Poll:Is $1 Million still a relevant number nowadays for 2 retirees?

[Markola]

Unless you are the rare individual who has both high financial literacy and emotional control, don’t try to DIY your investments. Get a solid, professional plan together with a planner who can be trusted, like at Vanguard Personal Advisor Services or Schwab or Fidelity. We have and my mother has and we wouldn’t do anything else. Once you have ALL of your goals, ALL of your assets and ALL of your income, present and future, plugged into their expensive, proprietary software, your portfolio spending picture is likely to look one heck of a lot better, because it is more surgically suited to you, than some blunt tool “4% Rule” or other. Go with one of those pros above regarding your specific, unique situation and you might be delighted.

free2020,
I re-read the paragraph I wrote and, yeah, I’ll stick with it. Given the OP’s question, the couple might well be candidates for a good, inexpensive advisor vs. the DIY approach, IMHO. I didn’t mention FireCalc. From my own personal experience, Vanguard’s software, coupled with their Dynamic Spending model, can allow someone to spend more than 4%, which adjusts each year, allowing people to retire much earlier than the 4% Rule allows. The 4% Rule works, I’m sure, since it is so very conservative but I still personally view it as a blunt tool, because it does not allow for social security or other wealth events. And I disagree with the critique of Vanguard and, from what I know about them, Schwab and Fidelity. They are the relative white hats in the industry. YMMV.

 

[Dtail]

free2020,
I re-read the paragraph I wrote and, yeah, I’ll stick with it. Given the OP’s question, the couple might well be candidates for a good, inexpensive advisor vs. the DIY approach, IMHO. I didn’t mention FireCalc. From my own personal experience, Vanguard’s software, coupled with their Dynamic Spending model, can allow someone to spend more than 4%, which adjusts each year, allowing people to retire much earlier than the 4% Rule allows. The 4% Rule works, I’m sure, since it is so very conservative but I still personally view it as a blunt tool, because it does not allow for social security or other wealth events. And I disagree with the critique of Vanguard and, from what I know about them, Schwab and Fidelity. They are the relative white hats in the industry. YMMV.

The 4% "rule" is only based on investment assets. If one has SS or a pension, then that income is taken into account and added to the income spending results when calculating the 4%.

 

[Tiger8693]

DH gets zero SS. He worked for a state agency were no SS was withheld. I don’t believe I am entitled to collect SS on first husband’s record either.

As I understand it, if you were married to someone else more than 10 years who has SS that would benefit you, you can claim on it? Or maybe once remarried that goes away....

 

[Gumby]

As I understand it, if you were married to someone else more than 10 years who has SS that would benefit you, you can claim on it? Or maybe once remarried that goes away....

I don't know the answer to this, because it is not relevant to my life, but if I were the OP, I wouldn't make an assumption that I can't get SS based on an ex spouse. I'd contact social security and get an actual answer from them.

 

[Tiger8693]

I don't know the answer to this, because it is not relevant to my life, but if I were the OP, I wouldn't make an assumption that I can't get SS based on an ex spouse. I'd contact social security and get an actual answer from them.

+1

 

[Vacation4us]

When I start to collect SS I will certainly ask if I can collect on ex. I can even make it easy on them as his SS# is a permanent part of my memory. If I could collect it will be a pleasant surprise as I am sure he has been paying max SS his entire career which my dear late father played a large roll in.

 

[Koolau]

free2020,
I re-read the paragraph I wrote and, yeah, I’ll stick with it. Given the OP’s question, the couple might well be candidates for a good, inexpensive advisor vs. the DIY approach, IMHO. I didn’t mention FireCalc. From my own personal experience, Vanguard’s software, coupled with their Dynamic Spending model, can allow someone to spend more than 4%, which adjusts each year, allowing people to retire much earlier than the 4% Rule allows. The 4% Rule works, I’m sure, since it is so very conservative but I still personally view it as a blunt tool, because it does not allow for social security or other wealth events. And I disagree with the critique of Vanguard and, from what I know about them, Schwab and Fidelity. They are the relative white hats in the industry. YMMV.

I would never discourage the use of a fee-only advisor, but, honestly, I found it harder to find such a person than I did figuring out an appropriate DIY approach - and I'm not very wise in the ways of financial products. I subscribed (pretty much) to the Scott Burns couch-potato AA with a sleep-well-at-night level of stocks, decent cash equivalents and a hand-full of PMs. Haven't really changed that in 15 years. Not setting the world on fire, but I only worry about black swans. Full disclosure: I DO have more than 1MM so YMMV.

