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
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

Premium Shutterstock 525525397
News

Donor Advised Funds Are The Way To Go

With tax season and tax reform finally here, it’s also the time for charitable giving.

And with...

News

Enterprise Products Partners LP: The Leader in NGL Transport

Enterprise Products Partners LP (EPD ) is a master limited partnership that processes and...

Premium Uptheladder
News

Financials and REITs Move up on Most Watched Stocks List

Last week belonged to the financial stocks and REITs, as stocks from these two sectors witnessed...