O’Leary’s $500K retirement thesis raised eyebrows, as Northwestern Mutual’s study suggests Americans need approximately $1.3 million to retire comfortably.
While O’Leary proposes 5% returns on fixed income securities or up to 9% through volatile equities, these estimates fall short, with half a million only providing up to $50,000 annually.
This is insufficient for retirement in most US states.
Furthermore, O’Leary’s model overlooks aspects such as inflation, expense ratios, and taxes. Thus, the consensus leans towards a million-dollar figure for a truly comfortable retirement, according to the popular “4% rule”.
My Take…
I tend to side with O’Leary on this. Plenty of people I know have US$500k or less and with their social security have a decent lifestyle.
This is a link to a popular YouTube channel doing just that. US$500K.
https://www.youtube.com/@retirearly500k59
When you throw in location arbitrage, then you can live it up a little!
For more details click on the link:
https://moneywise.com/managing-money/retirement-planning/kevin-oleary-explains-how-you-can-live-off-500k
