$1 million to retire on

[sv2007]

Ok, I read this piece of tabloid news

http://abcnews.go.com/Lifestyle/woman-wins-1m-wheel-fortune-slot-machine/story?id=43738757

It's about a woman winning $1m in casino slots and talking retirement in 3 years. Now, there's probably more to the story than what's written (e.g. she's already got a decent retirement savings). But anyway, taking the tabloid news at its face value would sound like the $1 million win is causing her retirement decision.

Would winning $1m make you want to retire?

[Petunia 100]

Ok, I read this piece of tabloid news

http://abcnews.go.com/Lifestyle/woman-wins-1m-wheel-fortune-slot-machine/story?id=43738757

It's about a woman winning $1m in casino slots and talking retirement in 3 years. Now, there's probably more to the story than what's written (e.g. she's already got a decent retirement savings). But anyway, taking the tabloid news at its face value would sound like the $1 million win is causing her retirement decision.

Would winning $1m make you want to retire?

Absolutely.

[Captain Save]

There are a lot of unknown factors.. her age.. what kind of expenses her grown kids have , what does she have in her current retirement accounts.. is the winning a lump sum? I'm assuming that's before tax ..

all these factors can have a significant impact on her retirement plans. A million alone would not be enough for retirment for most people especially in a low interest rate environment.

[disneysteve]

Of course, that's what she won before taxes. She'll lose half of it.

Would $1 million net make me retire? Absolutely. That would definitely be enough for me to leave my regular job. I would probably hold onto my PT gig but I'd quit the FT job for sure.

[kork13]

Sure, it would make me want to. Would I? Not yet. I'd stick if out long enough to build up my savings to the point that they're generating approximately my current annual income. At that point, I wouldn't care my age, I'd quit my job and be done then and there.

[bjl584]

Not yet. I still have too many years to work and not quite enough saved yet. $1 million would definitely accelerate my retirement, but I'd still need to keep working for the time being

[scfr]

There are aspects of work that both DH & I enjoy, so I think we'd keep working but probably scale back a little bit. (We're already in our 50s and ahead of schedule as far as our retirement savings.)

Who knows - It's possible this woman is already close to the age when she planned to retire. She may have a good pension or ample retirement savings already.

[StormRichards]

Yes. I would retire in a heartbeat.

[disneysteve]

Its also possible that this woman is a relatively low income earner and $1 million is a huge amount to her. Let's say she earns 40K. $1 mil would represent 25 years worth of income. She could keep it under her mattress and live just fine between that and SS.

[Singuy]

1 million is a possibility but depending on some factors.

1. How old are my children? Are their college paid for?
2. Am I mortgage free/debt free?
3. What kind of returns can I expect?

I would say a return of 5% is good enough for my family to retire if I'm debt free/mortgage free and already paid for my child's college tuition.

Would I retire?...no..but it's definitely good enough.

[corn18]

$1M net would get me close.

[Singuy]

I am wondering, what is more impt?

Time or quality of retirement?

Time= Say you hit a mil and retire, living off 60k/year till you die

Quality= Say you hit 3 mil, living off 200k/year

Not saying your retirement will not have quality at 60k/year...but I'm sure there are things you don't have access to at 60k/year vs 200k/year. Of course there's a diminishing rate of return the more $$$ you have for retirement.

[corn18]

I am wondering, what is more impt?

Time or quality of retirement?

Time= Say you hit a mil and retire, living off 60k/year till you die

Quality= Say you hit 3 mil, living off 200k/year

Not saying your retirement will not have quality at 60k/year...but I'm sure there are things you don't have access to at 60k/year vs 200k/year. Of course there's a diminishing rate of return the more $$$ you have for retirement.

The exact question I struggle with now. I could retire now (50) with a guaranteed $60k / year income (indexed to inflation) with health care for life (military pension and health care). If I save for another 5 years, that goes up to $100k. If I save for 10 years it's over $150k / year (I'll be 60). I won't make that decision now. But I may decide to take a less stressful, lower paying job in the last 5 years. If SS is still around, I will add $22k / year at age 62 or $53k / year at age 69. I think I could live off of all that.

[StormRichards]

I am wondering, what is more impt?

Time or quality of retirement?

Time= Say you hit a mil and retire, living off 60k/year till you die

Quality= Say you hit 3 mil, living off 200k/year

Not saying your retirement will not have quality at 60k/year...but I'm sure there are things you don't have access to at 60k/year vs 200k/year. Of course there's a diminishing rate of return the more $$$ you have for retirement.

The answer to that question depends on whether you have a strong desire for those things you don't have access to at $60k. Personally, I hedge toward Time because I don't place much value in things. The exception to that for me would be travel, which of course can be very expensive. Just not sure my desire to travel would encourage me enough to work longer than necessary.

I have many years to work on that decision.

[Singuy]

So far I have decided on quality. I would love to go on a 4 months world cruise today but being in my early 30s, I don't think retiring for 40 years will be very fruitful considering a lot of the years will be spent sitting at home while my child is in school.