How Long $1 Million Retirement Savings Will Last In Louisiana
My financial planner recently told me how much money I need to put in a month on my Roth IRA until I retire at 65 to have a million dollars saved up. I started doing some calculations on my own and figured out if I live until my 90s, I'm screwed. Even though a million dollars sounds like a ton of money, it really isn't in the bigger picture of retirement.
I based my calculations on living off of $40,000 a year, and I figured that my wife and I could live comfortably on our retirement nest egg for 25 years. I started doing a deeper dive into the subject on Google and found a great article on the subject.
The cheapest state to retire in is Mississippi, where $1 million could last over 23 years. The most expensive state is Hawaii, where you could only make it about a decade.
The 10 states where $1 million goes the farthest are:
- New Mexico
The states where you'd burn through it the fastest are:
- New York
According to the article, in our neighboring states, in Texas you could live off of $1 million for 21 years, 4 months, 18 days and in Arkansas it would last 22 years, 6 months, 22 days.
Here's how it breaks down for Louisiana:
- Annual groceries cost: $3,948.87
- Annual housing cost: $7,972.16
- Annual utilities cost: $3,372.12
- Annual transportation cost: $4,506.34
- Annual healthcare cost: $6,631.95
- Total annual expenditures: $47,350.66
$1 million will last for 21 years, 1 month, 6 days in Louisiana, I might need to think about doubling my monthly payment to my Roth IRA if I plan to be here for the long haul.