Got $1M to retire? Here’s how long it will last, by U.S. state

marketwatch.com

9 points·ALee··5 comments

That is of course assuming that I don't invest the money. In reality if I live in Mississippi and have $1 million, I can make it last forever withdrawing 4% a year and meet that average expenditure of $40k.

(And yes, I know that the 4% withdrawal rate may be too conservative. Or too not-conservative.)

Not forever. In 20 years that $40K will lose half of its purchasing power. Plus unless you can magically guarantee 4% returns a year, you will be getting less and less out every year.

The 4% number is a common retirement rule of thumb. It assumes a 7% return on your investments with a 3% rate of inflation so you can take 4% out forever without touching your inflation adjusted principle.

That 7% return goes down to 4 when you factor in taxes so the actual safe withdrawl rate is less than 1%

Which is why I avoid the whole investing charade all together and just cut my expenses instead! Woohoo!

No mortgage, no marriage, no restaurants, no fancy gadgets, just a nice relaxing low cost of living life with friends who feel the same way.

Every once in a while I take some controlled investing risks, but hell if I would ever plunk 300k in a mutual fund and just safely assume everything will be fine when I check it 30 years from now.

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