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Maybe for one pre-Social Security person with a modest standard of living. If you follow the 4% spending rule which in these times of crazy low interest rates many of the financial advisors are saying is no longer dependable sustainable that’s only $40K annually. Property tax, health insurance, auto insurance, auto expenses, etc - $40K will run out pretty fast

Sure if the money is just sitting there doing nothing. If it's invested wisely, the earnings on that 1 million dollars should cover most, if not all, of your expenses. Inflation will affect that in the future obviously, but for most people 30 and older, $1 milllion should be plenty enough to retire on in East TN (assuming you already owned your house).
 
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Bulls fighting back.

It's no doubt a gross oversimplification on my part but these past two days, it seems as though folks were over-doing it on the super high-test coffee (or mainlining Red Bull) in the morning while reading up on the Fed murmurs, freaking out, and then coming down by early to mid afternoon. The swings have been pretty crazy, at least from my "stocks neophyte" p.o.v.
 
Sure if the money is just sitting there doing nothing. If it's invested wisely, the earnings on that 1 million dollars should cover most, if not all, of your expenses. Inflation will affect that in the future obviously, but for most people 30 and older, $1 milllion should be plenty enough to retire on in East TN (assuming you already owned your house).
Well I’m 60, owned my own home and retired and I’ve been investing the past 35 years. my life would be pretty scorched earth trying to get by on $40K a year.

You should do some reading on what percentage of your retirement savings can be pulled out annually and the money last 35+ years. For a long time the stands was a 4% withdrawal but many have been questioning that lately.
 
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Well I’m 60, owned my own home and retired and I’ve been investing the past 35 years. my life would be pretty scorched earth trying to get by on $40K a year.

You should do some reading on what percentage of your retirement savings can be pulled out annually and the money last 35+ years. For a long time the stands was a 4% withdrawal but many have been questioning that lately.
If we're voting, I second this notion that Carp may have responded without understanding what he was responding to.

Two points;
1. The worst case historical scenario was the topic of discussion. Don't get confused here that that's not of interest to other people in the global investing community. It's the defining case, and it's been studied to death, and so it's important to understand it. It's actually easy to understand: If you retired in 1966, and had some reasonable combination of stocks and treasuries, you could withdraw 4% a year adjusting for inflation and the money would last you 30 years. The inflation is the reason that this is the worst case. In that specific case, 50/50 stocks and bonds are pretty much about as good as some other cocktail. The whole experiment has to be simplified.
2. Everybody is a genius in a bull market, always. The actual withdrawal rate could be a lot more than the worst case, but you don't know that ahead of time.

Actually, here's a third point. Safe withdrawal studies with which we're familiar are for US investors primarily in the 20th century. It's a very subjective result, because nothing in the USA got blown up in either of the world wars. There are many years in several countries where there is no safe withdrawal rate from stocks and bonds. You can consider international diversification based on that, but of course recent results have been pretty inferior.
 
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Well I’m 60, owned my own home and retired and I’ve been investing the past 35 years. my life would be pretty scorched earth trying to get by on $40K a year.

You should do some reading on what percentage of your retirement savings can be pulled out annually and the money last 35+ years. For a long time the stands was a 4% withdrawal but many have been questioning that lately.

Obviously, I don't know your finances or health situation. But I live in Cleveland, TN and my wife and I get by pretty well on roughly 60-70k combined (after taxes), while taking care of a toddler and not owning our house. And in the more rural areas around us, the cost living is even lower.
 
Obviously, I don't know your finances or health situation. But I live in Cleveland, TN and my wife and I get by pretty well on roughly 60-70k combined (after taxes), while taking care of a toddler and not owning our house. And in the more rural areas around us, the cost living is even lower.
I live 2 miles from the Bradley county line in Ooltewah so our cost of living for necessities is probably close. My toddlers are grown. It would appear you may be planning on spending $70K a year off your invested $1 million nest egg. You probably haven’t invested through the dot com bear market or the housing bubble bear market that proceeded this long bull run. There’s another bear market coming - you can bank on it. It doesn’t go up every year or even every decade. Bonds aren’t paying squat. I’ve never seen any financial advisors say a 6 or 7 percent withdrawal rate will allow your money to last long term.
 
A problem with a 4-7% annual withdrawal, the IRS likely takes a huge piece of that. Not from a Roth though. For now.
Standard deduction for married couple $25,900. Federal tax in 2021 is $4,618 on an IRA withdrawal of $66,025 if that’s all you were reporting. Who knows where those rates are headed?
 
I live 2 miles from the Bradley county line in Ooltewah so our cost of living for necessities is probably close. My toddlers are grown. It would appear you may be planning on spending $70K a year off your invested $1 million nest egg. You probably haven’t invested through the dot com bear market or the housing bubble bear market that proceeded this long bull run. There’s another bear market coming - you can bank on it. It doesn’t go up every year or even every decade. Bonds aren’t paying squat. I’ve never seen any financial advisors say a 6 or 7 percent withdrawal rate will allow your money to last long term.


Any property for sale near you? Thinking of selling the house in the next few months (hopefully the housing market stays hot). Best estimate is that our house has gained at least 30% in value since we bought it in 2017. We'd like to build something in an area with good schools.
 
Huge Bull Trap imo. I'm buying puts.

I nibbled back in a little bit on some stuff I really wanted at a deep discount. Sounds like Wall Street is betting on the Fed just ceasing QE and may wait for a rate increase round about March. If they announce both today, market could roll back nicely. I'm going to be buying (slightly) on the bigger dips.
 
I live 2 miles from the Bradley county line in Ooltewah so our cost of living for necessities is probably close. My toddlers are grown. It would appear you may be planning on spending $70K a year off your invested $1 million nest egg. You probably haven’t invested through the dot com bear market or the housing bubble bear market that proceeded this long bull run. There’s another bear market coming - you can bank on it. It doesn’t go up every year or even every decade. Bonds aren’t paying squat. I’ve never seen any financial advisors say a 6 or 7 percent withdrawal rate will allow your money to last long term.
We have lived in Ooltewah ,Johnson City, Cleveland, Knoxville and now Nashville. Ooltewah was the best by far.
 
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That's everywhere, Well not some rural areas. I left in 03. Ooltewah was the ffastest growing part of Hamilton Co. then, and I suspect it is now.
It’s exploding with the sewer expansion. Feels more like East Brainerd these days which is a terrible shame
 

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