Sam Dogen, officially retired when he was only 34 years old! So, needless to say, he knows a little about making, saving, and investing money – and he’s willing to share that knowledge with you on his financial blog. Topics covered include everything from how to retire early (and why you might not want to) to guidelines for buying a car and how much you should spend on it.
Recently he shared some insights on why having a high net worth is better than having a high income, and a closer look at who is getting stimulus checks from the new CARES Act.
If your latest tax return shows an adjusted gross income of under $75,000 for single filers or $150,000 for joint filers, you get a $1,200 or $2,400 stimulus check. With each child, you get an additional $500. Once you make over $98,000 as an individual without children, and $198,000 as a couple without children, you no longer get any benefits.
To make between $75,000 – $150,000 a year in investment income at a 4% rate of return requires having a portfolio of $1,875,000 – $3,750,000. At a 3% rate of return or withdrawal rate requires having a portfolio of $2,500,000 – $5,000,000. Therefore, plenty of millionaires who are retired or semi-retired will be eligible for stimulus checks.
Yes, many of these people are the same millionaires who are also getting healthcare subsidies under the Affordable Care Act. Even though the ACA is supposed to help make healthcare affordable to the middle class and poorest of Americans, I guess you can’t blame these millionaires for legitimately taking advantage of the system.
Based on all these benefits offered by the government, if you want to be a millionaire who lives the best lifestyle while also getting continuous maximum government benefits, then strive to have a net worth between $2,000,000 – $5,000,000.
Out of curiosity, he asked several millionaire stimulus check receivers about what they plan to do once the free money arrives. Here are their profiles and what they had to say, its worth the read.
