What age to be a millionaire?

[Irrelevant]

@neffa3
View attachment 317320 Tell me those don’t look good (they are).

Looks can be deceiving.

Don't overcomplicate it. Assume it is all taxed as income.

Option A all day. Because if something happens and I die, I get to leave something for my kids.

 

[BigHornRam]

Back to the $1m question
If you were retiring today, age 60, would you prefer
a) $1,000,000 in the bank with full control of it, or
b) $4800/mo (with COLA ($1800 SS, $3000 pension)

Keep all other things equal- house is paid for, kids are gone and self-sufficient etc. The only decision is based on retirement income, which is actually a decision on risk. You can get a steady stream of income and not think about it or have to invest it yourself and deal with market and rate ups and downs.

I'm 60 and don't see getting SS when I turn 67. So A is a better choice.

 

[Deleted member 28227]

I have about 9 months to decide between options A and B right now. As a new state employee in MT, I can either choose a 9% matching state-run 401k, or join the state pension plan. If I pick the state pension plan, I'm stuck in a state job the rest of my life. So I'm gonna risk it for A.

9% 401k match all day

 

[Treeshark]

Don't overcomplicate it. Assume it is all taxed as income.

That is tricky, because the correct answer is buried somewhere in the boring world of tax management.

But I’ll play- gimme that million.

 

[SAJ-99]

I'm 60 and don't see getting SS when I turn 67. So A is a better choice.

HT'ers drive me crazy. I kind of saw this coming, so no one to blame but myself. The first thing we do with every hypothetical is add in a bunch of external factors that we were told to explicitly ignore. SS continues in B, you don't have money left to give kids in A, there is no tax arb between income and cap gains, none of that stuff. That is all reality, agreed, but this was made up.

The origin of the question came from thinking the answers to the original question the OP presented may be skewed because someone who paid into a pension may not show the pension as an asset because they don't see the balance, they just get the income. The person who pays into a 401k, by contrast, sees their balance every time they open the account and look at it. Now we have gone down the rabbit hole...

 

[BigHornRam]

HT'ers drive me crazy. I kind of saw this coming, so no one to blame but myself. The first thing we do with every hypothetical is add in a bunch of external factors that we were told to explicitly ignore. SS continues in B, you don't have money left to give kids in A, there is no tax arb between income and cap gains, none of that stuff. That is all reality, agreed, but this was made up.

The origin of the question came from thinking the answers to the original question the OP presented may be skewed because someone who paid into a pension may not show the pension as an asset because they don't see the balance, they just get the income. The person who pays into a 401k, by contrast, sees their balance every time they open the account and look at it. Now we have gone down the rabbit hole...

Hunt talker D thinks the government will save him and will pick b. Hunt talker S that knows the government can't will pick a.

Freedom to choose. Everyone's happy!

 

[Deleted member 28227]

The origin of the question came from thinking the answers to the original question

Communist obviously

 

[TN2shot07]

Hunt talker D thinks the government will save him and will pick b. Hunt talker S that knows the government can't will pick a.

Freedom to choose. Everyone's happy!

If we played by the rules you are correct!

The problem we will run into are when folks take the money, blow it, then still want to be supported with another option…

 

[BigHornRam]

If we played by the rules you are correct!

The problem we will run into are when folks take the money, blow it, then still want to be supported with another option…

Sounds like problem for the guy that pissed away his million dollars.

 

[TN2shot07]

Sounds like problem for the guy that pissed away his million dollars.

Doesn’t hurt my feelings, reap what you sew but that’s not the American way

 

[Flatrock]

HT'ers drive me crazy.

Well.... Mostly just Bighorn. And Red Team.

 

[WildWill]

Back to the $1m question
If you were retiring today, age 60, would you prefer
a) $1,000,000 in the bank with full control of it, or
b) $4800/mo (with COLA ($1800 SS, $3000 pension)

Keep all other things equal- house is paid for, kids are gone and self-sufficient etc. The only decision is based on retirement income, which is actually a decision on risk. You can get a steady stream of income and not think about it or have to invest it yourself and deal with market and rate ups and downs.

I'd take the million buy as much land as possible and go back to work.


"If you have land you'll never be poor"
Altus Odean Clark

 

[buckbull]

I'm 60 and don't see getting SS when I turn 67. So A is a better choice.

You should get what you are accrued until 2034 at which time you will get 80%. That is if nothing changes between now and then.

 

[BigHornRam]

You should get what you are accrued until 2034 at which time you will get 80%. That is if nothing changes between now and then.

It will be means tested before I turn 67, which is fine with me.

 

[NDGuy]

How you mfers having 1 mil networth in the 30s? Did you start your 401k at conception

 

[TN2shot07]

How you mfers having 1 mil networth in the 30s? Did you start your 401k at conception

You have to add that knife collection into your net worth, it’s gotta be pretty close!

 

[NDGuy]

You have to add that knife collection into your net worth, it’s gotta be pretty close!

Lol

I am mind blown there's anyone let alone a majority having that high of a NW before 40.

That's likely a paid off house+500k in their retirement.

 

[TN2shot07]

Lol

I am mind blown there's anyone let alone a majority having that high of a NW before 40.

That's likely a paid off house+500k in their retirement.

Possibly a successful business owner, maybe just an extremely high income earner

I agree, that’s definitely an achievement!

 

[Derek44]

Eighteen pages already. Wow!

I know right?!?!? Can’t believe it took you this long to chime in on this one

 

[brymoore]

Lol

I am mind blown there's anyone let alone a majority having that high of a NW before 40.

That's likely a paid off house+500k in their retirement.

It could be a result of Common Core Math resulting in wrong answers.