Reply to Net worth over $20 million

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]A 3% withdrawal rate is meant to preserve your nest egg, not draw it down. Using a 4-5% withdrawal rate runs a real risk of running out of money in old age, or not having anything to pass down to your children. I know people advocate that you should “Die with zero” but that is[b] middle class behavior.[/b] [b]The fact that you can reasonably spend 20M in retirement on living expenses and healthcare means that it is still just upper middle class. [/b]If you are wealthy then you will be able to set up a trust for your kids/grandkids/nephews/nieces, and make generous donations to your community and alma mater.[/quote]

Upper middle class is still middle class, and 20 mil absolutely allows you to leave trust funds for 2-3 kids that would be life changing.  How is it not "wealthy"?  How much money do you really need in retirement when you are elderly?  You can live very well with many luxuries, travel, unlimited dining out, etc,  and hire a home caretaker with 1 mil passive income you can generate using conservative 5% rate of return off of 20 mi.  How is this not wealthy when you are getting income of 1% of population without even touching you principal? What are you planning to spend your additional 3% drawdown on?

I am genuinely curious what expenses would ever amount to completely spending 1.5 mil a year taxed at capital gains tax rate at most?  Can you please list what this lifestyle involves?[/quote]

To guarantee that 5% rate of return, much would be in cash/MM/CD/Bonds/Cash alternatives and would be taxed at top tax bracket, so close to 50% in many states.  But yes you can live quite nicely on $500-650K/year, especially if you own your home outright as well
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