this post was submitted on 11 May 2025
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Would you rather have 2 million dollars now or 100k a year for the rest of your life? All tax free (lazysoci.al)
submitted 1 week ago by CheeseToastie@lazysoci.al to c/ask@lemm.ee
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[–] iii@mander.xyz 5 points 1 week ago (2 children)

He said that $1M at age 65 is worth $100K a year, indexed to inflation, for life.

The typical estimate is 4% (1), meaning 1M USD is equivalent to 40k USD a year.

[–] gedhrel@lemmy.world 8 points 1 week ago

That's why "at 65" comes into it. You don't live forever, so you can afford to eat into the capital.

[–] HamsterRage@lemmy.ca 3 points 1 week ago

Yikes! My mistake, $60K/yr, not $100K/yr. Basically, what it would cost you to buy an annuity at that age.

Fixed my earlier comment.