Following Ted's soft-glove caution re. "style drift" on the board, I splashed some cold water to the face, gave myself a two-palm cheek slap, and recommitted to purpose.
Consistent with this spiritual reawakening, I now link to updates to RiverNorth Q3 factsheets, about which I just received notice. I've been in RNDLX for quite awhile; it continues to do well, and brings a lot to the table that you just cannot get anywhere else, within a MF wrapper. (e.r. has been dropped to 1.15%).
If you're a bit starved for eye candy, you might check out their redesigned website, if nothing else. oo-la-la. (frankly, I thought what they had was fine; the new layout is .... a bit much!)
http://www.rivernorth.com/literature/?tid=rnqfu2014q3&utm_source=RiverNorth+Primary&utm_campaign=4ef69ba804-2014_Q3_Quarterly_Update10_22_2014&utm_medium=email&utm_term=0_a7ebf79ed0-4ef69ba804-408079161

1. I agree that many financial "articles", including this one, are silly.
2. This article is really about asset allocation in retirement; the rest is cheap window dressing to frame the article. ($50K/$1M were simply neat round numbers for illustrative purposes.)
3. Waggoner errs in adding extra for income taxes - he's trying to match household income, and like IRAs, that's pretax also. (That is, income taxes come out of the $50K household earnings.)
Regarding people's comments here:
- IMHO health is one of the two big variables in retirement planning. The other is longevity. These are both areas where insurance can be invaluable - Medicare/Medigap or Medicare Advantage (Part C) for the former, and longevity insurance (deferred income annuity) for the latter. But they're not without cost.
- NYC - the median household income in Brooklyn is $45K; even in Manhattan is it "just" $67K. (Slate: Brooklyn's Median Household Income is Less Than $45,000 - Jan 9, 2014). One can get by, even in NYC on less than $50K, but the key phrase is "get by".
- Berkeley - I'm with davidrmoran on this one. $12K/year is foodstamp level income for one person, let alone three. Anywhere in the country. And unlike NYC, the Bay Area tends to be more homogeneous in housing/living costs (harder to find affordable pockets). From the Berkeley Pier to Walnut Creek (where there is no longer a T. Rowe Price office), from Baghdad by the Bay to Silicon Valley, the cost gradient is miniscule.

FYI: NEW YORK (MarketWatch) -- U.S. stocks closed with solid gains Friday, handing the S&P 500 SPX, +0.71% its largest weekly advance of 2014. Investors shrugged off worries about New York's first Ebola case, which had weighed on U.S. stock futures.
Regards,
Ted
http://www.marketwatch.com/story/stocks-end-higher-sp-500-nabs-biggest-weekly-gain-of-year-2014-10-24/print
Markets At A Glance: http://markets.wsj.com/us
WSJ Slant: http://online.wsj.com/articles/u-s-stock-futures-trade-lower-1414153540

It is not difficult to live cheaply in Seattle - rent instead of owning, 22 year old car, eat at home. My big account is 5 figures, all in Vanguard Wellington, VWELX. Yes, I am cheap and happy. Just dreaming about a hot mutual fund tip ...

FYI: The Nasdaq Biotech and Internet groups were the two market leaders in 2013, and they both experienced massive corrections from February through April of this year. Below is a check-up on the performance of the two groups. As shown, both groups bottomed around the same time earlier this year, but Biotech has run circles around the Internet group over the last couple of months. Today's sharp breakout higher for Biotech is in stark contrast to the weakness seen in the Internet group lately.
Since the start of 2013, Biotech is up 110.4%, while the Internet group is up 59.5%. Biotech has essentially lapped the Internet group at this point. Let's see where these two groups head over the final two months of the year.
Regards,
Ted
http://www.bespokeinvest.com/thinkbig/2014/10/24/biotech-laps-the-internet.html?printerFriendly=true

I agree with Junkster's original post about these articles being silly. Obviously the vast majority of Americans are able to retire with less than $1m. The labor force participation rate for those 65-74 is only 27% right now, so clearly many are able to retire and live with SS and whatever investable assets they have, which I'm sure average far less than $1m for a married couple.

