Is A Million Dollars Enough To Retire On?

Please watch: "TOP 10 - Dave Ramsey Rants" https://www.youtube.com/watch?v=yrBbWZuALgQ -~-~~-~~~-~~-~- Do you have questions about investing? Let one of our Endorsed Local Providers help. http://www.daveramsey.com/elp/investing?ectid=70.11.3230 IN THIS VIDEO: Dave Ramsey, The Dave Ramsey Show, Financial Peace University, FPU, The Total Money Makeover, budget, envelope system, emergency fund, baby steps, radio show, debt freedom, EntreLeadership, mortgage, ELP, daveramsey.com, money, finance, economy, investing, saving, retirement, cash, mutual fund, stock market, business, leadership, credit, drtlgi

Comments

1. And some years the returns will be -50% and shake your faith in the markets until you sell at a low.
2. Depends on your age among other things. Far as living in a warm climate, have you seen real estate values in say, charlotte county florida these days?  You can purchase a 3 bedroom house on a quarter acre of land for less than 100k.
3. 1 million isnt enough, it is possible, but i dont know how long will you last before your 1 million got deflated by the inflation.
   
   this only works when you have at least 5 million or more and in some Country, for example, i live in Indonesia, Interest from bank here are decent, some offers fix return of 7.5% p.a to 8% p.a Gross ( tax here is 20% in Bank interest ), so Nett is that minus the tax, you do the math.
   
   i dont mean to brag or something, my father is 64 this year, he have a liquidified asset around 3million in cash ( converted from Indonesian currency, more or less ), he put 70% of that in multiple big bank ( HSBC, Citibank, Standard Chartered and some big local bank )
   
   i dont know exactly how much he earn, but if my calculation is right, should be around 10-11k USD per month clean, that is bigger than what he earn per month during his prime for sure. ( i know in US or some other country, bank offer less than 5% p.a, that obviously wont get you such good interest p.a with the same amount my father have )
   
   and he reinvested that into some other small business with his friends and turn his interest into a good sum of Devidents every year as well, so he is using interest that is hight neough to invest again for the devident, obviously that's kinda good because i really wish i can do that too, and just retire early and travel.
4. after taxes it would be less. taxes on short term is your normal tax rate around 25%
   I'd say go with dividend paying companies. and just live of dividends
5. I could retire at 18 with 1 millions dollars,    take 200 k buy a do plex,  800k in mutual funds.   house paid off, otherside of doplex would pay light gass and property tax, cable, and few 100 extra a mouth.  take 40 k out of funds a year that about 25 in cash. take the other 40 k put in more mutual funds. so each year you make a little more.   so yes you can all depond on what you want and how to live.
6. Taking 7% to 10% out of a stock fund is way too much. It should be more like 4%.
7. The 4% rule is a good starting point. 7% average market growth (conservatively) - 3% average inflation = 4% or $40,000 annually on $1,000,000 invested. So roughly $2500-$3000 monthly after taxes, for the rest of your life, not including a possible social security income. That's not a bad living assuming you have no debts at that point. And you'll leave your kids with that $1,000,000 so that they can build a stronger legacy for their family.
8. HEY SHOW FELLAS!! on the DR ramsey show archive...those new lil circles telln me how much of each show I've already watched are great...saves me a lot of time u do a good job!
9. Is he missing out on factoring in taxes? I understand taxes are lower through your retirement funds but they aren't completely tax free right? Capital gains tax still factors in a bit no?
10. Cliffnotes version:
    
    Caller: Is $1 million enough to retire?
    Dave: It depends on your retirement lifestyle. Buy Chris Hogan's book and invest in "good growth stock mutual funds."