U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-25-2016, 06:44 AM
 
438 posts, read 288,029 times
Reputation: 494

Advertisements

Can anyone provide a link for to a site for 401K help where you can find tools to determine how much you could take out and other helpful information? Most of the ones I have looked at just tell you what to contribute, but I want to be able to estimate how much I could take out starting at different ages and be able to use other criteria to forecast for retirement. Thank you.
Reply With Quote Quick reply to this message

 
Old 02-25-2016, 06:46 AM
 
71,811 posts, read 71,896,917 times
Reputation: 49370
not sure of the question . at what age are you starting to draw money ? you can take what you want starting at 59-1/2 with no penalty and at 70-1/2 the required minuimum is just that the minimum you have to take .
Reply With Quote Quick reply to this message
 
Old 02-25-2016, 07:01 AM
 
Location: Central Massachusetts
4,800 posts, read 4,856,396 times
Reputation: 6379
Quote:
Originally Posted by mathjak107 View Post
not sure of the question . at what age are you starting to draw money ? you can take what you want starting at 59-1/2 with no penalty and at 70-1/2 the required minuimum is just that the minimum you have to take .
His question is more in the lines that he wants to see what his options are as to how much of his nest egg can he take out in increments for income to last and how long is what I read. I sent DM'd him firecalc and the site for the TSP tools that everyone has access to. He should be able to use those to make a good determination of his monthly income. Also with firecalc he can see if his retirement plan will work. That is thanks to you my friend.
Reply With Quote Quick reply to this message
 
Old 02-25-2016, 07:02 AM
 
71,811 posts, read 71,896,917 times
Reputation: 49370
i agree , case closed and best of luck to him . these questions about money in ira's coming out can mean lots of different things .

i prefer the more detailed fidelity retirement planner to firecalc but it is always a good idea to check two . especially since firecalc uses actual historical data and fidelity monte carlo which tends to produce slightly more conservative results .
Reply With Quote Quick reply to this message
 
Old 02-25-2016, 03:54 PM
 
Location: Mount Airy, Maryland
10,484 posts, read 5,944,584 times
Reputation: 16194
Simple answer: as long as you have a diversified portolio amd not all in cash the rule of thumb is withdraw 4% and in theory your principal will stay intact.
Reply With Quote Quick reply to this message
 
Old 02-25-2016, 04:20 PM
 
71,811 posts, read 71,896,917 times
Reputation: 49370
Correction , the 4% rule assumes principal can possibly go to zero after 30 years.

The worst of times which is what it is based on would have you just about run dry.

In the best of times you could have 2x what you started with and in average times you would have more then you started with by 30 years.

So you can be anywhere from just about broke to 2x what you started with but in no case does it assume principal will be preserved
Reply With Quote Quick reply to this message
 
Old 02-25-2016, 04:23 PM
 
Location: Gilbert, AZ
3,194 posts, read 1,967,999 times
Reputation: 3333
Yes, 4% is the usual rule of thumb assuming a 30-year retirement and something like a 60/40 mix of stocks and bonds. There's some leeway in the allocation, but if you go much below 50% stocks you may want to drop the withdrawal to 3.5%.

Longer retirements will suggest somewhat smaller withdrawal rates, but a withdrawal rate of around 2.5% should work for for any possible retirement.

These numbers are arrived at by looking at historical periods here in the U.S. If the future is drastically different then of course these withdrawal rates might not work. And if you're not comfortable with the idea of owning some stocks during retirement, these rules of thumb are out the door.
Reply With Quote Quick reply to this message
 
Old 02-26-2016, 01:58 AM
 
71,811 posts, read 71,896,917 times
Reputation: 49370
the updated trinity actually came to the conclusion 35% equity's and higher should work ok but what varies is what is left in the bucket at the end of 30 years if anything .

the numbers are arrived at both by historical data or today monte carlo simulations which attempt to find even more deadly combo's .

that is why fidelity's planner is a bit more conservative then firecalc .

the greater the equity allocation the greater the chance more will be left over .
Reply With Quote Quick reply to this message
 
Old 02-26-2016, 03:20 AM
 
Location: Mount Airy, Maryland
10,484 posts, read 5,944,584 times
Reputation: 16194
I never knew the 4% rule meant 0 in 30 years. Damn pennyless at 97, now that would be a bad Monday.
Reply With Quote Quick reply to this message
 
Old 02-26-2016, 06:15 PM
 
71,811 posts, read 71,896,917 times
Reputation: 49370
Yep. The idea was to see how high of a withdrawal you could have taken during the worst of times and lasted 30 years with different allocations and assigned a success rate.

Because sequence risk is such a determining factor the exact same average return could have a 15 year difference in how long the money will last just based on the order of those gains and losses.

The 4% safe withdrawal rate assumes principal gets spent down in order to preserve the income stream
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top