Quick Peek:
Wondering how much money you need to retire comfortably? According to Yahoo Finance, $5 million is enough to retire at 67 and support a household for around 100 years based on the median cost of living in the US. With an average annual return of 7% on the stock market, you can expect to earn around $350,000 per year. However, it’s essential to consider your standard of living as every household is different. So, plan wisely and enjoy your retirement!
Is $5 Million Enough to Retire at 67?
Retirement is a stage in life that most people look forward to. It is the time when you can finally relax and enjoy the fruits of your labor. However, one of the most important questions that you need to ask yourself is whether you have enough money to retire comfortably. Based on the median costs of living in most parts of America, $5 million is more than enough for a very comfortable retirement.
The Cost of Living
When planning for retirement, it is important to consider the cost of living. This includes housing, food, transportation, healthcare, and other expenses. The median cost of living in most parts of America is around $50,000 per year. This means that $5 million can support a household for around 100 years.
Market Returns
Another important factor to consider is market returns. The average annual return on the stock market is around 7%. This means that if you invest $5 million in the stock market, you can expect to earn around $350,000 per year. This is more than enough to cover the median cost of living in most parts of America.
Your Standard of Living
However, it is important to note that every household is different. Your standard of living may be higher or lower than the median cost of living. If you have expensive hobbies or enjoy traveling frequently, you may need more than $5 million to retire comfortably. On the other hand, if you are content with a simpler lifestyle, $5 million may be more than enough.
In Conclusion
Retirement planning is a crucial aspect of financial planning. Based on the median costs of living in most parts of America, $5 million is more than enough for a very comfortable retirement. However, it also depends on your standard of living as every household is different. It is important to consider all factors and plan accordingly to ensure a comfortable and stress-free retirement.
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