Making sense of the markets this week: July 12, 2021


There is a “retirement rule” that your portfolio can usually offer a 4.1% spend rate over the decades. That is, a $1-million portfolio could deliver $41,000 in annual income before taxes, and survive as long as you do. A Canadian would most likely have CPP (Canada Pension Plan) and Old Age Security payments in the mix as well. That might add $12,000 to $15,000 or more to your annual retirement income. 

Recently in MoneySense, we looked at the Purpose Longevity Pension Fund, which is designed to deliver 6.15% annual income. The best use of that would likely be to utilize the fund for a portion of retirement savings, such as in the 30% to 40% range. I’ll be offering a post on that strategy on my site within the next week or two. 

There’s more than one way to skin the retirement funding cat, and Larry Bates offers ideas for making your retirement saves go further

Net net, building the million-dollar portfolio might be easier than you think. Heckm you might even go for $2,000,000. 

From there, make sure you do the research to understand how to make that money last. You might consider contacting an advice-only planner to help you put together the most efficient retirement funding plan. 

Jeff Bezos “retires” from Amazon

Bezos, the founder and CEO of Amazon recently announced his retirement. Bezos will not have to worry about retiring on a mere million. Of course, Bezos is one of the richest persons on earth. 

This Business Insider post notes Bezos is retiring with a net worth of $197 billion—739,489 times that of the average American. Looks like he’ll be OK. Here’s some more incredible wealth framing from that post:

He’s more than twice as wealthy as the entire British monarchy, which is worth an estimated $88 billion as of 2017, and his fortune exceeds some nations’ GDPs—though the comparison isn’t exact between output and value. Bezos makes more money every second than the average U.S. worker makes in a week.”