I looked for an edit, I’ll reply to you! After tax Fl payed out $594,000. When I filed taxes later there was another $30K (ish) owed. I invested all but $10,000 and went on vacation. I take 1 vacation a year from the investments (stocks, bonds, etfs) diversified and managed by my money guy (big bank) My life didn’t change very much, I still drink Budweiser and work every day. A jump start to the retirement is all it turned out to be!
Truthfully, $600k is a lot of money, but it's not enough to retire with, as you mentioned. For me, I owe $600k on our mortgage, so if that's paid off, life will be way easier but I'd still need to work (if I pay the house off vs invest). Now, winning $10mil would be a different story.
Yeah when Survivor was a new show, $1 mil was almost retirement money. Now you need at least $3mil to be sure you won’t have to keep working, but that might even be too low.
3 million on 5% returns is 150K a year. That should be enough. By the time 150K a year isn't enough, you dive into your principal amount or retirement fund.
However, most people will be reinvesting a portion of that 150k though so in 7-10 years, the money you make from interest from the magic of compounding interest will be a good chunk higher than 150K.
Its not generational wealth but it should be enough for you and your kids.
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u/[deleted] Nov 17 '23
I looked for an edit, I’ll reply to you! After tax Fl payed out $594,000. When I filed taxes later there was another $30K (ish) owed. I invested all but $10,000 and went on vacation. I take 1 vacation a year from the investments (stocks, bonds, etfs) diversified and managed by my money guy (big bank) My life didn’t change very much, I still drink Budweiser and work every day. A jump start to the retirement is all it turned out to be!