How Long Will $1 Million In Savings Last For Louisiana Retirees?
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 that 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 25 years. The most expensive state is Hawaii, where you could only make it for about a decade.
The 10 states where $1 million goes the farthest are:
- West Virginia
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 22 years, 9 months, 20 days, in Arkansas, it would last 23 years, 1 month, 7 days, and in Mississippi 25 years, 2 months, 18 days.
Here's how it breaks down for Louisiana:
- Annual groceries cost: $4,069.47
- Annual housing cost: $8,526.90
- Annual utilities cost: $3,291.21
- Annual transportation cost: $3,466.28
- Annual healthcare cost: $6,627.99
- Total annual expenditures: $44,248.47
$1 million will last for 22 years, 6 months, and 31 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.