Poll of the Day > $1000,000 or being able to eat as much as you want without health issues?

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blu
06/10/21 4:06:21 PM
#51:


ReggieTheReckless posted...
Assuming the million offered here is tax free initially, 8% on a mil invested is 80 grand, and even the laziest of investors can make 8% a year in stable years. Let's say you don't let it sit and instead take it out and it's taxed as income instead of long term capital gains, so you're left with maybe 63k after taxes


Im sure you know this, but Id just like to add to this paragraph that when earning 8-10% on average, youre still looking at only being able to spend 30-40k a year because of the downtimes and have a high confidence your money will last for life.

ReggieTheReckless posted...
My wife and I combined make less than that now after taxes (we clear like 58k),and we live EXTREMELY comfortably in Central Florida and never want for anything and buy whatever we want and get annual Disney passes and take at least 2 vacations a year.

Maybe you guys... Just suck with money?

I also agree with this. I live extremely comfortably off 20-25k a year and could easily go down to 15k without sacrificing much happiness/comfort.
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VeeVees
06/10/21 4:14:44 PM
#52:


I will take the money. I'm not American and don't have the desire to keep stuffing myself.

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Mead
06/10/21 4:33:31 PM
#53:


VeeVees posted...
I will take the money. I'm not American and don't have the desire to keep stuffing myself.

never will be one with that kinda attitude

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VeeVees
06/10/21 4:44:09 PM
#54:


good

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adjl
06/10/21 4:48:05 PM
#55:


ReggieTheReckless posted...
The majority lottery winners are idiots for sure, as are people that don't think they can retire on a mil.

No one is forcing you guys to live in downtown east coast/west coast areas where you can't even buy a house for that much.

Assuming the million offered here is tax free initially, 8% on a mil invested is 80 grand, and even the laziest of investors can make 8% a year in stable years. Let's say you don't let it sit and instead take it out and it's taxed as income instead of long term capital gains, so you're left with maybe 63k after taxes

My wife and I combined make less than that now after taxes (we clear like 58k),and we live EXTREMELY comfortably in Central Florida and never want for anything and buy whatever we want and get annual Disney passes and take at least 2 vacations a year.

Maybe you guys... Just suck with money?

You can retire on a million, you just shouldn't expect it to mean you don't have to limit yourself in order to do so. That's the takeaway there.

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Muscles
06/10/21 5:06:20 PM
#56:


Well seeing as I just got out of the hospital about 2 weeks because of diverticulitis I'll pick the 2nd one

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Philip027
06/10/21 5:48:31 PM
#57:


HornedLion posted...
This. Easily.

You guys think I wont chug this antifreeze? $10,000. Lets go!

I interpreted the option in the poll as basically "you never get full"

But if it's more like "you can consume anything you want without risk" then yeah, I would maybe have to reevaluate.
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Zeus
06/10/21 6:54:47 PM
#58:


Revelation34 posted...
Anybody who thinks that a million isn't enough to retire on is a person living way above their means.

That's not how means work >_>

Means are a variable. Somebody whose lifestyle requires $10k/year might be living above their means while somebody whose lifestyle requires $100k/year might be living well below their means. It all depends on what their means actually are.

As for whether somebody here could retire on $1m dollars -- even without taxes taken out -- most PotDers are probably too young to do that. If you tried to retire now, you'd have a *lot* more expenses than you're assuming.

ReggieTheReckless posted...
The majority lottery winners are idiots for sure, as are people that don't think they can retire on a mil.

You're what, 30? Maybe 40? You've got plenty of years ahead of you. And sure, I have a cousin who lives on well under $10k/year (despite bringing in a six-figure salary), but he lives the most frugal lifestyle you could imagine (the kind of lifestyle that far-left progressives would say nobody should have to live) and it's worth noting that part of that would only be possible through some of his employer's benefits (such as health insurance). Could he do it on just that million (while excluding his other assets)? Probably. Most people? That's not realistic.

Personally, I plan on living a very fucking long time and I doubt I'll ever fully retire because I'd get bored.

ReggieTheReckless posted...
Assuming the million offered here is tax free initially, 8% on a mil invested is 80 grand, and even the laziest of investors can make 8% a year in stable years. Let's say you don't let it sit and instead take it out and it's taxed as income instead of long term capital gains, so you're left with maybe 63k after taxes

First, if you're retiring on just that, you're not able to invest the full million. Second, if you're arguing that the average person should be able to do it, you'd look to at the average person's assets (or lack thereof). The average American is $90k in debt:

https://www.cnbc.com/select/average-american-debt-by-age/

But you're arguing anybody should be able to do this, right? So subtract $40k for this year (keeping in mind that you'd now need to pay for 100% of insurances because you lose out on both the employer benefits and can't access means-tested programs) and then $90k to get out of debt. So you're starting off with $870k. Let's say that your 8% number actually holds (and overlook that things have been atypical in recent years) and you're able to take at least part of that money out, 8% of $69,600 before any taxes. I *think* the capital gains rate between the federal and the state might be around 30%, but I'm not 100% sure about that. If that's the case, you'd be looking at $48,600... which might be more than enough for most people.

