160×600
160×600
$142.90
-0.27%
$2,801.12
+0.63%
$2,795.71
+0.4%
$3,288.62
-0.42%
$294.85
0%
$330.05
+0.25%
$284.14
+0.42%
$161.52
+3.54%
$170.22
+0.08%
$160.93
-0.25%
$44.34
+0.5%
$62.18
+2.51%
$48.00
+0.5%
$230.27
-0.12%
$139.66
+0.3%

How much you can spend if you have $1 million


The S&P 500 gained more than 16% last year despite an unprecedented global shutdown.

But you shouldn’t plan your retirement based on double-digit returns. 

You should aim to spend up to 4% of your nest egg per year in retirement, according to financial advisor Winnie Sun. That percentage can drop, however, based on several factors such as if your home isn’t paid off or if you have high health-care costs, Sun said. 

The strategy also assumes that you have a balanced portfolio, focusing more on bonds and cash-type investments for your short-term needs. This allows the stocks in your portfolio to grow for the future, according to Sun. 

Check out this video to see a few different case studies of how much spending money you’ll have if you retire on $1 million. 

More from Invest in You:
‘Predictably Irrational’ author says this is what investors should do during pandemic
Coronavirus forced this couple into a 27-day quarantine on their honeymoon cruise
How to prepare for a family member with COVID-19

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CHECK OUT: Why January is a particularly great time to invest your money via Grow with Acorns+CNBC.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.



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