Financial professionals usually suggest that you can safely use 4% each year without even decreasing principal (due to appreciation). A healthy mix of stocks, bonds, RE and alternatives is needed, though.
These "financial professionals" have an approach that is fundamentally mistaken.
The
first priority when investing is to be protected from loss, but you are always exposed to risk with any traditional or alternative asset, so to "diversify" into a "healthy mix" of assets does not actually protect from loss.
If there truly exists a diversified strategy or portfolio that did well during the previous market meltdown while consistently producing >4% average returns, then let's identify it and discuss it.
What you should be doing with $1M is acquiring assets that will always protect your principal. Most people are not even aware that these exist.