How Long will $1,000,000 Last?

Over the last few days,  I have seen this pop up in a few places.  I went and found the original link that talks about the topic.  The idea behind the article is for them to determine the annual cost of living for someone in each state.  Well they averaged each state out.  I have a problem with that. I grew up in one of the exurbs of New York City, went to college in one of NY’s upstate smaller cities, and later spent almost 10 years living in New York City itself.  Each of those 3 regions of NY have vastly different costs of living.  I kid you not when I say that even Manhattan versus the outer boroughs of NY city are significantly different in cost. Milk and ice cream are about 50% more expensive in Manhattan than in Brooklyn, and another 30% or so more from where I grew up.  It’s cheaper still in the upstate cities.

My point in all of that is that sure the averages are good to give you an idea, but you can probably be near the place you want, and save money. I am sure that is true in every other state, but again, who knows what inflation will be.  If we go through the high inflation of the 1970s and early 1980s again, then we will all need a lot more money to retire.  If inflation stays as it has, then we’ll all need less.

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