How I'd Live Off $2 Million in Retirement (Without Ever Running Out)

If you have $2 million and you go to a traditional financial advisor, they are going to tell you something that could ruin your retirement. They're going to tell you about the 4% rule. They will say you can only spend $80,000 a year and you need to clip coupons and play it safe so you don't end up broke. I'm here to tell you that's dead wrong. If you follow that archaic rule, you could die with millions of dollars sitting in a brokerage account while your best, healthiest years pass you by. Today, I'm going to show you a simpler, smarter way to pull a six-figure income out of a $2 million portfolio without the anxiety. And at the end of this video, I'm going to pull back the curtain on my own money and show you my actual plan that I'm doing before transitioning to the $2 million plan. First, let's talk about where your money actually goes. We aren't doing the crazy 90% stock market gamble that other guys on YouTube push. That's a heart attack waiting to happen when the market crashes. We're keeping this stupidly simple with a safer 7030 split using just two types of funds. Take 70%, that's $1.4 million, and put it into a broad stock market fund. You can look at Vanguard's VTI, Vanguard's VU, or Schwab's SCHB. Personally, my preference is VU. That's your growth engine. That's the money that fights inflation over the next 30 years. Take another 30%, 600,000, and put it in a safe, short-term fixed income fund. You could use VGSH, SCHO, SPTS, or SSG. My preference here is SGV or SCHO. This is your bulletproof vest. That $600,000 is literally 5 to6 years of living expenses, completely insulated from a stock market crash. Now for the fun part, getting paid. Instead of taking 4%, we're going to start by pulling out a baseline of about $110 to $120,000 a year. But here's the secret to making this safe. You use what I call the 2010 rule. It's a hard rule and it's simple. If the stock market drops 20% or more, you cut your monthly withdrawal by 10%. That's it. If you were taking out $10,000 a month, you tighten the belt and take out $9,000 a month. You skip the fancy dinners for a few months and you let that $600,000 cash buffer do its job until the market bounces back. When the market recovers, you give yourself a raise again. This simple guardrail is what keeps you from running out of money while still letting you actually enjoy your cash when times are good and you need to enjoy it. What's the point of working your whole life just to look at a high score on a bank screen? My personal philosophy is that you need to use this money to live on your terms and do one epic trip every year. Last year I went to Nepal to ride a motorcycle through the Himalayas. This year, I spent a few weeks riding through beautiful Mongolia, where 70% of the trip was off-road or on no roads at all. That's what money is for. Buying back your freedom while your knees still work. Motorcycles and adventure are my thing. But maybe you enjoy spending a month at the lake cabin with your grandkids, restoring classic cars, or playing golf every single morning. Whatever it is, spend the money doing it. So before we move on, let's recap the exact plan so you do not overthink this. One, build a 7030 portfolio. 70% in a growth fund like VO and 30% in a safe fund like SGV or SCHO. Two, draw a six-figure income to fund the life you actually want. Three, apply the 2010 rule. If the market drops 20%, cut your spending by 10% until the storm passes. But let's have a real talk for a second. I just gave you the blueprint for a safe, passive retirement, but I'll be honest with you. I'm 56 years old. My net worth is considerably higher than 2 million, and I do not follow this plan. At least not yet. Why? First, I'm not ready to retire in the traditional sense. Second, I enjoy the challenge of making money and I actively invest in the stock market. And third, once you have $2 million or more, you are in a prime position to have your money work for you. To give you an idea, last year I made $2.4 million investing. That was a 69% annual return. Now look, I know that is a crazy high return and an outlier year, but think about it. If you can make 20 to 69% per year by managing your own investing, think of how that sets you up for life. For me, the stock market keeps my mind active, makes me money, and allows me to afford absolutely any lifestyle that I want. Look, everyone has different goals and you need to follow your own path. If your goal is to park your money, hit the golf course, and forget about it, use the 7030 plan and the 2010 rule I just gave you. But if you like the sound of managing your own money, and you want to learn how to do everything yourself without having to pay a financial adviser 1% a year, come join my Patreon. I teach my community exactly how I'm navigating the markets and how you can take control of your own financial future. If you made it this far, drop by your freedom in the comments. Tribe check. Hoarding cash buys regrets. Discipline systems buy freedom. The choice is yours. Just don't let your money sit there doing nothing while you run out of time. Cheers, guys. I'll see you in the next