Is it possible to live a good retirement with R$ 1 million?

The dream of living on income to enjoy the future in the best way is still very present in the daily lives of many Brazilians. In this sense, reaching the first million remains associated with financial independence, in addition to being a major milestone for investors. Is it possible to live a good retirement with R$ 1 million? Find out below.

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  • 1Living on income: why retire with R$1 million? 
  • 2Is it possible to have a good retirement with R$1 million?
  • 3How to increase the value of this income?
  • 4Where to invest R$1 million? 

Living on income: why retire with R$1 million?

Achieving R$1 million in accumulated investments means much more than having a good amount of money. As a concept and dream of life, this can be associated with the idea of ​​a comfortable life, without the need to resort to other sources of income after retiring.

However, there are several factors that demonstrate that this account is not so simple and that other practices may be necessary to maintain the lifestyle . Likewise, to ensure that your contributions continue to work for you, it is important to apply really effective strategies in your investments.

In addition to ensuring long-term protection, good portfolio management maximizes your earnings, helping you to live your future as you truly deserve.

Is it possible to have a good retirement with R$1 million?

To really know if it is possible to have a good retirement with R$ 1 million, the investor must keep in mind what his goals are . In other words, you need to define how much he would like to receive when he retires and for how long.

For example, if you want to make monthly withdrawals of $10k, it will take just under 10 years for your starting equity of $1m to run out – discounting inflation and assuming a real rate of 3% per annum on the portfolio.

Thus, in the case of a person who retires at 60 and intends to enjoy this monthly amount for at least another 30 years, it would be necessary to accumulate more than double the initial million.

Furthermore, maximizing earnings to increase the yield on allocations requires greater exposure to equities. Depending on your risk tolerance, this may not be the best strategy for your investments.

Therefore, it is possible to retire with BRL 1 million and, thus, achieve your financial goals with peace of mind. However, enjoying the fruits of the financial income of that initial million for the rest of your life is a less sustainable scenario – at least, for most Brazilians.

How to increase the value of this income?

Regardless of the fact that R$ 1 million is not enough to maintain the lifestyle intended by some investors, it is possible to increase the possibilities of earnings. Just apply the right strategies.

Through diversification , the investor has access to the most suitable assets for his/her risk profile to compose the portfolio. Allied to this, it is essential to be aware of real interest rates, that is, above inflation, to avoid loss of purchasing power over time.

Where to invest R$1 million?

Investing R$ 1 million without neglecting your goals is a process that requires time, dedication and adequate support to make the best decisions. Precisely because of the large amount, any slip can put your profitability at risk, a fact that can become a big challenge for investors.

After all, to increase earnings and enjoy the income from that million’s financial investments longer, you need to take care of your allocations strategically.

Even the most conservative profile can and should diversify the portfolio, as long as that investor considers having guidance in their choices.

The Magnetis is a pioneer in investment driven by financial goals through an innovative technology that analyzes more than 20,000 active on the market in order to select the best for your portfolio.

The partnership with the Julius Baer Family Office (JBFO), manager recognized for its unique approach and free from conflicts of interest, offers the ideal base to multiply your wealth and take your money to the best business opportunities.

This makes it easier to live the way you want, enjoying the results while our algorithm works for you. We guarantee a timeless investment portfolio that protects you from the most adverse scenarios through low correlation diversification, automatic rebalancing and much more.


by Abdullah Sam
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