What about this for a plan?

[aksteelhead]

I am 45 years old and plan to retire in 4 1/2 years. The wife and I have built up a nest egg of 2 Million. Almost all of this is in retirement accounts. We are thinking of rolling everything except the Roths(300K) into two IRAs and taking 72T distributions until we are 59 1/2. Afterwards we plan to divide the total balance by 30 years and reduce the principle by that amount plus any earnings. We realize that there will be years of losing returns and plan to cover this with our fixed pension combined at 110K per year. We have no heirs and would like to take it down as far as possible. Is this plan sane or crazy?

 

[Surewhitey]

Sounds good to me. You have plenty to get to your pension imo.

 

[Animorph]

You can refine it a bit by using your life expectancy (joint) instead of years until 90. Another good way to spend to zero is to use a single payment immediate annuity. Then you are covered past 30 years. No need to buy one now, but something to keep in mind.

 

[marko]

You say: "divide the total balance by 30 years and reduce the principle by that amount plus any earnings".... be sure to factor in inflation rather than just do a simple 30 year division!

 

[donheff]

You can refine it a bit by using your life expectancy (joint) instead of years until 90. Another good way to spend to zero is to use a single payment immediate annuity. Then you are covered past 30 years. No need to buy one now, but something to keep in mind.

Yeah, I would look at that for at least part of your portfolio. That way someting would supplement that uniflated $110K after you pass 30 years. Of course, you didn't mention Social Security. I assume you that will be entering the picture and should make up the missing COLAs on the pensions.

 

[Hermit]

Welcome.

You might want to look at the advantages of keeping some money in the 401k if that is your retirement plan. Its better protected from a legal point of view. I would also have an umbrella policy to help protect the nest egg. Other than that, sounds like you are in good shape to have an enjoyable retirement!