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is my assumption correct? (for my distribution plan)
Old 03-08-2007, 03:41 PM   #1
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is my assumption correct? (for my distribution plan)

In the future, I plan to post my proposed retirement distribution plan and ask for advice, but before I do that, I want to make sure that my assumptions are correct.

Often, people will offer their views on their proposed plans and people reply by saying “you forgot to consider the effects of inflation”.

I’m trying to avoid that.

If I plan to take 60K my first year, and 61,800 (60 + 3%) my second year, and 63,354 (61,800 + 3%) my third year…..and so on

(I know that inflation might be more than 3%, but I don’t want to debate that )

By doing this, can I assume that no one should respond by saying that I forgot about inflation?

using an 8.5% withdrawal rate until SS kicks in
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Re: is my assumption correct? (for my distribution plan)
Old 03-08-2007, 06:27 PM   #2
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Re: is my assumption correct? (for my distribution plan)

You forgot about inflation!

[Edited to add smiley]

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Re: is my assumption correct? (for my distribution plan)
Old 03-08-2007, 06:35 PM   #3
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Re: is my assumption correct? (for my distribution plan)


If you believe that your personal inflation rate can be modeled by an index like the CPI, then your assumptions are correct for your withdrawal scheme.


Be nice now !
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