is my assumption correct? (for my distribution plan)

albundyz · 03-08-2007, 04:41 PM

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?

TromboneAl · 03-08-2007, 07:27 PM

You forgot about inflation!

[Edited to add smiley]

MasterBlaster · 03-08-2007, 07:35 PM

Albundyz:

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.

TromboneAl:

Be nice now !

03-08-2007, 04:41 PM	#1
albundyz Recycles dryer sheets Join Date: Feb 2006 Posts: 60	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 *

03-08-2007, 07:27 PM	#2
TromboneAl Thinks s/he gets paid by the post Join Date: Jun 2006 Posts: 4,166	Re: is my assumption correct? (for my distribution plan) You forgot about inflation! [Edited to add smiley] __________________ - Al -- Always serious, never joking. No, wait. Never serious... Always... I forget.

03-08-2007, 07:35 PM	#3
MasterBlaster Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 1,777	Re: is my assumption correct? (for my distribution plan) Albundyz: 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. TromboneAl: Be nice now !

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
35 buckets plan, starting WR of 7.4% - punch holes in me plan	citril	FIRE and Money	35	03-10-2007 06:46 PM
Senator Wyden's "health care plan for all Americans"	REWahoo	Health and Early Retirement	81	12-19-2006 09:04 AM
Pension Plan Gurus	UncleHoney	FIRE and Money	4	08-11-2006 10:48 PM
nTelos cell phone plan?	Dreamer	Other topics	3	07-14-2006 01:27 PM
401(k) to roll or not?	mickeyd	FIRE and Money	31	02-08-2006 10:34 PM

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)