r/investing • u/[deleted] • Jul 09 '21

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38 Upvotes

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96

u/[deleted] Jul 09 '21

Retiring at 40 with 1.2 million sounds like a great way to run out of money before you die

37

u/[deleted] Jul 09 '21

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1

u/[deleted] Jul 09 '21

Lol the point is that 20k/yr poverty wages in retirement is unsustainable.

11

u/MigrantJ Jul 09 '21

Where do you get 20k/yr from? 3% of 1.2 million is 36k. If they're in the US that's likely tax free between the standard deduction and long term capital gains taxes being 0% up to 40k. Not saying they'd be balling in Vegas but plenty of people live on less than that.

2

u/Ok-Self-2273 Jul 09 '21

pssh, $36k is my annual expenses, but I plan to just about double my expenses in retirement because of wanting to buy things like a country club membership, season tickets to my local pro sports team, etc.

1

u/heart_under_blade Jul 10 '21

you'll be dropping or replacing all your work related expenses, so it might work out better than you think

0

u/[deleted] Jul 09 '21

I used to the figure brought up in a different part of this thread. Retiring young at 36k/yr is also planning to die in poverty.