Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because everything is so much more expensive now. For example, food price has doubled since the pandemic. Your one million dollar at retirement translates only to $40k per year, which isn't much as you can imagine.

Doubled? In 4 years? Definitely gone up a lot but let's not go crazy here. Got a gallon of milk yesterday for $3 and 12 eggs for $1.50.

And you need to hit a retirement calculator before you say $1 million is $40k/year. The money will grow, of course.

Funny you only picked the cheapest milk and eggs. I know it has doubled for me because I rarely spent more than $100 each week at Costco before pandemic. Now I rarely spend less than $200 with the same type of stuff. For example, a pack of 40 bottles of water was $3 pre-pandemic and is now $7.39.

Okay let's both stop anecdotes and see what the actual data shows.

https://www.usinflationcalculator.com/inflation/food-inflation-in-the-united-states/

2020 food inflation : 3.4%
2021: 3.9%
2022: 9.9%
2023: 5.8%

Compounded that's a 25% increase over 4 years. It's certainly very high. But not remotely close to double.

You don't really know how the numbers were obtained and processed/weighted. So I won't say the BLS inflation number is representitative of our daily lives. The bottom line is my experience isn't an anecdote. It's the same to pretty much all the people I know.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because everything is so much more expensive now. For example, food price has doubled since the pandemic. Your one million dollar at retirement translates only to $40k per year, which isn't much as you can imagine.

Doubled? In 4 years? Definitely gone up a lot but let's not go crazy here. Got a gallon of milk yesterday for $3 and 12 eggs for $1.50.

And you need to hit a retirement calculator before you say $1 million is $40k/year. The money will grow, of course.

Funny you only picked the cheapest milk and eggs. I know it has doubled for me because I rarely spent more than $100 each week at Costco before pandemic. Now I rarely spend less than $200 with the same type of stuff. For example, a pack of 40 bottles of water was $3 pre-pandemic and is now $7.39.

Okay let's both stop anecdotes and see what the actual data shows.

https://www.usinflationcalculator.com/inflation/food-inflation-in-the-united-states/

2020 food inflation : 3.4%
2021: 3.9%
2022: 9.9%
2023: 5.8%

Compounded that's a 25% increase over 4 years. It's certainly very high. But not remotely close to double.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because everything is so much more expensive now. For example, food price has doubled since the pandemic. Your one million dollar at retirement translates only to $40k per year, which isn't much as you can imagine.

Doubled? In 4 years? Definitely gone up a lot but let's not go crazy here. Got a gallon of milk yesterday for $3 and 12 eggs for $1.50.

And you need to hit a retirement calculator before you say $1 million is $40k/year. The money will grow, of course.

Funny you only picked the cheapest milk and eggs. I know it has doubled for me because I rarely spent more than $100 each week at Costco before pandemic. Now I rarely spend less than $200 with the same type of stuff. For example, a pack of 40 bottles of water was $3 pre-pandemic and is now $7.39.

Why are you buying 40 bottles of water a month?

Because we have a family of four and don't drink tap water.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because everything is so much more expensive now. For example, food price has doubled since the pandemic. Your one million dollar at retirement translates only to $40k per year, which isn't much as you can imagine.

Doubled? In 4 years? Definitely gone up a lot but let's not go crazy here. Got a gallon of milk yesterday for $3 and 12 eggs for $1.50.

And you need to hit a retirement calculator before you say $1 million is $40k/year. The money will grow, of course.

Funny you only picked the cheapest milk and eggs. I know it has doubled for me because I rarely spent more than $100 each week at Costco before pandemic. Now I rarely spend less than $200 with the same type of stuff. For example, a pack of 40 bottles of water was $3 pre-pandemic and is now $7.39.

Why are you buying 40 bottles of water a month?

Anonymous wrote:

Anonymous wrote:Because everything is so much more expensive now. For example, food price has doubled since the pandemic. Your one million dollar at retirement translates only to $40k per year, which isn't much as you can imagine.

Doubled? In 4 years? Definitely gone up a lot but let's not go crazy here. Got a gallon of milk yesterday for $3 and 12 eggs for $1.50.

And you need to hit a retirement calculator before you say $1 million is $40k/year. The money will grow, of course.

