Lady Butterfly @lazysoci.al to Ask@lemm.eeEnglish · 28 days agoWould you rather have 2 million dollars now or 100k a year for the rest of your life? All tax freemessage-squaremessage-square34linkfedilinkarrow-up146arrow-down12
arrow-up144arrow-down1message-squareWould you rather have 2 million dollars now or 100k a year for the rest of your life? All tax freeLady Butterfly @lazysoci.al to Ask@lemm.eeEnglish · 28 days agomessage-square34linkfedilink
minus-squareiii@mander.xyzlinkfedilinkEnglisharrow-up5·28 days ago He said that $1M at age 65 is worth $100K a year, indexed to inflation, for life. The typical estimate is 4% (1), meaning 1M USD is equivalent to 40k USD a year.
minus-squaregedhrel@lemmy.worldlinkfedilinkEnglisharrow-up8·28 days agoThat’s why “at 65” comes into it. You don’t live forever, so you can afford to eat into the capital.
minus-squareHamsterRage@lemmy.calinkfedilinkEnglisharrow-up3·28 days agoYikes! My mistake, $60K/yr, not $100K/yr. Basically, what it would cost you to buy an annuity at that age. Fixed my earlier comment.
The typical estimate is 4% (1), meaning 1M USD is equivalent to 40k USD a year.
That’s why “at 65” comes into it. You don’t live forever, so you can afford to eat into the capital.
Yikes! My mistake, $60K/yr, not $100K/yr. Basically, what it would cost you to buy an annuity at that age.
Fixed my earlier comment.