$1 Million Saved, $40k Income Goal
This scenario covers how a couple with 1 million dollars saved could achieve a $40,000 annual income.
This week's episode of Mike on Money: $1 Million Saved, $40k Income Goal.
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08;06;40;11 - 08;06;11;05
Mike
Today we're talking about how to intelligently structure your income plan for your retirement. How do you create stable, predictable, consistent income that can grow over time and that lasts your lifetime? On the screen, I have a little example We have Bob and Sue. That's my creative names for the day. In their example, they've saved $1,000,000. Now, guess what?
08;06;11;04 - 08;05;44;12
Mike
You might have more money than that. You might have less money than that. Don't worry about that. Just let's focus on the concept here. They've based on their situation we've identified that they want about 40,000 a year of income from that million dollars. So they might add Social Security, maybe pension, maybe rental income, but they need that $1 million they saved to generate 40,000 a year of income.
08;05;44;08 - 08;05;18;05
Mike
How can we do that? Well, you'll notice on the screen we've got three buckets. We've got liquid income and growth. First liquid bucket. What's going on there? So this liquid bucket notice, that's what we that's money that you have at the bank. Now, you've probably heard this. Most financial advisors tell you you want to have three to six months saved in emergency funds at the bank, three months of your spending to six months of your spending.