Retiring with $5 million: How much money you'll have in your monthly budget

Retiring doesn’t always mean you won’t have a job.

Nearly 60% of baby boomers in the workforce plan to keep working in some fashion after they retire, according to a study from Voya Financial.

If you prefer a work-free retirement, you’ll need to have enough money in savings to cover your future spending.

To make your nest egg last, you should aim to use around 4% of your savings per year in retirement, according to financial advisor Winnie Sun, co-founder and managing director of Sun Group Wealth Partners. That percentage can change, however, based on several factors such as if your home isn’t paid off or if you have high health-care costs, Sun said.

This strategy also assumes that you have a balanced portfolio, focusing more on bonds and cash-type investments for your short-term needs. This allows your accounts to grow for the future, according to Sun.

Check out this video to see a few different case studies of how much spending money you’ll have if you retire with $5 million.

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[robert-dr]

This is a ridiculous way to invest $5 million. I would do very different by saving $500K to $1 million cash and investing the rest in Nasdaq and S&P...When the stock market is low, I would spend the cash and would not short stock (I would even invest more cash in the stock at this time), then, I can capture at least average 10-12% returns of the rest of $4- 4.5 million ($400-$450k). When the stock market is upside, I will sell the stock to make up the cash spent during the downside...by doing this in the long run, one not only can dramatically reduce the investment risk, but also can expect significantly increasing the asset with compound returns...

[CaptainBenjamins]

Thanks CNBC for explaining what a percent is

[WorldTravelandExcursions]

If you actually managed to build $5 million, you know when its time to retire.

[zwatwashdc]

3 years later you need you need at least 8 million to have the same 5 million before the print baby print.

[anibalty]

What do you all think is a comfortable monthly budget for someone retiring with $5 million?

[eugeniekerstin]

Great stocks and I just bought in on them, but I'm interested in making short term profit, let say turn a $150K to $500k in 6months, I'd appreciate tips on how what stocks to buy to make this much profit.

[kludgedude]

Does this include minimum basic income?

[jaliscopow]

Got to Mexico and live like a millionaire

[herlifemusings]

My goal is to retire at 48 with 5 million

[BradPaisley]

I believe investors should focus on under-the-radar stocks, especially given the present rollercoaster nature of the stock market. 35% of my $270, 000 portfolio consists of collapsing stocks that were previously respected, and I don't know where to go from here.

[xvyxplb]

estou sempre impressionado com o seu conteúdo.

[mocheen]

My goal is to be able to retire at 60 with 5 million. I also have a pension and hope to receive the maximum amount comfortable social security. The big unknown is healthcare. I do not factor in any inheritance money into my equation.

[briang]

Take into consideration if you plan on retiring in 40 years cut the amount your getting per month in half to relate to todays dollar value

[utbol]

este vídeo é um lembrete do meu potencial.

[batuhanozmen]

Você é uma sensação do YouTube em formação.

[peterl.]

This says how much per year for withdrawals, but not enough focus on how long it can last. Very useless video.

[jdvandy]

Pfff how many people can save 5 million dollars .. that’s not even what we would make if we worked to 70 .. I could live a lifetime on 5 mill muchless just 20. Years of retirement

[tylershoemaker]

The good news is, if the government keeps printing money we’ll ALL retire with five million dollars in the bank

[thundrstruck]

pfft... who can live on $21, 000 per month? lol

[aluisious]

what a stupid concept for a video

If you have $5 million, just do anything that isn't stupid, and you'll die long before you run out of money.