For those that have retired with =>$5M in investable assets

[NW-Bound]

It's rough, I tell ya, very rough. We don't get near the proper amount of filet mignon and champagne that we deserve.

You don't? I do.

But the trick is I have to buy the entire tenderloin at Costco, then break it up myself, because it's less expensive that way. If only I had more money to hire a cook, then he would have to do that dirty work.

PS. OK, my lunch break is over. Time for me to get back to working on the staircase to install hardwood on it. Darn, $5M does not alleviate me from DIY projects like this.

 

[Meadbh]

Since I retired with less than $5 million, I guess you don't care for my input.

 

[Spanky]

Let's supposed that I had $5M, my budget would be $100K (2% SWR). This amount would be twice as much as my current expense. In other words, my budget would be fine.

 

[Car-Guy]

Since I retired with less than $5 million, I guess you don't care for my input.

Is that 5 million in US or Canadian dollars?

 

[Meadbh]

Is that 5 million in US or Canadian dollars?

Either.

 

[NW-Bound]

It's rough, I tell ya, very rough. We don't get near the proper amount of filet mignon and champagne that we deserve.

You don't? I do.

But the trick is I have to buy the entire tenderloin at Costco, then break it up myself, because it's less expensive that way. If only I had more money to hire a cook, then he would have to do that dirty work.

PS. OK, my lunch break is over. Time for me to get back to working on the stair case to install hardwood on it. Darn, $5M does not alleviate me from DIY projects like this.

OK, I just dropped my tools to get back to the PC. I need to share with y'all, the multi-millionaires who are still filet mignon deprived, the following video showing how you can eat tenderloin until it comes out of your ears.

This episode of "Good Eats: Tender is the Loin" is easily 10 years old, but the technique is timeless. Skip to around 3:00 to see how to buy an entire loin at Costco and cut it up yourself.

You do not live near a Costco? Heck, what kind of millionaire are you? There are Costco everywhere.

 

[ERD50]

Not sure what 5 million watermark would have to do with budget hitting. ...

Agreed - odd post, IMO.

Who budgets? When the Champagne runs out, just order another bottle!

Reminds me of that commercial, forget the product, but they were making the point that you can save money with them, by focusing on some super-wealthy people who don't need to save money.

In one, the Mom and her daughter are randomly bidding on some art at an auction, the daughter says "Daddy always said, money doesn't spend itself!" ( Some LBYM'-ers here might have just had a heart attack!).

In another one, the announcer says to the rich person, "if you save money with us, you'll have money for other stuff", the rich guy answers "But we already have other stuff". In that one, I think they actually take a limo from one private jet on the tarmac to their other private jet about 100' away.

-ERD50

 

[Danmar]

Inappropriate (or poorly worded) question from inexpetienced member. I would have thought ignoring it the best response? Certainly better than sarcasm.

 

[petershk]

Well just to play devil's advocate. Let's say youre 30 and live in social.

5m at 2% is 100k.
That's 8300/mo.
Almost impossible to find a house in a non high crime area in the LA region for under a million. So that's about 4500/mo. I'm talking 2000 sqft with a 5500 sqft yard in an ok neighbourhood .

So that leaves 4k.
Take 1k for health insurance.
Take 500 for food.
500 for bills.
Maybe 500 for taxes.
And 500 for fun stuff.

That leaves about 1k/month for buffer which is pretty good but you're not renting private jets or even flying first class more than once a year .

Now take that same amount and move to south Carolina where you can buy a better house in a similar neighbourhood for 800/mo.

Sent from my HTC One_M8 using Early Retirement Forum mobile app

 

[audreyh1]

Inappropriate (or poorly worded) question from inexpetienced member. I would have thought ignoring it the best response? Certainly better than sarcasm.

On this forum? LOL!

 

[audreyh1]

Maybe you'd like to expand on why you are asking only those with $5M or more?

Maybe that's what they anticipate retiring with. So they are only interested in the high flyer budgets?

 

[Danmar]

On this forum? LOL!

Is that a little more sarcasm?

 

[Big_Hitter]

Maybe that's what they anticipate retiring with. So they are only interested in the high flyer budgets?

what's if it's $5M in 2040?

 

[rodi]

How is your budget working out?

Curious to know if you end up with more money at year-end or shortfall?

Thanks in advance!

I presume you picked => $5M in order to illicit comments from those with larger annual budgets.
But that's not really the point. The budget should be proportional to the nest egg... So someone with $1M might have a 1/5th the budget. Or might have more - because the >$5M person might be 30yo - and need to have a smaller WR - and the person with the $1M might be 70yo, so comfortable taking 4% or higher as a WR. Or the $1M person might have a large pension to augment withdrawals.

