No 2 million at 30 is not like 20 million at 60.My point is that there is a present value and a future value of money. For example, let's a 30 year-old has $2 million. In some ways, that is like someone in their 60s have $20 million. So this 30 year old really doesn't need to save any more, and should start making withdrawals. Are there studies of people who should be making withdrawals in their 30s, 40s, and 50s, and if so, how do they calculate how much and what does the money get spent on. I truly have no idea what is "normal spending" or even "wise spending" and that's why I am asking for studies and opinions.
At 30 you have 60 ish years left and should not take out more then the perpetual withdrawal rate which depends a but but somewhere 2 to 3% not inflation adjusted. So if you drew down 40k from investing income a year at 30 you would be ok from 2 million.
At 60 you have 30 to 40 years left. Let's work with 30 years . If assume will not make 90 due to say family history then could take 4% rule adjusted for inflation so portfolio of 20 million can take 800k a year 1st year.
You seem to be looking fir perpetual withdrawal rate info
Statistics: Posted by CaptainT — Thu Sep 12, 2024 1:19 am — Replies 17 — Views 1094