

Likely the result of the last 2 years of gangbuster returns on the stock market.
Lets say on Jan 1 of 2023 you had $633,362 invested in the boring S&P500. Without putting another penny invested it would look like this:
- at the end of 2023 your investment was worth $799,872
- at the end of 2024 your investment was worth $1,000,001
Being “a millionaire” ain’t what it used to be. If you wanted to quit your job right now and just live off the dividends of your $1m, you could safely pull about $44k/year and never touch your $1m, meaning you’d never run out of money and always be able to take out $44k/year.
On one hand: “thats awesome! Money forever!” True.
On the other hand: $44k/year is equivalent to a job that pays $22/hour. Certainly not horrible, but that’s not livin’ large.
Further, inflation will continue to eat away at the value of your money and you’re taking all your earning every year, so it will never grow. My guess is, 40 years from now $44k/year would be considered wages below the poverty line.
Keep in mind, this is the path if you never want to touch your $1m. If you’re willing to “pick a date when you will run out of money” you can take larger withdraws greater than that $44k/year. This is the big challenge for retirees. You have to decide when you’re going to die so you don’t run out of money before that.