Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
ALERT

Powerhouse Best Dividend Stock Generates 43% Return

Dividend logo

When is $1 million worth about $22,000?

The answer is, in retirement. How the math works, why so many people get it wrong and what we might do about it is what we’ll discuss in this article.

Million-Dollar Nest Egg

First, let’s do the math. Suppose you’ve been a committed saver and are one of the relatively few Americans who have accumulated a retirement nest egg of $1 million (just 9% of American households have saved more than $500,000 for retirement, according to the Government Accountability Office).

Being a millionaire, literally, is certainly worth crowing about. But if that $1 million is to provide retirement income and not run out over a span of 30 years, that very enviable amount of savings can safely generate only about $30,000 a year, resulting from a 3% drawdown rate that reflects today’s low-interest rates. After taxes, we get to the roughly $22,000 figure.

To read the Full Story, Go Premium or Log In

Popular Articles

News

Chubb Limited Increases Dividend by 2.9%

Each day, companies across the globe announce upcoming dividend payouts. In our Dividend Payout...

News

Comcast Leads 150 Stocks Going Ex-Dividend This Week

There are 150 stocks going ex-dividend this week starting Monday, June 26. For income investors...

Premium Shutterstock 180568652
News

The Market Glance for June 26: Economic Data, Dividend Aristocrat Headline Final Week of June

The economic calendar features several high-profile events over the next five days, giving...