“I think someone who have a monthly expensive of $2k, a modest job and $1M in the bank, which is more than enough for them to just live off the interest”
If the economy were going to be totally stable forever this would be true. But, given taxes on your cap gains, and REAL inflation (as in the stuff we actually buy…including food and energy), how would you ever generate enough to live on with only a million in principle?
And how would you ever keep your bills steady knowing that the reported and real inflation numbers are light years apart?
1 Million in the bank would be enough to live on if you were 85 perhaps, but long term planning would require much much more given inflation.
