"A nickel ain't worth a dime anymore." ~ Yogi Berra
When I was growing up, a million dollars or being a millionaire was the holy grail. I thought I would have it made if I could accumulate a million dollars. It definitely would have been enough
Nowadays, a million dollars may not be enough according to CNBC for today's retirees. A million dollar nest egg would yield $40,000/year using a 4% withdrawal rule. This would last about 12 to 25 years depending on one's state of residence. For 42 year old GenXer, the withdrawal would be $19,000/year inflation adjusted. The articles notes for a 32 year millennial, the withdrawal would be below the poverty line, which the article characterizes as "million dollar poverty."
Given inflation and longer life expectancies, I estimate the nest egg holy grail for our kids will be at least $5 million...or even more.
For more on Crossing Generations, check back Thursdays for a new segment.
This is not financial or retirement advice. Please consult a professional advisor.
Copyright © 2018 Achievement Catalyst, LLC
No comments:
Post a Comment
Comment guidelines: My Wealth Builder will publish comments that are about the topic and do not contain inappropriate language. My Wealth Builder reserves the right to edit or delete comments for any reason which includes those that have advertising (either for a product, website, or blog), contain inappropriate language or are not about the topic.