Interest on a banked million is marginally enough today to carry a family through all of life's events. If one could get 8% return annually and not touch principle, that's only $80k, so the sail boats, planes, and Jaguars are likely out. One could squeak by, but would not be the talk of the town.
Cookie and I worked hard, saved some, have pensions, some IRA's, and social security, and are probably spending about a million bucks about every 11 or 12 years. We are comfortable, still saving some, but not living high on the hog by any means. Inflation is a concern too.
If I could time travel and return, I'd go to the future, look up my obituary, and come back knowing just how long my resources have to last. Could die tomorrow or last another 25 years. That uncertainty keeps me on the conservative side.
Win one of those substantial lotteries though, and I'd likely never post here again. I'd be way to busy traveling and doing sh-t.
8% on $3,600,000 would be $288k a year without touching principal. Not sure how realistic expecting 8% return over a long period is though. Figure 5% as an easy number, that’s $180k and still a reasonable amount of you don’t live crazy extravagantly.
