Originally Posted by
777
The million invested and return added to your super would only give a very modest lifestyle, in my opinion. Inflation is a killer over 25 to 30 yrs. Rule of 72 is a good yard stick. Inflation at 3% and you will your expenditure will be double what it is now in 24 yrs. If 2.5% then double in 28.8 yrs. How long will your million be able to provide that extra income when you start having to eat into it to survive, especially if there is a spike in inflation without the immediate increase in your return. The variables are important. Everyone has different life styles to fund: inflation, rates of return and tax rates are all going to affect the amount you need to start with. A simple spreadsheet can be created for each individual to see the impact of any changes is those variables. Then the next questions are: how long are you going to live (spouse as well)? How much do you want to leave your offspring (Some people also have dependants to consider due to health reasons)? Do you allow an amount set aside for large health issues you may encounter? Car replacement, house maintenance, replacing your specs etc are other things to consider.
Me, I would suggest closer to 3 million. Some of that could come out of your mortgage free house if you downsize. Of course the amount you need now will be less than what you would need to start with in 10 or 15 years time (current 50 to 55 year olds.)
I would hate to go out for dinner when I am 75 and only be able to afford one glass of red wine because I hadn't started with enough. Some things are important in life.