Sat Jul 20 2024, by Tyler Gardner

How to Live Off of $2 Million in Retirement Without Running Out of Money

Here is exactly how I would live off of $2 million in retirement without ever running out of money. I'm Tyler, a former financial advisor and portfolio manager, now creating financial content for free.

1. Invest in a Low-Cost Index Fund

Call me crazy, but I would begin by investing all $2 million in a low-cost index fund that tracks the S&P 500, like Vanguard's VOO. By investing in this fund, I would take advantage of its 1.37% annual dividend and receive about $35,000 of annual income.

2. Sell a Percent of Portfolio Annually

On January 2nd of each year, I would sell about 3% of my portfolio to generate another $65,000 of annual income.

3. Utilize Social Security Benefits

I would net an additional $20,000 from Social Security benefits by adjusting the $33,000 national average to offset about $12,000 owed in taxes each year.

4. Leave the Remaining Portfolio Intact

I wouldn't touch the remaining 97% of my portfolio. I would let it continue to regenerate and replenish for the rest of my life. With my market returning on average 7%, adjusted for inflation, I would repeat this process year after year without ever needing to spend any of the original $2 million.

If you find any of this information helpful, please like and follow for more tips as I strive to help you reach your financial goals!

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