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##### Asked by: Vivan Manonelles

personal finance retirement planning# Can you live off interest of 1 million dollars?

Last Updated: 7th April, 2020

**you**retire with $1

**million**in savings and invest it all

**in a**portfolio of fixed-income investments at 6% and

**live off**of the

**interest**. That's $60,000 per year plus Social Security and a pension

**if you**'re lucky. After your death, your surviving spouse or other heirs get the entire $1

**million you**started with.

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Also question is, how much interest does 1 million dollars earn per year?

For example, **one million dollars earning** 0.01% **in a** savings account **would** generate $100 of **interest** after a **year**, while a CD paying 2.5% **would** generate $25,000 of **interest**.

Likewise, how can I make 1 million dollars last in a lifetime? Another strategy to **make** $1 **million last** through retirement is to place the money **in a** diversified portfolio and withdraw a set percentage per year, indexing that amount to inflation. Many retirees who use this strategy follow the 4% rule. They withdraw 4% the first year, or $40,000, and they live on this amount.

how much do you need to live off interest?

So as a general rule, experts recommend counting on needing 70% to 90% of your current expenses. Next, **you need** to choose an **interest** rate. Banks have paid under 1% in recent years, while they used to pay in the high single digits in the early 1990s. If **you want** to be conservative, **you** could go with 1% to 3%.

How long can you live off one million dollars?

and 26 years