The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retire Well on Less

URL:  http://boards.fool.com/i-had-a-terrible-epiphany-the-other-night-if-i-28354058.aspx

Subject:  Re: Win the lottery...and keep working? Date:  3/7/2010  8:46 PM
Author:  vkg Number:  1354 of 1488

I had a terrible epiphany the other night--if I won $4 million in the lottery tomorrow, I'd have to keep working. After taxes, that $4 million would become $2 million...and if I were to put all of it in an interest bearing account at today's measly rates (let's just say 2% for the sake of round numbers), that would get me $40,000 per year--not enough to support my partner and me now, let alone in 25 years post-inflation.

Many lotteries have the option of taking the payouts as an annunity. CA has the payments structured to increase over time. $4 million in winnings would likely be more than enough to replace your income. You could then retire.

Social security and pensions make a difference.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us