Is $10 Million the New $1 Million? The Internet Weighs In…

The Fat FIRE Reddit group is regularly filled with posts from people who aspire to retire early. However, an old post in the subreddit took a different turn, pondering if $10 million is the new $1 million.

At one point, a $1 million portfolio was sufficient to retire, but the cost of living has risen considerably over the past few years. According to an inflation calculator, $1 million in 1980 is worth $3.9 million in 2025. However, $1 million in 1970 is worth $8.3 million in today’s money. The baby boomer generation lived during the 1970s and can remember when $1 million was worth a lot more.

You have to go back to 1965 when $1 million had the same purchasing power as $10 million in today’s money. It turns out there is a lot that people can learn through this conversation.

$1 Million Still Gets You A Lot

In most areas, $1 million is enough to buy a house. You can either buy the entire property outright or make a 50%-80% down payment on the property in an HCOL area.

However, a $1 million portfolio is no longer enough for retirement. Using the 4% withdrawal rule, you can withdraw $40,000 per year from a $1 million portfolio. While some people may be able to make that work with Social Security and a pension, it’s not realistic for most people.

Do You Need $10 Million to Retire?

A $10 million portfolio will be enough for almost anyone to retire. Using the 4% withdrawal rule, you can withdraw $400,000 from your portfolio each year. That’s more than enough for most people.

However, you don’t need a $10 million portfolio to retire. Some people can retire with $4 million to $5 million portfolios. If you want to operate on a shoestring budget or live in an area with a lower cost of living, a $1.5-$3 million portfolio may be feasible. 

Timing Matters

$10 million is really the new $1 million for people who lived in the 1960s. However, there aren’t as many people who worked during that era compared to people who were children or not born during that time.

While it’s easy to say $1 million in 1965 was $10 million in today’s money, it’s different to make a salary and pay expenses during that time. Costs regularly go up, and if you use an inflation calculator for a more modern timeframe, $10 million doesn’t feel like the new $1 million. Having $10 million still feels like a distinct category.

For instance, $1 million in 2005 has the same value as $1.65 million in today’s money. More people remember living and working in 2005, so a year like that is more relevant. It’s easier to argue that $2 million feels like the new $1 million.

At the end of the day, individuals have to monitor their expenses and know how much they need for retirement. Some people may need a portfolio of $10 million because they live in HCOL areas with large families. Other people have simpler lifestyles with lower costs and may only need a $1-$3 million portfolio. It all comes down to your finances and knowing your numbers.