Author Topic: 1 Million dollars will last this long in your State!  (Read 3533 times)

soccerluvof4

  • Walrus Stache
  • *******
  • Posts: 7150
  • Location: Artic Midwest
  • Retired at 50
    • My Journal
1 Million dollars will last this long in your State!
« on: November 21, 2017, 02:41:47 PM »
So this writer says-

https://www.marketwatch.com/story/got-1-million-to-retire-heres-how-long-it-will-last-by-us-state-2017-10-13


Thought it was worth a read. Always interesting how people come up with all these numbers. Having said that I would say at least in my State its pretty close to the number I would of guessed.

Just Joe

  • Walrus Stache
  • *******
  • Posts: 5698
  • Age: 46
  • Location: In the middle....
  • Teach me something.
Re: 1 Million dollars will last this long in your State!
« Reply #1 on: November 21, 2017, 03:14:10 PM »
Just don't read the comment section because even if you prove you can operate with $1M in the bank, it still won't be enough according to the most vocal commenters.

SisterX

  • Magnum Stache
  • ******
  • Posts: 3035
  • Location: 2nd Star on the Right and Straight On 'Til Morning
Re: 1 Million dollars will last this long in your State!
« Reply #2 on: November 21, 2017, 04:12:15 PM »
Wow. Even just reading the retirement calculator at the bottom of that was silly and depressing, because it's so bad. I didn't plug in numbers, just took what it said. It estimates that if I'm 35 now and want to retire by the time I'm 66, current income of ~$75,000 and savings of ~$25,000, I should save $1.14 million so that I can have an estimated $104,000 per year. How are they coming to any of those conclusions??!

No wonder people think they'll never be able to retire. They read shit articles like this one, do the retirement calculators at the bottom, and believe them.

rpr

  • Pencil Stache
  • ****
  • Posts: 717
Re: 1 Million dollars will last this long in your State!
« Reply #3 on: November 21, 2017, 04:43:19 PM »
Wow. Even just reading the retirement calculator at the bottom of that was silly and depressing, because it's so bad. I didn't plug in numbers, just took what it said. It estimates that if I'm 35 now and want to retire by the time I'm 66, current income of ~$75,000 and savings of ~$25,000, I should save $1.14 million so that I can have an estimated $104,000 per year. How are they coming to any of those conclusions??!

No wonder people think they'll never be able to retire. They read shit articles like this one, do the retirement calculators at the bottom, and believe them.

That  retirement calculator tried to take into account not just savings but other sources such as social security etc. I too did not plug in my numbers but for people who work up to age 66, those numbers are likely to be OK.

I clicked through to the website (https://howmuch.net/articles/one-million-retirement-by-state) with the original calculations. It is fairly simple in that it just takes into account 1) Cost of living Index and 2) Annual expenditures of 65-year olds. Obviously this calculation is oversimplified but I'd be willing to believe that your money will last twice as long in Mississippi as compared to Hawaii.   

SisterX

  • Magnum Stache
  • ******
  • Posts: 3035
  • Location: 2nd Star on the Right and Straight On 'Til Morning
Re: 1 Million dollars will last this long in your State!
« Reply #4 on: November 21, 2017, 05:18:34 PM »
Wow. Even just reading the retirement calculator at the bottom of that was silly and depressing, because it's so bad. I didn't plug in numbers, just took what it said. It estimates that if I'm 35 now and want to retire by the time I'm 66, current income of ~$75,000 and savings of ~$25,000, I should save $1.14 million so that I can have an estimated $104,000 per year. How are they coming to any of those conclusions??!

No wonder people think they'll never be able to retire. They read shit articles like this one, do the retirement calculators at the bottom, and believe them.

That  retirement calculator tried to take into account not just savings but other sources such as social security etc. I too did not plug in my numbers but for people who work up to age 66, those numbers are likely to be OK.

I clicked through to the website (https://howmuch.net/articles/one-million-retirement-by-state) with the original calculations. It is fairly simple in that it just takes into account 1) Cost of living Index and 2) Annual expenditures of 65-year olds. Obviously this calculation is oversimplified but I'd be willing to believe that your money will last twice as long in Mississippi as compared to Hawaii.

My problem with the retirement calculator is that it normalizes the idea of spending more in retirement than you ever earned in a single year as a worker. It also draws down the savings far too quickly by assuming that you can pull out over 100k/year on a little over 1 mil. My mother, with nearly 2 mill and around 100k/year of expenses is going to be drawing on some of her capitol, even with more than the average in SS money.

Average expenditures covers a whole lot of sins. I hate looking at the average expenditures because the average person is just so freaking bad with their money. So yeah, if you're terrible with money but somehow manage to accumulate 1 million dollars it will probably go farther in Mississippi than Hawaii. However, that doesn't mean that that's what you should spend, nor is it an accurate picture of how far that money can take you if you spend in a reasonable way.

