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#1 |
Senior Member
Join Date: Jan 2006
Location: Clinton Township, MI
Posts: 3,126
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most of us wont have a pension and social security will be low so How much do you think you need.
I am 31 and I figure I need about 2.1 million in the bank to live a pretty good lifestyle when I retire at 63. Assuming I live to 93 and I take 75% of the equivalent of 8,000 a month out to live on (not counting assets such as house or cars etc..)
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#2 | |
Senior Member
Join Date: Nov 2006
Posts: 1,431
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2,100,000/(360) = $5,833 or 73% of 8000 dollars. A simple way to think about it is if you when you retire you buy a 30 year annuity worth 2.1 million dollars. Suppose, the annuity pays 5% annually (but monthly payments). Then your monthly income from the annuity is, $11,273 per month. Of course, that is in nominal dollars and not real. Let's suppose you can get an annuity that pays a constant 2% annually in real dollars (kind of like an i-bond). Then the monthly income in real terms (relative to price levels the day you retire) is $7,762. Thus, 2.1 million should give you significantly more per month than 75% of $8,000. Last edited by pelagius; 05-25-2007 at 07:14 PM. |
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#3 | |
Senior Member
Join Date: Jan 2006
Location: Clinton Township, MI
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#4 |
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Join Date: Nov 2006
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I misread your post then. Your planning on drawing out 10,875 (0.75% of 14,500) per month the first month and the withdrawals increase at the inflation rate (your expecting 2.3% per year) while the un-touched amount is growing at 6% per year?
Last edited by pelagius; 05-25-2007 at 07:49 PM. |
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#5 |
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All of it.
Next question, please?
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εν αρχη ην ο λογος |
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#6 |
Senior Member
Join Date: Jan 2006
Location: Clinton Township, MI
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thats about right...
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#7 |
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Join Date: Aug 2005
Location: the far corner of my mind
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Not too much, but that's why you have kids
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Sorry for th e tpyos. |
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#8 |
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Join Date: Nov 2006
Location: Utah
Posts: 1,148
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This might sound weird to most people, but I don't plan on retiring until I am unable to work. I'll probably do something that has a flexible schedule so I'll be able to attend family functions, spend time with grandkids, and travel. I just can't picture myself eating dinner at 4:00 PM then watching Jeopardy and Golden Girls before my 9:00 PM bedtime. I get bored now if I take more than 2 weeks off. I can't imagine taking 20 years off.
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#9 |
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Join Date: Dec 2006
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I can think of a lot of other things I'd like to do with those 20 years than work for the "Man."
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#10 | |
Senior Member
Join Date: Jan 2006
Location: Kaysville, UT
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Seriously, I can think of tons of ways to spend my time if I didn't have to go to work. |
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