Is $1,000,000 Still Enough To Retire?
Published: 2023-10-09
Status:
Available
|
Analyzed
Published: 2023-10-09
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
A million dollars in 2000 had twice the purchasing power of a million dollars in 2023.
"if you had a million dollars back in the year 2000 you could buy almost twice as much stuff as you having a million dollars today in 2023"
Pending
To purchase the same amount of goods in 2023 as $1 million could in 2000, $1.78 million would be required.
"to buy the same amount of stuff that $1 million could back in 2000 you would have to have about 1.78 million to buy the same stuff that a million dollars could back in 2023"
Pending
A decent lifestyle in 2023 requires $50,000 per year.
"assuming that you need $50,000 a year to live a decent lifestyle in today's money not next year or the year before in today's money $50,000"
Pending
Inflation between 2000 and 2023 was approximately 78%.
"the inflation between 20 and 2023 was about 78%"
Pending
Prices are projected to rise by 75.5% over the next 23 years (by 2046).
"I'm going to say that the prices of things will rise by only 75 5% over the next 23 years"
Pending
The $50,000 annual lifestyle cost in 2023 will require a higher amount in 2046 due to inflation.
"you need $50,000 a year today well now we can just project forward how much that $50,000 a year today is going to cost you in 2046"
Pending
In 2046, $887,500 will be needed annually to maintain the lifestyle that $50,000 provides in 2023, considering a 75% inflation factor.
"and right now you would need $50,000 a year but applying inflation that means you would need closer to $887,500"
Pending
A $1 million retirement fund, needing $50,000 annually, will only last approximately 11.5 years in 2046, factoring in inflation and assuming no investment growth.
"in 2023 if you had a million dollars and you need $50,000 year to survive you would be able to survive for 20 years assuming your money is are growing here you're going to be able to survive for about 11 and a half years in retirement"
Pending
To buy the same amount of goods in 2023 as $1 million could in 1988, approximately $2.6 million would be required.
"35 years ago we're talking about 1988 if you had a million dollar in 1988 well you were pretty Rich today if you want to buy the same amount of stuff that you could back in 1988 you would need almost $2.6 million"
Pending
The prediction assumes prices will continue to inflate at the same rate observed over the past 35 years.
"assuming that prices continue to grow at the same rate that we have been seeing over the last 35 years"
Pending
A $1 million savings goal is set for the year 2058, assuming retirement at age 65.
"by the year 2058 35 years from now you're going to work to put aside I'm missing a zero you're going to work to put aside $1 million in the year 2058"
Pending
The $50,000 annual lifestyle cost from 2023 will require $128,000 per year in 2058.
"if you won $50,000 a year today it's not going to buy the same life stle in 2058 so now let's apply the same factor and that means that now you are going to need $128,000 a year"
Pending
A $1 million retirement fund in 2058 will only cover 8 years of expenses, based on the projected annual need of $128,000.
"how long will you be able to fund your retirement with this million dollar that you work to put aside you have 8 years worth of money"
Pending
Retirees aged 65 should avoid high-risk investments like the stock market due to the potential for significant losses from a market crash.
"if you're 65 years old you don't want to take a lot of risk with that money because now you need to start accessing that money and if you keep the money in the stock market well you could also potentially risk a stock market crash"
Pending
The interest rates for high-yield savings accounts in 2058 are unpredictable.
"we have no idea what high interest savings accounts are going to be paying in the year 2058"
Pending
A 12-13% annual return would be necessary to fund retirement expenses, which is not achievable with current high-yield savings accounts.
"we're talking about a 12 or 133% return on your money to be able to generate this and you're not going to get that in a highin savings account today"
Pending
A $1 million retirement nest egg in 2046, with a projected 75-78% inflation from 2023, will only be sufficient to cover approximately 11.5 years of $50,000 annual expenses, compared to 20 years today. This implies a need for significantly more than $1 million to maintain the same lifestyle in retirement.
