Could you retire on a $1 Million?

Weathergeek

Weathergeek

cleonard:
Banks are paying about 1%. That's a non starter. Stocks can have a lot larger return, but it comes with risk. Bonds of various types pay better than the banks, but safer than stocks. Real Estate can earn pretty well. Diversification is a good plan as well.

Say that you are in a market where rents run at near 1% of value per month and there is good demand for rental property. Take your million and buy five $150k homes for $750k. Invest the remaining $250k. Live in one and rent out the other four. Say you can get $1250/month or 0.83% per month. Your income will be $5k/mo or $60k/yr. Plus you have the $250k invested that hopefully gets 12.5k if invested at 5%.

There are costs in a rental business. I'd guess at least 10k/yr in not a little more.
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This is right up my alley as I do evictions.
 
PALMER84ONE

PALMER84ONE

This is why I have a house in Prescott now. In 4 years if I sell it it will be a better return that .57 at my bank in 4 years. And it gives me a new state to ride in. Yes, I could retire on 1 mill.
 
rezrider

rezrider

rezrider:
out of the 1 million... I figured I could afford to take that once a year plus the interest you proposed.. :noidea:
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and IF necessary the sale of the V-O Ranch which would give me a pretty good chunk-O-change... :cool: .. then move to the REZ perform the upgrades and start a meth lab! :shocked:
 
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