Post AobT6NWQUDanOUZ1Si by maxburn@noauthority.social
 (DIR) More posts by maxburn@noauthority.social
 (DIR) Post #AobS0abOqFDoGnZ9Bw by Phil@freeatlantis.com
       2024-12-01T13:25:59Z
       
       0 likes, 1 repeats
       
       Having a net worth of 1 million dollars may seem rich to some but it isn't at all surprising that it doesn't seem it to those who have it. Most are close to retirement, which is expensive.  Suppose you are 65 and have just paid off you 400k house and have 600k in retirement funds. Using the 4% rule that'll provide 24k in annual income.  SS may provide another 24k (or 42k for a couple.  Certainly not poverty but not living rich.  In these parts 400k is a modest househttps://finance.yahoo.com/news/70-millionaires-dont-think-theyre-203016890.html
       
 (DIR) Post #AobT6NWQUDanOUZ1Si by maxburn@noauthority.social
       2024-12-01T13:38:13Z
       
       0 likes, 0 repeats
       
       @Phil pre hyper inflation I was thinking 1M was pretty comfortable, no longer. Even if you consider that 4% rule on the cited invested 600k that’s only $24k/year. House isn’t generally considered income. It takes $1.5M invested to get something we consider today to be borderline income of $60K/year. That’s what inflation steals from everyone.
       
 (DIR) Post #AobVGqmIlezUvz6vAm by Phil@freeatlantis.com
       2024-12-01T14:02:31Z
       
       0 likes, 0 repeats
       
       @maxburn Indeed.  When I was a teenager if you had a million bucks you could buy a 2500 square foot house, invest the rest conservatively and produce an income 2x the median income.  To do that now, you would need nearly 3 million.
       
 (DIR) Post #AobY9suwiNKbPAWYiG by Bubber_Dude@freeatlantis.com
       2024-12-01T14:34:53Z
       
       0 likes, 0 repeats
       
       @Phil most people don't realize that having a 401K or IRA with $1M in it qualifies you as an accredited investor which allows you to invest in alternative investments to the stock market (like real estate).  That let's you achieve better than 4% average returns with less volatility.
       
 (DIR) Post #Aobc5VUIHg8fOfE3lo by Timtoolman@freeatlantis.com
       2024-12-01T15:18:55Z
       
       0 likes, 0 repeats
       
       @Phil I made a lucky decision years ago and invested in a couple of MLPs. They pay a "return on capital" and it is taxed at the corporate tax rate. Basically the income is tax free.  Your taxes are more complicated to do with a K1 but it's worth it. There's a couple that will pay $60k tax free on an investment of about $800k.Look at Energy Transfer, Enterprise Products.Magellan MLP used to be the best paying but I think it changed away from MLP.
       
 (DIR) Post #AobdieJ7WgJrzzEBUG by Phil@freeatlantis.com
       2024-12-01T15:37:12Z
       
       0 likes, 0 repeats
       
       @Bubber_Dude of course higher returns are easy to achieve. The 4% rule is what you can safely net/spend without inflation putting you in poverty or out living your funds.  Few people have enough money to live on returns alone and have to spend some principal.At normal inflation rates over time, money loses half its value every 23 years.