Retirement?

You lie.

The S&P 500 is paying about 1.7%. A one million dollar gain, you claim to have made, means you picked near the exact bottom and rode the market without changing anything. Doubtful, but accepting your premise, if you have a "million dollar gain," that means you -- best case based on your post -- invested $500,000.00 and it tripled. So you have $1,500,000.00 now and you've invested it in conservative funds (the most being an S&P 500 index fund) and that pays a 1.7% dividend you are living off of $1,500,000.00 X .017 = $25,500.00 annually.

You need growth of capital. Based on what you post. What you really need is to speak the truth to YOURSELF and stop fantasizing on the internet.

 

And that's assuming you did this all in a way that caused you no tax burden, so it's hard to figure how you're living off of the dividends. If it was in a tax deferred account, you're living off of withdrawals, not dividends. Otherwise, it you made a million dollar gain you would have to pay the Federal government the top tax rate which is about 40% so your million dollar gain becomes $600,000.00 if you live in a state that does not tax income.

So taking your investment of $500,000.00 which triples to $1,500,000.00 and subtracting the tax payable you have now $1,100,000.00 and make .017 times that to live on so you're raking in $18,700.00 annually.

You live in an internet fantasy.

 

Your assumption is that the OP invested the entire next egg which may not be the case. Perhaps they only invested a portion of it and retained the majority in more conservative investments. In that case, the dividends from the growth would be only a portion of their income. $18,700 per year on an initial investment of $500K isn't doing too bad eh??

 

Hey dumbass, your lump sum retirement payment is tax free on gains like a 401K.

 

All this assuming the market is going to grow. Many financial investors are predicting an adjustment soon. A few are predicting disaster.

 

I don't care now that I have my millions safely tucked away. AZ was good to me even if it sucked to work there the last 5 years, I am set for life. I don't think any of the newbies will ever see the good times come back. I know that I sure benefited and had a blast while it lasted.

 

I am not sure what I would do if I had to take my lump sum pension payout today. It is true that the stock market would be far too risky but in 09 it was sky rocketing to recovery in a no brainer situation with the fed pumping cheap money into the economy. We all knew it couldn't last forever and the smart ones have taken their millions in gains and are sitting on the sidelines enjoying life and watching with amusement.

 

Then you don't "take" it. In your fantasy you own it but upon withdrawal every penny is taxed. You are clearly fantasizing and did not do what you claim. You claim to be living off of the dividends. If the million dollar gain existed in reality the money would be in your 401-k you are making withdrawals and paying tax on each withdrawal.

 

And perhaps pigs can fly.

He claimed to be living off of the dividends. The post was made by someone, incredibly -- incredibly -- dishonestly anonymously self aggrandizing. I do not understand that conduct. Why would anyone do that? But people do it all over the place on CP.

Who in the world is going to know? Why does that make a person feel good, why would someone do that, what is the benefit??