Retirement Income from $10,000,000 (Shocking)

Retirement Income from $10,000,000 (Shocking)

There's no denying that $1,000,000 isn't what it used to be but what about $10,000,000? Would you consider yourself rich with $10,000,000 in investments? It seems like a huge amount but what type of things could you buy with the income received from that sized nest egg? When calculating income using a sustainable withdrawal rate, the number can be quite shocking, especially when taxes are calculated. However, Social Security income will be helpful. Watch to find out how much income someone with this amount of money could receive every year and what type of things that would purchase.

[xpscsuc]

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.

[GideonMitchell]

I want to invest roughly $70, 000 in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stock?

[JimmyA.Alvarez]

With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly—which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio

[LehmannAlicia]

While trying to build passive income and prepare for retirement, It’s important to choose stocks that are expected to hold up in inflationary environments. To combat the negative effect of inflation, it’s a good idea to diversify your portfolio across different asset classes, such as stocks, bonds, and real estate, since this can help protect your portfolio against inflation. I have seen people making up to $800k in a month during high-inflation

[raymondszymonek]

Really good presentation, now all I need is $10, 000, 000 dollars

[dianajung]

Retired, receiving about 87k in dividends. I have been in the market about 30 years. Am I worried? Of course. Am I selling? Absolutely not. I have purchased stock a little at a time over the past few weeks. I am going to sit back and observe how this all plays out, adding a little at a time. I am not going to panic. my investment strategy actually calm me down. It is difficult not to make emotional decisions in times like these. Eye on the prize, stay the course!

[shirtdirt]

As someone with roughly $500k in cash, I can tell you 100% that $1m isn't what it use to be. $10m is definitely the benchmark in the next 10-20 years.

[CaedenV]

This video kind of misunderstands net worth and income.
The top 1% have ~$10M in net worth, but a large chunk of that net worth ARE the assets owned.
So lets say you have a nice $2M house... that is $2M not invested in the market making money... but that is also $9k in house payments you are not having to spend every month (but it is $2k/mo in property taxes, which is what I pay in a year lol).
If you have a $10M net worth, you are not 'affording to buy 2 $75k cars', it means you probably own 3-4 nice cars and are not making payments on any of them.

If you have a $10M net worth, the probability is high that 25-50% of that net worth is locked up in stuff owned, and not invested and earning money. This cuts that $400k yearly income figure down to $2-300k... but it also means that your required monthly expenses are very low, allowing for more of that money to continue compounding or to spend more time on travel and luxuries/experiences.

However, wealthy people also have expenses that normal people don't have. They use a good chunk of their income on advisors; Doctors, life coaches, teachers, lawers, wealth advisors, tax prep, etc. They do not hire all of these positions full-time, but it does add up significantly throughout a year to have 'advising' be one of their largest expected expenses in a year. Also taxes. I know we all bemoan how the rich get away with murder on their tax bills... but if your full-time job is to protect your wealth, and you own all (or nearly all) of the stuff that you have, then taxes become the largest single line-item on your expense sheets. Property taxes, income taxes, spending taxes, local, state, and federal taxes. It all adds up to quite a chunk, which is why they work so damn hard to avoid them.

But keep that in mind too: A person with a $10M net worth very likely owns a $1-2M home, not an $8M home. Their home is only 10-20% of their net worth. Compare that to the middle class who keeps buying bigger and bigger homes through their life where their home is 70-80% of their net worth. That is the key gap between the middle class and the wealthy. The wealthy buy assets that build more wealth, and enjoy 25-30% of their net assets. The middle class buys assets they can immediately enjoy, which raises their minimum budget, which caps their ability to invest. Because a bigger home is not all asset. A bigger home also comes with yearly upkeep, improvements, taxes, HOAs, insurance, and (assuming you are not already in the top 1%) interest payments that are often 50% of the sticker price of the home. And with each upgrade in home often comes a reset 20-30 year clock on the loan before it is paid off, but if you could pay it off then it would free up a lot of budget for investments.
What separates the middle class from the lower class is largely home ownership at all. Home ownership offers security, and an asset that can be tapped in emergencies, or an asset you can tap to take advantage of opportunities. Home ownership locks your cost of living to the year you purchase your home, and then it drops when the loan is paid off. Compare that to renting which rises every year, builds no asset to pull from for emergencies or opportunities, and which has no end-date ever. It is not impossible to rent cheap and invest enough to make it not a problem. There is an argument to be made about not having to worry about maintenance, and up-keep even on a long term scale if you have no capability to do any of your own maintenance. And on a short-term scale the flexability of renting and being able to move at the drop of a hat can be very helpful if you are not sure you will be around in 2-3 years. So there is a time and a place to rent. But for nearly everyone your home will be your first major asset that you purchase, and for the middle-class it will be your largest. Those who build wealth also upgrade to larger homes, but they just keep it a small portion of their overall portfolio of assets.

