just gotta know how to use it.

Wtf are you talking about then with your $50k income? If you think you're investing the $800k and using the returns, this is what is called the safe withdrawal rate. If you invest $800k, you can only withdraw 3.5-4% from ALL of it's interest and the principal annually to prevent yourself from going broke before 30 years.

so for example, if i have $800k invested....it produces $50k/year in interest and i live on less than that. in 30 years i'm broke? what happened to the $800k? did it vanish at year 30?

Ya, so you're smart because most people don't even reach your understanding of investing. You're off to a good start.

However, basically yes. If you invest the $800k, the most you can withdraw (according to historical returns) is about 3.5-4% safely every year. I've been an accountant, I know this stuff very well.


Google a Firecalc, it's annoying to use but accurate. This might be slightly on the safe side, you might be able to do about 4.5% and have it last, but that's pushing it.


Math is just weird. Let's say something goes down 10% and then goes up 10%. You'd break even, right? Wrong.

If you start at 100, and that goes down 10%, you are left with 90. if it then goes up 10%, you are left with 99. That plus the way inflation works, plus taxes and all that, you should use 3.5-4% to be safe.

I personally use 4%. What I'll do is spend 4% during normal years and if there's a recession, cut back to 3.5% or even 3% that year, and you'll be ok. Good years you could take out 4.5%.

Hard to decide, an old muscle car, NSX, Porsche spyder, something with a lot of personality that I'll really enjoy holding onto for life - I don't generally sell my vehicles or motorcycles anymore.