$2mill is enough to retire at the age of 30. You don't even have to be wiz at investing to just retire.

Here Down Under you get 5% pa on Term Deposits. So, you can put the $2mill on a term deposit and get $100k/year. More than enough for a 30yo, married with no kids. Heck, even if you had one or two kids it would be enough.

You wouldn't be living in a million dollar mansion but you would be retired...

What is the interest rate in the US? 3%?
3% would give you $60k / year. Still enough to retire at 30 but maybe not married with kids.

 

well...don't forget about taxes...

 

Assuming you got the $2mill clear and that you fall in the 30+% bracket you'd still get $70k at 5%. That should be enough to retire with an average lifestyle.

At 3% you should be able to retire but may have to work casual jobs for S2k mod money... :-)

 

Here's my plan:

1. Buy a ranch-style house (4 bedrooms, 8 car garage...yup 8)
2. Pay off the parents house/bills.
3. 2005 RL
4. Supercharged 2002 NSX
5. Noble M400
6. Stick the rest into mutual funds and keep working. You can turn into a nasty mo fo if you have too much money. Your perspective on life changes.
7. Plan a yearly vacation for friends and family.
8. Promise to never work overtime shifts again.

 

2 chicks at once (office space lol)

seriously, id pay all outstanding debts(family and friends included), invest in some real estate, give to my church, and work at EB games

 

I'd buy a house...

...and that's about it, because that's what houses around here go for these days

I'll probably get a new daily driver with the change, so I don't have to put so many miles on the s2...I'm thinking a new Cadillac DTS to satisfy my ghetto-fabulous side

 

invest 50% (its time for money to work for me! no more me working for the money!)

help the unfortunates 50%

 

You are forgetting about inflation. A large part of my job involves working with portfolio survivability analysis.

At the age of 30 with a 2.0M portfolio invested at least 60% in equities and the remaining 40% invested in fixed income or cash instruments you could safely take out around 4.25% per year. That includes investment expenses, so if you are in anything more expensive than an index fund you will have to subtract that from what you can take.

Investing it in CDs or bank notes would reduce your effective withdrawal rate to near 0%

Sorry to spoil anybodys fantasy

 

Well said. $2.0M isn't that much money these days. This is why I said I'd buy a lot of cheeseburgers

$2.0M would be enough for me to buy a reasonable home (500k), 200k for toys, and the rest would need to be invested... and I wouldn't be retiring anytime soon, either.

 

So, are you saying 4.5% ($90,000) is NOT enough to live of today? I am sure it is not if you want to go traveling around the world year round. But what is the percentage of people in the US making that much or more?

Also,you are assuming that there was an intention to have anything left at the time of death (say age 80). Take that assumption out and it is a matter of how slowly you can spend the 2 mill wilst not going without.

If you put the 2 mill on the portfolio you describe, spend 50k/year, assume 3.4% inflation and get a 30% tax rate you have 40 years worth of money. You don't make to eighty but get fairly close.

If you spent less than 50k/year the money would last longer, maybe even till 80.

BTW,I am 33, married, 1 kid and need 40K/year (after taxes) to live. So, no I am not making this up.