Author Topic: 'Million Dollar Poverty': When a $1 million retirement nest egg isn't enough  (Read 4770 times)


VoteCthulu

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Alternate headline: Inflation exists.

What a shocker!

boarder42

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well and the entire premise is bullshit - read something similar.  they dont account for having any money invested just here's 1MM at 50k per year that should last 20 years - not with inflation... face palm click bait boringness.

marty998

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https://www.msn.com/en-us/money/savingandinvesting/when-a-dollar1-million-retirement-nest-egg-isnt-enough/ar-BBHMyRB

Do you have any thoughts or discussion points on this @MrMoneySaver ?

Skim read it, but my take away is that a million today isn't the same as a million in 30 years time. That's not a surprise but for the uninitiated out there that is what this article is aimed at.

It's not the worst piece written out there, it will get some people thinking. Advice in there to invest all side hustle income is actually quite good.

MrMoneySaver

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https://www.msn.com/en-us/money/savingandinvesting/when-a-dollar1-million-retirement-nest-egg-isnt-enough/ar-BBHMyRB

Do you have any thoughts or discussion points on this @MrMoneySaver ?

Skim read it, but my take away is that a million today isn't the same as a million in 30 years time. That's not a surprise but for the uninitiated out there that is what this article is aimed at.

It's not the worst piece written out there, it will get some people thinking. Advice in there to invest all side hustle income is actually quite good.

I think it's nonsense -- scare tactics spewed by the financial services industry to make us think we can never have enough.

soccerluvof4

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They just write shit to write.  Of course a million dollars in Mississippi is going to last a whole lot longer than as in Hawaii as well as a host of a lot of other things there not mentioning. Dumb!

fattest_foot

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Surprised there isn't a follow up article about how a $50,000 a year salary is median right now, but in 30 years will be poverty. Oh the horror!

Polish_Hammer

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News flash the future is an unknown. yeah inflation may me an issue in the future cause it isn't now.  1.6 million dollars today is equal to 1million in 1999, so anyone can do their own math on estimating inflation, but if inflation grows it usually means the economy is growing at a crazy clip and your investments are as well so you make more money. Then the fed may really have to raise rates 10-20 years in the future, so you move some investment money into T-Bills and you make more money.  Moral of the story....manage your money

Bateaux

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For some I guess 1M is enough.  They are smart enough to budget and invest to make it on 40k and not go bust.  My paranoia wouldn't let me sleep at night living that close to the edge.  We've always lived with a nice buffer of salary.   We never had end of the month woes worried about having money to cover bills.  I don't want that in retirement either.  I think it's watching multiple recessions and bear markets wipe out saving that causes my cautionary behavior.   

SwordGuy

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I don't really understand the reason why this article exists.

Just click bait?   Ok, I can buy that.

Author just too ignorant to know better.  Certainly a possibility.

Trying to make the general public feel sorry for those poor millionaires?   I think that will work about as well as the SS Guards on trial at Nuremburg, who claimed that the death camps were worse for them than the prisoners, because they had to go thru the process over and over, whereas the prisoners only had to do it once.


EricL

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I don't know what this guy's talking about.  If your $1,000,000 investments make 7% annual interest and you live off that deducting 4% every year (~$3,333 a month) for 50 years you're still left with at least $1,000,000.  And that's after deducting a 15% tax rate and 3.3% per year from inflation.