and denied of luxuries "they deserve." At the end of the day, the answer to "How much is enough" is never really a money question.

John of FL @ Jul 14, 2008 17:38:05 PM

Most twenty-somethings will probably need three to five million dollars to retire on in the future. At just three percent, a million bucks has the buying power of around two hundred thousand dollars in thirty to forty years thanks to inflation. But you can always move to another country with a lower cost of living if you can't save more. Of course, if the dollar continues to weaken then living abroad during your retirement years may become more difficult. Time will tell.

of IL @ Jul 13, 2008 21:57:11 PM

Retirement

Dave .... Good article on retirement...

Davis Allen of NC @ Jul 11, 2008 08:06:00 AM

Is a million enough

With no social security or pensions, our cool 1.4 million will need to generate

70K a year including monthly payments on a new 30-year mortgage at age 65. It could mean house rich, cash poor, but we are determined to make it work since we spent 30+ years saving wisely.That said, we have watched our portfolio (60-40) shrink by 150K since last October, effectively losing two years of retirement income. A close friend who draws about $20,000/year in SS thinks we are on easy street. But I point out that it takes $400,000 from the SS "lock box "to generate his 20K a year until he dies; whereas my "market basket" of funds fluctuates with no guarantees. The retirement home we hope to build will cost us about 300K (we already own the land) but we are prepared to live a simple life to make that dream come true.

Explorer46 of TX @ Jul 06, 2008 12:27:13 PM

Nomes

Us nomes are dreaming and smiling all the way to the bank and a happy retirement. With a household income averaging $75,000 over the last 20 years we're working on our 2nd million (and we travel overseas 3 times a year). Of course we missed all those $3 lattes every morning !

sleeping in Seattle of WA @ Jun 24, 2008 15:18:40 PM

dreamers

you are impetious to even fathom a $1,000,000,000.00 savings account thru retirement efforts this is absolutely a misnoner and fully un accomplishable unless you live like a nome..

bill of KS @ Jun 19, 2008 22:44:07 PM

Is $1 Million Enough

Let's remember that a common employee/laborer (includes most of the middle class), must still live below their means and master delayed gratification, in order to save $1 million or more. It's more than likely that they'll continue their frugal ways even into retirement. They'll also be able to psychologically handle the ups-and-downs of the stock market and adjust to those situations. And as the article says, if they have their home paid off, I think they'll be just fine on $1 million or more.

After all, the majority of us approaching retirement age have spent decades watching others spend money on expensive trucks, RVs, boats, motorcycles, huge homes, and expensive vacations. I think those with $1 million or more salted away will be quietly smiling when all is said and done (and hopefully still have the knack of true appreciating the simple things in life... those that others routinely take for granted).

of WI @ Jun 16, 2008 19:54:20 PM