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I have been working with FIRECALC on a goal monthly income from my investments once I am retired. Several people have told me 4 or 5 percent max.
I will be taking a $900k lump sum at retirement and rolling it into an IRA account that I will be drawing from on a monthly basis under the rules of 72T.
I would like to draw $54k annually from this account which would be 6%. When I plug these numbers into FIRECALC, I get less than a 90% chance of success. The thing is that FIRECALC has a default 3% inflation adjustment built in.
If I put the numbers back in FIRECALC and set the inflation adjustment to zero, my success rate jumps to 98.1%.
If I understand the rules of 72T, you have to commit to set monthly amount that cannot be adjusted for inflation and you are locked in to this amount for 5 years or 59 1/2, whichever takes longer.
My focus here is bridging the gap to 59 1/2, and then SS.
Does this sound like I'm making sense?
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