3rd_N_Long
Confused about dryer sheets
- Joined
- Dec 26, 2015
- Messages
- 1
Hi Gang,
Long time lurker and first time poster. Wanted to make this short and sweet.
After running through a few very conservative calculations I'm hoping to have a bare bones minimum of $4MM of fun money (after taxes) come 2046-ish. When I take all things into consideration i.e. Roths, 401k's, taxes, etc a 4% withdrawl rate on that $4MM will equate to roughly $160,000/year in 2046. I simply ran the numbers based off of today's federal contribution limits (did not take into consideration future 401k/ROTH increases, again, took the conservative road). Certainly nothing to high five about but it's not a drop in the bucket either.
Now the scary part (which i'm hoping you all can debunk). By running some quick inflationary numbers, in 30 years that $160k will be worth about $66k in today's dollars (YIKES). In other words, one would need 388k/year in 2046 to equate to $160k/year at today's value.
If this is indeed the case, it's pretty disheartening! I'm hoping everyone (especially the older generation) can provide some insight as to how inflation has impacted the reality of your retirement funds. Additionally, i'm hoping that everyone can find a few flaws in this thinking.
I certainly appreciate your insight!
Thanks,
3rd
Long time lurker and first time poster. Wanted to make this short and sweet.
After running through a few very conservative calculations I'm hoping to have a bare bones minimum of $4MM of fun money (after taxes) come 2046-ish. When I take all things into consideration i.e. Roths, 401k's, taxes, etc a 4% withdrawl rate on that $4MM will equate to roughly $160,000/year in 2046. I simply ran the numbers based off of today's federal contribution limits (did not take into consideration future 401k/ROTH increases, again, took the conservative road). Certainly nothing to high five about but it's not a drop in the bucket either.
Now the scary part (which i'm hoping you all can debunk). By running some quick inflationary numbers, in 30 years that $160k will be worth about $66k in today's dollars (YIKES). In other words, one would need 388k/year in 2046 to equate to $160k/year at today's value.
If this is indeed the case, it's pretty disheartening! I'm hoping everyone (especially the older generation) can provide some insight as to how inflation has impacted the reality of your retirement funds. Additionally, i'm hoping that everyone can find a few flaws in this thinking.
I certainly appreciate your insight!
Thanks,
3rd