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Huh? $10K withdrawal from a $100k portfolio is a 10% withdrawal rate.No wonder you are running out of money. Not even the Trinity study supports that. Seems to me from all your responses you are posting numbers that don't mesh with reality or don't represent the findings of Trinity study....all in an attempt to make the picture look worse than it actually is. Not credible.
i just realized why they used a 10% withdrawal rate in the 17 year study study. the typical 50/50 mix long term is theoretically supposed to generate a 6-7 % long term average return . out of the 7% your supposed to leave 3% with the nest egg to grow by the rate of inflation and the 4% thats left is your withdrawl rate.
well with an almost 14% 17 year long term average return they left 4% to grow the portfolio by inflation and 10% was free to be withdrawn. low and behold i compared the 7% return with 4% withdrawl rate in my financial planner and it worked out the same as the 10% withdrawl rate with a 14% annual return. the ratio was the same .
now i see why they used those figures.
Last edited by mathjak107; 04-07-2011 at 04:49 PM..
In todays dollars or are you figuring that $100 to 120K will be plenty when you do retire? In the mid 1960's my dad was making $4,200 a year and that was a good income. Also that was all that was needed to support a family. The house payment was $105 a month. Here we are 45 years later and $4,200 is a good bi weekly pay. Someone starting out now may need to up their goals for the future.
You're very right, $500K would be more like it.
Who knows how expensive things might be in 25 years. A gallon of gas might be $20, and a week's worth of groceries might set you back $1,200.
At today's prices, I think the wife and I would make it on $5000 month OK. A big chunk of that would be private health insurance, which is more than a mortgage payment these days.
This recent action on Medicare should change a lot of folks perspective on this subject. My plans relied heavily on a Medicare cushion being available after age 65. This is a game changer. Expect a lot of folks to hang onto their jobs much, much longer.
Young people better hope for lots of job creation, because I don't see the under 55 age group giving up their jobs voluntarily, knowing (or not knowing) how rapidly escalating health care costs are going to destroy their nest eggs.
well retirement doesnt have to mean not working. for some it just means not having to work.
I agree. I just retired from the Army after 32 years. My take home after retirement pay after taxes and my VA compensation pay add up somewhere between $50K and $100K.
Our kids are grown, we will have the house paid by the end of the year and we are debt free. My wife says that I do not have to work if I do not want to. However, I like to stay active. Due to government finance problems the company I work for is not giving us enough work so my hours got cut so I work part time. I do not mind. I am working on getting a second masters, now in family counseling so I may just stay part time or just go full time schooling.
With me it is difficult to express my numbers since I am in a different situation than those that work in the civilian world.
However, as best as I can put it with me after all the veterans benefits from local to federal level my wife and I live comfortably even as low as $50K a year and I am sure even lower than that. I am blessed I must say.
However, I took me a long time to reach this comfort. Also, my wife and I always lived within our means, saved, and also found ways to get free education for our daughters even when they did not qualify for federal aid, take care.
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