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AARP Retirement Calculator says SWR is 2%
Old 01-12-2005, 06:13 AM   #1
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AARP Retirement Calculator says SWR is 2%

Says a 65-year-old needs more than $2 million to fund a $40,000/year inflation-adjusted withdrawal. See link:

http://sites.stockpoint.com/aarp_rc/....asp?act=LOGIN

No info on the assumptions or algorithm behind the program.

Maybe this is the 'Magic SWR Tool' we've been hearing so much about? <LOL>

intercst
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Re: AARP Retirement Calculator says SWR is 2%
Old 01-12-2005, 07:32 AM   #2
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Re: AARP Retirement Calculator says SWR is 2%

Maybe this is the 'Magic SWR Tool' we've been hearing so much about? <LOL>

This song is getting old. Does anyone have any new records?
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Re: AARP Retirement Calculator says SWR is 2%
Old 01-12-2005, 10:52 AM   #3
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Re: AARP Retirement Calculator says SWR is 2%

The Norwegian widow used to hum Keely Smith's version of 'That Old Black Magic' by the mailbox waiting for her dividend checks.

Perhaps the old is new again:

as of 1/11/05 - VG Balanced Index(60/40) = 2.39% yield

AND that old timey Vg managed value dog, Wellesley(40/60) = 3.56% yield.

AARP could have done a much better job. That's the mildest way I can put it.
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Re: AARP Retirement Calculator says SWR is 2%
Old 01-12-2005, 12:07 PM   #4
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Re: AARP Retirement Calculator says SWR is 2%

Quote:
The Norwegian widow used to hum Keely Smith's version of 'That Old Black Magic' by the mailbox waiting for her dividend checks.
Unbelievable! Another Louie Prima/ Keely Smith fan. I saw "Hey Boy! Hey Girl! on TV not long ago. Great movie if you like Louie and Keely..

Mikey
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Re: AARP Retirement Calculator says SWR is 2%
Old 01-12-2005, 02:21 PM   #5
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Re: AARP Retirement Calculator says SWR is 2%

According to Intercst's post, Vanguard now offers an inflation adjusted annuity that would pay the 65 year old over $98,000 a year for the rest of their life.

Well, I guess AARP wants the fruits of the 65 year olds' labor to be squandered by their heirs (unless, of course, I'm one of the heirs).

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Re: AARP Retirement Calculator says SWR is 2%
Old 01-12-2005, 02:38 PM   #6
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Re: AARP Retirement Calculator says SWR is 2%

I'm not buying it.

I'm 61, taking 5% since '97.

I started CPP a year ago, Mrs. Zipper still works, and healthcare is a non-issue in Canada. I will get additional OAS $500/mo at 65, at which point Mrs. Z will be fully retired and accessing CPP.

My draw this year ('05) gave me inflation protection on a balanced 60/40 portfolio.
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Re: AARP Retirement Calculator says SWR is 2%
Old 01-12-2005, 02:57 PM   #7
 
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Re: AARP Retirement Calculator says SWR is 2%

And I'm 60 years old, completely retired since June, 1998
and have not taken a dime from my "base". No stocks,
no pension and we pay for our own health insurance.
Whatever works.

JG
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Re: AARP Retirement Calculator says SWR is 2%
Old 01-29-2005, 02:19 PM   #8
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Re: AARP Retirement Calculator says SWR is 2%

Now the thing tells me that I cannot continue to contribute to my employer plan after my spouse retires. Is this some rule I don't know about?
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Re: AARP Retirement Calculator says SWR is 2%
Old 01-30-2005, 04:13 AM   #9
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Re: AARP Retirement Calculator says SWR is 2%

Quote:
Now the thing tells me that I cannot continue to contribute to my employer plan after my spouse retires. Is this some rule I don't know about?
There is no such rule.
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Re: AARP Retirement Calculator says SWR is 2%
Old 02-25-2005, 06:23 AM   #10
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Re: AARP Retirement Calculator says SWR is 2%

All withdrawal rates are based on a set of assumptions. Everyone's situations are different. It's ridiculous to compare individual situations competitively.

Key to making assumptions is your personal perception of the future and your philosopy on living your life. Historical rates of return are likely, in my opinion, to be very different going forward than they have been in the past in congruence with the rapid changes everything else in the world is going through.

So, you pay your money, you take your chance.

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