Originally Posted by Imglidinhere
Not really. If you live off the compound interest, you could probably just live off the 7-10% interest it makes in one of the higher interest accounts that're available. Hell, my dad's planning on doing just that when he retires.
Compound interest with IRAs only pays off decades down the road. The highest paying years are at the very end. That's why it's so important to get the train rolling early, so it's up to a full steam by the time you retire. The only IRA you can draw from without penalty is a Roth, and that's only the principle.
Originally Posted by DuckieHo
7-10% interest with low risk?
He said his dad is doing this, so I'm assuming he's at the end of his retirement cycle. I don't know where all these people are readily making double-digit annual returns in any kind of safe or predictable way.edit
Originally Posted by frickfrock999
50K A YEAR?!
Come on man, that is a little ridiculous, even for folks around here. I seriously doubt the average income for OCN members is that high.
Let's be more realistic.
$30,000 a year is perfect. Say you're a single dude with a car and the million you got is after taxes.
Your apartment costs $700 or so a month.
You spend $100 on insurance.
$300 for food.
$200 for gas and bills.
You can live for DECADES and not worry about a thing.
If you want to be a home body and don't care about having any disposable income your whole life.. sure. Most people prefer not to live that way, especially when they're a millionaire. Throw a family into the mix, and that $30,000/year will seem even more meager.Edited by Kaldari - 10/25/13 at 8:45pm