 

[Dtail]

We I start to collect SS I will certainly ask if I can collect on ex. I can even make it easy on them as his SS# is a permanent part of my memory. If I could collect it will be a pleasant surprise as I am sure he has been paying max SS his entire career which my dear late father played a large roll in.

See attached.
https://www.ssa.gov/benefits/retirement/planner/applying7.html

 

[NW-Bound]

I see Suze has a net worth between $40M and $75M, maybe she has lost perspective of what the little people can prosper on.

That's not enough to own a private jet, let alone a yacht.

No wonder Suze is still working.

 

[Koolau]

That's not enough to own a private jet, let alone a yacht.

No wonder Suze is still working.

With that kind of money, she sure can rent one whenever she wants to. Then again, most of US here could as well - maybe only once, but... Think I'll get a C8 instead. YMMV

 

[unclemick]

If you are happy in retirement, the amount of money you have is largely irrelevant. If you are unhappy, more money is unlikely to change that.

Heh heh heh - . 1993 - ballpark 250k yes that's a k. Hindsight makes me prone to brag about my coping mechanisms. 27 years of ER later - much higher net worth..

 

[Vacation4us]

Heh heh heh - . 1993 - ballpark 250k yes that's a k. Hindsight makes me prone to brag about my coping mechanisms. 27 years of ER later - much higher net worth..

Impressive!

 

[Time2]

As I understand it, if you were married to someone else more than 10 years who has SS that would benefit you, you can claim on it? Or maybe once remarried that goes away....

I gave quotes from the SS website and the link to the site in post #194.


One of the criteria is,



"Be at least 62 years old and not currently married."

 

[Gumby]

With that kind of money, she sure can rent one whenever she wants to. Then again, most of US here could as well - maybe only once, but... Think I'll get a C8 instead. YMMV

If I had Suze's assets, I'd have a NetJets subscription.

 

[NW-Bound]

With that kind of money, she sure can rent one whenever she wants to. Then again, most of US here could as well - maybe only once, but... Think I'll get a C8 instead. YMMV

If I had Suze's assets, I'd have a NetJets subscription.

Renting? It depends on whether one has an ego big enough to want his/her name painted on a personal jet.

About charter jet, I dunno about most of us here being able to fly it. For me who lives in the SW to go to Hawaii, it would be around $50K one way. That would bump up my WR a bit. If I have to figure out how much something is in terms of WR, it's too rich for me.

If you are from the east coast, the ride to Hawaii is of course quite a bit more. But it would be cheaper for you to go to Europe.

 

[Koolau]

Renting? It depends on whether one has an ego big enough to want his/her name painted on a personal jet.

About charter jet, I dunno about most of us here being able to fly it. For me who lives in the SW to go to Hawaii, it would be around $50K one way. That would bump up my WR a bit. If I have to figure out how much something is in terms of WR, it's too rich for me.

If you are from the east coast, the ride to Hawaii is of course quite a bit more. But it would be cheaper for you to go to Europe.

Well, I did say "once" but your point is well taken. Of course, if you get a dozen of your similarly inclined friends to rent a G5 to Hawaii from (say) Boston, it might only be 2 or 3 X the First class ticket. Having flown in a G2 a few times, I can assure you that walking up to the executive terminal and just getting on the aircraft (no security or cavity search) is really nice! Just might be worth expanding the WDR - ONCE! Of course, YMMV.

 

[NW-Bound]

Well, I did say "once" but your point is well taken. Of course, if you get a dozen of your similarly inclined friends to rent a G5 to Hawaii from (say) Boston, it might only be 2 or 3 X the First class ticket. Having flown in a G2 a few times, I can assure you that walking up to the executive terminal and just getting on the aircraft (no security or cavity search) is really nice! Just might be worth expanding the WDR - ONCE! Of course, YMMV.

No, I did not miss that you said "once". And I already know how nice it is to not have to go through the commercial terminal, or have to wait in the first-class lane at the boarding gate.

But, but, but what is the point of doing it "once"? How can you ever go back to having to take your shoes off through the TSA checkpoint?


"A luxury once sampled becomes a necessity" --- Anon.


It's better not to do it. I see no point in doing it once.

I am still psych'ing myself up to fly business class from now (and to have to pay for it, instead of megacorp footing the bill). Even that is tough enough for a peasant like me.

For curiosity, I checked out the price of a business seat to Sydney, and to Paris. Darn, the price has gone up quite a bit since pre-Covid time. I hope that's only temporary, and it will go down when travel is normalized.