@davidmoran
Don't forget, some 401k, 403b, 457 accounts may become very large over the years and then rolled into IRA accounts. One may end with a farily large dollar value.

"Finally, how does the math work that one's RMD would be >50k?"
Well, I can tell you this much: in round numbers, my wife's IRA and my IRA combined is roughly 700k. This year's RMD was 22k, PLUS 7k in withheld income tax, for a total of about 29k. Not too far from there to 50k!
Edit/Add: Note that these numbers are in agreement with Catch 22's comments.

Howdy @davidmoran
The math I have performed indicates that the first year of RMD from IRA holdings is about 3.8% of the total value; and the percentage increases in small amounts after the first year.
A $50,000 RMD indicates IRA(s) value of about $1,300,000.
Take care,
Catch

Well, if you pay 18k a year in property taxes (not uncommon on the coasts, not talking mansions either), if you want to do any traveling, if you pay for longterm-care insurance, and/or a host of other ifs, it's easy to need more than 50k. Naive or not, that's the math. Charity, grandchildren, etc. --- other plus variables.
As for 12k a year with 2 kids in Berkeley, you should write a book and also get a TV show, and also a food show.
Finally, how does the math work that one's RMD would be >50k? What am I missing.

Well, unless I am missing something again it says at 70 and 1/2 I have to withdraw 3.79%
which is > than 50K. 18K a year in property taxes? Think I will stick to small town living in the south and the confederacy.

Well, if you pay 18k a year in property taxes (not uncommon on the coasts, not talking mansions either), if you want to do any traveling, if you pay for longterm-care insurance, and/or a host of other ifs, it's easy to need more than 50k. Naive or not, that's the math. Charity, grandchildren, etc. --- other plus variables.
As for 12k a year with 2 kids in Berkeley, you should write a book and also get a TV show, and also a food show.
Finally, how does the math work that one's RMD would be >50k? What am I missing.

Of course this will all change when I turn 70 and 1/2 and will be *forced* to withdraw more than $50,000.

I've stopped weeping enough here to offer a thought. You are not really forced to "withdraw" that money from your investable assets. What you are forced to do is remove it out from under the highly favorable tax-sheltered umbrella Uncle Sam and some state governments provide. Nothing I know of would stop you or someone else from turning right around and reinvesting the sum in some other non-sheltered assets - very likely the same ones you originally owned. With "zero" returns on cash currently, those non-sheltered accounts might be a nice place for that 65 % you're apparently sitting on. (A 25% federal tax on 0 equals 0.)
I dunno how much is enough. Health plays a huge part in that assessment. Part of the equation pertains to "needs" vs "wants." We don't need to attend Broadway productions. That's a want but not a need. A decent hotel room close to the NY theater district will run you $400-$500 or more a night in the summer time - and that's before adding in the city's 15% tax. A seat at a top-run performance halfway back and near center will go for $200-$300 and up.
Money is often described using negative cliches - such as being "the root of all evil." But in reality, it's hard to have too much and there are many deserving causes/organizations that will willingly relieve you of that which you don't utilize, as Buffett, Gates and others will testify.

There are places on the coast where $50k is not much. It all depends on your lifestyle. Seattle and San Fran are expensive.
Maybe when you are forced to take more, consider traveling @Junkster. Enjoy your harvest. You've earned it.

JC, I agree $50,000 may not be much in some places, but if they are debt free and getting a pension (many on this board seem to be getting pensions) and Social Security do they still need $50,000?
About enjoying your harvest. Great point and the subject of a new thread I've been pondering about one's longevity vs. the longevity of one's nest egg and why even bother with the risk of equities and losing any of that nest egg. As for traveling, on my way tomorrow for a week hiking in NC. But yes, I need to get out west more, especially where I use to live in the Sierras.

There are places on the coast where $50k is not much. It all depends on your lifestyle. Seattle and San Fran are expensive.
Maybe when you are forced to take more, consider traveling @Junkster. Enjoy your harvest. You've earned it.