Funny you only picked the cheapest milk and eggs. I know it has doubled for me because I rarely spent more than $100 each week at Costco before pandemic. Now I rarely spend less than $200 with the same type of stuff. For example, a pack of 40 bottles of water was $3 pre-pandemic and is now $7.39.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because everything is so much more expensive now. For example, food price has doubled since the pandemic. Your one million dollar at retirement translates only to $40k per year, which isn't much as you can imagine.

Doubled? In 4 years? Definitely gone up a lot but let's not go crazy here. Got a gallon of milk yesterday for $3 and 12 eggs for $1.50.

And you need to hit a retirement calculator before you say $1 million is $40k/year. The money will grow, of course.

No, this is accurate. The rule is that you can withdraw 4% of principle. So that is 40K the first year. True hopefully a little more each year after, but not a lot. The best estimate on 1M is 40K per year for the first ten years of retirement.

You’d be crazy to use 4% rule if you don’t have pension. 3% max or lower.

Wait do you all think you are gonna live past 95?

Also I assume social security will not be as generous when I retire (probably around 20 years from now?), but it won't be zero.

Anonymous wrote:Because everything is so much more expensive now. For example, food price has doubled since the pandemic. Your one million dollar at retirement translates only to $40k per year, which isn't much as you can imagine.

Food prices went up 11% in 2022 and 5% in 2023. Yes, things like eggs went way up because of avian flu but have come back down. Over two years that’s a cumulative of about 18% which is very high but not double. There is no doubt that retailers and manufacturers are taking higher margins. You can save money by buying store brands and shopping at places like Aldi.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because everything is so much more expensive now. For example, food price has doubled since the pandemic. Your one million dollar at retirement translates only to $40k per year, which isn't much as you can imagine.

Doubled? In 4 years? Definitely gone up a lot but let's not go crazy here. Got a gallon of milk yesterday for $3 and 12 eggs for $1.50.

And you need to hit a retirement calculator before you say $1 million is $40k/year. The money will grow, of course.

No, this is accurate. The rule is that you can withdraw 4% of principle. So that is 40K the first year. True hopefully a little more each year after, but not a lot. The best estimate on 1M is 40K per year for the first ten years of retirement.

You’d be crazy to use 4% rule if you don’t have pension. 3% max or lower.

Anonymous wrote:

Anonymous wrote:Because everything is so much more expensive now. For example, food price has doubled since the pandemic. Your one million dollar at retirement translates only to $40k per year, which isn't much as you can imagine.

Doubled? In 4 years? Definitely gone up a lot but let's not go crazy here. Got a gallon of milk yesterday for $3 and 12 eggs for $1.50.

And you need to hit a retirement calculator before you say $1 million is $40k/year. The money will grow, of course.

No, this is accurate. The rule is that you can withdraw 4% of principle. So that is 40K the first year. True hopefully a little more each year after, but not a lot. The best estimate on 1M is 40K per year for the first ten years of retirement.

Anonymous wrote:Because everything is so much more expensive now. For example, food price has doubled since the pandemic. Your one million dollar at retirement translates only to $40k per year, which isn't much as you can imagine.

Doubled? In 4 years? Definitely gone up a lot but let's not go crazy here. Got a gallon of milk yesterday for $3 and 12 eggs for $1.50.

And you need to hit a retirement calculator before you say $1 million is $40k/year. The money will grow, of course.

I got 1.75 and wife has 800k but we are old dinosaurs

Because everything is so much more expensive now. For example, food price has doubled since the pandemic. Your one million dollar at retirement translates only to $40k per year, which isn't much as you can imagine.

It’s not? Everything is relative. For many people $1 million would still be a significant 401k balance to go into retirement with. For others it would be a huge disappointment. Whether it is a “small amount” is entirely dependent on the person you ask.

It’s only a small amount for people here. Our families who live in lower COL and lower income areas would be ecstatic at $1m.

It seems a one million dollar 401k was everyone’s goal.

But now with greater contribution limits and a bull market more people are hitting two million. And a rare lucky few even 5 million in their 401ks if they did the max and all growth stocks and older.

How did one million for a retirement goal in the 401k so quickly become a small amount?