Is $1 million enough to retire on?

[elessar78]

as an exercise, I just looked at my current budget and took out all the line items I hope would be gone by retirement and we could probably live on $2000 or less (in today's dollars). Funny part is that I left a line item for "cell phone", God only knows what we'll be using to communicate then. .

[snafu]

As I understand it, seniors expect to allocate retirement funds to include savings, equity, income and foreign holdings so that their annual, biannual or quarterly withdraws combined with SS cover their costs. The investment component is expected to continue compounding earnings and adding value, bond funds should be reducing capital slowly since it adds income quarterly, only the income/savings component will lose significant capital each year.