Is $1 Million Enough to Retire On?

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4% APY sounds low. Why not invest 50% of your $1Mil in high dividend yield REITs. AGNC, NLY, ANH, CIM, HTS, MFA, RSO, and TWO. If you invested $500,000.00 in these 8 REITs you would earn on average 14.175/year. Take the other $500K and invest it in some safer ETFs and you can make your 4% there. You will average about 9%/year on your portfolio, over $90K. I do not know too much about most of the REITs other than NLY which has been fatefully paying dividends in excess of 14% for the last several years. Of course I would never suggest putting all your eggs in one basket, but there are plenty of ways to do better than 4% on your money. I am 32 years old and if I had a million dollars today I would never work another day in my life.

David of NJ 3:49PM May 16, 2011

I really worry that I will not be able to get the Ford GT to replace my aging Dodge Viper prior to being too old to drive it. Truffles seem to be getting more expensive if you can find them in the top restaurants. I read a troubling article in Time magazine that they are getting more expensive all the time.
How do the rest of you cover the cost of electricity to keep your hot tubs hot? With the cost of alcohol to provide guests at our hot tub parties AND the parties it's hard to imagine how we will keep up with when our ARM mortgages balloons.

Richie Rich of CA 9:43PM November 06, 2010

Imagine what that is and when you achieve it, realize you are happy and be satisfied with that. So many people put happiness on a sliding scale which usually ends in an unhappy, unfulfilled life. Why do we usually think we need more? Higher wages, more jobs.... Let's make what we have work for us. Studies have proven that most people in countries with much less than we have, are much happier and live longer that we do. Do something that makes your heart sing. Only then will you realize true happiness and contentment. One last consideration: Most of us have everything we need and most of what we want. The majority of people in the world would gladly trade their best day for our worst.

Rick of MN 3:19AM October 17, 2010

with a mortgage-free home; fully paid for cars (ranging from 1-2 yr old cars); no kids; no debts; and even if you have to pay for your health insurance of $500 to $1,000/ month why need a million? Our household spends approx $30K a year (includes all household expenses + food + medical insurance) and we're doing wonderfully with 2-3 away vacations a year; memberships in sports clubs for our tennis & golf; a little shopping here and there for our fun clothes and supplies; presents for family members; computer replacements every 2-4 years; & social parties.
Example: Nest egg = $500,00 x 2% (earnings interest rate/yr., very conservatively) = $10,000 / yr
Female Spouse Soc Sec = $14,400/year
Male Spouse Soc Sec = $14,400/year
We still have our $500,000 nest egg intact. Tell me why we need to save more than $1Million in retirement????

Cocoloca of MI 4:07PM October 12, 2010

I thought now that Obama was elected that I would have to worry about paying my mortgage, I wouldn't have to worry about putting gas in my car. I mean, since I helped him that he would help me... doesn't it work that way??

Rob of CA 3:47PM September 13, 2010

I retired at 54 with less than 1 million. I'm 59 and doing fine.

Bobbie Sox of MD 1:50PM July 05, 2010

1 million? I think it is ridiculous. You better shoot for alot higher or you might have to live like one of those people.

john jenkins of WA 2:29PM May 04, 2010

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how to lose weight of 1:07PM March 27, 2010

One Million is not enough.. Certainly not enough to sustain the economy , which has been fueled by Boomer consumption. I can't believe that a high percentage of retiring Boomers have one million dollars.. Invest in cat food stock

Brian Campbell of IA 12:41PM March 05, 2010

I agree with legal eagle. I also have a small nest egg (3.5MM) and fear that this will
Not be sufficient for retirement. I'm fortunate that in addition to those financial investments, I also
Own 2 rental homes, 3 timeshares and a my primary resident which have all been paid for in 2000. Anyway, with my chosen lifestyle, I'm questioning whether I could retire comfortably. Thank you kindly. Winthorp Jr.

winthorp of NH 8:54PM January 31, 2010