In other words - it's an interesting question but really doesn't have enough info to garner any useful results.

I suspect that's why people started making jokes.

 

[hnzw_rui]

Well just to play devil's advocate. Let's say youre 30 and live in socal.

5m at 2% is 100k.
That's 8300/mo.
Almost impossible to find a house in a non high crime area in the LA region for under a million. So that's about 4500/mo. I'm talking 2000 sqft with a 5500 sqft yard in an ok neighbourhood .

So that leaves 4k.
Take 1k for health insurance.
Take 500 for food.
500 for bills.
Maybe 500 for taxes.
And 500 for fun stuff.

That leaves about 1k/month for buffer which is pretty good but you're not renting private jets or even flying first class more than once a year

$500 or $6000 a year for taxes is probably too small even if there's a huge mortgage interest deduction. Otherwise, it is unfortunately true.

 

[Danmar]

I presume you picked => $5M in order to illicit comments from those with larger annual budgets.
But that's not really the point. The budget should be proportional to the nest egg... So someone with $1M might have a 1/5th the budget. Or might have more - because the >$5M person might be 30yo - and need to have a smaller WR - and the person with the $1M might be 70yo, so comfortable taking 4% or higher as a WR. Or the $1M person might have a large pension to augment withdrawals.

In other words - it's an interesting question but really doesn't have enough info to garner any useful results.

I suspect that's why people started making jokes.

Excellent, thoughtful response. Good for you.

 

[Big_Hitter]

Well just to play devil's advocate. Let's say youre 30 and live in social.

5m at 2% is 100k.

dude he's 30, has $5M and lives in SoCal - he/she needs more than a measly 100K a year.

According to my calculations, a straight life annuity factor at age 30 using 4% interest is about 32. So he/she should be able to draw over 150K a year for life out of that nest egg.

 

[serie1926]

Appreciate everyone's feedback. While some funnier than others.

 

[aim-high]

Well just to play devil's advocate. Let's say youre 30 and live in social.

5m at 2% is 100k.
That's 8300/mo.
Almost impossible to find a house in a non high crime area in the LA region for under a million. So that's about 4500/mo. I'm talking 2000 sqft with a 5500 sqft yard in an ok neighbourhood .

So that leaves 4k.
Take 1k for health insurance.
Take 500 for food.
500 for bills.
Maybe 500 for taxes.
And 500 for fun stuff.

That leaves about 1k/month for buffer which is pretty good but you're not renting private jets or even flying first class more than once a year .

Now take that same amount and move to south Carolina where you can buy a better house in a similar neighbourhood for 800/mo.

Sent from my HTC One_M8 using Early Retirement Forum mobile app

Exactly. And $500 for food is nothing. $500 for fun stuff is nothing. If you've been able to amass $5M, you've had a real good run and probably spend $500 a month on vacation and travel. Go to a ball game once a month and there's another $250.

You probably have a significant other and kids as well. A 3% WR on 5 million is 150K -- and so cal taxes? Fahgetaboutit as they say in NYC.

 

[NYEXPAT]

Don't you simply keep a case or two of Dom Perignon in the cellar to avoid running out and losing face when your friends drop by and you tell the cook to prepare an impromptu dinner?

I live in the Penthouse on the 16th floor and have no cellar, although I do have an underground parking space (and no car). No fun drinking champagne at home where you can not be seen by the huddled masses.

 

[marko]

No fun drinking champagne at home where you can not be seen by the huddled masses.

We prefer the 'quiet money' approach. More fun when no one sees you.

Actually had a great-uncle who wouldn't smoke cigars in public because he "didn't want anyone to think I'm rich". Of course, everyone knew he was extremely wealthy (he was fairly famous and stepping out of the Bentley was always a give-away) but that was his thing.

 

[6miths]

Don't you simply keep a case or two of Dom Perignon in the cellar to avoid running out and losing face when your friends drop by and you tell the cook to prepare an impromptu dinner?

This is what I was thinking would be the way to go...

 

[wanaberetiree]

People with > $5 million don't need no stinkin' budget.

it's *only* $200K on 4% rule !

 

[NW-Bound]

Inappropriate (or poorly worded) question from inexpetienced member. I would have thought ignoring it the best response? Certainly better than sarcasm.

On this forum? LOL!

Is that a little more sarcasm?

No, I don't think so. She was just asking a rhetorical question. People here never miss a chance to make jokes. We enjoy a lot of levity. Life is too short, and can be brutal. Why not laugh as much as you can stand?

 

[stepford]

I presume you picked => $5M in order to illicit comments....

I just wanna hear some more of those illicit comments from our esteemed moderator.