I don’t care what others do, what they have in pensions, SS, expenses, all I care about is to be in a financial free state which means:
“having enough income, savings, and investments to cover your expenses and live comfortably without relying on a traditional job or feeling financially stressed“, and IMO, that requires a lot more than $1M, more like $3M or more.
If you get into your 60’s or later, you want to enjoy life, do the things that you couldn’t do while you were working. I have friends that go on 20 cruises a year, something they couldn’t do when they worked. I like a brand new car every 2 years. Remember we also pay $10-$15k a year on house expenses like real estate taxes, bond payments, home insurance, car insurance, umbrella insurance, new roof every 15 years for $20k, and everything else we need, not want. The wants can even cost more: a few cruises, a couple other week long trips, plane tickets, and now you are spending $25-$30k a year.
Also remember, if you only have $3M in investments and it was 2007/2008 being retired, now your portfolio is $1.8M and a 4% withdrawal is less than $80k a year.
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