• Ragdoll X@lemmy.world
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      1 year ago

      My life plan:

      Step 1. Become millionaire.

      Step 2. Retire.

      Step 3. Get full 8 hours of sleep.

      • cbarrick@lemmy.world
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        1 year ago

        Fun fact: one million dollars is not enough to retire in many parts of the United States.

        The classic retirement rule of thumb is the 4% rule: you should be able to spend 4% of your retirement savings per year. The idea is that safe investments can mostly make up for what you spend, and whatever they don’t make up shouldn’t be a problem in your lifetime. If you plan to retire early, maybe shoot for something a bit more conservative, like 3%.

        So by the 4% rule, $1MM in retirement savings is like living on $40k per year. Which is moderately comfortable in some parts of the US and poverty in others.

        Better shoot for $2MM.