Is 2 million enough to retire on? This is a question that cannot be answered across the board, as it depends on various factors. First of all, a person who has medical problems will need more money than a senior citizen who is fairly healthy. Where one lives and what he or she wants to do while retired will also determine how much money is needed.
While two million dollars may seem like a large figure, it may not be all that much when broken down. A person who retires at 65, for example, may live to be 85 years old or even more. If two million dollars is divided by 20 years, this comes to $100,000 per year. However, if a person lives an additional 10 years, this would come to $66,666 per year. The latter figure is not all that much, especially if a person wants to travel and/or has medical problems. And so, the answer to the question “Is 2 million enough?” would likely be no.
How to Make it Last
The answer to the question “Is 2 million enough to retire?” can be yes if a person chooses to live in a country with a low cost of living.
Such countries include Mexico, the Philippines and Malaysia. Medical care in these countries is not only surprisingly high standard but also extremely cheap.
The average dollar exchange right now, for example in the Philippines, is about P/40.00 (forty pesos) against your $1.00, Now, isn’t that awesome?. Food, utilities and housing costs only a fraction of what it would in the U.S. and cheap yet reliable public transport ensures that one can get around without having to buy a car.
Living frugally will also help a person to stretch his or her retirement savings. There are many websites where one can purchase cheap plane and cruise tickets or vacation packages. Judicious shopping habits and finding coupons can also help a senior citizen save money. For a senior citizen who understands wise financial management principles, the answer to the question “Is 2 million enough to retire?” would be yes.
Is This Figure Obtainable?
The fact is, however, that a person can save more money than he or she would have thought possible by living frugally and sticking to a monthly budget. In fact, a person should strive to set aside at least 10% of his or her income in savings. This money can then either be placed in a savings account or invested in a safe, low risk manner.
The question of “Is 2 million enough to retire?” cannot be answered across the board. However, one can retire on this sum of money or even on less money if he or she is willing to live frugally and live in a country that has a very low cost of living. As to how much one can save before retirement, this depends on a person’s spending requirements and what he or she is willing to do in order to save money.
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