Reply to Can 29yr old live off $1.5 million w/working?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]This board truly has no clue what the lifestyle of the average American is like.

Of course he can retire with 1.5mil and a paid off house!  Of course it’s possible to squander it, but it’s also possible to live a nice, quiet, fulfilling life.[/quote]

If he lives 60 more years, that's only 25k a year or basically 2k/month, in today's money.  With this money he has to pay taxes, insurance, and upkeep on a home, plus maintenance and eventual replacement on a modest car. Plus food, clothing and healthcare. Even for a "nice, quiet, fulfilling life." I think your confidence is unfounded. [/quote]

Never understand why DCUM people can’t understand buying bonds.

You buy $1.5MM of risk free bonds at 5% and you make $75k per year without touching the principal.

Many people can live on that per year.[/quote]

This.

Once people understand this, it's like a lightbulb going off. [/quote]

This is in theory. Have you actually done this?

I have a now 8-year-ladder of tax free bonds paying 5%. The yield to maturity is not 5% due to the premium you have to pay to get them. And it is next to impossible to buy them directly. You have to go through a bond broker of some sort. I have them in an account that I manage. But before I moved them, I was paying .04 in a managed account. If I wanted to keep buying them (which I don't) I would have had to stay in that managed account.

And, as mentioned, they are not inflation adjusted.

[/quote]

I will add, that while they are tax free (federal, state, local if you buy them for the state where you live) the amount is taken into consideration for how much you pay for healthcare--ACA or Medicare. [/quote]

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