If you were gifted $1 million... (1 Viewer)

[Jim14510]

1M is the lifetime gift amount

12.92 million in 2023

 

[BushAK]

It would be a hell of a year

 

[SlumpBuster]

12.92 million in 2023

Seriously?

 

[Jim14510]

Seriously?

Yes

 

[SlumpBuster]

Yes

That's a lot of money. All a tax free gift?

 

[Jim14510]

That's a lot of money. All a tax free gift?

Yes. Lifetime exemption. Once it's used up it's used up. Can still gift up to 17k per year per person after that but anything over is taxed.

 

[YankeesJunkie]

1 million, free and clear, should be sufficient to retire my wife and changes my path to retirement. Probably shaves 10 years off when I can retire as well. Win-win

 

[SlumpBuster]

It would probably allow me to retire in 5-10 years instead of 20-25 (currently 44)

 

[Faux Sean Callahan]

Could you live the rest of your life without having to go back to work?

I'm a bit young with some bills, but I think I could live fairly frugal a couple years while investing a good chunk and then live pretty comfortably after that.

General rule of thumb is a safe withdrawal rate from an investment account is 4%.

So could you live off 40k? Assuming no other assets.

Otherwise you would have to figure out how to invest in businesses where you could generate a potential higher ROI.

 

[DrinkItIn]

If I get to keep my current financial situation, with $1M I could breeze into retirement and never look back.

 

[Blakejc]

Put it in an index fund ETF and not make any lifestyle changes.

 

[Jim14510]

General rule of thumb is a safe withdrawal rate from an investment account is 4%.

So could you live off 40k? Assuming no other assets.

Otherwise you would have to figure out how to invest in businesses where you could generate a potential higher ROI.

What would a fixed annuity payment be for a 30 yo, 40 yo etc

 

[YankeesJunkie]

What would a fixed annuity payment be for a 30 yo, 40 yo etc

If you are pulling 4 percent, you can have inflation adjusted payouts in perpetuity.

 

[Faux Sean Callahan]

What would a fixed annuity payment be for a 30 yo, 40 yo etc

SPIA single life only (highest annual payout) no COLA - 50k roughly every year (30yo) - 53k for a (40yo) - 3% COLA 28k/31k

The kicker is not cost of living adjustment. So, by the time the 30 yo is 54 he is essentially living on 25k in todays dollars and when he is 78 it is the today dollars equivalent of 12.5k/year.

You do the 4% on an investment account and you should be able to factor in a COLA of 3% every year. If managed properly. The thing that can fuck you here is if you get a bad sequence of returns and you might as well go get your Walmart greeter application.

Either way a million dollars gift would be fucking awesome, but you aren't likely retiring on just that.