{"id":524834,"date":"2022-12-11T00:16:00","date_gmt":"2022-12-10T21:16:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/brett-arendss-roi-can-you-still-retire-on-1-million-thats-what-todays-millionaires-want-to-know\/"},"modified":"2022-12-11T00:16:00","modified_gmt":"2022-12-10T21:16:00","slug":"brett-arendss-roi-can-you-still-retire-on-1-million-thats-what-todays-millionaires-want-to-know","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/brett-arendss-roi-can-you-still-retire-on-1-million-thats-what-todays-millionaires-want-to-know\/","title":{"rendered":"#Brett Arends&#039;s ROI: Can you still retire on $1 million? That\u2019s what today\u2019s millionaires want to know."},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a216d2213836\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a216d2213836\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/brett-arendss-roi-can-you-still-retire-on-1-million-thats-what-todays-millionaires-want-to-know\/#%E2%80%9CBrett_Arendss_ROI_Can_you_still_retire_on_1_million_Thats_what_todays_millionaires_want_to_know%E2%80%9D\" >&#8220;Brett Arends&#039;s ROI: Can you still retire on $1 million? That\u2019s what today\u2019s millionaires want to know.&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/brett-arendss-roi-can-you-still-retire-on-1-million-thats-what-todays-millionaires-want-to-know\/#There_is_widespread_ignorance_about_how_much_we_really_need_to_retire\" >There is widespread ignorance about how much we really need to retire<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/brett-arendss-roi-can-you-still-retire-on-1-million-thats-what-todays-millionaires-want-to-know\/#Brett_Arends\" >Brett Arends<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CBrett_Arendss_ROI_Can_you_still_retire_on_1_million_Thats_what_todays_millionaires_want_to_know%E2%80%9D\"><\/span>&#8220;Brett Arends&#039;s ROI: Can you still retire on $1 million? That\u2019s what today\u2019s millionaires want to know.&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"There_is_widespread_ignorance_about_how_much_we_really_need_to_retire\"><\/span>\n  There is widespread ignorance about how much we really need to retire<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001458301\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001458301\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       OK, so a million dollars isn\u2019t what it used to be.<\/p>\n<p> But is it really not enough to give you a secure retirement?<\/p>\n<p>That\u2019s the worry among a surprising number of America\u2019s millionaires. So, at least, reports money-management giant Natixis, which owns bond shop Loomis Sayles, among other firms. Natixis polled around 1,600 people with at least $1 million in \u201cinvestible assets.\u201d<\/p>\n<div class=\"paywall\">\n       And just over a third, or 35%, said they thought \u201cit will take a miracle to achieve a secure retirement,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.im.natixis.com\/us-offshore\/research\/2022-millionaire-report\" class=\"icon none\">the firm reports<\/a>. <\/p>\n<p>A miracle, no less. And this in a secular age.<\/p>\n<p>The average person in the survey had $2 million in investible assets.<\/p>\n<p>It may not be especially surprising. Everyone is subjected to a torrent of doom, gloom and financial defeatism, all of which makes things seem much harder and worse than they actually are.<\/p>\n<p>Meanwhile, there is widespread ignorance about how much we really need to retire.<\/p>\n<p>It doesn\u2019t help that the money-management industry relies on rules of thumb that, on balance, make very little sense. Like \u201creplacement rates,\u201d which argue that for a comfortable retirement you will need to replace a certain percentage of your preretirement income. The usual figure used is 85%.<\/p>\n<p>The logical result of that concept is that if you get a raise at work funding your retirement gets harder, not easier, because now you will \u201cneed\u201d to generate 85% of a higher level of income.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Does that make sense to you?<\/p>\n<p>Naturally there are some people who are genuinely in peril, even with $1 million or $2 million or more. That includes, for example, many who have serious and chronic medical conditions that are neglected by medical insurance.<\/p>\n<p>But for everyone else? Let\u2019s run the numbers.<\/p>\n<p>Annuity rates are up this year. Way, way up. You can thank the Federal Reserve, the inflation crisis, and the collapse in the bond market. Those have conspired to send interest rates soaring on corporate bonds. As insurance companies have to use those bonds to finance lifetime annuities, that means annuity payout rates are up.<\/p>\n<p>A year ago, a man of 65 with $100,000 who converted that money into a lifetime annuity would have locked in an income no higher than $6,000 a year. Today the same amount will buy him an income 30% higher, or $7,900.<\/p>\n<p>So those with $1 million to invest can guarantee themselves an annual income of around $79,000 a year. (For a woman the figure would be $76,000, because women tend to live longer.)<\/p>\n<p>Then there\u2019s <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security, which for a top earner would max out at another $40,000 a year assuming you delayed taking it till you\u2019re 67. If you delay taking it until you are 70, when the age credits max out, you\u2019re getting $50,000 a year.<\/p>\n<p>If you\u2019ve got $1 million in investible assets you have probably paid off your mortgage by the time you retire \u2014 which is <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly a good idea. In that case you\u2019re living almost rent-free on $120,000 a year (naturally you will still have things like maintenance, condo fees, taxes and so on to pay).<\/p>\n<p>If you haven\u2019t paid off your mortgage, you probably took advantage of the economic crisis caused by the COVID lockdowns two years ago and refinanced at 2.5% a year. So you\u2019re paying a bit more for living costs, but hardly the Earth.<\/p>\n<p>Oh, and if you\u2019ve got $2 million in investible assets you\u2019re living rent-free, or rent-cheap, on around $200,000 a year.<\/p>\n<p>Not everybody wants to put all their savings in a lifetime annuity when they retire \u2014 not least because of the threat of inflation, currently running at 8% a year.<\/p>\n<p>The usual strategy for them is the so-called 4% rule, meaning you invest your money in a conservative portfolio, withdraw 4% of it the first year and then raise your withdrawal each year in line with inflation.<\/p>\n<p><strong>Read: <\/strong>Think you can rely on the 4% rule in retirement? Think again.<\/p>\n<p>For someone with $1 million, that gives them portfolio income of $40,000 in the first year, rising afterward. So they\u2019re getting way less than they would with an annuity, but they have inflation protection over the long term.<\/p>\n<p>The very good <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> for those who want to pursue this strategy is that the financial turmoil of this year has given us many more opportunities for retirement portfolios than existed a year ago. Blue-chip stocks and bonds are all down. (Inflation-protected Treasury bonds, with zero risk, will pay inflation plus 1.2% a year. A year ago they were paying less than inflation.)<\/p>\n<p>If anyone is still struggling with a secure retirement with these numbers, they still have access to the three miracle techniques for getting a better retirement out of your money: working longer, moving somewhere cheaper and spending less money.<\/p>\n<p>Call it a Christmas miracle.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Brett Arends\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/brett-arends\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/BrettArends\",\"text\":\"@BrettArends\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:barends@marketwatch.com\",\"text\":\"barends@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Brett_Arends\"><\/span>Brett Arends<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"209_MW\" author-name=\"Brett Arends\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fmillionaires-ask-can-i-still-retire-on-1-million-11670429611%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-7164-07D0E3B2B17D%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Brett Arends&#039;s ROI: Can you still retire on $1 million? That\u2019s what today\u2019s millionaires want to know.&#8221; There is widespread ignorance about how much we really need to retire OK, so a million dollars isn\u2019t what it used to be. But is it really not enough to give you a secure retirement? That\u2019s the worry&#8230;<\/p>\n","protected":false},"author":1,"featured_media":524835,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-680784\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-524834","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/524834","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=524834"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/524834\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/524835"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=524834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=524834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=524834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}