Can We Live on $70k Per Year With $1M Saved and $30k in Social Security at 65?

Core Insights - The article discusses the feasibility of retiring on an annual income of $70,000, considering various personal circumstances and financial factors [1][2]. Group 1: Cost of Living Considerations - Retirement affordability on $70,000 per year is manageable but highly dependent on individual circumstances, including location and living costs [2]. - Key factors include existing assets, debts, dependents, desired lifestyle, and health situation [2]. - Low lifestyle expenses and minimal debt are advantageous, and having proper insurance coverage is critical to avoid unexpected expenses [2]. Group 2: Portfolio Evaluation - The ability of a portfolio to generate $70,000 annually is crucial, requiring an assessment of income from savings and investments [4]. - Following the 4% rule, a portfolio could provide $40,000 in the first year, supplemented by Social Security to meet the $70,000 goal, but funds may deplete in about 20 years [5]. - Investing the portfolio rather than keeping it in cash can enhance income generation and extend portfolio longevity [6]. Group 3: Investment Strategies - Investing in bonds could yield around 5%, potentially generating $80,000 annually when combined with Social Security [6]. - Purchasing a $1 million annuity could guarantee over $107,808 annually for life, again combined with Social Security [6].