If I had a million dollars . . .

[67walkon]

Sadly, $1,000,000 translates to maybe $40-50,000 in retirement income. We can't live on that at the same level we're at now.

The good news is that we have more than $1,000,000 and about $50,000 in income from it, about 60% tax free. The bad news is that we have another$2-3,000,000 in real estate and just lost the only tenant we have. Anybody wanna buy some real estate?

We need about $150,000 to maintain the current lifestyle, including the last kid in college. In 2 more years, that's done. In about 5 years, the mortgage is done. Then we only need about $100-110,000.

Assuming we sell the real estate we don't use and that we don't have to spend the income from investments we're now getting, in 4 or 5 years, we'll have enough to live on. But a million bucks ain't what it used to be.

 

[Meadbh]

Wow, that's a lot of real estate, 67w.

Approximately 25% of my assets are in real estate, and that includes my home. I owe ~$175K, but only on rental properties. I do already have >$1m, but if I had another $1m, I would pay off the debt, buy a new car, RE and travel around the world.

 

[67walkon]

Mead, we have a house with the mortgage almost paid off that is worth about 1.3 or so and a second home with no mortgage worth about .5. Then my wife inherited some property we have finally decided to sell. The property for sale is worth at around .5 to .8 or so. It was emotional for a while, but now we're just trying to get rid of it. It's nothing we worked for or earned or anything, but still, another .5 or .6 or so in the kitty is pretty sweet.

 

[Meadbh]

If you sold the inherited property and the second home, you should realize ~$1m! That sum, invested would go a long way towards meeting your income targets. Do you really need the second home? Or could you live in it and sell the first home?

Of course, since the property market in the US is so depressed, you may want to wait and keep w*rking. Of course, if a property is not generating income, it's still costing you money to own it.

 

[sheehs1]

Has anyone ever read the book "The Millionaire Next Door"? It's full of stories about common people who ware millionaires, but you'd never know it. They don't live extravegantly, buy stuff on sale etc.

For me it's a case of building an inflation proof portfolio that can generate $50k per year, but I'm quite sure I'll only use $40K

If we're just wishing, I'd go see Jimmy Buffett in some exotic concert location.

oh and if I had a million dollars, I'd buy you a green dress... but not a real green dress... that's cruel.

Bought three copies of this book to give to each of our children (ages 23 to 28) for Christmas! Hope they read it.

 

[67walkon]

Mead, the "2d" home costs virtually nothing right now, so we'll keep it for a while. Electric averages $51 a month over the year. Gas is about $250 a year. Insurance is just over $400. Taxes are $2,100. That's pretty much it as it is a new home. For that money, it's a keeper. And if everything really goes south, we can live there on what we've got coming in now, without even considering taking SS in a few years.

If we can sell the inherited property within the next year or two, and get maybe .5 or .6, we're good. We sold something a few years ago that generates $95,000 a year for another 7 years and is well secured, so we actually have what we need for now. When the $95,000 annual payment stops, the mortgages will be gone, SS will be pretty good and we'll be fine. Someday, we'll sell one of the houses, but I'd kind of like to enjoy the 2d one while I'm young enough and healthy enough to do so.

 

[kcowan]

I guess we were lucky. We sold one inherited property in 2008 for $.4 and another on 2009 for $.55 but I would have preferred to not inherit! Now we can relax and not count every penny towards the retirement income...we have some breathing space after being retired since 2002.

 

[martyb]

I'd still work the -13 months I have left to qualify for my federal pension...then would bail so fast it would suck the air out of the room...! I'm thinking it would be a fun 13 months.

 

[DivinDave]

Bought three copies of this book to give to each of our children (ages 23 to 28) for Christmas! Hope they read it.

When I started reading it and read about a survey done among millionaires and how they avoided the cavier and just ate the crackers, I set the book down and thought . . ."MY PEOPLE".

 

[citrine]

When I started reading it and read about a survey done among millionaires and how they avoided the cavier and just ate the crackers, I set the book down and thought . . ."MY PEOPLE".

LOL....I thought they were smart people! Who the hell wants to eat salty fish eggs and be haughty about it?!

 

[HFWR]

LOL....I thought they were smart people! Who the hell wants to eat salty fish eggs and be haughty about it?!

A surprisingly large number...

 

[justplainbll]

Over 20 years ago one of the $40K per year senior clerks in my office commented that a million dollars was not really that much money. More recently I've heard the same thing from several people who cut all kinds of corners on their food purchases. At today's prices, $1,000,000 still buys about a 100 year supply of pretty nice steaks.
Many of those who criticize caviar probably have not tasted the good stuff.
Of course when the much lamented housing price crises come to an end, a million will be more likely to become chump change.