From Rick Kahler

Retiring on a million dollars. The idea may evoke images of lavish retirement homes or luxurious travel. But let’s take a closer look at the real lifestyle that $1 million of retirement savings will afford.

It’s reasonable to assume a long-term real return, after adjusting for inflation, of 2% on a diversified investment portfolio. At that rate, $1 million would provide an annual income of $44,650 for 30 years. This leaves no cushion for emergencies or increased living expenses beyond inflation. It also leaves nothing after 30 years to pass on to heirs.

If you are single and age 65 with $1 million, you should be okay for 30 years. But what if you are married? Continue reading →