that means you can spend 40k per year forever, right and still always have your million$? Wrong, In fact, if you spend 40k each year (in actual same purchasing power) you'll be broke in 25 years. This is true because we average 5% per year in inflation. That means that on average, everything that you buy costs twice as much every 15 years. You simply must learn to make at least 10%, after tax, or your million $ is not enough to retire upon, unless you're moving to a 3rd world country, or unless you only have 10-15 years left before you suicide. To clear 10%, you have to gross at least 14%, and that is not easy to average doing, year after year, without having a biz in which you are actively involved.
A guy who knows how to clear 20% on 200k (say by 'owning" several old apt bldgs and paying manageers) is way ahead of the millionaire who only knows how to make 4%, after tax. The reason that this is true is that he can keep increasing the tenant rent to allow for 5% inflation. 200k is many, many times easier to accumlate than 1 million $, guys. And making 20% in such a fashion is easy.
A guy who knows how to clear 20% on 200k (say by 'owning" several old apt bldgs and paying manageers) is way ahead of the millionaire who only knows how to make 4%, after tax. The reason that this is true is that he can keep increasing the tenant rent to allow for 5% inflation. 200k is many, many times easier to accumlate than 1 million $, guys. And making 20% in such a fashion is easy.
