Living On the Interest from One Million Dollars

I made my first retirement plan after my freshman year at college.  Back at home, with one year of college under my belt, my good friend John and I were discussing our plans for the future.  I don’t recall the entire conversation, but I do remember saying “my goal is to accumulate a million dollars, and then cash out and live off the interest.”  I further explained that this plan would generate $50,000 a year since 5% interest seemed reasonable. The year was 1974.  I came from a blue-collar neighborhood where typical incomes were in the $10,000 to $15,000 range. …