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$2 Million vs. $5 Million: Why 2.5x the Savings Buys Only 1.7x the Income
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Two couples, identical in every way except one detail: Paul and Linda have $2 million saved, and Richard and Susan have $5 million. In this episode I run both through the same retirement to show what actually lands in the bank each month after tax, what happens when the husband dies and she files alone, and what the daughters keep after inheriting the IRA.
The $5 million household ends up with $21,414 a month against $12,377. That's 2.5 times the portfolio for 1.7 times the income. After widowhood, Susan pays 98% of what the couple paid for Medicare by herself. Her daughter…
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