• Wrench@lemmy.world
    link
    fedilink
    arrow-up
    24
    arrow-down
    77
    ·
    8 months ago

    You can’t retire on $1m net worth. That’s not even a house in lots of areas.

    It definitely helps. But giving up my career for $1m would be a very bad investment.

    • BombOmOm@lemmy.world
      link
      fedilink
      English
      arrow-up
      54
      arrow-down
      2
      ·
      edit-2
      8 months ago

      Average investment returns are (conservatively) 8% per year, with a safe draw down being 4% per year. Which means she can safely withdraw $40,000/yr indefinitely without her investment decreasing in value over the long run.

      Easily enough to retire in a decent cost of living area if she wishes, or work a small side job to boost her income to support a higher cost of living.

      • NotMyOldRedditName@lemmy.world
        link
        fedilink
        arrow-up
        26
        ·
        edit-2
        8 months ago

        The safe withdraw for an extended early retirement is 3.5%

        With 4%, while the chance is small, you could end up running out of money.

        Someone did all the numbers for 35-40+ years looking back historically, and there were 4 or 5 years where if you started then and didn’t adjust your plan, you’d run out of cash.

        There were 0 scenarios where 3.5% ran out

      • leclownfou@sh.itjust.works
        link
        fedilink
        arrow-up
        25
        ·
        8 months ago

        Especially considering she was making $42k annually as a teacher (according to another comment, I didn’t actually read the article). So she was able to live on roughly that amount already.

        Realistically, she could continue to create OnlyFans content for some time and make and invest more than the initial $1m.

      • Hadriscus@lemm.ee
        link
        fedilink
        arrow-up
        1
        arrow-down
        12
        ·
        edit-2
        8 months ago

        yea but you can teach all life long, whereas on Onlyfans you… uh,… nevermind

        y’all misunderstood my post, I think. I was trying to joke about the fact that even if you’re getting on in years, there will always be an audience for your OnlyFans. Anywayyyy

    • Thorny_Insight@lemm.ee
      link
      fedilink
      arrow-up
      10
      ·
      8 months ago

      You can’t pay for groceries with your net worth but given million bucks I’d retire immediately. That amount of money invested to the stock market pays around 50 - 70k interests every year and you get to keep the million.

    • Dozzi92@lemmy.world
      link
      fedilink
      arrow-up
      12
      arrow-down
      2
      ·
      8 months ago

      Yeah, except she can go makeinimum wage working full time for benefits and call it a day. You can live on minimum wage if you also have a mil in the bank to start. One door closed but a bunch of others opened. She can do that job you want that you don’t do because it doesn’t pay much.

      • Wrench@lemmy.world
        link
        fedilink
        arrow-up
        4
        arrow-down
        13
        ·
        8 months ago

        Working full time isn’t retiring.

        You also have a weird notion about benefits, and employers willingness to give full time hours so you even qualify. But that’s not even the slightest bit related to this discussion.

        • bassomitron@lemmy.world
          link
          fedilink
          English
          arrow-up
          4
          ·
          8 months ago

          Most folks with the degree and certification required to teach can find another full-time job that offers benefits, e.g. health insurance (which even a million dollars will get burned up quickly if a serious medical issue arises and you have no insurance).

          But I think the point you’re missing is that she can continue making shit loads of money on OF for as long as she can while also working another job, as OF isn’t exactly something you need to 8 hours a day to do (though, some models probably do when you factor in advertising and getting your name/rep established).

    • jkrtn@lemmy.ml
      link
      fedilink
      arrow-up
      9
      ·
      8 months ago

      Someone else calculated that $1 million is about 30 years of the teaching salary. So you cannot retire on a career either.

      If I were forced to choose I’d take the $1 million up front over a low-paying career and let it grow in the market while I found other work to avoid using it. $1 million up front over $1.3 million across 40-some years is a very good investment. Consider the decreased value of future money.

      • fidodo@lemmy.world
        link
        fedilink
        English
        arrow-up
        3
        ·
        8 months ago

        Not only that, 1 mil invested and making a modest 5% a year will return more than the teaching salary for doing nothing.

    • fidodo@lemmy.world
      link
      fedilink
      English
      arrow-up
      1
      ·
      8 months ago

      If you get a modest 5% return on that mil that’s $50k per year, which is more than her teaching salary for doing nothing.