Reply to Why do people with millions of dollars still work?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]No one takes the time to study investing, so they have to slave away for decades.  Most people don't know there are stocks yielding 10%+ dividends with minimal risk.  If you can get a 7% overall withdrawal rate for the rest of your life, which is very doable, you check out at $2M - no one needs more than $140K income in retirement.

But since people are told to buy bonds and other nonsense, they can only safely withdraw 2.5% or 3% of their portfolio and so must slave away until they're 65.[/quote]

This is half true and half nonsense.

Yes you should have a very equity heavy portfolio your whole life.  Yes a safe withdrawal rate above 2.5% can be done.

No there is not minimal risk for any equity investment.  Hopefully you build a portfolio that counters this.

[b]In terms of no one needs more than 140k a year.[/b]  What are you talking about.  I spend 25-35 a month.  Income is seven figures.  I save a lot also.  But I want 35k a month in retirement spend.  For that you need a lot more than 2 million.  Everyone is different.[/quote]

PP is right that you don't need it, you want it. [/quote]

It’s just so hard to predict what your costs will be in 40 years.  I’m sure my parents didn’t predict that they would have medication that costs 10/day.  And most people didn’t anticipate how much the cost of decent assisted living is.  I’m just not confident what our country/world will look like in 30-50 years.  Things like food might be much more expensive with climate change impacts.[/quote]

These things are out of your control, in the meanwhile you are risking not enjoying freedom and retirement while your body is still working and you are alive.  Do you even compare the risk of cataclysmic events like huge increases in COL and climate change vs. a very real risk we might drop dead before retirement if we wait too long or get an illness vastly reducing our QOL?   While you work to prepare for apocalypse you are multiplying the risk of not being able to enjoy your retirement at all. This is an important deciding factor for me.  Should I enjoy more modest lifestyle while still reasonably fit and healthy or should I compromise my health by working long hours, not spending quality time with family, and experiencing chronic stress for many years to come in anticipation I will live till 90s (which is never guaranteed).  I don't want to start living at 65[/quote]

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