One Million and Health Insurance

[ferco]

Is there anyone who couldn't as of today make it on a 1 million portfolio and Medicare or some type of life time guaranteed health insurance plan.No debt and no mortgage. Assuming age 58 (65 if considering M'care), what would be your asset allocation for the 1 m .

[MasterBlaster]

Hopefully there would be some Social Security coming also. To answer your question directly many could make it. However some with higher expectations would feel deprived. It also makes a difference as to what part of the country you reside in.

The optimal stock-bond allocation is debated ad-nauseum, however here is one example:




So if you have a 20-25 year life expectancy at retirement then the optimal allocation (at retirement) is 65-75% stocks

[nun]

Quote:

Originally Posted by MasterBlaster Hopefully there would be some Social Security coming also. To answer your question directly many could make it. However some with higher expectations would feel deprived. It also makes a difference as to what part of the country you reside in. The optimal stock-bond allocation is debated ad-nauseum, however here is one example: So if you have a 20-25 year life expectancy at retirement then the optimal allocation (at retirement) is 65-75% stocks

What causes the small inflection point in the graph at 40 years?

[bosco]

Quote:

Originally Posted by nun What causes the small inflection point in the graph at 40 years?

Alan Greenspan made a speech some time ago and burped....

[unclemick]

The go -go 60's stocks plus the 73-74 pratfall. I think you can still tease the numbers out of FireCalc if you play with it.

heh heh heh

[ferco]

Why not just broadly allocate and go have a good time.....enjoy life what the heck. A take-off on the coffeehouse investor philosophy. All this gets a little anal after awhile. Why worry about what will happen in 30-40 years when we need to enjoy today and the next 1,2,3,4..... years.Heck you've got a million bucks, you've saved and sacrified like crazy and you're getting gray, old with ulcers trying to pin things down to the last decimal point.

[brewer12345]

Maybe somewhere in flyover country. I'd have a tough time in God's Country (NJ).

[SecondCor521]

Quote:

Originally Posted by brewer12345 Maybe somewhere in flyover country. I'd have a tough time in God's Country (NJ).

How much of flyover country have you visited?

2Cor521

[brewer12345]

Quote:

Originally Posted by SecondCor521 How much of flyover country have you visited? 2Cor521

Lessee, 6 years living in OH (near Cleveland - oh boy!) probably counts. Spent a summer in Denver and periodically return as DW's family live there.

Other places, as far as I can remember (tried to blot out some of these memories, I assure you):

- Dallas-Ft. Worth
- Cincinnati
- Indianapolis
- Several small towns in Nebraska
- Topeka
- Chicago
- Birmingham, AL
- Several places in KY
- Minneapolis
- New Orleans
- Kansas City
- Toledo
- Detroit
- Ann Arbor
- Taos & Sante Fe
- Walsenberg, CO (don't ask)


Narrowly escaped a trip to Chattanooga. Prolly been some other places in "the heartland" that I have successfully blotted out.

Lots of these places would be readily doable with a relatively high standard of living on a milion bucks with house and insurance covered. It would be a LOT easier than if you were in a high cost coastal area, though.

[SecondCor521]

Quote:

Originally Posted by brewer12345 Lessee, 6 years living in OH (near Cleveland - oh boy!) probably counts. Spent a summer in Denver and periodically return as DW's family live there. Other places, as far as I can remember (tried to blot out some of these memories, I assure you): ...

I asked because I live in "flyover country" and interpreted the term somewhat pejoratively. I also lived in central NJ for about three years, spending a lot of time in the Philly-NY corridor with a few side trips to the River Gap area and an Air Force base over in SE Jersey. While the River Gap and central NJ parts are gorgeous, up towards Newark and SE Jersey are not my favorite parts of the world.

2Cor521

[brewer12345]

Quote:

Originally Posted by SecondCor521 I asked because I live in "flyover country" and interpreted the term somewhat pejoratively. I also lived in central NJ for about three years, spending a lot of time in the Philly-NY corridor with a few side trips to the River Gap area and an Air Force base over in SE Jersey. While the River Gap and central NJ parts are gorgeous, up towards Newark and SE Jersey are not my favorite parts of the world. 2Cor521

I will be the first to admit that there are wide swaths of NJ that aren't pretty. DW and I refer to a lengthy stretch of the NJ Turnpike as "Mordor" ("the very air you breathe is a poison...").

But it doesn't make me any more eager to return to Dallas ("hey, let's put the stockyard in the middle of downtown!"), or Indianapolis.

[Dawg52]

Quote:

Originally Posted by brewer12345 Maybe somewhere in flyover country. I'd have a tough time in God's Country (NJ).

Surely you don't plan to live in NJ the rest of your life.

[FinanceDude]

Quote:

Originally Posted by brewer12345 Maybe somewhere in flyover country. I'd have a tough time in God's Country (NJ).

God's Country is actually the nickname of the Coulee Region of western Wisconsin..........

[justin]

That is around $100,000 less than I had planned on, but I'd probably make do. I'd be 90-95% equities (I'm 27).

[MasterBlaster]

Brewer:

You are one well traveled man. What persuaded you to move so much ?

So after all of that relocation maybe you can give some advice on where the best chicken wings can be found !

[brewer12345]

Quote:

Originally Posted by MasterBlaster Brewer: You are one well traveled man. What persuaded you to move so much ? So after all of that relocation maybe you can give some advice on where the best chicken wings can be found !

Heh, most of these places I did not live in, merely visited. Some were places I'd happily never return to. Others I would seriously consider moving to if I chose to vacate God's Country. Many others I could take or leave.

Favorite wings:

- The Feve in Oberlin, OH
- The Blind Tiger in Topeka, KS (about the town's only redeeming feature, IMO)

[farmerEd]

Quote:

Originally Posted by ferco Is there anyone who couldn't as of today make it on a 1 million portfolio and Medicare or some type of life time guaranteed health insurance plan.No debt and no mortgage. Assuming age 58 (65 if considering M'care), what would be your asset allocation for the 1 m .

Back to the original question...too many "ifs". One person? No problem. 2 people? maybe, family of 6 (like me) with 4 kids to put thru college? probably not.

Could it be done? Absolutely. Even at a 4% SWR, thats 40K to live on...lots of folks get by on a lot less than that, and still have to pay medical and mortgage or rent.

[megacorp-firee]

under those conditions, no mortgage, no debt, paid health insur., we (2 of us) could make it on 1mil portfolio ... It would make us tighten up a bit, but do-able.

[mb]

Me, easy;
Me and DW, yup;
Me, DW and 2 kids soon to be in college, nope!

[chinaco]

Quote:

Originally Posted by ferco Is there anyone who couldn't as of today make it on a 1 million portfolio and Medicare or some type of life time guaranteed health insurance plan.No debt and no mortgage. Assuming age 58 (65 if considering M'care), what would be your asset allocation for the 1 m .

Yes we could get by @ 58 on 1mm @ 4% ($40k). The allocation would be 60/30/10 (S/B/C). When I say get by, we could live a good lifestyle on that amount. The 40% in Int bonds and cash would cover 10 years of Stock market slump (in a bad scenario).


But, we have plans for a higher income level (won't elaborate) So, our target Portfolio amount is higher.