J.C.’s Money Blog

I just treated myself to another episode of the Suze Orman show, and she took an email question from a viewer, but I have to disagree with her answer…

Joseph, 32, owns his own house cleaning business and has saved up $1.2 million. He owns his house and two cars outright and has a wife and two kids, 6 & 7. He is wondering if he has enough saved or if he should continue to stick it out. He says he can save $20,000 a month, but is sick of it after 14 years.

Suze says since he will live another 50 or 60 years, $1.2 million is not enough, and that he should stick it out as long as he is able, so that he can retire with $12 or $15 million. At 5% he would only make 50,000 a year from interest.

I was a bit shocked that she turned him down outright, because I think that’s plenty of money. Also, he could probably sell his business for another half million, and live off of $75,000. With his house and cars paid off and great income purely from bank interest, he could easily live the idle lifestyle he’s been slaving away for for 14 years.

 If his story is true, I say the guy has worked hard enough and should throw in the towel for a while and enjoy some time with his kids. What do you think?