No. of Recommendations: 2
intercst says he withdraws only 1.5% for all annual expenses. That requires a tremendous amount of money in a portfolio - unless he is living on peanuts (which I doubt).

However, he DIDN'T say that draws from the retirement portfolio was his only income. You've got to read these things carefully.

Pulling numbers from the air:
$1800 from Social Security (a person with a large retirement account probably had a high income and therefore will be getting a higher than average SS benefit.
$2500 from a pension.
That's $4300 or $51,600 right there.

Maybe add $900 for spousal SS benefit. Now we're at $5200/mo or $62,400/yr.

Assume $1M portfolio, 1.5% is $15,000, for a grand total of $77,400. Not bad. Some people don't get that much from their 9-5 job. ;-)

Aside from all that, when you are retired your living expenses can be *quite* low. You already own all the furniture, clothes, applicances, cars, etc. that you need, so those big expenses aren't there. Possibly your mortgage is paid off and probably you car(s), too.
Your base expenses are basically food, utilities, taxes, and insurance.
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