My financial planner recently told me how much money I need to put in a month on my Roth IRA until I retire at 65 to have a million dollars saved up. I started doing some calculations on my own and figured out that if I live until my 90s, I'm screwed. Even though a million dollars sounds like a ton of money, it really isn't in the bigger picture of retirement.

Photo by Ekaterina Shakharova on Unsplash
Photo by Ekaterina Shakharova on Unsplash

I based my calculations on living off of $40,000 a year, and I figured that my wife and I could live comfortably on our retirement nest egg for 25 years. I started doing a deeper dive into the subject on Google and found a great article on the subject.

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The cheapest state to retire in is Mississippi, where $1 million could last over 22 years. The most expensive state is Hawaii, where you could only make it for about 14 years.

The 10 states where $1 million goes the farthest are:

  1. Mississippi
  2. Oklahoma
  3. Kansas
  4. Alabama
  5. Iowa
  6. Georgia
  7. Indiana
  8. Tennessee
  9. Arkansas
  10. Michigan
Photo by Tim Kilby on Unsplash
Photo by Tim Kilby on Unsplash

The states where you'd burn through it the fastest are:

  1. Hawaii
  2. New York
  3. California
  4. Massachusetts
  5. Alaska

According to the article, in our neighboring states, in Texas, you could live off of $1 million for 20 years 8 months 15 days, in Arkansas, it would last 21 years 1 months 23 days, and in Mississippi 22 years 8 months 12 days.

Here's how it breaks down for Louisiana:

  • Annual groceries cost: $4,443.04
  • Annual housing cost: $8,849.72
  • Annual utilities cost: $3,462.24
  • Annual transportation cost: $3,938.88
  • Annual healthcare cost: $7,058.12
  • Total annual expenditures: $48,751.84
Photo by Manny Becerra on Unsplash
Photo by Manny Becerra on Unsplash

$1 million will last for 20 years, 6 months, and 4 days in Louisiana, I might need to think about doubling my monthly payment to my Roth IRA if I plan to be here for the long haul.

To add more salt in the wound for the Bayou State, there's a report out that Louisiana ranks as one of the worst states to retire in 2023.

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