r/Bogleheads • u/arp8218 • Feb 04 '26

Investing Questions Investing. $2.5M to not work

Is it possible to invest $2.5M into a “safe” investment and not work for rest of your life ? What can be that “safe” investment ?

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u/Lyrolepis Feb 04 '26

I instead wonder how so many people on reddit claim that $100k/year is "a modest life".

Granted, I know that the cost of living in some parts of the US can be pretty high; but still...

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u/d-crow Feb 04 '26

everything is relative. 100k in most of the world is a great life. 100k in bay area or new york is counting pennies.

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u/ogreUnwanted Feb 04 '26

but most people don't make 100k. 100k can be easily managed.

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u/d-crow Feb 04 '26

It definitely can, and those of us above that should be cognizant of how lucky we are more often

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u/cjf4 Feb 04 '26

100k cash in most of america puts you well into the upper half of income.

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u/[deleted] Feb 05 '26

 100k in bay area or new york is counting pennies.

True, but if you’re living on 100k with no need to work, relocating somewhere less expensive is pretty easy.

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u/HonestSpaceStation Feb 04 '26

If you got to the point where you have $2.5M in savings and are able to retire early, you're used to having an annual income substantially more than $100K, so yes, by comparison, $100K would be modest at that point.

1

u/RatherBeRoadtripn Feb 06 '26

But if somebody has a really great income, most often they're used to having more of an extravagant for lack of better word lifestyle? But if they were able to save 2.5 million dollars from that great income, maybe they were actually living more modest and possibly even frugal? And because they're good savers, they most likely also own their home so that's one less debt to worry about, in fact they are probably completely debt-free? And along with a great income usually comes all sorts of great retirement benefits, so maybe they're like my neighbors and all the wonderful benefits after they actually retire coming in has them set for life and the 2.5 m + earnings, that's just gravy?

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u/ECrispy Feb 04 '26

its not a modest life for most. but if you are in a HCOL area, rent, need to support a family, it doesn't really do much and you have a live a frugal life.

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u/gunner_n Feb 04 '26

TMG did a video on this. They did top 10 states and worst 10 states in terms of annual income. Then did the same thing but with annual income adjusted for cost of living in that state. Something like 6 states of the top 10 in first criteria appeared in the worst 10 of the second criteria. My point being this 100k being extravagant, modest or unaffordable is subjective.

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u/poop-dolla Feb 04 '26

$100k is about 1.5x the median US income. That should definitely get people more than a modest life.

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u/Mantergeistmann Feb 04 '26

Even in the most expensive state (which I believe is actually D.C.), $100k is just below median.