One million dollars is undoubtedly a whole lot of money. Hearing a game show host mention it as the grand prize, the ultimate destination of a participant’s journey throughout the show, brings such thrill and excitement, doesn’t it?
The Million-Dollar Dream
In many shows that involve money, such as “Who Wants To Be a Millionaire” and “The Price Is Right,” one million dollars is often the biggest prize you could ever hope to win. Although you hear the amount mentioned in almost every game show on television, it’s often difficult and even impossible to win, making it seem like a pipe dream no one is meant to have.
However, there does come the rare moment when one participant, having luck on their side, manages to say and do everything right and, in the end, gets to go home with the million dollars. Once someone wins the money, it feels like anything can be possible, that you could become a millionaire, too!
Anyone Can Be a Millionaire
Although game shows make it seem like getting a million dollars is impossible, it actually is possible—though probably not through participating in a television show. As long as you invest your money prudently and save enough along the way, you can definitely be part of the millionaire circle.
If you’re close to retiring, chances are you’ve already saved up enough money to earn you the millionaire title. Money may not be everything but accumulating a million dollars does offer a sense of fulfillment, a sign that you’ve made it and that you can live your days in luxury. Or can you?
The Not-So-Glamorous Truth
Don’t get us wrong, having a million dollars is a big deal, and it is a large amount of money, but it isn’t a ticket to the easy and luxurious life. Being a millionaire may have represented lavish wealth and extravagant lifestyles, but not anymore. Unfortunately, the value of this amount has dropped significantly, thanks to the increase in the cost of living and lifestyle changes.
If you consider all of your expenses after retirement, such ashealthcare, housing, and food (along with inflation), that one million dollars could disappear faster than you hoped!
Making Your Million Last
When you’re living off of just one million dollars without a regular source of income, it can be challenging, but it is possible! Although this amount may no longer fund a lavish lifestyle, it is enough to provide you with a comfortable life for the next few decades.
If you want to live off your retirement money, make sure to think about your desired retirement lifestyle and determine whether your savings are enough for it. If you envision a simple and frugal lifestyle, your one million dollars may be enough to retire and even leave an inheritance to your heirs when you pass.
Once you’ve committed to living a simpler way of life, the next step is to consult with a certified financial planner to help come up with a game plan to make your money lasts for the remainder of your life. A financial planner will also help you consider all factors involved to find a good balance between risk and return.
With the proper financial planning, your one million retirement savings could stretch significantly further!
Winning a million dollars is a big deal, but having to live off that amount alone for 20 or so years is a whole other story. Although retiring with one million dollars is an outstanding achievement, it’s crucial to understand that it could disappear quicker than you expect.
Expenses don’t stop once you’ve retired—bills will continue to pile up whether you have a regular source of income or not. As such, it’s your responsibility to work with a skilled and certified financial planner so that you’re financially prepared for the next stage of your life.
Are you having trouble allocating your assets for retirement? Then, let our fee only financial advisors help you! We at Calamita Wealth Management will work with you to ensure that you’re financially secure enough to live your desired retirement lifestyle without the need for employment income. Get started today!