Why is it so hard for retirement articles to actually have a bit of good sense?

soccerluvof4

  • Walrus Stache
  • *******
  • Posts: 7150
  • Location: Artic Midwest
  • Retired at 50
    • My Journal
Re: 1 Million dollars will last this long in your State!
« Reply #5 on: November 21, 2017, 06:12:00 PM »
Wow. Even just reading the retirement calculator at the bottom of that was silly and depressing, because it's so bad. I didn't plug in numbers, just took what it said. It estimates that if I'm 35 now and want to retire by the time I'm 66, current income of ~$75,000 and savings of ~$25,000, I should save $1.14 million so that I can have an estimated $104,000 per year. How are they coming to any of those conclusions??!

No wonder people think they'll never be able to retire. They read shit articles like this one, do the retirement calculators at the bottom, and believe them.

That  retirement calculator tried to take into account not just savings but other sources such as social security etc. I too did not plug in my numbers but for people who work up to age 66, those numbers are likely to be OK.

I clicked through to the website (https://howmuch.net/articles/one-million-retirement-by-state) with the original calculations. It is fairly simple in that it just takes into account 1) Cost of living Index and 2) Annual expenditures of 65-year olds. Obviously this calculation is oversimplified but I'd be willing to believe that your money will last twice as long in Mississippi as compared to Hawaii.

My problem with the retirement calculator is that it normalizes the idea of spending more in retirement than you ever earned in a single year as a worker. It also draws down the savings far too quickly by assuming that you can pull out over 100k/year on a little over 1 mil. My mother, with nearly 2 mill and around 100k/year of expenses is going to be drawing on some of her capitol, even with more than the average in SS money.

Average expenditures covers a whole lot of sins. I hate looking at the average expenditures because the average person is just so freaking bad with their money. So yeah, if you're terrible with money but somehow manage to accumulate 1 million dollars it will probably go farther in Mississippi than Hawaii. However, that doesn't mean that that's what you should spend, nor is it an accurate picture of how far that money can take you if you spend in a reasonable way.

Why is it so hard for retirement articles to actually have a bit of good sense?



I think because there usually written by people that have not plans or real idea of retirement and just writes what sounds good with a pathetic look up of some material.

Rhoon

  • Stubble
  • **
  • Posts: 145
  • Age: 2018
  • Location: South East U.S.
    • Multifamily and Apartment Investments
Re: 1 Million dollars will last this long in your State!
« Reply #6 on: November 21, 2017, 07:35:52 PM »

Why is it so hard for retirement articles to actually have a bit of good sense?

Generally? They're probably selling a service to those uneducated enough to believe that if they pay for a service they can retire comfortably at a ripe old age of 67.

TheAnonOne

  • Handlebar Stache
  • *****
  • Posts: 1706
Re: 1 Million dollars will last this long in your State!
« Reply #7 on: November 21, 2017, 08:52:52 PM »
The shitty crux of this WHOLE ARTICLE is that it assumes you just took a million dollars in cash, stuffed it into a safe and took cash out daily until it was gone.

The people with a million dollars got there in the first place by having it invested! As we all know, a million dollars = $40k in spending for 30 years via the 4% rule but even in HI at their inflated COL estimates (70+k really? 6 grand a MONTH or MORE?) the money would last much longer than 13 years depending on what date they retire.

Undecided

  • Handlebar Stache
  • *****
  • Posts: 1232
Re: 1 Million dollars will last this long in your State!
« Reply #8 on: November 21, 2017, 09:01:08 PM »
Wow. Even just reading the retirement calculator at the bottom of that was silly and depressing, because it's so bad. I didn't plug in numbers, just took what it said. It estimates that if I'm 35 now and want to retire by the time I'm 66, current income of ~$75,000 and savings of ~$25,000, I should save $1.14 million so that I can have an estimated $104,000 per year. How are they coming to any of those conclusions??!

No wonder people think they'll never be able to retire. They read shit articles like this one, do the retirement calculators at the bottom, and believe them.

That  retirement calculator tried to take into account not just savings but other sources such as social security etc. I too did not plug in my numbers but for people who work up to age 66, those numbers are likely to be OK.

I clicked through to the website (https://howmuch.net/articles/one-million-retirement-by-state) with the original calculations. It is fairly simple in that it just takes into account 1) Cost of living Index and 2) Annual expenditures of 65-year olds. Obviously this calculation is oversimplified but I'd be willing to believe that your money will last twice as long in Mississippi as compared to Hawaii.

It suggest I should save just under $34 million dollars to retire at my planned age, 45. I guess thatís because Iíll have so long to go before I can collect social security. This makes me feel like my savings target, which can seem excessive by the standards of this board, is actually quite modest!