PS. I got to fly on a megacorp jet once. It was one of the smaller jets (my workplace was a smaller division of megacorp), and nothing luxurious. However, the ease of boarding/unboarding and bypassing the commercial terminal was darn nice.

 

[skyking1]

Having flown myself around the US and Canada, I'd have a hard time paying that kind of cabbage and not sitting up front. And I sure don't have the cabbage in the garden for my own Citation or Lear!
My meager twin Cessna was only 180 knots block to block, but the terminal time savings meant that I could drive to the hangar, launch, fly 3 hours out, and meet you at the commercial gate after you left my house and drove to the international airport and took a commercial flight. After that 3 hour circle you would win.

 

[MRG]

No, I did not miss that you said "once". And I already know how nice it is to not have to go through the commercial terminal, or have to wait in the first-class lane at the boarding gate.

But, but, but what is the point of doing it "once"? How can you ever go back to having to take your shoes off through the TSA checkpoint?


"A luxury once sampled becomes a necessity" --- Anon.


It's better not to do it. I see no point in doing it once.

I am still psych'ing myself up to fly business class from now (and to have to pay for it, instead of megacorp footing the bill). Even that is tough enough for a peasant like me.

For curiosity, I checked out the price of a business seat to Sydney, and to Paris. Darn, the price has gone up quite a bit since pre-Covid time. I hope that's only temporary, and it will go down when travel is normalized.


PS. I got to fly on a megacorp jet once. It was one of the smaller jets (my workplace was a smaller division of megacorp), and nothing luxurious. However, the ease of boarding/unboarding and bypassing the commercial terminal was darn nice.

I was treated to a trip on a leased lear to get to a DR site a couple hours early. On the way back, after a full week working 36 on 12 off shifts, we came back coach without our shoes. I didn't know what to feel at that point, I either wanted to sleep or die.

 

[copyright1997reloaded]

I've lost/made in one day enough to pay for the Charter Jet to Hawaii. Having said that, I feel pretty confident in stating that I will never in my lifetime experience Charter Jet travel, at least not intentionally. (That is to say, I would only do it if someone's life depended on it.)

I do plan on splurging this summer on a cross-country train trip in a sleeper, and might even go up from a Roomette to a 1 BR on part of the trip in order to have an in-room bathroom. However, the return airline trip is likely to be in coach with the rest of the cattle.

 

[NW-Bound]

I've lost/made in one day enough to pay for the Charter Jet to Hawaii...

The market has been so volatile lately, plus my stash has grown, there have been several days in the last 12 months I have lost a 6-figure sum in a single day. My highest daily loss ever was around $150K.

But, but, but, in return, I have also regained a 6 figure in a single day.

The market taketh, but then the market also giveth. But if I spent that money, it would never come back.


PS. I am getting used to seeing "losing" a lot of money in a day. It only hurts when you get several bad days in a row. It adds up to real money within a week.

PPS. I maintain a diary going back to 1999 to log the daily total value of my accounts. The highest daily gain is about 2/3 the highest daily loss, though both have been going up over the years as my portfolio grows. The market always drops faster than it climbs. Always. This is an immutable truth, and this is what scares newcomers to the market.

 

[exnavynuke]

That's not enough to own a private jet, let alone a yacht.

No wonder Suze is still working.

Depends on what you call a yacht. You can buy what is realistically called a sailing yacht for low-6 figures. A yacht akin to what JFK sailed will run you closer to a million though, which is still quite affordable if you've got $40-60 million sitting around.

 

[exnavynuke]

As for the original question, it's not going to put you in the same style that a person could live when "being a millionaire" was first becoming something that more than a few elite aspired to, but in the right location and with the right lifestyle choices it can be plenty for a couple if they're happy like that. It'd be a bit less than I'd want, but it's would be pretty close to maintaining life for an average income couple that just paid off their house and stopped working.

 

[Time2]

It's especially relevant if that $1M will add $40k to your SS income.
Ask anyone living on just SS, if I gave you $40k a year would it make a difference in your life?

 

[ivinsfan]

When is a million really a million. At the top of a stock market run up is it really a million in your pocket?


Now we own farmland and it goes up every year, pretty much. The bankers like it cause they will lend you more money to hang yourself with. We self finance after almost 50 years of farming, but when we retire market cash rent will bring in the great majority of our spending money. Even though the land is worth several million the million isn't really a million, we can't sell it because we'd be stupid to pay the huge capital gains and scramble around looking for a place to invest the proceeds.


We have SS and very good sized SEP's/ Roth but the farm land is king.