[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/million-dollar-retirement-heres-how-it-might-work-new-york-ny-white-plains-ny\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/million-dollar-retirement-heres-how-it-might-work-new-york-ny-white-plains-ny\/","headline":"Million-Dollar Retirement? Here\u2019s How It Might Work","name":"Million-Dollar Retirement? Here\u2019s How It Might Work","description":"\u201cCongratulations! Your retirement planning paid off. You built a $1 million retirement nest egg. How long will $1 million last in retirement?\u201d For most retirees, the goal is simple: don\u2019t run out of money. That\u2019s the worry that plagues most Americans\u201461% of them, according to a survey from Allianz Life. How do you keep that […]","datePublished":"2019-11-21","dateModified":"2023-07-29","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a49e4873.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a49e4873.jpg","height":1024,"width":1024},"url":"https:\/\/www.amorusolaw.com\/blog\/million-dollar-retirement-heres-how-it-might-work-new-york-ny-white-plains-ny\/","about":["401(k)","Estate Planning","Long Term Care Insurance","Retirement Planning","Social Security"],"wordCount":486,"keywords":["401(k)","Estate Planning","Long Term Care Insurance","Retirement Planning","Social Security"],"articleBody":"\u201cCongratulations! Your retirement planning paid off. You built a $1 million retirement nest egg. How long will $1 million last in retirement?\u201dFor most retirees, the goal is simple: don\u2019t run out of money. That\u2019s the worry that plagues most Americans\u201461% of them, according to a survey from Allianz Life. How do you keep that $1 million from running out before you do, asks Investors Business Daily in the article “How Long Will Your $1M Last in Retirement?“.Let\u2019s use this example. A person is 65 years old, earning $115,000 annually. It\u2019s not a king\u2019s ransom, but it\u2019s a decent income. They sock away a good-sized amount of money every year, but not so much that they reach income limits in a 401(k) or similar retirement plan.The simple answer to the how long will $1 million last is less than nine years. That\u2019s if the person spends $115,000 a year from the $1 million.The average American life expectancy is now 78.6 years, as of 2017, according to the CDC. However, if you make it to 65, you\u2019re more likely to make it to 20 more years. For the average person, that means living to around 85. Retirement funds in this case, which is admittedly an average, will need to last twenty years. Will they?That nest egg isn\u2019t done growing, just because you\u2019ve turned 65. Given enough time, even including setbacks in the market, you\u2019re likely to have a nest egg that keeps growing over those twenty years. If you use a 5.6% annual rate of return for forecasting how your portfolio will do, you may be in better shape than you thought.A 5.6% return would grow your portfolio to $2.97 million, even at a 5.6% growth rate. However, that\u2019s without subtracting any money for living expenses every year. Let\u2019s plug that in.You\u2019ll be getting Social Security, so you won\u2019t be taking out $115,000 ever year. While the size of benefits may change in the future, there will still be income. For a 65-year-old earning $115,000, expect to receive about $27,815 from Social Security annually.That\u2019s $87,185 to maintain your current lifestyle, from retirement savings, any part-time income or other sources. Let\u2019s say you don\u2019t want to work, and it all has to come from savings. Don\u2019t forget inflation, which will come in at some point. U.S. inflation is now 1.7%.It looks like your $1 million will last about fifteen years now. Will that be enough? Downsizing to cut housing costs will help, as would part-time employment. You should also make sure that you have long-term care insurance to protect you and your family from one of the biggest health care costs.\u00a0 However, people with $1 million can pat themselves on the back\u2014well done!Reference: Investor\u2019s Business Daily (Oct. 28, 2019) “How Long Will Your $1M Last in Retirement?”For more information on elder law, retirement planning and estate planning, please visit my estate planning website."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Million-Dollar Retirement? Here\u2019s How It Might Work","item":"https:\/\/www.amorusolaw.com\/blog\/million-dollar-retirement-heres-how-it-might-work-new-york-ny-white-plains-ny\/#breadcrumbitem"}]}]