Commentary: Worth $4 Million -- and Unable to Retire

[4JesusLove]

http://finance.yahoo.com/focus-retirement/article/103668/Commentary:-Worth-%244-Million--and-Unable-to-Retire?mod=retirement-post-spending

by Carrie Coghill Kuntz
Thursday, October 11, 2007
provided by

I got a call from a newly "rich" executive. Having worked 60-hour weeks for years and now ready to retire at 55, he sold his business for $4 million. He was ready to live out his dream life and live off that tidy nest egg. The problem is, to do so--on $4 million--he must cut his standard of living.

It's the plight of the "mMillionaire" -- the middle-class Millionaire.

Mansions and yachts are out. The mMillionaires who want to retire before age 65 or 72, find they must live in three- and four-bedroom homes and drive mid-priced four-door sedans and mini-vans.

They are your neighbors--millionaires who live middle-class lifestyles even though they may have millions in liquid assets.

These mMillionaires have between $2 million and $10 million of investable assets, beyond their homes. Many have sold businesses or inherited money, yet few believe they can retire and continue living the high life.

The key question facing the mMillionaire is, "Can I continue to live the way I am living for the rest of my life?" The answer for most of these millionaires is "no."

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WoW!:twitch

[SnoDog]

Someone with 2M is middle class. What a joke. That leaves someone with a 2 M nest egg with 80k/ year with a conservative 4% withdrawal rate. If you cant live on that then you better sell the mcmansion, suv's, and cut back on the golfing. mMoronic article.

[The Learner]

If being worth $4,000,000 makes one middle class than I must have no class at all :lol2

[C. Little]

If you put $4,00,000 in T-Notes @ 4.6% you would get $184,000 in annual income, that's $15,333 per month.

I guess he shouldn't have sold the business if he's not ready to give up a little "lifestyle".

[SummerSailing81]

Poor millionaires. Having to live in 3 or 4 bedroom homes and drive mini-vans. Life is so hard for them. :violin Makes you just want to weep for them, doesn't it? :crying GIVE ME A BREAK! :gaah

BTW, what is life going to be like for all of us non-mMillionaires who won't have $2 or $4 million dollars to retire on? Will we have to move to skidrow?

[Bernardd]

BTW, what is life going to be like for all of us non-mMillionaires who won't have $2 or $4 million dollars to retire on? Will we have to move to skidrow?

No, but you're likely going to have to do all your shopping at Wal Mart.

[Cameron]

This is so silly. My retirement budget is around $30,000 annually and I will have a nice surplus each month.

However, I will not have a 10,000 square foot home, full time attendants, four luxury cars, a full time gardner, three vacation homes, a private jet, european vacations every year, and membership in the finest country club for the elite.

But I don't need all that stuff.

A very wise man, Paul, said that the secret to contentment was being happy with what you have.

Poor guy, he might have to stay in the workforce to subsidize his "stuff."

[goinghome]

Everything is relative. If you live in podunk you can survive on little if it's just you and a spouse. If you live in certain areas on East or West Coast, $4Mil would barely keep you in that 3 bedroom house and an old clunker to drive, might have to eat cat food. What if you have aging parents, divorced, did not plan for retirement, so you have your household to uphold, and 2 households for them or move them both in with you........ there are as many stories as people. I know $4Mil seems like a lot, heck I'd take it. But it's not a windfall any more in many parts of the country, it's survival money if you have 15 to 30 more years of living to do and family members to care for.

[SummerSailing81]

No, but you're likely going to have to do all your shopping at Wal Mart.

I already to that! :dance2

[R1200C]

Everything is relative. If you live in podunk you can survive on little if it's just you and a spouse. If you live in certain areas on East or West Coast, $4Mil would barely keep you in that 3 bedroom house and an old clunker to drive, might have to eat cat food. What if you have aging parents, divorced, did not plan for retirement, so you have your household to uphold, and 2 households for them or move them both in with you........ there are as many stories as people. I know $4Mil seems like a lot, heck I'd take it. But it's not a windfall any more in many parts of the country, it's survival money if you have 15 to 30 more years of living to do and family members to care for.

The scary part of this is the fact that $4 million doesn't necessarily put anyone on easy street. This shows how much our money has lost in value in the last 25-30 years. Everything costs 5 to 6 times as much as 30 years ago. The government says inflation is under control at roughly 3% but the Fed is printing money by the truckloads, counterfeiters are all over the world and our government is spending us into oblivion. How will our kids ever afford to buy a house let along retire? My Dad did better than my Grandpa, I have made more than my Dad but I don't see my kids doing a lot better than I am. This seems to be a trend among many of my friends and relatives. What about people on the board? The economy really concerns me because it seems so flimsy.