So I guess with the caveat "if you invest everything you feasibly can," the million would be enough to retire on assuming that a person's debts don't vastly exceed the national average. When I heard "retire on a million," this wasn't where my mind was going. Colloquially, when people say that, they mean just living on that money and maybe whatever assets they already have, which would be difficult for younger people.

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Revelation34
06/10/21 7:31:10 PM
#59:


Revelation34 posted...
I voted money but if I could also heal my taste completely then I'll do that instead.


@Mackorov
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adjl
06/10/21 7:40:36 PM
#60:


Zeus posted...
So I guess with the caveat "if you invest everything you feasibly can," the million would be enough to retire on assuming that a person's debts don't vastly exceed the national average. When I heard "retire on a million," this wasn't where my mind was going. Colloquially, when people say that, they mean just living on that money and maybe whatever assets they already have, which would be difficult for younger people.

I don't think anyone with a modicum of financial sense means "I'm just going to take all the money I have now and hope it lasts me until I die" when they talking about retiring. It's a given that any retirement plan involves investment so you have actual income to keep you going and your savings can do more than just sit there uselessly until you reach the bottom of the barrel. That's not to say that nobody tries to retire like that, but it's very clearly not a good idea, and most people at least understand that the concept of investing exists.

Zeus posted...
So subtract [...] $90k to get out of debt.

That's not necessarily a prerequisite for planning retirement (or whatever) around receiving a large lump sum. If the interest you're paying on that debt is lower than your RoI, you may actually be better off investing the money and making minimum payments on the debt. Other factors can come into play, like improving your debt:income ratio to get better terms on a mortgage, or simply the peace of mind that comes from being debt-free, but defaulting to "I must pay down my debt before anything else" isn't always the optimal course of action.

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Zeus
06/13/21 4:30:38 AM
#61:


adjl posted...
I don't think anyone with a modicum of financial sense means "I'm just going to take all the money I have now and hope it lasts me until I die" when they talking about retiring. It's a given that any retirement plan involves investment so you have actual income to keep you going and your savings can do more than just sit there uselessly until you reach the bottom of the barrel. That's not to say that nobody tries to retire like that, but it's very clearly not a good idea, and most people at least understand that the concept of investing exists.

The way I've always seen planning for retirement is paying in and retirement as cashing out. I'm imagine that's how the vast majority of people would view it. Now what the young people -- the ones so young that they've never lost anyone to old age -- don't seem to understand is that, no matter how well you plan, if you live to the bitter end you will almost inevitably run out of money. Every relative, relation of a friend, etc, has had that money run out by hospice and either switched to government aid (which, by the way, was why Obama was promoting his end of life counseling plans promoting things like assisted suicide -- once somebody is on government aid at that stage, it's a huge moneysink)

Now, you're talking about a modicum of financial sense, but anybody with a modicum of financial sense wouldn't necessarily retire when they have that kind of a windfall unless they were already a few years out. Most people would still work afterward because who the fuck knows what could happen.

But as much as you try to say "most people," that's not how most lotto winners actually operate. The only lotto winner I personally met took the cash in his late 50s and planned on just running out the money. afaik, he's still alive, although I guess he'd be getting up there in years.

adjl posted...
That's not necessarily a prerequisite for planning retirement (or whatever) around receiving a large lump sum. If the interest you're paying on that debt is lower than your RoI, you may actually be better off investing the money and making minimum payments on the debt. Other factors can come into play, like improving your debt:income ratio to get better terms on a mortgage, or simply the peace of mind that comes from being debt-free, but defaulting to "I must pay down my debt before anything else" isn't always the optimal course of action.

For a mortgage, yes. For a lot of other debt, probably not. But as a person who's gone out of his way to avoid debt, I'm not going to be as debt-savvy as chronic borrowers. I didn't even take a college loan, I just picked a less expensive school where I knew I could cover the costs.

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Krow_Incarnate
06/13/21 12:38:48 PM
#62:


2, easily

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TheFalseDeity
06/13/21 1:03:08 PM
#63:


If the second covered pre existing diabetes then thats the easy pick for me. If not then the money.

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blu
06/13/21 6:58:14 PM
#65:


Zeus posted...
Every relative, relation of a friend, etc, has had that money run out by hospice

I mean, hospice patients live on average about two months. Hospice could definitely bankrupt you but if youre in hospice afaik youre at end of life.
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blu
06/13/21 7:08:38 PM
#66:


Zeus, how much money do think you a 70 year old could reasonably stop working with?
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mooreandrew58
06/13/21 11:32:10 PM
#67:


Can i still get drunk? Thats technically being in a poisned state. And yes my answer fully hinges on that. Or is it just food and not drinks?

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