Happy Million Dollar Day.

For those who are wondering, yesterday was the day that people making a million dollar salary stop paying Social Security. Wouldn't it be nice if everyone got an 8% raise this week?

You conveniently left out that those people will not collect any social security past a maximum amount paid out.

Your eyes have got to be brown.

My eyes are hazel, and you evidently have reading comprehension problems.

The "right" investment at retirement age for most is a low to zero risk offering, earning -1% to +1% interest. If one has $20 million in hand, it' prudent to take a greater risk.

I'm certain that the $20 million group is where Billy lands.

I plan on drawing off the principle slowly, based on my health.

Because, after all, screw my kids. They can make their own damn money

It's thinking like boils that keeps people working into their late sixties and living well below their potential.
Keep putting your money into those negative investments.

What is the standard deviation for the risk category that Billy suggests for a retirement age couple with $1 million to invest? Boiler still recalls some of his Krannert School of Management, Purdue University Finance degree shit.

Billy, not so much.

Big words that say and mean nothing. Typical.
Invest at zero, and how long before inflation eats half of your nest egg? Especially when you are drawing down four percent of the principal each year.
Retire with $1,000,000. Withdraw $40,000 and lose $25,000 in buying power each year. How long before you are buying dog food by the case?
That's optimistic. Inflation is usually higher than 2.5 percent, so each year you are withdrawing less money and that smaller amount of cash buys less per dollar spent.
How is this strategy looking after ten years? Twenty?
Or is the idea not to live that long?

Thank you for making my point................. in two fashions. You are quite funny.

Billy explains to us that it's better to make more money on an investment than less. Billy, thank you for telling us this, because it's near genius. What Billy doesn't appear to understand, however, is that with higher projected return rates comes more price volatility. This can be measured by a standard deviation calculation.

What does the 62 year old couple do if they go with a high risk, high reward investment, and that investment drops by 50%, or 30%, or even 20% over the first two years of retirement?