Reply to "$5 Million is a Nightmare... the Poorest Rich Person in America."

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Reply to ""$5 Million is a Nightmare... the Poorest Rich Person in America.""

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]5 million is a lot, but you still have to work and get medical insurance.  3% a year is only $60k a year.  So, you would like to live a FIRE lifestyle to live off of it.  Or move to a foreign country.[/quote]

I think this has been rehashed over and over on this thread.. Whether or not $5M is a good number depends on your age.  If you are late 50s/early 60s or even mid-60s, it's a great number.  At 3% it puts out $150K/yr.  SS for a couple should be around $50-60K at 65-67.  Medicare kicks in at 65.  Life is good.

On the other hand, if you are a 40s couple, it's not enough to retire on in the US. [/quote]

+1 $5M is great if you're in your 60's, you're getting Medicare or will soon, and your kids have flown the nest. It's not great if you're in your 40's with 3 little kids, a hefty mortgage (for a nice home in a good school district), and need to pay a fortune for health insurance for 20+ years. Add in a special needs kid or two and the numbers look even worse. Sure, you could make it work, but most UMC people don't want to stop working and live like LMC people.[/quote]

But of course if you have 5m in your 40s and keep working/contributing, it grows to even more.  Then you have 10 million in your 50s.  [/quote]

Right, either way it’s not a nightmare burden, which is the idea that was posed in the OP. $5m might not be enough for you, personally, to retire tomorrow, depending on your age, your kids ages, number of kids, and desired lifestyle. But regardless of your age, $5m is great. If you’re young, keep working, invest wisely, and you’re golden. If you’re old, assess your lifestyle, get rid of your mortgage and other debt, and you can be quite comfortable.

No one is arguing that you HAVE to retire on $5m, just that it’s a sum of money that should absolutely take the pressure off financially and make you confident in your finances, not be a burden you’d wish away. It’s only a nightmare if, like the people on succession, you think anything short of being a billionaire is poverty. [/quote]

Good lord how many times do you need people to explain to you that the "nightmare" line was a joke from a show? Not one poster on this thread actually said that $5M is a literal nightmare.[/quote]

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