"in order to predict what will that million dollars buy you in the future let's start by looking at how much money you need in today's time... assuming that you need $50,000 a year to live a decent lifestyle in today's money... well remember the inflation between 20 and 2023 was about 78%... so I'm going to be generous and say that inflation is actually going to fall for the purposes of this example and you need $50,000 a year today well now we can just project forward how much that $50,000 a year today is going to cost you in 2046 so now let's do the math you work to put aside $1 million when you retire at 65 years old in 2046 and right now you would need $50,000 a year but applying inflation that means you would need closer to $887,500 because now we're applying a 78 or 75% inflation Factor here in 2023 if you had a million dollars and you need $50,000 year to survive you would be able to survive for 20 years assuming your money is are growing here you're going to be able to survive for about 11 and a half years in retirement"
Pending
While the exact rate is unknown, inflation is predicted to persist for at least the next 30 years.
"we don't know what inflation is going to look like in 2 years but what I can tell you is inflation is still going to be around and it's still going to be around in 10 years and it's still going to be around in 20 years and it's still going to be around in 30 years"
Pending
A $1 million retirement nest egg in 2058, assuming prices triple over 35 years (similar to 1988-2023), would require $128,000 per year to maintain the same lifestyle as $50,000 today. This $1 million would only last for approximately 8 years.
"so now 2023 how much money do you need to survive you need $50,000 a year to live a decent life now by the year 2058 35 years from now you're going to work to put aside I'm missing a zero you're going to work to put aside $1 million in the year 2058 now if you won $50,000 a year today it's not going to buy the same life style in 2058 so now let's apply the same factor and that means that now you are going to need $128,000 a year in order to fund the same lifestyle that you want today with $50,000 a year so now how long will you be able to fund your retirement with this million dollar that you work to put aside you have 8 years worth of money"
Pending
Inflation is expected to lead to an increase in rental prices in real estate.
"if you think about real estate what happens when you see inflation rental prices grow up"
Pending
Historically, a good annual investment return is considered to be between 7% and 10%. Returns significantly higher than this are not considered standard investing.
"Historically what's considered a good return is somewhere in the range of 7 to 10% a year so when you hear people talking about 60% yearly returns or 200% yearly returns with this crazy the investment that is not investing your money"
Pending
Companies experiencing inflation will likely increase their product prices.
"if you're investing into a strong company is when inflation happens this company's going to be selling the products for more money"
Pending
When inflation occurs, real estate rental prices tend to increase, potentially offsetting rising expenses like property taxes, insurance, and maintenance, leading to a net positive outcome for asset owners.
"if you think about real estate what happens when you see inflation rental prices grow up Now in addition you have expenses that rise as well you see your property taxes rise you see your insurance cost rise you see your maintenance cost rise but the goal is if all of your expenses Rise by 10% and you increase your rent by 10% well now you're ending up in a net positive"
Pending
Increased profits due to inflation can lead to larger dividend distributions from companies.
"if they have on a dollar basis more profit they have the ability to distribute bigger dividends"
Pending
During inflationary periods, strong companies can increase their product prices, potentially leading to higher profits and the ability to distribute larger dividends to investors.
"if you're investing into a strong company is when inflation happens this company's going to be selling the products for more money ... from an investor that's exactly what you want because now when they sell their products for more money that means now they should have on a dollar basis more profit if they have on a dollar basis more profit they have the ability to distribute bigger dividends"
Pending
A scalable business is defined as one that can grow without direct, constant involvement of the owner.
"building a business that's scalable ... you want to build something that can grow that doesn't necessarily need you"
Pending
Inflation is a continuous force that devalues savings and is expected to persist for at least the next 30 years.
"inflation is devaluing your savings period ... inflation is still going to be around and it's still going to be around in 10 years and it's still going to be around in 20 years and it's still going to be around in 30 years"
Pending
Scalable businesses are defined as those that can grow without requiring the constant direct involvement of the owner.
"building a business that's scalable ... you want to build something that can grow that doesn't necessarily need you that's the definition of scalability that it can grow and it doesn't necessarily need you to grow"
Pending