[BostonCard]

$11M is absolutely enough to retire on, unless you want to lead a stupidly extravagent lifestyle. My wife and I have calculated it and our number, including our house in the crazy-expensive Bay Area, is around $2.5M. Assuming you get ~5% annual real returns (which isn't insane), $11M is giving you over half a million dollars a year. You can't live on that? I sure could!

Granted, he's probably got less than that, but say he has $5M in the bank, that's still ~$250k a year! My wife and I make a bit over half that. It's plenty to live on.

Remember 5% returns have to be above inflation, or you start eating into your principle.  These days, that a minimal concern, with inflation running at about 1%, but it won't be that low forever.  And returns aren't what they used to be, what with negative interest rates being all the rage.

Still, one can live reasonably comfortably with that in the bank, certainly well above the median household income.

BC

[BostonCard]

$11M is absolutely enough to retire on, unless you want to lead a stupidly extravagent lifestyle. My wife and I have calculated it and our number, including our house in the crazy-expensive Bay Area, is around $2.5M. Assuming you get ~5% annual real returns (which isn't insane), $11M is giving you over half a million dollars a year. You can't live on that? I sure could!

Granted, he's probably got less than that, but say he has $5M in the bank, that's still ~$250k a year! My wife and I make a bit over half that. It's plenty to live on.

Remember 5% returns have to be above inflation, or you start eating into your principle.  These days, that a minimal concern, with inflation running at about 1%, but it won't be that low forever.  And returns aren't what they used to be, what with negative interest rates being all the rage.

Still, one can live reasonably comfortably with that in the bank, certainly well above the median household income.

BC