I want to retire early with 1 million dollars.
That statement has a nice ring to it, huh?
I don’t think I’ve worked with a client yet that didn’t want to retire early, or wouldn’t be ecstatic if they had a $1 million portfolio.
But as most of us already know, $1 million isn’t what it used to be.
This article from USA Today makes the bold claim that $1 million isn’t enough to retire nowadays.
Look, $1 million is A LOT of money, but to stretch that out for the rest of your retirement is tough. It’s even tougher with lower interest rates.
The article states, “10 to 12 years ago, when people earned a lot more on their investments, $1 million could generate $70,000 to $80,000 a year in retirement income. But with interest rates as low as they are, that’s not really feasible.”
Sure, there are ways to make the most of out your short-term investments, and there are intriguing options like Peer to Peer Lending that can yield decent returns, but they don’t magically guarantee an early retirement (Learn more about the top peer to peer lending network in our Lending Club Review and my review of Prosper).
So the question remains: Can you really retire early with 1 million dollars?