I never can understand these type of articles. I am single, debt/mortgage free and with Social Security. I pretty much do as I please when it comes to spending money. But no way do I need to withdraw $50,000. Some are in better shape than me in that they also receive a nice pension. Am I being naive here? Does an investor with $1,000,000+, especially those that are debt free and getting a pension and SS need to withdraw $50,000 or anywhere close? Or is this just east and west coast investors where apparently the cost of living is sky high? Or maybe having a spouse changes the equation?
Of course this will all change when I turn 70 and 1/2 and will be *forced* to withdraw more than $50,000.

@varmit No thanks !
Regards,
Ted
Single Current Issue -- $25
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I am not familiar with this newsletter but I do remember Richard Lehmann. He is sometimes a guest on various financial shows.
My opinion only but I favor learning on your own. Read opinions of many smart investors for free on the web and by listening on the television. MFO is a good place for opinion and knowledge.
There are no sure fire portfolios or methods of investing. If they were so good why would they share their secret at $195 /yr? There's the answer. I would guess that Mr. Lehmann makes a good income stream from this newsletter.

The young EtF accumulated $2.6M in first couple days of trading. Like all ETFs, its holdings are disclosed daily. Here are its initial value picks...40 names, 2.5% each:
AETNA INC NEW (AET)
ALBEMARLE Corp (ALB)
APOLLO EDUCATION GROUP INC (APOL)
APPLE INC (AAPL)
AT&T INC (T)
BED BATH & BEYOND INC (BBBY)
BEST BUY INC (BBY)
BLOCK H & R INC (HRB)
CA INC (CA)
CF INDS HLDGS INC (CF)
CIGNA CorpORATION (CI)
CISCO SYS INC (CSCO)
COACH INC (COH)
EASTMAN CHEM CO (EMN)
EDWARDS LIFESCIENCES Corp (EW)
FLUOR Corp NEW (FLR)
FOOT LOCKER INC (FL)
GAMESTOP Corp NEW (GME)
GAP INC DEL (GPS)
HARRIS Corp DEL (HRS)
HEALTH NET INC (HNT)
HUMANA INC (HUM)
KOHLS Corp (KSS)
LEXMARK INTL NEW (LXK)
MADDEN STEVEN LTD (SHOO)
MAGNA INTL INC (MGA)
MARATHON Oil Corp (MRO)
MARVELL TECHNOLOGY GROUP LTD ORD (MRVL)
METHANEX Corp (MEOH)
MYRIAD GENETICS INC (MYGN)
NORTHROP GRUMMAN Corp (NOC)
NU SKIN ENTERPRISES INC (NUS)
OCCIDENTAL PETE Corp DEL (OXY)
SANDERSON FARMS INC (SAFM)
SOUTHWESTERN ENERGY CO (SWN)
SUNCOR ENERGY INC NEW (SU)
UNITEDHEALTH GROUP INC (UNH)
VALMONT INDS INC (VMI)
WELLPOINT INC (WLP)
WESTLAKE CHEM Corp (WLK)

Yes, what a difference a week makes...who says the market is efficient?

FYI: (Click On Article Title At Top Of Google Search)
Janus Capital Group Inc. Chief Executive Richard Weil on Thursday called his surprise hiring of bond kingpin Bill Gross last month “the press release heard around the world,” but said it was too soon to know the impact on the fund firm’s business.
Janus earlier in the day said that its third-quarter profits rose 25% over the prior year, but the firm’s executives didn’t attribute the gain to Mr. Gross’s arrival. They also said they wouldn’t provide any data on fund inflows until next month.
Regards,
Ted
https://www.google.com/search?newwindow=1&site=&source=hp&q=janus+profits+wsj&oq=janus+profits+wsj&gs_l=hp.3...1300.7466.0.8185.17.17.0.0.0.0.67.937.17.17.0....0...1c.1.56.hp..6.11.653.fKIIcceEEOU