How much money can a 10 million dollar family make a year?

Let’s stay conservative and say 10 million dollars can generate $250,000 a year in relatively low-risk retirement income. This $250,000 budget is for a household of four with two young children living in big city like Los Angeles. Both parents have decided to retire early in their 40s to take care of their children until they never come back.

Is 10 million dollars a lot of money to retire on?

Ten million dollars is a lot of money. If you have that kind of net worth to retire on, you’re going to be okay. That’s pretty obvious. Unfortunately, unless we fall out of the money tree and hit every branch on the way down, most of us won’t retire with anything near as much. That’s okay—many people retire on less.

How much money does 10 million dollars generate a year?

Unfortunately, 10 million dollars today generates a lot less. Since the 10-year bond yield is around 3.4%, it can only generate ~$340,000 a year in risk-free income. Not bad, but no longer a top 1% income.