Re:As Families Change, Korea’s Elderly Are Turning to Suicide
by marvin on Sunday February 17, 2013 @04:11PM
(#5236745)
You're assuming no return on capital after inflation. $1.5M would be way more than you need to retire on 25,000 per year.
At four percent return after inflation, you would need 625,000 dollars to sustain a 25,000/year lifestyle indefinitely. Four percent per year is about what you can expect for long-term returns on a slightly stock-heavy diversified portfolio.
The above reasoning assumes no lifestyle inflation due to advances in technology (there were no LCD TVs in 1980), and also assumes that you will be incapable of earning another dollar after you retire.
At four percent return after inflation, you would need 625,000 dollars to sustain a 25,000/year lifestyle indefinitely. Four percent per year is about what you can expect for long-term returns on a slightly stock-heavy diversified portfolio.
The above reasoning assumes no lifestyle inflation due to advances in technology (there were no LCD TVs in 1980), and also assumes that you will be incapable of earning another dollar after you retire.