There is a “Retirement rule” that your wallet can typically offer a 4.1% spend rate over the decades. In other words, a $ 1 million portfolio could generate $ 41,000 in pre-tax annual income and survive as long as you do. A Canadian would most likely also have CPP (Canada Pension Plan) and Old Age Security benefits. This could add $ 12,000 to $ 15,000 or more to your annual retirement income.
Recently in MoneySense we looked at the Longevity pension fund, which is designed to generate 6.15% annual income. The best use would probably be to use the fund for a portion of retirement savings, for example in the 30-40% range. I will be posting an article on this strategy on my site within a week or two.
There’s more than one way to strip the cat of retirement funding, and Larry Bates has some ideas for boost your retirement savings.
Net net, building a million dollar portfolio might be easier than you think. Heckm, you might even go for $ 2,000,000.
From there, be sure to do your research to figure out how to make that money last. You might consider contacting a consulting planner to help you put together the most effective retirement funding plan.
Jeff Bezos “retires” from Amazon
Bezos, the founder and CEO of Amazon recently announced his retirement. Bezos won’t have to worry about retiring with a mere million. Of course, Bezos is one of the richest people on the planet.
This Business Insider post notes that Bezos is retire with a net worth of $ 197 billion—739,489 times that of the average American. Looks like he’ll be fine. Here are some other incredible riches from this post:
“He is more than twice as rich as the entire British monarchy, which was estimated to be worth $ 88 billion in 2017, and his fortune exceeds the GDP of some countries, although the comparison is not exact between the production and value. Bezos earns more money every second than the average American worker in a week.