Can I live off interest of 500k?
Yes, it is possible to live off the interest from $1 million in retirement, but it depends heavily on your annual spending needs and investment strategy. A well-diversified portfolio can typically generate an annual return of 3% to 5%, which translates to $30,000 to $50,000 in annual income. Whether this is enough depends on your cost of living, inflation, and how you manage your withdrawals. Many people use a combination of interest, dividends, and other retirement income to supplement this, so careful budget planning is required to ensure the capital lasts throughout your retirement.
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