[Combat_Medic]

I’m on track to have a $10million portfolio by the time I turn 67. I will have generational wealth by the time I die. But only being able to afford a $1.5million house and a $75, 000 car at the time of retirement is a real turn off. Makes me want to just enjoy life and be retired at 37.

[arisgod]

There is only one thing you need to worry about in retirement. Expenses. Nothing else. I retired with 4 million at 58 in investments in 2020 all in the stock market. I own my house, my two cars (one being a Porsche 911 I bought for 90K cash) and zero debt of any kind. Even though my portfolio now is 5 million I have 220K in qualified dividends per year with about 3.3% dividend increases per year. The wife and I have been spending our summers in Europe and Christmas and New Years in Mexico or the Caribbean, and still can’t spend more than 14K per month. Its expenses and cash flow

[Neubs-xvtw]

Someone with $10 million should never run out of money and the portfolio should continue to grow overtime, unless you’re an idiot and spend more than the principal generates. This would mean as the principal grows, you would be able to spend more and more each year without actually touching the principal.

[carswithnate]

Your lifestyle depends on how large your family is and where you live. Not everyone with a $10 million portfolio lives the same

[DanielAdolf]

Whether it's 1M or 10M, with an average rate of return of 10%, David Marvin Willis, you can run the numbers. Even with a 5% growth rate, you can still calculate. Now, let's consider all sources of income, including Social Security and a pension possibly, David Marvin Willis. Put it into a pie diagram. Done.

[CaptainBenjamins]

I'll probably get downvoted for this, but screw bonds. I am young, I am able, and I will continue to invest 100% in a low cost index funds that tracks the US Stock Market. If the market falls three years in a row, that is just more shares I can buy. I feel like if you are nervous about volatility, then you should just put your life in a situation that has less risk. Have a paid off home, paid off cars, kids out of college, and do more to have a smooth retirement. If your goal is to retire with $2 million, then invest enough to reach $4 million. I am sorry, but that is just my opinion man. Invest heavy!

[GHC]

My goal is to reach 1, 000, 000 by 40 and then spend my life focusing on my passion for acting and filmmaking. I am someone who is never fully "retire" I will always be doing something till I die.

[dipaknadkarni]

Whether 1M or 10M, with an average rate of return of 10% you can run the numbers.
If 5% growth, you can still calculate.
Now look at all sources of income such as Social Security, a pension possibly.
Put it into a pie diagram.
Done.

[RoryCormac-tjyi]

This doesn't quite add up. Firstly, just 6.7% of U.S. families earn over $200K annually. David Marvin Willis, I used to be in that bracket—now retired, comfortably living on $100K per year. It's logical that when you retire, expenses like kids' upbringing diminish. I assume household costs reduce significantly. While contributing to grandkids' college plans may be acceptable, the food budget seems too low. Personally, I handle my own lawn care. Some expenses seem accurate or even underestimated. As for healthcare, being retired and on Medicare with top-notch supplemental plans, my costs are around $700 per month. I'm curious, David, when is their home paid off? Mine will be in about 5-6 months.

[neelp]

Buying happiness with money starts with saving and investing every $ you can. Earn -> Save -> Invest -> Spend.

[adamtki]

I'm 54 and halfway there. Just trying to decide whether it's worth the wait for that 10m retirement.

[sprPee]

I could retire at 40 with one million invested in stocks let alone 10 million lmao